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BASELINE 
REPORT 
DRAFT
“NCBA CLUSA El Salvador Coffee Rehabilitation 
and Agricultural Diversification Project Baseline 
Survey”
Presented by:
Final 18 Av. Norte, Plazuela Ayala #318 S.S.
Tel. (503) 2221-9580; (503) 2281-0376; Cel. (503) 7883-9723
e-mail: direccion@hevi-ca.com; y helmanvillalta@gmail.com
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“NCBA CLUSA FY 2014 Food for Progress El Salvador Coffee 
Rehabilitation and Agricultural Diversification Project Baseline 
Survey”
Program: Food for Progress
Agreement Number: FCC-519-2014/051-00
Funding Year: 2014
Implemented by: NCBA CLUSA
Evaluation Authored by: HEVI S.A De C.V.
DISCLAIMER: This publication was produced at the request of the United States Department of Agriculture. It 
was prepared by an independent third-party evaluation firm. The author’s views expressed in this publication do 
not necessarily reflect the views of the United States Department of Agriculture or the United States 
Government.
Accessibility Note: An accessible version of this document can be made available by contacting 
fas.monitoring.evaluation@usda.gov
August 22nd, 2015
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CONTENT
EXECUTIVE SUMMARY ..............................................................................................................................7
1. Objectives of the Baseline Survey.....................................................................................................12
2. Survey Protocol and Methodology...................................................................................................14
a. Preparation of team for the collection of information..................................................................17
b. Constraints for research ................................................................... Error! Bookmark not defined.
3. The Project Environment..................................................................................................................20
a. Institutional Framework...............................................................................................................23
b. Outbreak of Rust (Roya)...............................................................................................................25
c. Project Geography........................................................................................................................28
4. Baseline Survey Findings..................................................................................................................31
a. Capacity Building..........................................................................................................................31
b. Financial Services: Facilitate Agricultural Lending........................................................................32
c. Inputs...........................................................................................................................................36
d. Market Access..............................................................................................................................39
e. Training........................................................................................................................................42
5. Project Performance Indicators Rationalization and Validation ......................................................45
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6. Amendment Options to the Project Monitoring and Evaluation Process.........................................48
7. Project Approach Recommendations...............................................................................................50
a. Appropriateness of Geographic Focus..........................................................................................50
b. Project Risk Factors and Risk Mitigation ......................................................................................51
c. Staffing and Organizational Structure..........................................................................................52
d. Governmental Strategic Plans and Project Goals.........................................................................52
8. Value Chain Considerations .............................................................................................................54
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TABLES, FIGURES AND GRAPHS
Table 1-1. Principal components of the USDA / NCBA CLUSA Project......................................................12
Graph 2-1. Distribution of coffee producers by Region ...........................................................................14
Table 2-1. List of institutions that were interviewed for the study ..........................................................15
Table 3-1. Principal countries importing Salvadoran coffee ....................................................................21
Table 3-2a. Distribution of the main varieties of coffee in El Salvador....................................................21
Table 3-2b. Principal Coffee varieties in El Salvador................................................................................23
Table 3-3. Stratification of Coffee Plantations in El Salvador ..................................................................24
Table 3-4. Historic data of Salvadoran Coffee Production.......................................................................27
Table 3-5. Main crossbreeding to achieve rust resistant varieties...........................................................28
Figure 3-1. Project target coffee production areas..................................................................................29
Table 3-4. Main features of the producing areas selected for the project...............................................30
Figure 4-1. Project components USDA/NCBA CLUSA “El Salvador Coffee Rehabilitation and Agricultural 
Diversification Project”............................................................................................................................31
Table 4-1. Loan Portfolio of Agricultural Development Bank BFA ...........................................................33
(In thousands of dollars) .........................................................................................................................33
Table 4-2. Loan Portfolio Of G&T CONTINENTAL SA................................................................................34
(In thousands of dollars) .........................................................................................................................34
Table 4-3. Lending Portfolio Of COEX LTD ..............................................................................................35
(In thousands of dollars) .........................................................................................................................35
Table 4-4. Producers who know of projects that provide improved inputs by gender and region ...........36
Table 4-5. Area under improved techniques of coffee.............................................................................36
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Table 4-6a. Coffee producers growing regions areas for other agricultural products (agricultural 
diversification) Male and female.............................................................................................................37
Table 4-6b. Producers with improved inputs by region ...........................................................................37
Table 4-6c. Number of producers receiving agricultural extension services by region ............................38
Table 4-7. Producers who participated in business roundtables. ............................................................39
Graph 4-1. Number of producer associations with public-private partnerships......................................39
Table 4-8. Numbers of producers who participated in agreements between buyers and sellers.............40
Table 4-9. Income, sales volumes and selling prices for green qq regions...............................................41
Table 4-10a. Percentage share in the volume of production in the cultivation of diversified products 
producers by region ................................................................................................................................41
Table 4-10b. Percentage of producing diversified products ........................ Error! Bookmark not defined.
Table 4-11. Coffee Producers participation in field schools by region. ....................................................42
Table 4-12. Percentage of trained producers improved techniques region .............................................42
Table 4-13. Coffee Producers who have been trained by training areas in each region ..........................43
Table 4-14. Number of wages generated by region and gender .............................................................44
Figure 8-1a. Coffee Value Chain..............................................................................................................55
Figure 8-1b. Coffee Value Chain..............................................................................................................56
Table 8-1. Scenarios producer price improvement when moving within the coffee value chain .............59
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EXECUTIVE SUMMARY
Coffee cultivation and trade remains an activity of strategic importance to the economic, social and 
environmental sustainability of El Salvador. Despite a relative decline in its impact on the economy at 
the beginning of the new millennium, it is still an important economic activity and has served as a catalyst 
for the development of infrastructure and as a mechanism for the integration of rural communities into 
the national economy. The coffee sector remains a valuable strategic resource to strengthen Salvadoran 
socio-economic stability in the short, medium and long term.
Despite the challenges that coffee cultivation is facing in the domestic context, it is a key determinant in 
the preservation of the balance between the environment and groundwater aquifers due to the fact that 
coffee plantations spread over 160,000 hectares (16% of the country's total cultivated area). Coffee is 
grown in 196 of El Salvador’s 262 municipalities, and accounts for more than 70% of plantations in four 
departments: Ahuachapán, Santa Ana, Sonsonate and La Libertad. 
In addition to these economic and environmental considerations, the social impact of coffee is crucial to 
maintaining social and political stability for the country. Under normal conditions, coffee cultivation 
represents about 6% of the economically active population1
(PEA). Furthermore, the investment that 
generates the activity itself, favors the development of micro-enterprises, which helps reduce migration 
of the rural population into the city and the challenges that this migration presents.
In this context, USDA/NCBA CLUSA proposes a four-year program to stabilize the coffee sector and 
increase food security in rural El Salvador. The program will improve productivity of coffee farmers by 
enabling better access to financing, improved inputs, and technical knowledge and skills, as well as the 
aggregation of production and increased leverage through producer organizations/cooperatives. It will 
also build capacity for private and government technical extension strategy, cooperation, and planning.
The USDA/NCBA CLUSA project aims to work with 7,500 coffee producers, 50 producer organizations 
and cooperatives, and government agencies and private sector in six of the seven most developed coffee 
production areas of El Salvador: Apaneca-Ilamatepec, El Bálsamo-Quezaltepec, Tecapa-Chinameca, 
Cacahuatique, Chinchontepec, and Alotepec-Metapán.
As part of the preparatory activities for the project, NCBA CLUSA has commissioned the creation of a 
baseline survey to evaluate the initial conditions of the regions where the project will intervene. During 
the completion of fieldwork by the contracted firm, different reactions to the project were observed in 
the target population: in most cases the consultants found receptiveness and interest in collaborating 
1 Household Survey, Ministry of Economy, 2014.
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from the producers and cooperative organizations. However, in some cases, they expressed indifference 
and in a few, a certain level of resistance to the project by declining to provide information to the survey.
The consultant team experienced a certain degree of resistance from CENTA-CAFÉ and the Ministry of 
Agriculture, since they refused to participate in the study with information and interviews. The 
Consultant Team could not establish a concrete explanation for this negative stance by government 
officials. The government is generally open to cooperating with US government programs; however, in 
this case it was not possible to establish a relationship of cooperation for this project associated with 
USDA. It is important that USDA and NCBA CLUSA address this issue as soon as possible because it can 
represent severe delays for the project once it begins field operations.
The USDA/NCBA CLUSA project is structured around five components: Capacity Building, Financial 
Services, Inputs, Market Access, and Training. After completing the baseline field work, the key issues 
that can be highlighted as an initial baseline for the five aforementioned components are summarized 
as follows:
Capacity Building: During 2014 CENTA-CAFÉ provided training to extension agents under the "Coffee 
Rescue in El Salvador" project. The training of approximately 60 extension agents and researchers was 
focused on agrochemicals, crop management, plant protection, and soil management. The following 
year, the same approach was utilized, however the number of staff to be trained was reduced to 30. It 
is important to note that there has been no additional training in other aspects that complement the 
coffee value chain. Among coffee producers in the six regions of the project:
• 40 technicians from the different cooperatives have been trained in improved coffee, agricultural 
diversification and basic extension techniques.
• There have been a total of 172 trainings on management for the boards of directors of the 
cooperatives in the last three years. For the administrative staff of the cooperatives, 22 training 
events in cooperative management were conducted in the last three years. 
• Nine cooperatives have been advised on creating their own business plans between 2013 and 
2015.
• A total of 15 cooperatives have participated in a regional network of coffee growers in the last 
three years, and participated in climate change, trade, international markets, and coffee forums. 
From these initiatives they have built six public-private partnership cooperative networks.
Financial Services: Most public and private banking institutions have divisions for agricultural credit, 
however only BANDESAL (Development Bank of El Salvador) and BFA (Salvadoran Bank for Agricultural 
Growth) have specific programs and a credit portfolio for coffee production:
• Over 60% of agricultural credit is provided by BFA, the main use of these credits is for the 
preparation of coffee plantations.
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• The most common guarantees are mortgages, pledges and Irrevocable Payment Orders
• The Guarantee Funds offered are very limited and their requirements are very demanding. Most 
Coffee Producers cannot access these guarantee funds.
• No financial institution is supporting agricultural insurance.
Inputs: The vast majority of producers who were interviewed in the regions in which the project will be 
working stated that they have benefited from projects to support coffee cultivation and improve 
productivity in the plantations, mainly on improved coffee varieties and organic fertilizer inputs:
• Half of the regions under the study are utilizing improved coffee production techniques in 20% 
of their crop area, among which are pest and disease control, pruning, harvesting and post￾harvest handling.
• Less than 1% of the cultivation area is currently devoted to agricultural diversification with other 
crops.
• 80% of farmers who were interviewed said they had received technical assistance from CENTA￾CAFÉ.
Market Access: Most producers sell their coffee as cherry-fruit through intermediaries and beneficiaries:
• Only 8% of farmers have participated in business roundtables for coffee marketing.
• Coffee cooperatives have created 31 agreements involving 3,064 partners. Producer associations 
have participated in 21 coffee agreements.
• The Apaneca-Ilamatepec region is the only one with a Protected Denomination of Origin (PDO)
and that is part of tourism initiatives in partnership with local governments. Additionally, the 
region is showing more agricultural diversification and more comprehensive business schemes 
than the others (with a notable contribution of tourism revenue).
• In terms of production, the Tecapa-Chinameca region shows lower yields in coffee production (of 
which less than 5% is strictly height grown coffee).
• The coffee producers of Chalatenango have obtained the highest coffee prices (Chalatenango is 
part of the Alotepeque-Metapán region. However, this case should be treated as a separate 
geographical unit from the rest of the region because it has the best conditions for coffee 
cultivation and its producers have received the most training in marketing and production.)
Training: Two training topics were included in the survey for coffee producers participating in the project 
regions- production techniques and marketing issues/branding.
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• Production: among those interviewed, 49% have been trained in Farmers Field Schools FFS2 and 
43% have attended training sessions in the aforementioned field schools. In the regions of 
Cacahuatique and Chinchontepec, there is greater participation from producers in these forms 
of agricultural training. The subjects which are addressed the most in those training events are 
pest and disease control, and pruning techniques for coffee trees.
• Marketing/Branding: a total of 2,240 associates in 28 producer cooperatives were trained in 
marketing techniques in 39 events over the past three years
Based on the above findings, the consultant team recommends USDA and NCBA CLUSA review some of 
the initial project concepts including:
a) Two of the six project regions have the most advantageous conditions for the implementation of all 
of the project components and NCBA CLUSA could consider working on strengthening the processes 
of value generation and branding that are already in process in these regions: 
(Region 1) Apaneca - Ilamatepec: coffee production in this region presents the best comparative 
advantage in terms of production quality, market positioning and complementary activities that 
enhance the sustainability of a business model based on the cultivation of coffee. This region has 
a protected designation of origin (PDO), which is a strategic asset that should be utilized and 
strategically enhanced by the USDA/NCBA CLUSA Project. Additionally, during the sessions and 
interviews with producers, they were very receptive and enthusiastic about the project concept.
