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

Coffee plays a major economic role in Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua. Central America was among the hardest hit by the recent crisis that saw prices tumble to historic lows and remain there for a prolonged period. The document is a response to the need to understand both the underlying causes and to prepare alternatives in order to avoid a repeat. It points out that changes in supply and demand are structural in nature and imply a slow and only partial recovery of prices. These challenges call for new strategies for the Central American countries. It includes an analysis of the international coffee situation and country specific analyses, and explores options and constraints for increased competitiveness and diversification, and includes chapters dedicated to social, environmental and institutional dimensions of the crisis.