Devouring profit - International Coffee Organization

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Currently coffee represents 1.5 % of all Mexican exports. Although this figure is lower
than the Guatemalan and Honduran cases it is still important. For year 2000, Mexico
was the world’s fifth largest exporter of coffee. The value of coffee exports has been
very variable, with an average of about US$530 millions.
Mexico has a population of 100 million people, 71% living in cities and towns and 29%
in rural areas. Hence almost 30 million people are still linked to a largely subsistence
economy. The agricultural contribution to GDP has been decreasing from 16% in 1960
to 5.6% in 1998. This loss in importance has generated problems, for instance in a high
rate of malnutrition. In the opinion of people interviewed during our field visit, food
security is threatened because Mexican staples such as maize and wheat have to be
imported. Mexico, like India is an example of a country where although coffee is not
a major part of the economy, it is a significant factor in the economy of some poor rural
areas.
The area planted to coffee in Mexico increased by about 80% from 1978 to 1992
when it rose from 400,000 hectares to over 700,000. Despite this expansion, total
coffee production has not risen in proportion with this increase (Figure 25).
Despite a large rise in year 1999/00, coffee production on average has been around
4.9 million sacks, similar to the amount for 1989-90. This suggests that new areas are
mostly traditional rather than intensive and it is possible that old areas are being abandoned
or neglected as new areas are planted.
Whatever the reasons, yield per hectare is always below 12 qq 40 of green coffee per
hectare. From the National Coffee Survey (1999-2000), of the total coffee area, 93.7%
was in production, 1.3% was in new plantations in the pre-production stage and the
5% was dedicated to roads, buildings, rural paths, etc. (Consejo Mexicano del Café,
2000). Since such a huge percentage was in production and so little under renewal,
this implies that the crop cycle is very long, another indicator of traditional coffee
growing. The Mexican coffee sector employs about 3 million people (Moguel et al.,
1996) i.e. about 10% of the total rural population, which indicates that Mexican coffee
is more important to the country than economic data alone might first suggest.
Colombia
Coffee exports have long been a key provider of foreign currency needed for the
growth of other sectors of the Colombian economy. As recently as 1994, coffee exports
of US$1.99 billion represented almost a quarter of the country’s total export
earnings. However, since 1997, Colombia’s export earnings from coffee have fallen
by almost 70%, largely due to a sharp decline in prices. By 2000, coffee exports of
US$1.08 billion represented only 8% of total exports, while in 2001 the figure is
40 1 qq = 1 Quintal = 46 kg