(Region 4) Cacahuatique: Coffee production in this region is of very good quality and is 
strengthened by a remarkable management and marketing capacity by the cooperatives. The 
project can create a positive impact by replicating concepts in Cacahuatique that have been 
developed for the region "Apaneca - Ilamatepec" to raise the quality of production and at the 
same time obtain a PDO. The producers can use the cultural history of the region to their 
advantage, especially by linking the product to highly recognized Salvadorans icons. Producers 
can use images to accompany the strategic positioning of their coffee cultivation (this is a 
geographical area associated with Gerardo Barrios and Monsignor Arnulfo Romero).
b) Adjust the geographical distribution of the project for two of the six proposed areas by focusing on 
certain sub-regions in those areas that have higher production and/or marketing capacity:
(R5) Chinchontepec: In this region, sharp contrasts were observed, and it was not possible to 
identify a consistent quality of coffee production and organizational capacity of producer 
cooperatives. The fieldwork results suggest that the work should focus on the sub region of 
2 A Farmer Field School is a method of teaching agricultural issues designed for adult farmers. Producers active in a group, provide their 
knowledge and experiences in an organized manner and analyze the reality of their productive environment, reflect on their opinions 
collectively and make decisions based on what was learned (FAO, 1989).
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Guadalupe producers, since this cluster has presented the best results in terms of quality and 
organizational capacity.
(R6) Alotepeque - Metapán. This region presents difficult conditions to work in, since the 
geographical spread of its producersis wide and does not allow for efficient work and guaranteed
results. It is the opinion of the Consultant Team that the economic costs in this region outweigh 
the potential results and impact of the project actions. In this region the Consultant Firm 
recommends focusing the work on coffee farmers from Chalatenango.
In light of the results obtained from the baseline, the project should consider if it is convenient 
to work in the regions of (R2) Bálsamo – Quezaltepec and (R3) Tecapa - Chinameca. In both 
regions the firm observed very little receptivity from producers to work on project concepts and 
most productive farms were found to have limited production and financial capacity.
Risk factors associated with the USDA/NCBA CLUSA project are similar to those that affect any 
agricultural operation, particularly with the remarkable susceptibility of El Salvador to the effects of 
climate change (such as is currently being observed with the ongoing drought). These include, but are 
not limited to, outbreaks of coffee rust and Anthracnosis and climate change. Climate change is a real 
concern for the Salvadoran coffee producers and drought and unfavorable temperatures have become
major climatic limitations for coffee production.
The combination of the effects of climate change and rust (and other plagues), explain the historically 
low coffee yields observed in coffee production cycles since 2013, combined with the fact that most 
coffee plantations are over 10-15 years old. These risks can be mitigated by the gradual renovation of 
coffee plantations with new coffee rust resistant varieties and the introduction of additional measures 
of protection and improvement of ecosystems adjacent to the coffee plantations.
Considering the context in which the USDA/NCBA CLUSA project will be implemented, the key factor is 
to innovate and build the project approach within the logic of the value chain. This recommendation is 
easy to impart, but very difficult to put into practice. The absence of an integrated approach like this one 
explains the ongoing weakness of the Salvadoran coffee sector. 
This “new approach” can be put into practice through the application of advanced technical processes 
of primary production of coffee, as well as encouraging coffee farmers to move from trading coffee in 
cherry to dry beans. These approaches have to do with the modernization of the value chain of coffee 
production discussed in the last chapter of this document. To complement this, the best strategy to 
favorably position the coffee products is through training and fostering the production of differentiated 
or specialty coffees, preferably with international certifications such as "Fair Trade", "Rainforest 
Alliance", "Coffee Best Practices" etc.
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1.Objectives of the Baseline Survey
The purpose of a baseline survey is to provide a base of information against which to monitor and assess 
the Project’s progress and effectiveness during implementation and after the activity is completed. The 
following Project Baseline Survey examines and documents the agri-production and socio-economic 
environment that existed within the project area before the project begins the activities listed below.
Table 1-1. Principal components of the USDA / NCBA CLUSA Project
Capacity Building: Government 
Institutions
Capacity Building: Producer 
Groups/Cooperatives
Financial Services: Facilitate Agricultural 
Lending
NCBA CLUSA will parallel activities of the 
Government of El Salvador to support 
coffee rehabilitation and agricultural 
diversification 
NCBA CLUSA will also strengthen links to 
existing market information systems and 
early warning systems. Additionally NCBA 
CLUSA will help local government 
institutions to organize a forum to discuss 
the coffee sector, coordinate efforts by 
stakeholders, and advocate for support 
and incentives.
NCBA CLUSA will build the capacity of 
cooperatives by training extension agents 
in coffee improvement and crop 
diversification, farmer field schools and 
other basic extension techniques. NCBA 
CLUSA will also train cooperatives’ 
leadership in institutional governance and 
business management and will build coffee 
cooperatives advocacy capacity, support 
networking and facilitate linkages between 
the private and public sectors.
NCBA CLUSA will improve access to finance 
for coffee producer organizations affected 
by coffee rust through the expansion of 
existing credit guarantees and loan funds. 
Additionally NCBA will work directly with 
the Salvadoran Development Bank and 
other banks to expand the reach of their 
current farm loan guarantee program and 
loan funds that are supported by the El 
Salvador government.
Inputs: In-kind Grants Inputs: Develop Agrodealers and/or 
Other Input Suppliers
Market Access: Facilitate Buyer-Seller 
Relationships
NCBA CLUSA will provide in-kind grants to 
farmers to facilitate the dissemination and 
adoption of new coffee seed varieties and 
other planting material for crop 
diversification, including sweet pepper, 
zucchini, and red beans. These one-time in￾kind grants are intended to buy down the 
risk of coffee rehabilitation and 
diversification.
NCBA CLUSA will develop the supply of 
locally available planting materials through 
training cooperatives and private nurseries 
in the production of local rust resistant 
seedlings. To promote crop diversification, 
the Project will identify and facilitate 
linkages between local input companies; 
suppliers of the diversified crops, and 
cooperatives. 
NCBA CLUSA will work with cooperatives to 
research specific buyer quality and 
quantity requirements, identify new, and 
nurture existing opportunities and 
relationships, assist with bulking 
production, develop supply chains, identify 
domestic and export opportunitiesthrough 
events, link sellers and buyers, assist with 
building relationships, and identify 
financing needs and sales opportunities.
Market Access: Facilitate Private and 
Public Partnerships
Training: Improved Agricultural 
Production Techniques
Training: Improved marketing and 
branding
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NCBA CLUSA will facilitate a wide range of 
public-private partnerships by encouraging 
dialogue and partnership aimed at 
addressing the coffee rust problem facing 
coffee producers, building relationships 
and coordinating meetings between all 
actors, creating linkages, promoting crop 
diversification, leveraging significant 
private resources, developing finance and 
technical assistance, and developing and 
solidifying effective private-public 
partnerships for targeted products.
NCBA CLUSA will support targeted
cooperatives and farmers in coffee rust￾affected regions to teach best practices and 
new agriculture techniques. NCBA CLUSA 
will establish farmer field schools aimed to 
support parallel efforts from the Ministry of 
Agriculture, CENTA-CAFÉ, CSC, along with
cooperative and producer organization 
staff. NCBA CLUSA will also host radio 
programs to sensitize the farming 
community, the private sector, and the 
public in general about coffee rust.
NCBA CLUSA will provide training to 
cooperatives in all aspects of marketing 
and branding of coffee, particularly market 
needs, quality, pricing, transportation, 
logistics, promotional efforts, and public 
relationships. This activity will include the 
identification and training of local 
cooperatives in marketing concepts. NCBA 
CLUSA will also support promotional 
campaigns of producers most affected by 
coffee rust that will be linked with the 
specialty coffee markets and networks.
This Baseline will be the starting point for designing and implementing a monitoring and evaluation 
system that allows for the collection of:
• Regular up-to-date data and information for management decision-making on the implementation 
of the project and;
• Accurate data and information for the project and its key partners to assess the impact of the 
project’s activities on focused value chains and project beneficiaries. 
To measure outcomes relative to the project objectives, the donor (USDA) and the implementer (NCBA 
CLUSA) agreed on 30 Result Indicators (RIs) that would be tracked over the course of the project. The 
baseline survey establishes the starting point for measuring these RIs. 
To establish the baseline information, two surveys were developed. One survey was targeted towards 
coffee plantations located over 800 masl (meters above sea level), according to the Salvadoran Coffee 
Council. This survey focused on Project Objective 1 – Increased Productivity. The survey also included 
questions for farmers about seedling production. 
Interviews which focused on Project Objective 2 – Expanded Trade of Agricultural Products were also
conducted with cooperatives. This interview will establish the baseline/starting point from which project 
performance can be gauged over time. 
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2. Survey Protocol and Methodology 
The field work was organized in the six coffee producing regions that will be included in the NCBA CLUSA
coffee project (R1) Apaneca - Ilamatepec, (R2) Bálsamo - Quezaltepec, (R3) Tecapa - Chinameca, (R4) 
Cacahuatique, (R5) Chinchontepec, and (R6) Alotepeque - Metapán. The survey takes into account only 
coffee plantations located at 800 masl (meters above sea level).
According to the Salvadoran Coffee Council in the target areas of the project there are 20,000 producers,
but only 48.6% correspond to the areas of High Grown and Strictly High Grown coffee production. This 
means that only 9,718 producers meet this requirement. The details of the distribution and quantity of 
producers are shown in Graph 2-1.
Graph 2-1. Distribution of Coffee Producers by Region
Data from Salvadoran Coffee Council of 2013 and PROCAFE
The Coffee Rehabilitation and Agricultural Diversification Project that is being implemented by NCBA 
CLUSA El Salvador will focus its efforts on the 77.17% of the producers that are located in the range over 
800 masl (7,500 producers) and 50 cooperatives.
Considering this information, the sampling frame was defined as “coffee producers whose farm is 
located over 800 meters above sea level that are associated with cooperatives or producers associations 
in the target project areas: (1) Apaneca- Llamatepec, (2) El Bálsamo - Quezaltepec, (3) Tecapa -
Chinameca, (4) Cacahuatique, (5) Chinchontepec, and (6) Alotepeque - Metapán”
In order to conduct the baseline data collection for the project’s performance monitoring indicators and 
evaluation assessments, an exercise was developed that combines qualitative and quantitative tools and 
techniques. The main techniques that were used were:
9,359
616
2,120
1,019
2,911
3,975
4547
299
1030
495
1414
1931
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
Apaneca -
Ilamatepec
Alotepeque -
Metapan
Chinchontepec Cacahuatique Tecapa -
Chinameca
El Balsamo -
Quezaltepeque
Total Coffe Producers High Grown and Strictly High Grown
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a) An exhaustive review of documents associated with the project that have been generated by 
National Salvadoran Institutions in the last few years, such as the Salvadoran Coffee Council, 
PROCAFE, CENTA-CAFÉ, and IICCA, among others. 
b) Interviews conducted with representatives from public and private banks such as: SISTEMA 
COOPERATIVO FEDECACES, FINCA, Bank G & T Continental, Banco de Desarrollo de El Salvador 
(BANDESAL), and Banco de Fomento Agropecuario (BFA); brokers,such as Comercial Exportadora 
S.A de C.V (COEX) and Unión de Exportadores S.A. de C.V. (UNEX); and others associated with 
the cultivation, processing and marketing of coffee and its associated crops.
Table 2-1. List of institutions that were interviewed for the study
Institution Position Address
FINCA Executive Director Paseo General Escalón, 
C. Circunvalación No. 
4647
SISTEMA COOPERATIVO 
FEDECACES
Business Director 23 Av. Nte y 25 C. Pte
UNEX Financial and Administrative 
Manager
Blv. Constitución
BANCO G Y T CONTINENTAL Business Director C. La Reforma No. 206, 
Centro Financiero
COEX Agency Chief for San 
Salvador
25 Av Norte, Edificio 
OXGASA
BANDESAL Director of EDF3 Alameda Roosevelt NO. 2007
BFA Business Director Km 10.5 carretera al Puerto 
La Libertad
PROCAFE President MAG Campus, Santa Tecla 
3 ECONOMIC DEVELOPMENT FUND managed by BANDESAL, is a financial mechanism which is used to promote the development of 
sustainable projects in the country’s productive sector. The objective is to contribute to the increase in the production and export of national 
products and services, as well as supporting the strengthening of productive chains, promoting development and competitiveness of 
entrepreneurs and fomenting the development of small and medium businesses.
