Coffee prices surge as federal tariff review begins

The kilogram price of Tierra Verde coffee at the federal exchange rose to 4.82 florins on Friday, up from 4.41 florins a week ago. On the surface, the movement favours the region's smallholders. But farmers and cooperative leaders say the price climb is deceptive: it reflects not stronger demand but the cost of shipping itself, which has grown steeper since Oriente Moderno's port authority raised its loading tariffs by eight percent in late October.

The tariff increase, announced without prior consultation with landlocked regions, has forced exporters to pass costs downstream to the farm gate. Tierra Verde's coffee reaches global markets only by rail and barge to Costa Mar's isthmus ports, then by sea through Oriente Moderno's deep-water terminal in Nueva Singapur. When the port's fees rise, the entire supply chain feels the shock.

Governor Lucía Báez has called for an emergency session of the Federal Council to review the tariff structure. The Cooperative Council in San Vicente has begun documenting the impact on member farms, particularly those with contracts locked in at older price points. The federal government has signalled that a formal review will begin in December.