Tuesday, 05 September 2023 03:42

The Government of El Salvador and FAO promote investment of US$21.3 million in the coffee sector

Written by Leydin Sorto

According to the analysis presented at the national forum "Coffee in El Salvador: current outlook, perspectives and opportunities", investing in production, post-harvest management and commercialization could generate returns of 22% and impact 99 thousand people in the area.

 

 

The Vice-Presidency of El Salvador, the Ministerio de Agricultura y Ganadería (MAG), the Asociación Cafetalera de El Salvador (ACAFESAL) and the Food and Agriculture Organization of the United Nations (FAO) held the National Forum "Coffee in El Salvador: current outlook, perspectives and opportunities", with the objective of promoting investments in the sector, particularly in the Tecapa-Chinameca mountain range, a territory that has been selected for its high potential for development through coffee.

In total, an investment of US$21.3 million is proposed, which would allow an average increase of more than US$1,400 in the income of some 24,000 people working in the sector, with a total of 99,000 direct and indirect beneficiaries.

Granos De Café, Café, Asado, Cafeína

Dinero, Moneda, Inversión, Negocio

The proposal has been developed within the framework of FAO's "Hand in Hand" initiative, which consists of identifying territories with high potential for rural transformation and the development of their inhabitants and launching initiatives that bring together governments, investors and technical assistance.

During the event, which brought together representatives of international cooperation institutions, the private sector, multilateral organizations and specialized actors of the coffee sector, an investment note was presented, prepared by MAG and FAO, which proposes a program focused on three components: improving productivity and efficiency; a better post-harvest organization; and a better positioning of salvadoran coffee in the market.

Granos De Café, Taza, Taza De Café, Café

Dinero, Crecer, Interesar, Salvar

The FAO representative in El Salvador, Diego Recalde, said that the country meets the conditions for the sector to grow in a sustained manner by implementing actions to recover production levels prior to the rust crisis; improve prices paid to producers, as well as export prices. This would provide sustainability to the sector, impacting the entire chain, from the crop to the consumer.

"El Salvador produces some of the best coffees in the world. However, at FAO we know that the sector still has many opportunities for growth with the right investments in production, post-harvest handling and marketing. This will allow improving the income of thousands of people living in rural areas, particularly in the eastern zone, where the Tecapa-Chinameca mountain range is located", said Recalde.

Investment in coffee growing also has environmental benefits. The MAG and FAO proposal estimates that the increase in production would allow the capture of 318,493 tCO2-e, also the coffee forest allows water recharge. The event was attended by the Consejo Salvadoreño del Café (CSC) and the Instituto Salvadoreño del Café (ISC), as well as successful experiences of actors such as Entre Nubes, the Instituto Interamericano de Cooperación para la Agricultura and ACAFESAL.

 

Translated by: A.M