Ecuador soluble coffee exports fall as processing costs rise -US attache

Shutterstock photo

NEW YORK, May 17 (Reuters) - Ecuador's 2019/2020 soluble coffee exports are expected to drop 10% from the 2018/19 season as processing costs climb and as farmers pivot to growing specialty beans, according to a report published on Friday by the U.S. Department of Agriculture attache in Ecuador.

Ecuador exports processed coffee derived from both domestically grown and imported beans, a business worth about $70 million in 2018. But the steep cost of electricity and water as well as expensive transportation between key regions has meant that the country has lost its competitive edge in such exports, the attache in Quito said.

"Ecuador's soluble sector, and exports of soluble coffee, have fallen by 50 percent in the last few years," the report said. "Ecuador's competitiveness in processing imported coffee has vanished."

Higher returns on specialty beans are encouraging the cultivation of high-quality varietals and contributing to the increase in the production of finer arabica beans, the report said.

The attache forecasts 2019/20 arabica output at 155,000 60-kg bags, up 10.7% year on year.

To read the full report, click:

This article appears in: World Markets , Economy , Commodities

More from Reuters


See Reuters News

Research Brokers before you trade

Want to trade FX?