Friday, 09 July 2021 13:47

ACAFESAL exposes the current coffee situation in El Salvador

Written by Alondra Gutiérrez

The situation for the coffee sector in El Salvador has presented a progressive deterioration in the last 30 years and with it a decrease of 83% greatly affecting this sector.

In a television interview, in which the president of the la Asociación Cafetalera de El Salvador (ACAFESAL) Omar Flores, was present, the coffee growing situation in the country was discussed and how the 20% increase in the minimum wage can help this sector.

"The country's coffee industry has brought a progressive deterioration in the last 30 years, the record production in 1992 was 4 million 300 thousand, the last harvest that is closing is 950,140 quintals, a decrease of 83%", said Omar Flores, president of ACAFESAL.

Among the main factors that affected the coffee sector, according to the president of ACAFESAL, in the country, was the impact of coffee rust in the coffee sector, a crisis that affected coffee growers, after this the international coffee prices, he said that this now are improving, but emphasized that this is temporary and the inputs that are purchased especially fertilizers which come from abroad and that has a steady increase year after year.

"The coffee grower, most of them have a strong indebtedness, as a union we have been working with previous governments and with this one we have seen a good opening", said the head of ACAFESAL.

The 20% increase to the minimum wage was part of the issues that were also addressed, to which the president of ACAFESAl, said that they agree with the increase, he reported that currently the cost of the quintal is US$167 and with the increase to the minimum wage the total cost of the quintal would be US$187.40.

"With the current wages, a farm worked, the total cost of a quintal is US$167 with the 20% increase in the minimum wage we will have a cost of US$187", he said.

"Coffee prices are between US$135 to US$140 on the stock market, from that price the first discount that is made is for transformation, which is US$60, we add 13% VAT and 1.5% income tax", he said.

He also said that the quota that must be given to the Salvadoran Coffee Council (CSC), is US$0.50 ctvo. Per quintal and the export tax is US$0.35 ctvo. per quintal.

"The quota to the Consejo Salvadoreño del Café of US$0.50 per quintal and the export tax of US$0.35 per quintal, with all this discount the coffee grower is receiving around US$63", he said.

Likewise, the president said that, because of the situation for the coffee sector, with the increase in the minimum wage, 20% is impossible to absorb due to the decline of the coffee industry and that is why they are asking the government to create a trust fund to provide financing so that they can pay the increase in wages.

"We are asking the government for a trust fund for coffee growers so that we can respond with this increase to the worker", he said.

"In the coffee sector we do not work with social security, we ask that the payrolls be taken into account for the support with the trust, in talks with the minister of Agriculture, David Martinez, they told us that they were going to include us in the trust".

Likewise, he said that with the launching, País Café de El Salvador is the positioning in the international markets, in the different countries.

"This gives us hope that we can improve the prices and sell them outside the stock exchange, depending on the quality it can be around US$300 or US$400, and with that there is an improvement", he said.