Dealing with the Coffee Crisis in Central America : Impacts and Strategies

Current coffee prices are at record lows and below the cost of production for many producers in Central America. Moreover, the coffee crisis is structural, and changes in supply and demand do not indicate a quick recovery of prices. So, coffee prod...

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Main Authors:	Varangis, Panos, Siegel, Paul, Giovannucci, Daniele, Lewin, Bryan
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2014
Subjects:	COFFEE INDUSTRY & TRADE COFFEE PRICES PRODUCTION COSTS FINANCIAL CRISES PRICE STABILIZATION COFFEE PLANTATIONS LABORERS EXPORTS ECONOMIC CONSTRAINTS RURAL CONDITIONS WEATHER DISASTERS COMMODITIES COMMODITY FUTURES PRICES ECONOMIC RECESSION RURAL ECONOMIC DEVELOPMENT COMPETITIVENESS DIVERSIFICATION INSTITUTIONAL FRAMEWORK SOCIAL CONDITIONS ENVIRONMENTAL ASPECTS OF AGRICULTURAL DEVELOPMENT SAFETY NET POLICIES AGGREGATE DEMAND AGRICULTURAL PRODUCTION AUCTIONS AVERAGE YIELDS BALANCE OF PAYMENTS BEANS CHERRIES CLIMATIC CONDITIONS COFFEE COFFEE CRISIS COFFEE EXPORTS COFFEE FARMERS COFFEE PLANTS COFFEE PRODUCERS COFFEE PRODUCTION COFFEE SECTOR COFFEE YIELDS COMMODITY CROP CROPS DEBT DOMESTIC MARKET ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC PROBLEMS ECONOMIC SECTORS ECOSYSTEMS EMPLOYMENT ENVIRONMENTAL IMPACTS ENVIRONMENTAL ISSUES ENVIRONMENTAL PROBLEMS EXPENDITURES EXTERNALITIES FAIR TRADE FARM FARMER FARMERS FARMS FINANCIAL SECTOR GDP HARVESTING INCOME INCOME EFFECTS INFLATION INTEREST RATES INTERNATIONAL MARKETS INVENTORIES LABOR FORCE MARKET INFORMATION MARKET ORIENTATION MARKET SEGMENTS MARKET SHARE MARKETING NATIONAL ECONOMIES NICHE MARKETS PRICE PREMIUM PRICE PROJECTIONS PRICE RISK PRICE SUPPORT PRICE VOLATILITY PRODUCT DIFFERENTIATION PRODUCTIVITY QUALITY COFFEE REPLANTING RETAIL SAFETY NETS SHADE-GROWN COFFEE SMALL FARMERS SMALL PRODUCERS SOILS SPECIALTY COFFEE SPECIALTY COFFEE MARKETS SPREAD STOCKS STRUCTURAL CHANGE SUPPLIERS SURPLUS SUSTAINABLE DEVELOPMENT TIMBER TREE DENSITY UNEMPLOYMENT VALUE ADDED WAGES WORLD MARKETS SAFETY NET POLICIES AGGREGATE DEMAND
Online Access:	http://documents.worldbank.org/curated/en/2003/03/2191889/dealing-coffee-crisis-central-america-impacts-strategies http://hdl.handle.net/10986/18273

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recordtype	oai_dc
spelling	okr-10986-182732021-04-23T14:03:42Z Dealing with the Coffee Crisis in Central America : Impacts and Strategies Varangis, Panos Siegel, Paul Giovannucci, Daniele Lewin, Bryan COFFEE INDUSTRY & TRADE COFFEE PRICES PRODUCTION COSTS FINANCIAL CRISES PRICE STABILIZATION COFFEE PLANTATIONS LABORERS EXPORTS ECONOMIC CONSTRAINTS RURAL CONDITIONS WEATHER DISASTERS COMMODITIES COMMODITY FUTURES PRICES ECONOMIC RECESSION RURAL ECONOMIC DEVELOPMENT COMPETITIVENESS DIVERSIFICATION INSTITUTIONAL FRAMEWORK SOCIAL CONDITIONS ENVIRONMENTAL ASPECTS OF AGRICULTURAL DEVELOPMENT SAFETY NET POLICIES AGGREGATE DEMAND AGRICULTURAL PRODUCTION AUCTIONS AVERAGE YIELDS BALANCE OF PAYMENTS BEANS CHERRIES CLIMATIC CONDITIONS COFFEE COFFEE CRISIS