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c) Interviews with representatives of cooperatives that work under a non-individual producer’s 
model in the target areas. Interviews were conducted with more than 40% of the cooperatives 
registered with the Salvadoran Coffee Council that are still active.
d) Quantitative research through a survey focused on a sample of producers from the target areas, 
which was selected from the list of producer´s associations that are registered in the Salvadoran 
Coffee Council, and individual producers with plantations in the target areas.4 The sample of 
1,640 producers was determined using data from the Salvadoran Coffee Council allowing for a 
10% rejection margin in the design for a maximum error of 5%, and a confidence level of 95% in 
the sample which consists 100% of High Grown and Strictly High Grown coffee producers5
. At the 
end of the field work, the consolidated database contained 1,453 valid surveys. The reasons for 
this figure are listed below: 
i. The registry of the producers associations and cooperatives that was received from the 
Salvadoran Coffee Council had not been updated since 2013. Many producer’s 
associations registered were cooperatives (63.82%) and the rest are no longer harvesting 
due to the problem of rust and low coffee prices.
ii. Many producers (and associations) refused to provide any information because in the last 
year many governmental programs and private projects had approached them and 
collected information, but the producers commented that there had never been any 
follow-up by the government or projects after the information had been provided. 
iii. In the region of El Bálsamo-Quezaltepec, the authorities from CENTA – CAFÉ gave 
instructions to extension agents to “not give any information to anyone related to the 
project regarding the producers, cooperatives, etc.” This situation severely impacted the 
collection of information and is potentially a risk to the project that should be taken into 
consideration by the project when designing the strategy for coordination with 
government authorities associated with the coffee production.
iv. Dangerous conditions in some areas, due to gang violence mainly in the regions of
Chinchontepec and Cacahuatique, hindered access to producers and limited the 
willingness of participants to provide information.
v. Fieldwork coincided with the transportation strike. This caused severe restrictions in 
access to the field during the last week of July.
5 The maximum error and confidence level according to the number of 7,500 producers that will be working with NCBA CLUSA El Salvador’s 
Project is 3.1% and 95% respectively.
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a. Preparation of the team for the collection of information
Prior to the fieldwork, the survey team received a four hour training on conducting the survey. A 
second meeting took place with the supervisors of each team to define routes in each region 
according to the information provided by NCBA CLUSA. Originally there were only two teams, but 
in order to obtain the information in the timeframe provided, the firm trained a third team during 
the second week and went to the central region. The three teams (about 16 persons) worked in 
the regions to complete the survey with the sample of producers in the target areas. The 
information was collected in 3.8 weeks. The distribution of producers by gender was 63.5% male 
and 36.5% female. Distribution by region and gender is shown in graph 2-2.
Graph 2-2. Distribution of coffee producers surveyed by region and gender
To process all of the information a team of four individuals was trained. Within the team one 
person was in charge of the codification of each survey, the other three persons entered
information into the database program.
For the interviews, two individuals of the main team dedicated about 45% of their time focusing
on the institutions that gave information.
b. Data limitations
Institutional 
0.6%
13.6%
11.9%
6.0%
0.7%
3.7% 3.0%
21.5%
18.2%
7.3%
3.4%
10.0%
Alotepeque - Metapán
Apaneca - Llamatepec
Cacahuatique
Chinchontepec
El Bálsamo - Quezaltepeque
Tecapa - Chinameca
Alotepeque - Metapán
Apaneca - Llamatepec
Cacahuatique
Chinchontepec
El Bálsamo - Quezaltepeque
Tecapa - Chinameca
Female Male
Page 
18
For the baseline survey the firm encountered a certain level of resistance from CENTA-CAFÉ and 
the Ministry of Agriculture, refusing to participate in the study with information and interviews. 
Government officials that the team of consultants were looking to interview declined the 
invitation for interviews and as mentioned in previous paragraphs, came to the point of taking a 
negative stance towards the program and issuing specific orders that anyone from their staff that 
dealt with coffee producers and cooperatives, and even some extension technicians, were told
not to give information to project personnel.
The Consultant Team could not establish a concrete explanation of why this negative stance was 
taken by government officials from CENTA-CAFÉ. The government is typically open and 
collaborative to cooperation with US government programs. However, in this case it has not been 
possible to establish a relationship of cooperation for this project associated with USDA.
This was a serious limitation for the fieldwork in the region of Bálsamo – Quezaltepec,specifically 
with producer associations. In other regions, the Consultant Team was able to establish other 
contacts to interview coffee producers.
Furthermore, the authorities of State Institutions like CENTA-CAFÉ, the Salvadoran Coffee Council 
and Banco Hipotecario were reluctant to provide time for interviews and sufficient information 
for the analysis of the current situation in relation to: capacity building of its staff, 
implementation of programs to support the recovery of the coffee and the components of these 
programs and their scope in the case of CENTA-CAFÉCAFÉ; the situation of agricultural loans 
related to coffee and the situation experienced by the institution in the last two periods relating
to the arrears, newly granted loans and refinancing.
Social
El Salvador is facing a very difficult social situation due to an excessive increase in violence 
associated with the gangs. This situation affected work in some regions, particularly in El Bálsamo
- Quezaltepec and Chinchontepec. This problem affected the capacity of the field team to visit 
some coffee plantations and conduct interviews with producers. This was the case in the region
of Chinchontepec, specifically in the area of Santa Lucia, where gang representatives expressed 
to the field team personnel that to be able to enter the area they should talk to a main 
representative or head of the gang (Palabrero). In El Bálsamo - Quezaltepec in the northeast of 
the volcano of San Salvador, limited conditions to access the cooperative hull were identified; 
and the region of Cacahuatique as well, where field team was warned of the danger in some areas 
of San Matias.
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19
Page 
20
3. The Project Environment
The cultivation of coffee has been one of the most important pillars of the Salvadoran society. It has 
fueled the Salvadoran economy and shaped the history of the country for more than a century. Coffee
cultivation in El Salvador has remained attached to its values and historical traditions of production and 
processing, as well as the adoption of rules, techniques and technologies to guide and obtain a higher 
quality product. Unlike the industry in Guatemala and Costa Rica, the Salvadoran coffee industry 
developed largely without the benefit of external technical and financial help. It was first cultivated for 
domestic use early in the nineteenth century. By the second half of the 20th Century its commercial 
promise was evident, and the Salvadoran government began to support its production through 
legislation such as tax breaks for producers, exemption from military service for coffee workers, and 
elimination of export duties for new producers.
Coffee cultivation and trading remains an activity of strategic importance to the economic, social and 
environmental sustainability of the country. Despite a relative decline in the impact of the economy at 
the beginning of the new millennium, it has served as a catalyst for the development of infrastructure 
and as a mechanism for integration of rural communities into national economy. Here are some aspects 
that emphasize the socio-economic importance of coffee for El Salvador6
:
• In 2012, coffee accounted for 1.2% of GDP and 10.0% of Agricultural GDP.
• Coffee exports in 2012 accounted for 5.6% of total exports. Coffee production between 1995 and 
2012 accounted for 7.5% of total exports from El Salvador. The main countries that import 
Salvadoran coffee for the 2014-15 coffee year7 are the USA (47.9%), Japan 12.0% and Germany 
(10.4%) – Table 3-1.
• Coffee under normal conditions provides 150,000 direct jobs and 500,000 indirect jobs; providing
resources in rural areas, boosting trade and alleviating rural poverty. For many years coffee sales
have sustained rural populations: providing a better place to live, through the construction of
roads, schools, access to basic services, among other type of infrastructures.
Job creation by the coffee sector also constitutes a major contribution in maintaining social and political 
stability for the country. Under normal conditions, coffee cultivation represents about 6% of the 
economically active population8
(PEA). In addition to that figure, the investment that generates the 
activity itself, promotesthe development of micro-enterprises, which helpsreduce migration of the rural 
population into the city and the problems that this activity involves.
6Consejo Salvadoreño del Café (Salvadoran Coffee Council CDC): Coffee cultivation in El Salvador 2013.
7 Consejo Salvadoreño del Café (Salvadoran Coffee Council CDC):
http://www.consejocafe.org/nuevo_sitio/index.php?option=com_content&view=article&id=223&Itemid=52
8 Household Survey, Ministry of Economy, 2014.
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Table 3-1. Principal countries importing Salvadoran coffee
Country 2013/2014 2014/2015 *
Quintales or 
cwt´s qq
US$ % Quintales or 
cwt´s qq
US$ %
USA 290,549 47,386,415 44.6% 336,542 66,659,592 47.9%
Germany 68,647 10,186,883 10.5% 73,033 13,815,210 10.4%
Japan 80,523 15,016,717 12.4% 84,465 16,846,286 12.0%
Belgium 29,291 4,438,922 4.5% 33,180 5,886,975 4.7%
Canada 49,030 8,100,678 7.5% 27,227 5,215,396 3.9%
Sweden 26,550 3,947,616 4.1% 27,862 5,606,218 4.0%
Italy 23,484 4,054,071 3.6% 30,358 5,712,048 4.3%
Lebanon 825 146,025 0.1% 1,650 266,475 0.2%
Taiwan 7,155 1,699,655 1.1% 5,150 1,096,553 0.7%
Source: http://www.consejocafe.org/nuevo_sitio/index.php?option=com_content&view=article&id=223&Itemid=52
Coffee is vital from an environmental point of view: In El Salvador, coffee plantations spread over 
160,000 hectares(16% of the country's total cultivated area)9
. Coffee is grown in 196 of El Salvador’s 262 
municipalities, and accounts for 72.8 percent of plantations in four departments: Ahuachapán, Santa 
Ana, Sonsonate and La Libertad10
. El Salvador produces only the Arabica Coffee species. The main 
varieties found are Bourbon, which comprises 42% of the existing plantations, Pacas accounts for 18% 
and mixtures of Bourbon and Pacas varieties represent 26%. A smaller percentage corresponds to coffee 
varieties such as Pacamara and other type of varieties such as Caturra, Catuaí and Catisic11
. Table 3-1 
and Table 3-2a summarize the distribution and main characteristics of the main varieties of coffee 
produced in El Salvador.
Table 3-2a. Distribution of the main varieties of coffee in El Salvador
Coffee Varieties Area (mz) Area (Ha) % 
Bourbon 71,929 50,350 42.00%
Pacas 30,827 21,579 18.00%
Bourbon/Pacas mixtures 55,145 38,602 32.20%
Pacamara and other 3,596 2,518 2.10%
New varieties of coffee rust resistant 9,762 6,833 5.70%
Total 171,259 119,882 100.00%
Source: PROCAFE. 2013. Avances sobre Acciones Técnicas sobre el Control de la Roya del Cafeto en El Salvador and Salvadoran 
Coffee Council.
9OXFAM – EU: THE IMPACT OF COFFEE RUST: An assessment of the livelihoods and food security of families working in El Salvador’s coffee 
sector, 2014 (Alberto Vargas, Coordinator, Emergency Food Security and Vulnerable Livelihoods (EFSVL) team) 
10Consejo Salvadoreño del Café (Salvadoran Coffee Council CDC): Coffee cultivation in El Salvador 2013
11PROCAFE: El Salvador, Land of Coffee, 2013.
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22
The majority of Salvadoran coffee is grown under the shade of diverse tree species. This is an important 
contribution to the preservation of the environment, mainly because of the combination of shade-trees 
and the coffee plantation as the perfect habitat for endangered species and migrating birds12, besides 
being an outstanding reservoir of beneficial flora, it improves the water catchment for groundwater and
creates other positive impacts for the environment:
o Hydrological importance: Perhaps the most important environmental service provided by the coffee 
park. It protects the soil from erosion, protects the main aspects of watersheds, and allows water 
infiltration to the aquifers. The map of hydrological divisions shows how coffee growing areas are 
primarily located in areas of groundwater, charging them and becoming an oasis within the areas of 
reduced infiltration. According to PROCAFE, every minute the coffee forest aquifers are enriched
with 715m3 of water, of which 70% is retained, meaning that coffee contributes 500.5 m3 to water 
aquifers.
o Contributions to biodiversity: Managing shaded coffee areas with native species, represents almost 
110,000 hectares (200,000 Manzanas) allowing El Salvador to maintain biodiversity in flora and 
fauna. In areas of coffee forest, there are 209 species of native trees and 21 exotic, 188 bird species, 
101 residents and 37 migratory (42 of these endangered and 19 endangered locally); and 31 species 
of small mammals, eight endangered; about 26 species of reptiles and 8 species of amphibians,
several of which are endangered species, among others. Thanks to permanent crops in areas under 
shade coffee plantations, danger is kept away and reduces the threat of extinction13
. 
o Power source and additional income: Pruning of shade trees and coffee plants are the main source 
of fuel for cooking in rural areas of the country. It provides an estimated 42% of the total wood used 
annually by the rural population. Coffee milling also generates 6 million quintals (qq) of pulp and 0.7 
million quintals (qq) of parchment husk every year, which due to its high power of combustion is a 
valuable energy resource so that the use of oil is saved for grain drying. On farms, usually other 
products such as fruits, vegetables, flowers and timber trees are grown. These species are not only 
important for maintaining biodiversity, but are also a source of additional income when they are 
used wisely. Such diversification helps protect against price fluctuations, natural events and other 
uncertainties.
o Carbon Sequestration: With the average of different gradients and species of shade trees, El Salvador 
mountains can keep a reserve of 190 tons of carbon per hectare per year and the net rate of fixation 
of carbon dioxide is 126 Kg per day. The coffee plantations in El Salvador keep a reserve of 32.2 
million tons of carbon, with a setting of 13,178 tons of carbon dioxide per day. These environmental 
services are not capitalized on in El Salvador, presenting a future opportunity to pay for this kind of 
culture.
