1. Central America: World Leader in Coffee Production
Central America, made up of Guatemala, Honduras, El Salvador, Nicaragua, Costa Rica, Panama and Belize, is recognized as one of the most important regions for the production of high-quality coffee. Its combination of volcanic soils, optimal altitudes and sustainable methods generates beans with unique flavor profiles that stand out in global markets.
2. Impact of K-CAFTA on Coffee Exports
The Free Trade Agreement between South Korea and Central America (K-CAFTA), in force since March 2021, has reduced tariffs, facilitating the import of Central American coffee to South Korea. This Asian market, with a per capita consumption of 353 cups per year, is a key destination for the region's specialty coffee, offering opportunities to diversify the Central American coffee industry.
3. Opportunities in the International Market
Central America can take advantage of markets such as Europe, Asia and North America, where there is a growing demand for organic and fair trade coffees. International fairs and events, such as the Yeongdo Coffee Festival in South Korea, are key platforms for exporters looking to highlight the unique qualities of their beans.
4. Innovation and Technology in Coffee Exports
The introduction of tools such as artificial intelligence (AI) allows exporters to analyze the chemical and sensory characteristics of their beans, developing an innovative concept known as "data coffee." This technology, along with roasting manuals and flavor analysis, increases the competitiveness of Central American coffee in demanding markets.
5. Challenges and Strategies for the Future
Producers face challenges such as the effects of climate change, fluctuations in international prices and high logistics costs. However, strategies such as market diversification, promoting added value in roasted products, and investing in sustainable certifications are key to overcoming these obstacles and increasing global competitiveness.
6. Coffee Industry
Central America's coffee wealth, combined with treaties such as K-CAFTA and the use of advanced technology, positions the region as a global leader in the coffee industry. Export opportunities continue to grow, strengthening local economies and connecting Central America to the world.
7. Trade/Economic
The Free Trade Agreement (FTA) between Guatemala and South Korea represents a great economic opportunity, especially for small and medium-sized exporting companies (SMEs). With the implementation of the FTA, 80% of products exported from Guatemala to South Korea will enter with zero tariffs, which includes products such as coffee, fruits, and other high-quality products produced in Guatemala.
Coffee, which already has a presence in the Asian market, is one of the main products with export potential for Guatemalan SMEs. Market diversification towards Asia has increased, and in 2021-2022, 5% of Guatemalan coffee was exported to South Korea.
Through the FTA, new opportunities will also open up for other products such as mango, avocado, handicrafts and pharmaceutical products, which can access a Korean market with high purchasing power. In addition, the export of agricultural and manufactured products without tariffs will be facilitated, which benefits a large number of small and medium-sized producers.
The FTA will also offer equal conditions with other countries in the region and will expand business opportunities, boosting the economic growth of Guatemalan SMEs, which make up 99% of the business fabric and represent around 40% of Guatemala's Gross Domestic Product (GDP).
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