COFFEE EXPORTS COFFEE FARMERS COFFEE PLANTS COFFEE PRICES COFFEE PRODUCERS COFFEE PRODUCTION COFFEE SECTOR COFFEE YIELDS COMMODITY COMPETITIVENESS CROP CROPS DEBT DOMESTIC MARKET ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC PROBLEMS ECONOMIC SECTORS ECOSYSTEMS EMPLOYMENT ENVIRONMENTAL IMPACTS ENVIRONMENTAL ISSUES ENVIRONMENTAL PROBLEMS EXPENDITURES EXTERNALITIES FAIR TRADE FARM FARMER FARMERS FARMS FINANCIAL SECTOR GDP HARVESTING INCOME INCOME EFFECTS INFLATION INTEREST RATES INTERNATIONAL MARKETS INVENTORIES LABOR FORCE MARKET INFORMATION MARKET ORIENTATION MARKET SEGMENTS MARKET SHARE MARKETING NATIONAL ECONOMIES NICHE MARKETS PRICE PREMIUM PRICE PROJECTIONS PRICE RISK PRICE SUPPORT PRICE VOLATILITY PRODUCT DIFFERENTIATION PRODUCTIVITY QUALITY COFFEE REPLANTING RETAIL SAFETY NETS SHADE-GROWN COFFEE SMALL FARMERS SMALL PRODUCERS SOILS SPECIALTY COFFEE SPECIALTY COFFEE MARKETS SPREAD STOCKS STRUCTURAL CHANGE SUPPLIERS SURPLUS SUSTAINABLE DEVELOPMENT TIMBER TREE DENSITY UNEMPLOYMENT VALUE ADDED WAGES WORLD MARKETS SAFETY NET POLICIES AGGREGATE DEMAND Current coffee prices are at record lows and below the cost of production for many producers in Central America. Moreover, the coffee crisis is structural, and changes in supply and demand do not indicate a quick recovery of prices. So, coffee producers in Central America are facing new challenges-as are coffee laborers, coffee exporters, and others linked to the coffee sector. Coffee plays a major economic role in Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua. The coffee crisis is actually part of a broader rural crisis caused by weather shocks (such as Hurricane Mitch and droughts), low international agricultural commodity prices, and the global recession. These challenges call for new strategies for Central American countries aimed at broad-based sustainable development of their rural economies. The authors deal with the impact of the coffee crisis and strategies to deal with it. They include an analysis of the international coffee situation and country-specific analyses. The authors explore options and constraints for increased competitiveness and diversification, and discuss social, environmental, and institutional dimensions of the crisis. The authors conclude that there are specific solutions that can be pursued for the coffee sector. Some are already being applied, but more can be done in a more systematic way. Also, there is a need for safety nets to deal with the short-term impact of the crisis. Longer-term solutions are to be found in increased competitiveness and diversification in the context of broad-based sustainable rural economic development. 2014-05-12T20:41:16Z 2014-05-12T20:41:16Z 2003-03 http://documents.worldbank.org/curated/en/2003/03/2191889/dealing-coffee-crisis-central-america-impacts-strategies http://hdl.handle.net/10986/18273 English en_US Policy Research Working Paper;No. 2993 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Latin America & Caribbean