12 According to the Audubon Society, taken together, Mexico, Central America and The Caribbean provide the yearly destination for more 
than a third of all migratory bird species that breed in the United States (200 or more different kinds of them).
13 PROCAFÉ Coffee and Biodiversity Project 2000
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Table 3-2b. Principal Coffee Varieties in El Salvador
BOURBON TEKISIC OR SALVADORAN BOURBON
ORIGIN: Ethiopia; then to Arabia, Netherlands, France and
Martinique, and from there to El Salvador.
DESCRIPTION: tall plant, long branches, open architecture, deep 
red berries.
GROWING ALTITUDE: from 800-1500 meters.
BEAN SIZE: length 0.95 cm; width 0.70 cm;
thickness 0.36 cm.
BOURBON CUP QUALITY EVALUATION: Aroma:
penetrating and rich, floral overtones, sweet, chocolate-like. Body: 
full-bodied with excellent mouthfeel. Acidity: medium
to high, good brightness, very well balanced. Flavor: sweet
and pleasant, with long persistence and complex chocolate like
attributes. 
ORIGIN: The Tekisic cultivar was obtained from the
Bourbon variety in El Salvador. Its selection began in 1949 and 
it was released in 1977. The word Tekisic comes from the 
Nahuat “tekiti,” meaning work, and ISIC, “Instituto
Salvadoreño de Investigaciones del Café” (Salvadoran 
Institute for Coffee Research). Therefore, Tekisic means
the work of ISIC.
DESCRIPTION: tall plant, long internode spacing, broad plant 
architecture, branches that tend to form fans of secondary 
shoots, light green shoots.
GROWING ALTITUDE: from 800-1500 meters.
BEAN SIZE: length 0.82 cm; width 0.64 cm; thickness 0.35 cm.
TEKISIC CUP QUALITY EVALUATION: Same as
Bourbon.
PACAS PACAMARA
ORIGIN: Mutation of the Bourbon variety reported in Santa Ana, El 
Salvador in 1949.
DESCRIPTION: short plant; long branches; short internode 
spacing; dark green leaves; well-developed roots; tolerates wind, 
sun and drought; compact architecture.
GROWING ALTITUDE: from 600-
1000 meters.
BEAN SIZE: length 0.85 cm; width
0.66 cm; thickness 0.34 cm.
PACAS CUP QUALITY
EVALUATION:
Aroma: mild with a rich fragrance.
Body: medium
Acidity: medium, with
notable finesse. Flavor: subtle sweetness and lots of finesse.
ORIGIN: A Coffee Arabica hybrid originating in El Salvador in 
1958 by artificially crossing Pacas with Red Maragogipe, from 
where it gets the name Pacamara.
DESCRIPTION: mid-size plant; short
internode spacing; large, corrugated,
dark green leaves; large berries.
GROWING ALTITUDE: 1000 meters
and higher.
BEAN SIZE: length 1.03 cm; width
0.71; thickness 0.37 cm.
PACAMARA CUP QUALITY
EVALUATION:
Aroma: pronounced, with floral overtones and complex 
chocolate-like sweetness. Body: pronounced, full-bodied,
excellent mouthfeel. Acidity:
high, elegant. Flavor: chocolate-like,
very persistent.
Source: PROCAFE: El Salvador Land of Coffee.
a. Institutional Framework
There are close to 19,600 coffee producers in El Salvador, of which 86% are small producers, with 
production properties of 7 hectares or less14
, representing 21% of total national production. Table 
3-3 illustrates the stratification of producers.
14MANZANAS, as a measure of surface, is a value corresponding to a square area of 100 staffs, which is 10 000v² (10 000 square yards). The 
rod, Spanish extent corresponds to 0.836 meters, squaring this equality equals 1 vara² = 0.698896 sq. Apple (10 000v²) therefore is an area 
equivalent to 6 988,96m² or 0.698896 ha; for practical purposes of calculation 1 mz = 0.7 ha.
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Table 3-3. Stratification of Coffee Plantations in El Salvador
Size of the coffee plantation Producers %
7 Hectares (10 mz) or less 16,750 85.4%
7 – 70 Hectares (10 – 70 mz) 2,325 11.9%
More of 70 Hectares (100 mz) 432 2.2%
Total 19,600 100.%
Source: Consejo Salvadoreño del Café (Salvadoran Coffee Council CDC): Coffee cultivation in El Salvador 2013.
Producers accounting for about 25% of total production are grouped into marketing co￾operatives. Together they form the “Unión de Cooperativas Cafetaleras de El Salvador”,
“UCAFES” (Organization of Coffee Producing Co-operatives of El Salvador). A land reform carried 
out in 1980 led to the creation of the “Unión de Co-operativas Productoras y Beneficiadoras de 
Cafe”, “UCRAPROBEX” (Organization of Land Reform Coffee Producing and Processing Co￾operatives). UCRAPROPBEX groups small farmers who before the reform didn’t have access to 
land and accounts for 10% of national production. Other organizations include the “Asociación 
de Beneficiadores y Exportadores de Cafe”, ABECAFE (Association of Millers and Coffee 
Exporters), which groups the majority of the 99 coffee millers and exporters; and the Association 
of Coffee Producers of El Salvador, representing all producers.
These four coffee organizations along with four government institutions form a policy-making 
forum called the “Consejo Salvadoreño del Cafe” (Salvadorian Coffee Council). The Consejo 
Salvadoreño del Café, is also engaged in coffee promotion, statistics and international 
cooperation initiatives.
It is also important to mention PROCAFE (Salvadoran Foundation for Coffee Research Foundation)
which is a privately funded institution managed by farmers through representatives of the four 
coffee unions mentioned above. Its main focus is to promote development and overall 
sustainability of the coffee industry through research, transferring specialized technology 
services, which facilitate knowledge and its application to preserve grain quality, increase 
productivity and profitability of coffee cultivation systems with sustainability criteria and 
environmental preservation.
Its main source of funding comes from the contribution of coffee producers, contributing fifty 
cents (US $ 0.50) per quintal of green coffee exports. In recent years, the main role of this 
foundation has been gradually affected by the suspension of support from the government.
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25
In the most recent available analysis by USDA on the actual state of the coffee production in El 
Salvador, states that15: “The main problem that the Salvadoran coffee sector is facing is the lack 
of an institutional framework that incorporates all the actors in the private sector (i.e. producers, 
cooperatives, millers) and also includes the public sector as the regulatory body, so that a clear 
strategy can be designed and moved forward, not only to rescue the sector but also to set out a 
path to reach sustainability and profitability for coffee farmers”.
It is noteworthy that the coffee production has been affected by the Salvadoran political situation 
since the Agrarian Reform in 1980 and the privatization of the banking system in the same year. 
During this time, land tenure was enforced up to 245 ha. The rest underwent a process of being 
transferred to farmers and related workers expropriated properties. The processes of research 
and technological development were abandoned and a new system of cooperative management 
took place. In these new administrative cooperative-structures, key leadership positions were 
taken by people with little or no technical ability to assume these new responsibilities.
Given the difficulties of achieving the expected results of the agrarian reform and serious financial 
commitments to the state to deal with payments to former owners of seized properties, a major 
change was made to the legal framework of the agrarian reform. With this change, agricultural 
associations through a legal process, could sell part of their property to meet the commitments 
stated above and further payments could be delivered to the associated plots for housing and 
the development of family farming. This led to a series of sales of major portions of coffee area 
and transfer of the domain to partners directly, causing the sector to find cooperative 
associations that work with the original foundation of the land reform ownership a good 
percentage of the coffee areas and cooperatives that have virtually remained as legal figures 
protecting small individual producers with an independent management and with the possibility 
of taxing or selling their plots.
b. Outbreak of Rust (Roya)
Coffee production in El Salvador had its peak in the cycle from 1992 to 1993 with 3.1 million bags 
of 60kg. In subsequent years, the annual average production was 2.3 million bags of 60kg. During 
2000-2012, the average production fell to 1.5 million bags of 60kg. 
In 2013, after the outbreak of rust, coffee production fell to a historic low of 0.5 million bags of 
60 kg with a projected 2014 closure of the cycle at 0.8 million bags of 60kg (see Table 3-4). 
The impact of rust in coffee production is very clear: it is estimated that the figures previously 
described up to 2012 decrease significantly by 2014, preliminary calculations developed by the 
consulting team approach that the contribution of coffee to GDP decreased by 50%: the 1.2% in 
2012 to 0.6% in 2014 (10.0% of the agricultural GDP in 2012 to 4.7% in 2014).
15USDA El Salvador - Coffee Production & Exports -- Rust Up, GAIN Report Number: ES2013-ES2 - 5/24/2013
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The outbreak of coffee rust disease in a large proportion of El Salvador's coffee plants has also 
affected the food security and livelihoods of families that depend on day labor from coffee 
plantations. The report prepared by OXFAM on rust outbreak in El Salvador16, said that “7,608 of 
the 47,409 households involved in coffee day labor were classified as being moderately food 
insecure, whereas 26,296 households were classed as slightly food insecure17
”
Upon the data obtained in the study, OXFAM points out:
“Over the next 12 months in El Salvador (2014-2015 coffee cycle), 
the food security situation of day laborers and their households is 
likely to continue to worsen. When they have used up what little 
food reserves they have, they may have no choice but to resort to 
more drastic coping strategies, such as distress sales of assets and 
land…Shortage of income in these households will be more 
marked for people who are part of value chains. Food shortages 
are expected to be more visible in small shops in remote areas, 
especially those located in municipalities that have been affected 
by recurring extreme weather events in recent years, including the 
drought of 2014. 
This situation is a result of unbalanced demand…The effects of 
coffee rust are expected to continue affecting the livelihoods and 
food security situation of the households involved in this study for 
a number of years. This is partly due to the loss of income 
associated with lower demand for day labor on coffee plantations, 
but also the fall in international grain prices, which shows no signs 
of recovery. The most vulnerable groups will continue to be those 
whose main source of food is closely linked to the income derived 
from day labor on farms – typically large households and those 
families with a female head of household.”
16OXFAM – EU: THE IMPACT OF COFFEE RUST: An assessment of the livelihoods and food security of families working in El Salvador’s coffee 
sector, 2014 (Alberto Vargas, Coordinator, Emergency Food Security and Vulnerable Livelihoods (EFSVL) team)
17Ibid
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Table 3-4. Historic Data of Salvadoran Coffee Production
YIELD 
YEAR
PRODUCTION
QQ-GREEN￾CHERRY 1/
PRODUCTION 
GREEN
2/
BAGS OF 60 kg
1989/90 3,636,500 3,367,130 2,581,466
1990/91 3,537,100 3,275,093 2,510,904 -3%
1991/92 3,153,700 2,920,093 2,238,738 -11%
1992/93 4,306,200 3,987,222 3,056,870 37%
1993/94 3,403,300 3,151,204 2,415,923 -21%
1994/95 3,360,600 3,111,667 2,385,611 -1%
1995/96 3,239,100 2,999,167 2,299,361 -4%
1996/97 3,305,900 3,061,019 2,346,781 2%
1997/98 3,002,400 2,780,000 2,131,333 -9%
1998/99 2,621,900 2,427,685 1,861,225 -13%
1999/00 3,712,600 3,437,593 2,635,488 42%
2000/01 2,406,098 2,227,869 1,708,033 -35%
2001/02 2,383,076 2,206,552 1,691,690 -1%
2002/03 1,963,400 1,817,963 1,393,772 -18%
2003/04 1,911,281 1,769,705 1,356,774 -3%
2004/05 1,858,020 1,720,389 1,318,965 -3%
2005/06 1,935,185 1,791,838 1,373,742 4%
2006/07 1,740,025 1,611,134 1,235,203 -10%
2007/08 2,119,810 1,962,787 1,504,803 22%
2008/09 1,985,625 1,855,724 1,422,722 -5%
2009/10 1,500,306 1,402,155 1,074,986 -24%
2010/11 2,614,000 2,442,991 1,872,960 74%
2011/12 1,624,211 1,517,954 1,163,765 -38%
2012/13 1,730,000 1,616,822 1,239,564 7%
2013/14* 700,025 654,229 501,576 -60%
2014/15 * 1,116,000 1,042,991 799,626 59%
Source: Consejo Salvadoreño del Café (Salvadoran Coffee Council CDC): Coffee cultivation in El Salvador 2013.
Over the years levels of coffee rust resistance have been identified among different species of coffee 
such as: Coffea Arabica, Coffea canephora and Coffea Liberica. Crosses have been made to find these 
attributes of strength in coffee research projects that have lasted for 20-35 years or more18
. 
The variety used as a source of resistance is the Hybrid Timor (HDT) variety that comes from a 
spontaneous cross between Coffea Arabica and Robusta variety Typical Coffea Canephora, which is most 
commonly used to transfer the genes for resistance to rust. From these crosses main varieties have 
emerged, illustrated in Table 3-5.
