How is the Guatemalan coffee industry performing?

Guatemala's coffee industry earned $944 million in export revenue in the 2022-2023 coffee year, keeping coffee as the country's top agricultural export despite a decline from $1.136 billion the year before. Lower international prices and El Niño-related production losses drove the drop. Anacafé expects 2023-2024 output to reach 4 million hundredweight.

North America buys 49 percent of Guatemalan exports, with the United States alone taking 41 percent, followed by Asia at 26 percent and Europe at 22 percent. Guatemala has also joined the free trade agreement between South Korea and Central American countries. High-altitude beans and proximity to the US market give the country a price edge over Brazil, Vietnam, and Thailand.

Guatemala's coffee industry generated $944 million in export earnings in the 2022-2023 coffee year, maintaining its position as the country's top agricultural export. Although export value declined from the previous year due to international price fluctuations and the El Niño phenomenon, the industry remains optimistic about prospects for 2024. Meanwhile, Guatemala has officially joined the free trade agreement between South Korea and Central American countries, injecting new momentum into coffee exports. The president of Anacafé predicts that production in the 2023-2024 coffee year is expected to reach 4 million hundredweight, further enhancing the competitiveness and position of Guatemalan coffee in the international market.

The president of the National Coffee Association of Guatemala (Anacafé) recently stated that the country's coffee exports delivered outstanding foreign exchange earnings for the second consecutive year in 2023, and he holds a positive outlook for trends in 2024.

Official statistics show that during the 2022-2023 coffee year, a total of 3.9 million hundredweight of Guatemalan café oro was exported overseas, generating $944 million in foreign exchange revenue for the country. Coffee ranked second in foreign exchange earnings among Guatemala's total exports in 2023, while ranking first among agricultural exports.

According to Anacafé, of Guatemala's coffee export destinations, North America accounts for 49%, Asia 26%, Europe 22%, and the remaining 3% goes to other regions of the world. The United States is the largest buyer of Guatemalan coffee, with an export share of 41%. Guatemala's high-altitude coffee beans are considered premium products in the industry, and combined with its geographic proximity to the United States, they enjoy a price advantage in competing with products from Brazil, Vietnam, and Thailand.

However, coffee export earnings in the 2021-2022 coffee year reached $1.136 billion. By comparison, export earnings in the 2022-2023 coffee year declined. This was mainly because coffee prices fluctuate every year, and during the 2022-2023 coffee year, international coffee prices fell sharply, compounded by reduced production caused by the El Niño phenomenon, ultimately resulting in shrunken export value.

Recently, Guatemala officially signed a free trade agreement, joining the Free Trade Agreement (FTA) between South Korea and Central American countries. Previously, the agreement had already been signed with five Central American countries: Costa Rica, El Salvador, Panama, Honduras, and Nicaragua. Guatemala's accession this time comes three years after the agreement's full implementation in March 2021. This has created new favorable conditions for Guatemala's coffee export industry.

South Korea's main exports to Guatemala include automobiles, fibers, and petrochemical products, while Guatemala's exports to South Korea are mainly agricultural products, covering coffee and bananas, as well as minerals such as nickel and carbon. The president of Anacafé pointed out that reaching a free trade arrangement with South Korea will help enhance the competitiveness of Guatemalan coffee, expand sales in international markets, and consolidate the country's coffee position. He also predicted that in the 2023-2024 coffee year, with the help of a proactive sustainable profitability plan, coffee production is expected to reach 4 million hundredweight, and production will generally increase in the coming years as well.

The above content is compiled by CoffeeHunters, a coffee news website.