Region: coffee king

Central American coffee is increasing in output and quality, challending longtime leader Colombia 

Colombia for years has been the world leader in production and exports of top-quality Arabica coffee, the type that dominates gourmet blends.

Now, Central America is coming close to seizing the coffee crown from Colombia, whose output fell by a third between 2007 and last year, partly due to chronically bad weather, and partly – according to many Colombian coffee growers – as a result of wrong-headed policies imposed by the national coffee federation.

Meanwhile, production in Central America has risen substantially. Already, Honduras and Guatemala together have produced more than Colombia in the current crop cycle.

The improvement in Central American production is not only in volume but also in quality. Though international prices have fallen from the bonanza years of 2010 and 1011, they remain at historically high levels.

Wisely, regional producers have invested their gains by spending more on their plants, boosting growth with the right kind of fertilizers.

Colombian coffee still enjoys a price premium over Central American blends, but the gap is narrowing.
Colombia may overcome its current problems but even if it does, it will have a fight on its hands to recover market share.

"The quality of coffee from Central America has improved, and it's definitely cheaper," according to Alessandro Polojac, president of Italy's coffee industry association.