18PROCAFE. 2013. Avances sobre Acciones Técnicas sobre el Control de la Roya del Cafeto en El Salvador
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28
Table 3-5. Main crossbreeding to achieve rust resistant varieties19
HdT-1 x Caturra HdT-2 ♀x Villa 
Sarchi ♂
HdT -3 ♂ x Caturra 
Amarillo ♀
Portugal CIFC Portugal CIFC Colombia CENICAFE
Catimores CIFC 832/1 Sarchimores CIFC 
832/2
Colombia 1343 
Multilineal Variety)
In El Salvador PROCAFE evaluated six lines of Sarchimor-variety with stable genetic variability. As 
a final result of the evaluation process, PROCAFE developed and released in 2007 the variety 
called "Cuscatleco" (Sarchimor line T-5296 as Cuscatleco variety with a range of adaptability of 
600-1200 MASL), which was compared with controls such as Pacas, Catisic and Red Catuai. It has 
a production level of 40-50 quintals of coffee per mz, with some degree of susceptibility to 
Cercospora and “ojo de gallo” (Mycena citricolor). It has an average of 30 weeks of flowering for 
fruit harvest.
The Sarchimor-variety has better cup quality and research has provided these main conclusions20:
• In areas of low and medium altitude cup, there are no significant differences with Bourbon 
and Pacas. In areas above 1,350 MASL cup quality from the new rust-resistant varieties, 
has less quality than the other varieties.
• There are differences in cup quality between groups and resistant lines; Sarchimor group 
has generally the best cup profiles.
c. Project Geography
The project will work with 7,500 coffee producers, 50 producer organizations and cooperatives, 
government agencies and the private sector in six of the seven most developed coffee production 
areas of El Salvador: Apaneca-Ilamatepec, El Bálsamo-Quezaltepec, Tecapa-Chinameca, 
Cacahuatique, Chinchontepec, and Alotepec-Metapan.
19 Opus ibid
20 Opus ibid
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29
The geographical distribution of the above regions are illustrated in Figure 3-1. Table 3-4 shows 
the main data defining coffee plantations in each of the regions, according to data provided by 
PROCAFE.
Figure 3-1. Project target coffee production areas
Source: PROCAFE: El Salvador Land of Coffee.
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Table 3-4. Main features of the producing areas selected for the project.
Alotepec – Metapán
Mountain Range
ALOTEPEQUE METAPÁN MOUNTAIN RANGE
Predominant coffee varieties: Bourbon, Pacas
and Pacamara.
Beverage characteristics: excellent aroma;
floral, chocolate-like, citrus flavors; exceptional
citric acidity.
Chinchontepec
Mountain Range
CHICHONTEPEC VOLCANO
Predominant coffee varieties: 71.7%
Bourbon; 7.4% Pacas; 20.9% Bourbon and
Pacas blend.
Beverage characteristics: fragrant
aroma, orange-flower scent; fine, sweet,
chocolate -like flavor.
El Bálsamo – Quezaltepec
Mountain Range
EL BÁLSAMO MOUNTAIN RANGE – CENTRAL BELT
Predominant coffee varieties: 51.8%
Bourbon; 22.5% Pacas; 25.7% blend of
Bourbon, Pacas and other varieties.
Beverage characteristics: a balanced,
creamy cup with excellent body, vanilla
flavor, and bright acidity, giving it a
velvety character.
Cacahuatique
Mountain Range
CACAHUATIQUE MOUNTAIN RANGE
Predominant coffee varieties: 65.3% Bourbon;
20.6% Pacas; 14.1% other varieties.
Beverage characteristics: a fine, juicy flavor with excellent 
aftertaste; plenty of body and a pleasant almond flavor.
Apaneca- Ilamatepec
Mountain Range
APANECA ILAMATEPEC MOUNTAIN RANGE
Predominant coffee varieties: 64.2% Bourbon;
25.6% Pacas; 10.2%; blend of Bourbon, Pacas and other 
varieties.
Beverage characteristics: sweet, floral, fragrant aroma; chocolate￾like, nutty, apricot, creamy, citrus, fruity flavors; soft, fine acidity. 
Very consistent aftertaste. 84% of the Cup of Excellence
2002/2003 winners came from the Apaneca
Ilamatepec Mountain Range.
Tecapa - Chinameca
Mountain Range
TECAPA CHINAMECA MOUNTAIN RANGE
Predominant coffee varieties: 69.5%
Bourbon; 22.2% Pacas; 8.3% mainly a
Bourbon and Pacas blend.
Beverage characteristics: a complex beverage; excellent 
balance of body, aroma and acidity; good sweetness; 
chocolate-like,
ripe fruit, caramel, cantaloupe, apple and raisin flavors.
Source: PROCAFE: El Salvador Land of Coffee.
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4. Baseline Survey Findings
This section is organized according to the structure of the USDA / NCBA CLUSA Project previously shown 
in Table 1-1 and summarized in Figure 4-1.
Figure 4-1. Project components of the USDA/NCBA CLUSA “El Salvador Coffee 
Rehabilitation and Agricultural Diversification Project”
Based on the definition of the performance indicators and the targets for the results, the baseline is 
usually considered zero (0). It is intended to evaluate the influence of project development. However, 
there are current conditions for the situation of the sector, precisely what was found in the surveys, 
interviews and sources of information. 
The findings of the baseline study have evaluated various indicators of outputs and outcomes in 
accordance to the Performance Monitoring Plan of the Project, with the systematization and tabulation 
of the data collected.
a. Capacity Building
During 2014 the “Centro Nacional de Tecnología Agropecuaria y Forestal Enrique Álvarez 
Córdova” (CENTA) provided training to their extension agents in the context of ongoing 
preparation of their technicians, which is performed under the Family Agriculture Plan (PAF), and 
the PAF Chain Production Program implemented by the Ministry of Agriculture (MAG) under the 
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32
framework of the "Rescue of Coffee in El Salvador" project. The training of extension agents and 
researchers covered the following themes: agrochemicals, crop management, plant protection 
and soil management.
During 2015, MAG in order to continue upgrading the skills of extension staff of CENTA, created
a strategy under which it has trained a group of agricultural extension workers (40) on the 
following topics: the importance of seed stages, nursery and farm seed production, critical times 
in seed quality, treatment of the substrate and structures, time and forms of seed calculation 
that have been used, selection of seedlings, types of seedlings, transplanting or seeding branch 
shade, agronomic crop management and seed coffee and coffee nurseries.
The capacity building aimed at Producer Groups/Cooperatives can be done through agricultural 
extensions which is one of the best models for achieving this goal. In this regard, the study found 
the following: 
• 40 extension officers or agents in different cooperatives have been trained in improved 
coffee production, agricultural diversification and basic extension techniques. 
• 22 cooperative management members were trained in the last three years in Cooperative
Management. 
• 172 board members of coffee cooperatives have been trained in the last three years
(CENTA-CAFÉ, MAG-Amanecer Rural, Salvadoran Chamber of Commerce, and INSAFORP).
• 9 Coffee Producing Cooperatives have developed business plans between 2013 and 2015. 
• A total of 15 cooperatives have participated in a regional network of coffee growers in the 
last three years, and participated in climate change, trade, international market and coffee 
forums. 
• They have developed a total of 6 networks of public-private cooperative partnerships. 
b. Financial Services: Facilitate Agricultural Lending
One of the key tools in the development of the coffee industry is funding. Historically general 
banking credit has considered coffee as one of the least risky activities in the agricultural sector.
The process of agrarian transformation and export control (National Coffee Institute), added the 
first elements of risk in this sector, even with nationalized banks at the time, it led to the need 
for further analysis and supervision of loans.
Thus, the banking system incorporated integral specialized agricultural credit units into its 
technical personnel, organizing attention units for the agriculture sector and special credit lines. 
Furthermore, the Central Bank gave a greater differential in the intermediation of resources to 
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33
those banks demonstrating a better administrative structure for analyzing, monitoring and 
recovering agricultural credits. 
Recently, the nationalized financial system has been converted to a private bank with presence 
of large international consortia, which added to a riggreenus risk rating of credit users, promoted 
by the Financial System Superintendence, which has caused the portfolio of agricultural loans to 
cease to be an important component in its investment strategies. Agricultural credit units were 
minimized and the banking risk was transferred to the coffee associations and coffee processors 
for the attention of the coffee producers financing.
An example of the reduction of agricultural credit unions is FEDECACES. FEDECACES stated that 
their agricultural unit ran only until 1990, because they recognized that customers of 
cooperatives had experience in forms of production but they were not able to manage 
appropriately, increasing the financial risk. Currently they only have one agronomist on their staff 
and financing is provided through partner intermediaries with limited participation from their 
end in the loans for coffee producers. 
Development banks (Banco Hipotecario and Agricultural Development Bank) have continued 
with greater presence in the financing of coffee in the agricultural sector. The Agricultural 
Development Bank has the following loan portfolio situation.
Table 4-1. Loan Portfolio of Agricultural Development Bank BFA
(In thousands of dollars)
DESTINATIONS
2012 2013 2014
# 
Credt.
Total 
amount
% 
Arrears
# 
Credt.
Total 
amount
% 
Arrears
# 
Credt.
Total 
amount
% 
Arrears
Coffee 
Maintenance 171 10,683
5.8
147 7,365
47.3
201 11,113
5.9
Planting coffee 77 897 148 4,643 118 3,594
Buy Properties 
Agricultural 6 230 6 582 1 160
Infrastructure 
and agro 
industrial 
processing 
10 536 12 506 33 967
Refinancing 17 210 16 1,281 31 1,210
Total 281 12,556 329 14,377 384 17,044
* Lines have been developed specifically for debt consolidation and refinancing of arrears coffee 
percentages are only the coffee category.
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34
The bank has developed special lines for debt consolidation and refinancing of arrears in coffee, 
especially for the results of the 2013 cycle. Regarding the administrative structure and personnel 
which serve their clients, it was not possible to obtain such information, but is recognized as the 
bank that has more presence in this sector.
The Salvadoran Foundation of Economic and Social Development (FUSADES) became a model of 
agriculture topics, and also had financing lines for this sector. However, six years ago they sold 
their portfolio to the Central America Bank. In regard to their analysis units, they closed such 
units three months ago and also closed the agriculture section with no plans to open it or make 
investigations in the near future.
The rest of the Salvadoran banking system has not developed credit lines specifically designed
for growing coffee. According to information provided by some banks we can find cases like the 
G&T Continental Bank, in which their attention to coffee financing is very small. A business credit 
executive manages the agricultural demand and the unpaid balances that are covered with the 
new lending. Below is the Loan Portfolio of G&T Continental Bank.
Table 4-2. Loan Portfolio Of G&T CONTINENTAL SA
(In thousands of dollars)
2012/13 2013/14 2014/15
Destination Number Amount Number Amount Number Amount
Preparation for Harvest 1 $ 1.500 1 $ 1.000 1 $ 1.000
Planting and replanting - - - - - -
Purchase of property - - - - - -
Refinancing - - - - - -
In the case of “FINCA” (Financial Fund for Small Loans), they have hardly served the coffee sector 
and do not have specialized personnel to assist coffee producers.
As noted above, marketers (processors and producers’ associations) have taken an important 
role in financing for the following reasons:
• Assuming the risk in granting credit, banking accountable to the total funding
• Through the Irrevocable Payment Orders, the coffee processors ensure the delivery of the 
coffee harvest to their industry. 
• Producer facilitates the granting of credit without going through the riggreenus analysis 
of the risk of commercial banks.
• The marketers (processors and producers associations) know the farmer, they have field 
staff and regional offices that allow them to establish the status of their plantations and 
crop forecasts, and also generate first-hand information on market conditions and prices 
for the formalization of sales to ensure recovery of funding.
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An example of the financing granted by a benefactor in the case of COEX is illustrated in Table 4-
3:
Table 4-3. Lending Portfolio of COEX LTD
(In thousands of dollars)
2012/13 2013/14 2014/15
Destination Number Amount Number Amount Number Amount
Preparation for 
Harvesting 1,700 $ 9.000 1,600 $ 6.300 1000 $ 6.600
Planting and replanting - - - - - -
Purchase of property - - - - - -
Refinancing - - - - - -
These types of institutions are focused on the short-term financing (accouterment). Cases of 
unpaid credits are usually dealt with by equity financing from mortgage guarantees or small 
amounts are added to the credit of the next harvest.
Attachment 1 contains a summary of the main information collected through the surveys 
conducted with the financial sector representatives which highlights the most important points:
• Most financial institutions have internal units responsible for agricultural credit for users 
in this sector.
• Lending institutions do not have specific programs for the coffee sector except Bandesal 
and BFA.
• The main destination is accoutrement financing, for long-term financing the institutions 
have to obtain resources from Bandesal.
• The most common guarantees are mortgage, pledge and Irrevocable Payment Order.
• No financial institution is supporting agricultural insurance.
• Financial institutions are aware of the guarantee funds, but it is not a tool often used. The 
PROGARA had operating problems this year; to date the Ministry of Finance has not 
established the amount of guarantee for each bank.
• Most institutions have staff to provide technical assistance.
In general, the financial sector has reduced its coverage of financing this sector and the crop 
forecast shows that the future is not promising due to the incidence of rust and climate change.