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	COFFEE INDUSTRY & TRADE COFFEE PRICES PRODUCTION COSTS FINANCIAL CRISES PRICE STABILIZATION COFFEE PLANTATIONS LABORERS EXPORTS ECONOMIC CONSTRAINTS RURAL CONDITIONS WEATHER DISASTERS COMMODITIES COMMODITY FUTURES PRICES ECONOMIC RECESSION RURAL ECONOMIC DEVELOPMENT COMPETITIVENESS DIVERSIFICATION INSTITUTIONAL FRAMEWORK SOCIAL CONDITIONS ENVIRONMENTAL ASPECTS OF AGRICULTURAL DEVELOPMENT SAFETY NET POLICIES AGGREGATE DEMAND AGRICULTURAL PRODUCTION AUCTIONS AVERAGE YIELDS BALANCE OF PAYMENTS BEANS CHERRIES CLIMATIC CONDITIONS COFFEE COFFEE CRISIS COFFEE EXPORTS COFFEE FARMERS COFFEE PLANTS COFFEE PRICES COFFEE PRODUCERS COFFEE PRODUCTION COFFEE SECTOR COFFEE YIELDS COMMODITY COMPETITIVENESS CROP CROPS DEBT DOMESTIC MARKET ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC PROBLEMS ECONOMIC SECTORS ECOSYSTEMS EMPLOYMENT ENVIRONMENTAL IMPACTS ENVIRONMENTAL ISSUES ENVIRONMENTAL PROBLEMS EXPENDITURES EXTERNALITIES FAIR TRADE FARM FARMER FARMERS FARMS FINANCIAL SECTOR GDP HARVESTING INCOME INCOME EFFECTS INFLATION INTEREST RATES INTERNATIONAL MARKETS INVENTORIES LABOR FORCE MARKET INFORMATION MARKET ORIENTATION MARKET SEGMENTS MARKET SHARE MARKETING NATIONAL ECONOMIES NICHE MARKETS PRICE PREMIUM PRICE PROJECTIONS PRICE RISK PRICE SUPPORT PRICE VOLATILITY PRODUCT DIFFERENTIATION PRODUCTIVITY QUALITY COFFEE REPLANTING RETAIL SAFETY NETS SHADE-GROWN COFFEE SMALL FARMERS SMALL PRODUCERS SOILS SPECIALTY COFFEE SPECIALTY COFFEE MARKETS SPREAD STOCKS STRUCTURAL CHANGE SUPPLIERS SURPLUS SUSTAINABLE DEVELOPMENT TIMBER TREE DENSITY UNEMPLOYMENT VALUE ADDED WAGES WORLD MARKETS SAFETY NET POLICIES AGGREGATE DEMAND
spellingShingle	COFFEE INDUSTRY & TRADE COFFEE PRICES PRODUCTION COSTS FINANCIAL CRISES PRICE STABILIZATION COFFEE PLANTATIONS LABORERS EXPORTS ECONOMIC CONSTRAINTS RURAL CONDITIONS WEATHER DISASTERS COMMODITIES COMMODITY FUTURES PRICES ECONOMIC RECESSION RURAL ECONOMIC DEVELOPMENT COMPETITIVENESS DIVERSIFICATION INSTITUTIONAL FRAMEWORK SOCIAL CONDITIONS ENVIRONMENTAL ASPECTS OF AGRICULTURAL DEVELOPMENT SAFETY NET POLICIES AGGREGATE DEMAND AGRICULTURAL PRODUCTION AUCTIONS AVERAGE YIELDS BALANCE OF PAYMENTS BEANS CHERRIES CLIMATIC CONDITIONS COFFEE COFFEE CRISIS COFFEE EXPORTS COFFEE FARMERS COFFEE PLANTS COFFEE PRICES COFFEE PRODUCERS COFFEE PRODUCTION COFFEE SECTOR COFFEE YIELDS COMMODITY COMPETITIVENESS CROP CROPS DEBT DOMESTIC MARKET ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC PROBLEMS ECONOMIC SECTORS ECOSYSTEMS EMPLOYMENT ENVIRONMENTAL IMPACTS ENVIRONMENTAL ISSUES ENVIRONMENTAL PROBLEMS EXPENDITURES EXTERNALITIES FAIR TRADE FARM FARMER FARMERS FARMS FINANCIAL SECTOR GDP HARVESTING INCOME INCOME EFFECTS INFLATION INTEREST RATES INTERNATIONAL MARKETS INVENTORIES LABOR FORCE MARKET INFORMATION MARKET ORIENTATION MARKET SEGMENTS MARKET SHARE MARKETING NATIONAL ECONOMIES NICHE MARKETS PRICE PREMIUM PRICE PROJECTIONS PRICE RISK PRICE SUPPORT PRICE VOLATILITY PRODUCT DIFFERENTIATION PRODUCTIVITY QUALITY COFFEE REPLANTING RETAIL SAFETY NETS SHADE-GROWN COFFEE SMALL FARMERS SMALL PRODUCERS SOILS SPECIALTY COFFEE SPECIALTY COFFEE MARKETS SPREAD STOCKS STRUCTURAL CHANGE SUPPLIERS SURPLUS SUSTAINABLE DEVELOPMENT TIMBER TREE DENSITY UNEMPLOYMENT VALUE ADDED WAGES WORLD MARKETS SAFETY NET POLICIES AGGREGATE DEMAND Varangis, Panos Siegel, Paul Giovannucci, Daniele Lewin, Bryan Dealing with the Coffee Crisis in Central America : Impacts and Strategies
