The taxation on the value of coffee is increasing from 1.85% to over 3%, affecting many along the supply chain. Since the government has run out of money, they were not able to issue any loans to coffee producers this harvest season. Loans are crucial for most producers; with no cashflow, producers have suffered exponential losses this year and many farms have suspended operations until the situation in the country blows over. Moreover, the 'C' price has dropped below $1 creating an unsustainable market, considering the average farm's costs of production is $1.60/lb in Nicaragua
Excerpt from: Roaster's Edition Vol. 1, page 5
Written by: Ryan Sull, La Finca Distribution Corp.