One of the criteria for determining the amount of funding that has changed dramatically, is the 
production base to finance. Previously, the average of the last four harvests was used; currently 
the criteria depends on the opinion of its field technicians assessing the condition of the 
plantation and harvest forecasts. This approach complicates the situation for the producer 
affected by rust, because his or her amount of funding has been drastically reduced by the impact 
on yields. It is a vicious circle in which the producer can only come out with additional funding 
for investment in planting.
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36
c. Inputs
Currently there are programs and projects that promote the recovery of coffee plantations and 
reduce the incidence of rust. Between 20% and 99% (percentage varies based on the region) of 
respondents say they know of projects working on the delivery of improved inputs, including
officers, the highest percentage is in the region of Chinchontepec and the lowest in Alotepeque￾Metapán. In regions of Cacahuatique, Chinchontepec and Tecapa-Chinameca, the participation 
of women is remarkable.
Table 4-4. Producers who know of projects that provide improved inputs by 
gender and region
Projects working in this area that 
provide improved inputs
Government programs working in the 
area that provide improved inputs. Total
Region
Female
%
Male
%
Female
%
Male
%
Female
%
Male
%
Total%
Alotepeque￾Metapán
0% 0% 0% 24% 0% 24% 20%
Apaneca￾ILamatepec
22% 17% 19% 33% 41% 51% 47%
Cacahuatique 1% 4% 67% 72% 69% 76% 73%
Chinchontepec 19% 28% 79% 71% 98% 99% 99%
Bálsamo -
Quezaltepec
0% 21% 20% 25% 20% 46% 42%
Tecapa -
Chinameca
0% 4% 73% 79% 73% 83% 81%
A prerequisite for coffee producers to better address the incidence of diseases such as rust, is the 
adoption of improved techniques in coffee. It was observed that half of the regions under the 
study have 20% of the crop area with improved techniques in coffee. These include the control 
of pests and diseases, pruning, harvesting and post-harvest management. The regions with the 
lowest percentage of its area under this management are Chinchontepec and Bálsamo￾Quezaltepec.
Table 4-5. Area under improved coffee production techniques
Region %
Alotepeque-Metapán 19%
Apaneca – Llamatepec 13%
Cacahuatique 19%
Chinchontepec 8%
Bálsamo -Quezaltepec 2%
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Tecapa –Chinameca 19%
Total 12%
The coffee producers recognize that they are facing problems and are aware of the risks that 
come with growing only one crop, but do not have the resources for agricultural diversification 
options. The study found that the percentages of the actual areas for agricultural diversification 
are minimal (1%) with no gender difference between producers, as shown in Table 4-6a:
Table 4-6a. Coffee producers growing regions areas for other agricultural products 
(agricultural diversification) Male and female
Area (MZS)
Region Female% Male%
Alotepeque-Metapan 0% 1%
Apaneca - Llamatepec 1% 2%
Cacahuatique 1% 0%
Chinchontepec 0% 1%
Bálsamo -Quezaltepec 0% 0%
Tecapa -Chinameca 1% 1%
Total 1% 1%
Producers which have had more access to improved varieties of coffee under projects that have 
provided such inputs, have received improved varieties of coffee and organic fertilizer, which is 
a good finding in terms of their preparation for gaining access to markets of specialty coffees. As
well as for regions with access to improved inputs, Apaneca-Ilamatepec and Cacahuatique, share 
similar percentages of participation.
Table 4-6b. Producers with improved inputs by region
Region
Improved 
coffee 
varieties
Organic 
pesticides
Organic 
fertilizers
Other seeds 
and inputs
Total of 
producers 
for each 
region
%
Alotepeque-Metapan 24 2 21 50 4%
Apaneca- Llamatepec 320 122 272 152 490 35%
Cacahuatique 289 64 126 28 420 30%
Chinchontepec 78 86 114 111 186 13%
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Bálsamo -
Quezaltepec 32 16 60 48 58 4%
Tecapa -Chinameca 141 8 21 192 14%
Grand Total 884 298 614 339 1396
% 63% 21% 44% 24%
The presence of agricultural extension workers in different regions is dominated by CENTA-CAFÉ
technicians. The Cacahuatique region has the highest number of producers receiving this service. 
The Alotepeque-Metapán region is receiving the lowest amount of extension services. 
Table 4-6c. Number of producers receiving agricultural extension services by region
Region 
Producers 
receiving 
agricultural 
extension 
services 
CENTA￾CAFÉ MAG 
Salvadoran 
Coffee 
Council 
PROCAFE OTHER Total % 
Alotepeque￾Metapán 22 17 2 2 43 3% 
Apaneca￾Llamatepec 152 100 6 4 16 26 304 22% 
Cacahuatique 311 266 6 17 20 620 44% 
Chinchontepec 99 81 6 1 8 13 208 15% 
Bálsamo -
Quezaltepec 27 11 3 15 56 % 
Tecapa -
Chinameca 86 82 2 2 2 2 176 13% 
Grand Total 697 557 20 7 48 78 1407
Percentage - 80% 3% 1% 7% 11% - -
The table above shows the impact that can be achieved by strengthening the quality and quantity 
of agricultural extension through the government. 
As mentioned in previous sections there are MAG efforts to strengthen its agricultural extension 
agents in issues related to the different stages of coffee growing. The communications 
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39
department records indicate that 60 extension agents and researchers from CENTA-CAFÉ were 
trained in 2014, while the number of agents trained was reduced to 40 in 201521
.
d. Market Access
The realization of a productive activity is aimed at generating profit. We have reviewed the 
aspects of production in this sector, but equally important are issues related to the marketing of 
the products.
Survey participants mentioned that they know of business roundtables that are held between 
producers and buyers. However, an average of only 8% have participated in roundtables, the 
highest attendance rates were in the Alotepeque-Metapán region. Most producers have not 
participated in the Chinchontepec region, showing the least degree of participation (3%).
Table 4-7 Producers who participated in business roundtables.
Region %
Alotepeque-Metapán 14%
Apaneca - Llamatepec 9%
Cacahuatique 10%
Chinchontepec 3%
Bálsamo -Quezaltepec 7%
Tecapa -Chinameca 5%
Grand Total 8%
Regarding the agreements created between buyers and sellers of the areas surveyed, the study 
gave a result of 31 agreements involving 3,064 members of different cooperatives that were 
identified. On issues related to market access, respondents mentioned that there are 35 
cooperatives with public-private partnerships involving 3,271 members of their cooperatives. On 
the other hand, producer associations showed participation in 21 partnerships of this type with 
a distribution by region illustrated in Graph 4-1.
Graph 4-1. Number of producer associations with public-private partnerships
21Data up to May 2015. 
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40
Regarding the agreements between producers and sellers, within the survey a total of 111 
farmers have participated in such agreements, representing 8% of the total. 
Table 4-8. Number of producers who participated in agreements between buyers 
and sellers
Region # Participants %
Alotepeque-Metapán 7 14%
Apaneca- Llamatepec 42 9%
Cacahuatique 42 10%
Chinchontepec 6 3%
Bálsamo -Quezaltepec 4 7%
Tecapa -Chinameca 10 5%
Grand Total 111 8%
It is important to note that the Apaneca-Ilamatepec region:
• Is the only coffee-growing region in the country that has achieved protected designation 
of origin (PDO) for coffee produced within the region. This certification allows for coffee 
marketing and positioning in regional and international markets. 
• Is the one region that has developed tourism initiatives associated with coffee, requiring 
the development of alliances to facilitate the participation of local governments.
4
10
0
3
0
4
0
2
4
6
8
10
12
Alotepeque-Metapán Apaneca- Llamatepec Cacahuatique Chinchontepec El Bálsamo -
Quezaltepeque
Tecapa -Chinameca
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41
• As for production in different regions, the analysis of recent cycles shows low yields by 
qq green coffee (60kg of coffee cherry for every 60kg of dry coffee), the lowest 
corresponding to the region of Tecapa - Chinameca. These figures are consistent with 
behavior reported by authorities due to the coffee rust crisis. 
It is difficult to follow price trends in the international coffee market. Despite the significant drop in 
production in Central America due to rust, prices are influenced by the large producers. The data 
obtained illustrates that the top prices paid for green qq correspond to the Alotepeque –Metapán region
and the lowest in the region to the Bálsamo – Quezaltepec region (Table 4-9). 
Table 4-9. Income, sales volumes and selling prices for green qq regions
Coffee Areas (mz)
Performance 
green qq / 
mz
Sales volume 
qq green / 
mz
Qq green sale 
price
Region Female Male Total 2013-
2014
2014-
2015
2013-
2014
2014-
2015
2013-
2014
2014-
2015
Alotepeque￾Metapán 20.25 266.25 286.5 4.71 6.71 4.70 6.71 $155.53 $ 
159.47
Apaneca￾Llamatepec 1001.5 1550.04 2551.54 5.85 4.74 5.81 4.57 $ 36.09 $ 
115.28
Cacahuatique 980.98 2218.62 3199.6 4.70 4.62 4.59 4.19 $100.19 $ 
101.41
Chinchontepec 341.75 683.5 1025.25 4.10 3.38 3.95 7.69 $ 95.87 $ 
105.09
Bálsamo
Quezaltepec 684.5 3440.04 4124.54 3.07 8.69 3.07 8.69 $ 19.07 $ 
25.26
Tecapa -
Chinameca 570.5 1715.86 2286.36 1.53 1.13 1.53 1.11 $102.53 $ 
94.35
Grand Total 3599.48 9874.31 13473.79 3.83 5.25 3.79 5.44 $ 91.77 $ 
68.04
As previously mentioned, the development of agricultural diversification in these regions is emerging, 
but it is important to mention that the region dedicated to this activity is the Apaneca-Ilamatepec region
followed by the Chinchontepec region. Apaneca is recognized for growing vegetables, Tomato is the 
most common crop, and flowers and Chinchontepec for fruit production.
Table 4-10a. Percentage share in production volume in the cultivation of 
diversified products by producers by region
Region % of Production
Alotepeque-Metapan 0%
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e. Training: Improved Agricultural Production Techniques
The combined agricultural extension field school is a form of effective technology transfer. 
Approximately 49% of coffee producers reported knowing of some type of field school and 43% 
have attended them. The highest participation is in the regions of Cacahuatique and 
Chinchontepec. 
Table 4-11. Coffee Producers participation in field schools by region.
One component of the project is related 
to capacity building, an area which has 
been mainly directed by government 
actions. This element is important 
because some of the constraints on the 
fieldwork are that producers have little 
receptivity to training, since it is what is 
most offered to them and their needs are 
at another level. Throughout the survey it 
was found that the region where farmers
have been trained the most in improved 
coffee techniques for cultivation is in 
Cacahuatique. Those that have received fewer trainings are located in the regions of Alotepeque 
- Metapán and Bálsamo-Quezaltepec. 
Table 4-12. Percentage of producers trained in improved techniques by region
Apaneca- Llamatepec 4. 5%
Cacahuatique 17%
Chinchontepec 3. 4%
Bálsamo –Quezaltepec 1%
Tecapa –Chinameca 2%
Table 4-10b. Percentage of farmers 
producing diversified products
Cultivation % Of total production
Tomatoes 13%
Red / green Pepper 0%
Zucchini / pipián 1%
Jalapeño pepper 0%
Red beans 4%
Others 81%
Region
Knowledge of the 
development of 
field schools in 
their cooperative
Number of producers 
who attended at least 
one field school
Average 2014
Average number 
of field schools 
reported by 
producers in
2014
Alotepeque-Metapan 36.00% 32.00% 3 3
Apaneca- Llamatepec 31.84% 18.78% 3 3
Cacahuatique 74.05% 73.81% 3 2
Chinchontepec 62.37% 44.62% 2 1
Bálsamo-Quezaltepec 25.86% 22.41% 3 3
Tecapa -Chinameca 36.98% 36.46% 4 3
Grand Total 49.21% 43.05% 3 2
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Region % Trained producers by region
Alotepeque-Metapán 4%
Apaneca- Llamatepec 23%
Cacahuatique 39%
Chinchontepec 15%
Bálsamo -Quezaltepec 3%
Tecapa -Chinameca 16%
As for the topics covered in the trainings on improved techniques for growing coffee, pest and 
disease control was the most common, followed by pruning. This is reasonable since both issues 
are crucial to overcoming the effects of rust, are short-term options and are practical for the 
producer. Furthermore, assistance from the government and cooperating agencies has focused 
its support on these areas. 
Table 4-13. Coffee Producers who have received trainings by training topics in each 
region
Region Pest and 
disease% Pruning% Harvest% Post-harvest 
handling%
Alotepeque-Metapán 84% 52% 18% 0%
Apaneca- Ilamatepec 43% 20% 18% 12%
Cacahuatique 93% 41% 35% 13%
Chinchontepec 68% 39% 33% 12%
Bálsamo-Quezaltepec 50% 19% 16% 7%
Tecapa -Chinameca 74% 56% 3. 4% 0%
Grand Total 67% 35% 27% 10%
On training through radio programs, some producers have knowledge of MAG22´s radio programs 
which deal with issues and problems related to coffee rust. 