geographic_facet	Latin America & Caribbean
relation	Policy Research Working Paper;No. 2993
description	Current coffee prices are at record lows and below the cost of production for many producers in Central America. Moreover, the coffee crisis is structural, and changes in supply and demand do not indicate a quick recovery of prices. So, coffee producers in Central America are facing new challenges-as are coffee laborers, coffee exporters, and others linked to the coffee sector. Coffee plays a major economic role in Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua. The coffee crisis is actually part of a broader rural crisis caused by weather shocks (such as Hurricane Mitch and droughts), low international agricultural commodity prices, and the global recession. These challenges call for new strategies for Central American countries aimed at broad-based sustainable development of their rural economies. The authors deal with the impact of the coffee crisis and strategies to deal with it. They include an analysis of the international coffee situation and country-specific analyses. The authors explore options and constraints for increased competitiveness and diversification, and discuss social, environmental, and institutional dimensions of the crisis. The authors conclude that there are specific solutions that can be pursued for the coffee sector. Some are already being applied, but more can be done in a more systematic way. Also, there is a need for safety nets to deal with the short-term impact of the crisis. Longer-term solutions are to be found in increased competitiveness and diversification in the context of broad-based sustainable rural economic development.
format	Publications & Research :: Policy Research Working Paper
author	Varangis, Panos Siegel, Paul Giovannucci, Daniele Lewin, Bryan
author_facet	Varangis, Panos Siegel, Paul Giovannucci, Daniele Lewin, Bryan
author_sort	Varangis, Panos
title	Dealing with the Coffee Crisis in Central America : Impacts and Strategies
title_short	Dealing with the Coffee Crisis in Central America : Impacts and Strategies
title_full	Dealing with the Coffee Crisis in Central America : Impacts and Strategies
title_fullStr	Dealing with the Coffee Crisis in Central America : Impacts and Strategies
title_full_unstemmed	Dealing with the Coffee Crisis in Central America : Impacts and Strategies
title_sort	dealing with the coffee crisis in central america : impacts and strategies
publisher	World Bank, Washington, DC
publishDate	2014
url	http://documents.worldbank.org/curated/en/2003/03/2191889/dealing-coffee-crisis-central-america-impacts-strategies http://hdl.handle.net/10986/18273
_version_	1764439514055442432

Dealing with the Coffee Crisis in Central America : Impacts and Strategies

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