Regarding employment generation, male producers generate 59% of wages in permanent and 
temporary jobs. This figure is related to the fact that the majority of administrative and 
managerial positions in cooperatives are held by men.
22CENTA produces "Cosecha Radio", a radio program that airs every Monday at 4:10 am on Radio Nacional de El Salvador (RNES) 96.9 FM 
and 10:00 am through the affiliate stations the Association of Radio and Participatory Programs El Salvador (HARPS), on 92.1 FM dial
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44
Table 4-14. Number of wages generated (by region and gender)
Permanent jobs Temporary jobs Total jobs
Region Male Female Male Female
Alotepeque-Metapán 106 24 290 315 735
Apaneca- Llamatepec 1244 270 2898 2690 7 102
Cacahuatique 1317 203 4429 3628 9 577
Chinchontepec 505 143 1173 1242 3 063
Bálsamo -Quezaltepec 572 322 2421 1206 4 521
Tecapa -Chinameca 479 84 1211 1230 3 004
Grand Total 4223 1046 12422 10311 28, 002
% 15% 4% 44% 37%
Complementary trainings on marketing and branding were conducted with producers within the 
six regions:
• There is a total of 2,240 associates in 28 cooperatives that have been trained in marketing 
techniques. 
• They have all received 39 training sessions in the last three years in marketing techniques. 
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45
5. Project Performance Indicators Rationalization and 
Validation 
To measure outcomes relative to the project objectives, the donor (USDA) and the implementer (NCBA) 
agreed on 30 Result Indicators (RIs) that would be tracked over the course of the project. 
Performance indicators were reviewed during the baseline study in conjunction with the implementer 
(NCBA); the recommendations to adjust and/or to eliminate were based upon the criterion of 
recognizing the current situation of the coffee growing/producers, or because some of them were 
repetitive. Among them are the following: 
Suggested changes
3.3 Value of loans provided as a result of USDA assistance (male) Food For Progress (FFPr Indicator 
6)
3.6 Number of individuals receiving financial services as a result of USDA assistance (male) Food For 
Progress (FFPr indicator 4)
3.8 Value of loans provided as a result of USDA assistance (female) Food For Progress (FFPr Indicator 
6)
3.9 Number of individuals receiving financial services as a result of USDA assistance (female) Food 
For Progress (FFPr indicator 4)
4.1 Number of in-kind input grants distributed to farmers with USDA assistance
4.2 Value (in USD) of in-kind input grants distributed to farmers with USDA assistance
4.4 Number of hectares under improved agricultural techniques and technologies (coffee) (new) 
Food For Progress (FFPr Indicator 1)
4.5 Number of hectares under improved agricultural techniques and technologies (coffee) 
(continuing) Food For Progress (FFPr Indicator 1)
4.6 Number of hectares under improved agricultural techniques and technologies as a result of 
USDA assistance (diversified crops) (new) (diversification will be at farmers' discretion; targets 
will be revised after baseline) Food For Progress (FFPr Indicator 1)
4.7 Number of hectares under improved agricultural techniques and technologies as a result of 
USDA assistance (diversified crops) (continuing) (diversification will be at farmers' discretion; 
targets will be revised after baseline) Food For Progress (FFPr Indicator 1)
4.8 Number of individuals who have applied new techniques or technologies as a result of USDA 
assistance (coffee) (male) Food For Progress (FFPr Indicator 2)
4.9 Number of individuals who have applied new techniques or technologies as a result of USDA 
assistance (coffee) (female) Food For Progress (FFPr Indicator 2)
5.6 Number of farmers benefiting from agriculture inputs with USDA assistance
6.4 Number of producer organization members benefiting from buyer/seller meeting
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46
Suggested changes
7.2 Value of coffee related joint public-private initiatives aimed at expanding trade
7.4 Value of new public and private sector investment leverage as a result of USDA assistance 
(public) Food For Progress (FFPr indicator 9)
7.5 Value of new public and private sector investment leverage as a result of USDA assistance 
(private) Food For Progress (FFPr indicator 9)
7.6 Value of sales by project beneficiaries (coffee) Food For Progress (FFPr Indicator 13)
7.7 Volume of commodities (quintales or cwt´s bag=100 pounds) sold by project beneficiaries 
(coffee) Food For Progress (FFPr Indicator 14)
7.8 Volume of commodities (metric tons) sold by project beneficiaries (diversified crops) 
(diversification will be at farmers' discretion; targets will be revised after baseline) Food For 
Progress (FFPr Indicator 14)
7.9 Value of sales by project beneficiaries (diversified crops) Food For Progress (FFPr Indicator 13)
9.1 Number of farmer field schools established
9.2 Number of individuals who have received short-term agricultural sector productivity or food 
security training as a result of USDA assistance (male) Food For Progress (FFPr Indicator 16)
9.5 Number of farmers who have received training on improved agricultural techniques and 
technologies as a result of USDA assistance
9.6 Number of individuals who have received short-term agricultural sector productivity or food 
security training as a result of USDA assistance (female) Food For Progress (FFPr Indicator 16)
9.9 Number of jobs attributed to USDA assistance (male) Food For Progress (FFPr Indicator 15)
9.10 Number of jobs attributed to USDA assistance (female) Food For Progress (FFPr Indicator 15)
Suggested deletions
4.12 Number of individuals who have applied new techniques or technologies as a result of USDA 
assistance (diversified crops) (new) (diversification will be at farmers' discretion; targets will 
be revised after baseline) Food For Progress (FFPr Indicator 2)
4.13 Number of individuals who have applied new techniques or technologies as a result of USDA 
assistance (diversified crops) (continuing) (diversification will be at farmers' discretion; 
targets will be revised after baseline) Food For Progress (FFPr Indicator 2)
4.14 Number of hectares under improved agricultural techniques and technologies (coffee) (new) 
Food For Progress (FFPr Indicator 2)
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47
4.15 Number of hectares under improved agricultural techniques and technologies (coffee) 
(continuing) Food For Progress (FFPr Indicator 2)
7.10 Value of sales by project beneficiaries (coffee) (diversified crops) Food For Progress (FFPr 
Indicator 13)
9.7 Number of individuals who have received short-term agricultural sector productivity or food 
security training as a result of USDA assistance (new) Food For Progress (FFPr Indicator 16)
9.8 Number of individuals who have received short-term agricultural sector productivity or food 
security training as a result of USDA assistance (continuing) Food For Progress (FFPr Indicator 
16)
9.14 Total number of individuals benefiting directly as a result of USDA assistance (new) (standard 
FFRp) Food For Progress (Indicator 17)
9.15 Total number of individuals benefiting directly as a result of USDA assistance (continuing) 
Food For Progress (Indicator 17)
The consulting firm has made recommendations outlined in ATTACHMENT E PERFORMANCE 
INDICATORS based on the data collected and analyzed under the baseline study. 
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48
6. Amendment Options to the Project Monitoring and 
Evaluation Process
The project refers to six geographical regions that have distinct characteristics in terms of ease of access
due to reasons of a social nature and the level of readiness from farmers for a project. This condition 
makes monitoring in the six regions a complex task especially since the subjects to be measured are
cooperatives; producers and their associations; and government institutions.
It is desirable that the monitoring and evaluation system identifies each of these groups of project 
beneficiaries from NCBA CLUSA El Salvador and is able to generate information of targeted goals
according to the type and amount of benefits received by the project.
Once the beneficiary groups are identified, the project should determine points of measurement within 
the beneficiaries to establish a basis23 for monitoring 100% of the indicators in relation to its progress in 
achieving the annual targets.
A third step in the process is the creation of monitoring tools for the project and aligning the indicators 
so that they can be measured. It is important to consider the levels of access to mobile 
telecommunications and Internet access in areas where the project will operate.
Monitoring and evaluation should not be based on a census of all beneficiaries, but a sample of the 7,500 
beneficiaries. In order to have an adequate representation (95% confidence level and 5% margin of error) 
the sample size should be around 900 beneficiaries.
To be effective, this measurement should take into consideration the gender distribution of producers 
found in the six regions.
Meanwhile the midterm and final evaluations should consider the tools and findings of the baseline in 
terms of baseline indicators and focus on the development of a measurement process of the five 
components and nine activities developed in the project.
These measures should allow for the development of comparisons between producers who are direct 
beneficiaries of the project and those who are indirect.
Additionally, this measure must provide average levels of progress towards the goals set by the project 
in the design phase and should generate conclusions and recommendations to guide the staff of NCBA 
CLUSA El Salvador to carry out changes that will allow them to achieve planned targets.
23 It is recommended that the measurement frequency should be quarterly to generate timely information to enable 
refocus efforts and should not be achieving compliance with the goals set by the program. Please clarify here.
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Meanwhile the final assessment should establish whether the goals are achieved and if this wasthrough 
the development of the project and relevant causal relationships that will be established so that the 
achievement of the goals can be attributed to the project.
In the case of the mid-term evaluation, changes will be determined by the behavior of the results 
indicators. The final evaluation will provide results that will be compared to the results obtained during
the baseline survey and the mid-term evaluation. This will allow the project to establish the changes that 
took place as a result of NCBACLUSA’s intervention.
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7. Project Approach Recommendations
Despite the challenges that coffee cultivation is facing in the domestic context, coffee cultivation and 
processing remains a major component for strengthening local development processes and is a valuable 
strategic resource to strengthen the Salvadoran economy in the short, medium and long term. Besides
these economic considerations, the social impact of coffee production is very significant due to the direct 
and indirect employment it generates for a large segment of the rural population, and the benefits 
arising from such employment.
a. Appropriateness of the Geographic Focus
After evaluating the receptivity that the Consultant Team has observed in field work in the six 
regions that the original project design intends to cover, the team believes it will not be possible 
to achieve results and accomplish the expected impact of the project, if this geographic focus is 
maintained.
(R1) Apaneca - Ilamatepec: coffee production in this region presents the best comparative 
advantages in terms of production quality, marketing positioning and complementary activities 
that enhances the sustainability of a business model based on the cultivation of coffee. This 
region has a protected designation of origin (PDO), which is a strategic asset that should be 
exploited and strategically enhanced by the USDA/NCBA CLUSA Project. Additionally, during the 
sessions and interviews with producers, they were very receptive and enthusiastic about the 
project concept.
(R2) Bálsamo – Quezaltepec: Compared to other regions of the project, CENTA-CAFÉ and the 
Ministry of Agriculture, have a significant intervention in this region. Nevertheless, the consulting 
team was not able to identify that the intervention from this institutions is giving concrete results 
in the production capacity and marketing of coffee. Unfortunately, in this region the biggest 
problem that was identified was the coordination and development of the field work, which is 
largely due to a systematic blockage of CENTA-CAFÉCAFÉ officials and the Ministry of Agriculture. 
This situation will give a negative impact on the relationship with producers when the project 
starts operating, so it is recommended to consider and carefully evaluate if this region continues 
to be of interest for the project.
(R3) Tecapa - Chinameca: During the fieldwork, the Consultant Team did not find a significant 
number of coffee producers of strict height grown (above 800 MASL), so the activities that the 
project is aiming toward coffee producers would not have an impact on the overall performance 
of the project, therefore the Consultant Team does not recommend to consider this Region 
within the concepts of the project.
(R4) Cacahuatique: Coffee production in this region is of very good quality and is strengthened 
by a remarkable management and marketing capacity by the cooperatives. The project can create 
a positive impact by replicating concepts in Cacahuatique that have been developed for the 
region "Apaneca - Ilamatepec" to raise the quality of production and at the same time obtain a 
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PDO. The producers can use the cultural history of the region to their advantage, especially by 
linking the product to highly recognized Salvadorans icons. Producers can use images to 
accompany the strategic positioning of their coffee cultivation (this is a geographical area 
associated with Gerardo Barrios and Monsignor Arnulfo Romero).
(R5) Chinchontepec. In this region sharp contrasts were observed, and it was not possible to 
identify a consistent quality of coffee production and organizational capacity of producer 
cooperatives. The fieldwork results suggest that the work should focus in the sub region of 
Guadalupe producers, since this cluster presents the best results in terms of quality and 
organizational capacity.
(R6) Alotepeque - Metapán. This region presents difficult conditions to work in, since the 
geographical spread of its producers is wide and does not allow for efficient work and guaranteed 
results. It is the opinion of the Consultant Team that the economic costs in this region outweigh 
the potential results and impact of the project actions. In this region the Consultant Firm 
recommends focusing the work on coffee farmers from Chalatenango.
Project Risk Factors and Risk Mitigation
Risk factors associated with USDA / NCBA CLUSA project are similar to those that affect any 
agricultural operation, particularly in the remarkable susceptibility of El Salvador to the effects of 
climate change (such as currently being observed with the drought). These may include but are 
not limited to outbreak of rust and the coffee Antracnosis that continues to affect coffee crops.
Climate change is a real concern for the Salvadoran coffee producers. Overall, drought and 
unfavorable temperatures are the major climatic limitations for coffee production. These 
limitations are expected to become increasingly worse in Salvadoran coffee regions since they 
are part of the Central American dry corridor, that shows changes in climate between harsh heat 
and sensible rains and also because coffee cultivation has spread towards marginal lands, where 
water shortage and unfavorable temperatures constitute major constraints to coffee yield, 
particularly in the eastern part of the country. 
The combination of the effects of climate change and the effects of rust, explains the historically 
low coffee yields observed in cycles of coffee in 2013, combined with the fact that most coffee 
plantations are over ten years old.
This risk can be mitigated by the gradual renovation of coffee plantations with new varieties 
resistant to coffee rust and the introduction of additional measures of protection and 
improvement of ecosystems adjacent to coffee plantations.
This risk can be mitigated through advanced technical processes of primary production of coffee, 
as well as encouraging coffee farmers to evolve to trade coffee in cherry to dry beans, these 
considerations have to do with the modernization within the value chain of coffee production 
that will be discussed in the next chapter. To complement this, the best strategy to favorably 
position the coffee products, is through training and fostering the production of differentiated or 
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specialty coffees, preferably with international certifications such as "Fair Trade", "Rainforest 
Alliance", "Coffee Best Practices" etc. 
b. Staffing and Organizational Structure
The vast majority of cooperatives producing coffee have severe limitations in their administrative 
capacities in the production management processes and mainly in their ability to visualize the 
production process as part of a value chain that starts from the most basic considerations of 
genetic crop management, culminating with all processes associated with the positioning of their 
products on local, regional and global coffee markets.
Despite all of this the central government, various organizations of civil society and international 
cooperation have invested considerable resources in the development of capacities within the 
technical and managerial staff of cooperatives producing coffee.
Administrative weakness is associated directly with the constant rotation of leadership positions 
in the board of directors. Usually, all capacity building efforts being made by government 
institutions, NGOs and civil society organizations focus on times when there is renovation in 
management positions. In reality, when changes are made in staff, there is no process of 
institutionalization of training and efforts are lost with the people who are removed from 
leadership positions in these cooperatives.
The results of this institutional weakness were noticeable, even before the 2013 outbreak of rust 
and lack of rainfall has been observed in the past two years, the sector's productivity has fallen 
to averages of 15-18 quintals / block between the years 1992-2000 at lower levels to 10 qq / mz 
currently. Nevertheless, positive aspects are displayed, such as the strong growth in the specialty 
market, i.e., gourmet coffees, certified organic, etc., which are currently 30% of total coffee 
exports.
In this context, the project can provide valuable strategic elements to introduce technology 
production and marketing of coffee cultivation, as discussed in the next chapter.
c. Governmental Strategic Plans and Project Goals
Coffee production is one of the ten agricultural chains priorities within the Family Farming 
Program (PAF) of the Ministry of Agriculture. The duties related to strengthen the cultivation of 
coffee has been entrusted to technicians of CENTA-CAFÉ, an operational branch of CENTA newly 
created.
Unfortunately, during the process of recollecting information a strong opposition from CENTA￾CAFÉ to the project design and subsequent operation was observed. This is an issue which, as 
mentioned above, caused severe limitations on field work and can even block future project 
operations.
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It is therefore necessary that USDA and NCBA CLUSA make the necessary efforts in order to 
overcome this impasse and propose a cooperative relationship with the authorities of CENTA￾CAFÉ and the Ministry of Agriculture as part of the strategic objectives of the project and 
territorial work that must develop in areas that benefit the project.
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8. Value Chain Considerations
A value chain is a supply chain consisting of the input suppliers, producers, processors and buyers that 
bring a product from its conception to its final use. A value chain approach seeks development to address 
the major constraints at each level of the supply chain, rather than concentrating on just one group (e.g., 
producers) or on one geographical location. Constraints often include a lack of technical, business or 
financial services support, a difficult regulatory framework, poor public infrastructure (roads, 
telecommunications, electricity, etc.), a lack of information about or weak connections to end markets, 
and/or inadequate coordination between firms. Taking a value-chain approach is often essential to a 
successful economic development since micro and small enterprises and smallholder farmers will only 
benefit over the long term if the industry as a whole is competitive.
The value chain analysis is very important to develop the cultivation of coffee and make it as valuable as 
possible to support the development of the producers and their families. Figures 8-1a & b show the 
summary details of the main aspects of the analysis of the value chain for coffee, which starts from the 
basic considerations on the genetic quality of plantations up to its position in the market.
One of the main elements in the analysis of the coffee value chain is the international market, in which
coffee is the second largest valued commodity in international trade, and the most widely traded tropical 
agricultural commodity after petroleum. Coffee trade is dominated by Latin America and Caribbean 
countries, accounting for 57% of world exports, while African countries account for 14%24. In this 
scenario, the two main references are the International Coffee Agreement and the subsequent Creation 
of the International Coffee Organization.
In 1954 in Brazil, it was proposed to create an International Coffee Agreement that includes both 
producing countries and importing countries. Subsequently, the Organization of American States (OAS) 
developed studies of this proposal. In 1958 the Coffee Study Group was established in Washington, 
consisting of 20 producers and consumer countries; they intended to examine the short-term problems 
and declining coffee prices and problems of long-term trends in the imbalance of the coffee economies.
The International Coffee Organization was established in 1963 with the first International Coffee 
Agreement (ICA) for a period of five years, and it has continued to operate under successive Agreements 
negotiated since then. These includes the ICA 1968 (and its two extensions), the ICA 1976 (with one 
extension), 1983 (and its four extensions), the 1994 Agreement (with one extension) and the 2001 
Agreement (with three extensions). 
24The International Coffee Organization website http://www.ico.org/trade_statistics.asp?section=Statistics
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Figure 8-1a. Coffee Value Chain
Coffee Farms Benefactor / 
Exporter
Production
Wet coffee processing
Dry coffee processing
Cupping, 
selection 
classification
Coffee export
Special Coffee
International Market
Individual or 
associated producers 
qq cherry
Traditional coffee
Toasted Local Market
Coffee Processing Merchandising
Individual producers 
or groups of dry 
coffee (pergamino)
Technical Assistance 
and Research
Regulations
Coffee Nurseries 
(Viveros de café) and 
input suppliers
Financial Services
THE COFFEE CHAIN
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Figure 8-1b. Coffee Value Chain
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Production Coffee Processing Merchandising
- Production and / or purchase 
of almacigo
- Planting
- Pruning
- Weed control
- Control of pest and diseases
- Harvesting
- Transport to harvest facilities
- Drying, some producers dry 
fresh coffee (cherry fresh) 
which they call cerezas secas 
(dried cherry)
Wet coffee processing
- Pulping, separation of seed, skin and pulp of 
covering the grain
- Treatment, removal of mucilage (cold water￾fermentation)
- Drying becomes green coffee (pergamino)
- Classification, size and quality
Dry coffee processing
- Treat and place last sheds skin (pergamino), cleaned 
and selected by size, shape and weight. Export is 
known as green coffee or green.
- Packaging
- No export Coffee roasting passes for domestic 
market
Toasting or roasting
- Through hot coffee making dark color and aroma.
- Ground, grinding grain to give characteristics of 
grain.
- Solubilization, extract percolation fluid is taken and 
dried at high temperature
- Liofilización, freeze-dried coffee at very low 
temperature to avoid deterioration due to 
overheating.
- Packaging and distribution
Direct sales to intermediaries of fresh cherries 
and dried cherries, usually small producers
Sales to coffee processing of fresh cherries and 
dried cherries
Sales to coffee processing of fresh cherries or 
dried cherries.
Modalities
- Sales to future agreements as to future 
positions NYSC
- Price fixings: volumes of physical coffee 
prices are agreed by exchange positions 
NYSC in different quarters that 
determines the date of payments
Sale of roasted coffee, roasted ground coffee, 
instant coffee, freeze dried coffee and 
combinations.
Branding, distribution channels, logistics and 
marketing
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The latest Agreement, the ICA 2007, was adopted by the Council in September 2007 and entered into
effect on 2 February 201125. In this Agreement the functions of the ICO as a forum for intergovernmental 
consultations were strengthened, facilitating international trade through the increase in transparency 
and access to relevant information that promotes a sustainable coffee economy for the benefit of all 
stakeholders and in particular small-scale farmers in coffee producing countries. This 2007 agreement 
has a duration of ten years and may be extended for another eight years.
However, the OIC is no longer in the management of world supply and pricing, in this new scenario the 
OIC has reduced its role and their impact in coffee marketing; among the reasons why the International 
Coffee Agreements regulate prices includes:
• Increase in supplier countries. 
• The process of managing coffee quotas is complicated and difficult to negotiate and modify.
• Changes in the world´s habits of drinking coffee, which requires different types of coffee, and quick 
ways of sourcing and trading
• Possibility to buy the product outside the terms of the OIC seriously weakened the same agreement.
• Interests of transnational corporations. A free and open market favors those operators who have 
greater bargaining power. Market concentration import, trade, roasting and distribution in the hands 
of a few companies, in addition to its strong bargaining power in front of thousands of producers and 
isolated groups not organized in most cases, makes them some actors paramount in defense of the 
absence of any quota agreement that harms their interests.
The coffee sector worldwide is dominated by four large Multinational Companies; Nestlé, Procter & 
Gamble, Kraft/Phillips Morris, and Sara Lee. These four Multinational Corporations control
approximately 70% of the world´s market share in roasted and ground coffee for home consumption.
Currently the marketing and pricing of coffee is an activity carried out directly by the producers with 
their buyers and coffee processors (usually known in the Salvadoran coffee sector as “beneficiadores”). 
This is a direct treatment relationship based primarily on trust between the parties, which can be linked 
to the provision of financial arrangements to facilitate the production of coffee, which keeps the 
marketing operation linked.
Salvadoran coffee producers traded mainly unprocessed fresh fruit coffee, in the first links of the chain, 
unlike countries such as Costa Rica who have made efforts to advance their producers to the next link of 
coffee processing, in which fresh fruits are processed, transformed into dried coffee beans, pulped and 
for moisture, leaving the dried grain for better conditions. Staying in the production of fresh coffee 
perishables reduces producer bargaining power and advantages benefactor-producers, and strengthens 
the capacity for large buyers/processors to set prices and production conditions, which are generally 
detrimental to coffee producers.
25 http://www.ico.org/icohistory_e.asp?section=About_Us#sthash.FT2tMCBC.dpuf
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The NCBA CLUSA Project has the opportunity to make a significant contribution to improve the 
competitiveness of coffee growing in El Salvador, impacting positively on improving various links of the 
value chain previously illustrated in Figures 8-1A and 8-1b. 
As previously illustrated in the above figures, when the coffee value chain and the conditions of regional 
and global markets is analyzed, it is obvious that the way to achieve better profits in the coffee business 
is not in the production of fresh coffee, the Salvadoran coffee producers need to move up the chain and 
add value through coffee processing facilities (beneficios) that can be adjusted to different sizes of 
production scales of coffee beans. 
Better sale prices of coffee can be obtained by increasing the value added via processing of coffee or 
certify production via quality differentiation seals for sale to local or international markets. To illustrate, 
Table 8-1 shows how the sales price for producers is drastically improved when moving in the value chain 
previously illustrated.
Table 8-1. Scenarios of producer price improvement when moving within the coffee 
value chain
Basic Coffee Production
Cherry
NYSC Price: $139.05
Domestic Market Price 
qq Green/cherry
producer: $92.70
Dry Green Coffee
Yield 80%
Domestic Market Price 
qq green coffee: 
$117.70
Roasted Coffee
Yield 80 ponds toasted 
per qq green cherry.
Average price per 
pound: $3.50
Domestic Market Price 
qq Toasted: $280.00
Retail – Coffee Shop
Yield 1 pound toasted: 
32 cups
Average price per 
coffee cup: $1.85
Domestic Market Price 
qq Toasted: $4,736.00
Production of specialty coffees
Domestic Market Price 
qq Green/Cherry
producer: $117.70
Domestic Market Price 
qq green coffee: 
$142.70
International Market 
Price qq Toasted: $500-
$1,000
Average price per 
coffee cup: $4.0
Domestic Market Price 
qq Toasted: $10,240
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Source: Own calculations made by the Consultant Team based on the closing price of NYSE Cafe on August 18, 2015.
The NCBA CLUSA Project contributions to coffee production in the target areas, may consider improving 
the genetic quality of coffee plantations, to transform from a basic coffee production to an improved 
coffee production differentiated by quality and compliance with international standards.
Practices for the production of differentiated coffees, such as organic or specialty coffees, is a key part 
of technical assistance in the value chain. The producer must be clear that the use of these techniques 
should mean an improvement in its sales prices. This is a key point that must be taken into consideration 
by the NCBA CLUSA project, to include in its offer of technical assistance and support of equipment and 
infrastructure within the concepts of this project.
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Protected designation of origin (PDO)
The Protected designation of origin is the name of an area, a specific place or, in exceptional cases, the name of a country, 
used as a designation for an agricultural product or a foodstuff, which comes from such an area, place or country, whose 
quality or properties are significantly or exclusively determined by the geographical environment, including natural and 
human factors, whose production, processing and preparation takes place within the determined geographical area. In 
other words, to receive the PDO status, the entire product must be traditionally and entirely manufactured (prepared, 
processed and produced) within the specific region and thus acquire unique properties