Guatemalan Coffee
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More than half of Guatemalans are descendants of indigenous Mayan peoples. Westernized Mayans and mestizos (mixed European and indigenous ancestry) are known as Ladinos. Most of Guatemala's population is rural, though urbanization is accelerating. The predominant religion is Roman Catholicism, into which many indigenous Guatemalans have incorporated traditional forms of worship. Protestantism and traditional Mayan religions are practiced by an estimated 40% and 1% of the population, respectively. Though the official language is Spanish, it is not universally understood among the indigenous population. The peace accords signed in December 1996 provide for the translation of some official documents and voting materials into several indigenous languages.
The Mayan civilization flourished throughout much of Guatemala and the surrounding region long before the Spanish arrived, but it was already in decline when the Mayans were defeated by Pedro de Alvarado in 1523-24. The first colonial capital, Ciudad Vieja, was ruined by floods and an earthquake in 1542. Survivors founded Antigua, the second capital, in 1543. Antigua was destroyed by two earthquakes in 1773. The remnants of its Spanish colonial architecture have been preserved as a national monument. The third capital, Guatemala City, was founded in 1776.
Guatemala gained independence from Spain on September 15, 1821; it briefly became part of the Mexican Empire, and then for a period belonged to a federation called the United Provinces of Central America. From the mid-19th century until the mid-1980s, the country passed through a series of dictatorships, insurgencies (particularly beginning in the 1960s), coups, and stretches of military rule with only occasional periods of representative government.
After the signing of the final peace accord in December 1996, Guatemala was well-positioned for rapid economic growth over the next several years, until a financial crisis in 1998 disrupted the course of improvement. The subsequent collapse of coffee prices left what was once the country's leading export sector in depression and had a severe impact on rural income. On a more positive note, Guatemala's macroeconomic management is sound, preserving stability and mitigating the slowdown in growth brought on by the global economic crisis in late 2008. While Guatemala’s foreign debt levels are modest, recent deficit spending and low tax collection have limited the space for further accumulation of debt.
President Colom has continued programs initiated by prior governments to promote foreign investment, enhance competitiveness, and expand investment in the export and tourist sectors. These programs and the implementation of the U.S.-Central America-Dominican Republic Free Trade Agreement (CAFTA-DR) led to increases in foreign direct investment (FDI) inflows from $592 million in 2006 to $753 million in 2008. According to official projections, FDI inflows declined 25.8% in 2009 to $559 million as a result of the global economic crisis.
Guatemala's economy is dominated by the private sector, which generates about 90% of GDP. Agriculture contributes 13.4% of GDP and accounts for 26% of exports. Most manufacturing is light assembly and food processing, geared to the domestic, U.S., and Central American markets. Over the past several years, tourism and exports of textiles, apparel, and nontraditional agricultural products such as winter vegetables, fruit, and cut flowers have boomed, while more traditional exports such as sugar, bananas, and coffee continue to represent a large share of the export market.
The United States is the country's largest trading partner, providing 36.5% of Guatemala's imports and receiving 40.7% of its exports. The government's involvement is small, with its business activities limited to public utilities--some of which have been privatized--ports and airports, and several development-oriented financial institutions.
Guatemala ratified the U.S.-Central America Free Trade Agreement (CAFTA-DR) on March 10, 2005, and the agreement entered into force between Guatemala and the U.S. on July 1, 2006. CAFTA-DR eliminates customs tariffs on as many categories of goods as possible; opens services sectors; and creates clear and readily enforceable rules in areas such as investment, government procurement, intellectual property protection, customs procedures, electronic commerce, the use of sanitary and phyto-sanitary measures to protect public health, and resolution of business disputes. It also provides for protection of internationally recognized labor rights and environmental standards.
At only 10.4% of GDP in 2009, Guatemala’s tax collection is low compared to the Latin American average of 14.5%. In addition to raising overall tax revenues, continuing priorities include increasing transparency and accountability in public finances, broadening the tax base, strengthening the enforcement of tax laws, and completing implementation of financial sector reforms.
The United States, along with other donor countries--especially France, Italy, Spain, Germany, and Japan--and the international financial institutions, have increased development project financing since the signing of the peace accords. However, donor support remains contingent upon Guatemalan Government reforms and counterpart financing.
According to the World Bank, Guatemala has one of the most unequal income distributions in the hemisphere. The wealthiest 20% of the population consumes 51% of Guatemala’s GDP. As a result, about 51% of the population lives on less than $2 a day and 15% on less than $1 a day. Guatemala's social development indicators, such as infant mortality, chronic child malnutrition, and illiteracy, are among the worst in the hemisphere. The United States has provided disaster assistance and food aid in response to natural disasters including Hurricane Stan, which caused extensive mudslides in Guatemala in October 2005, and in response to El Niño-related drought in 2009 and 2010.
The Antigua valley is one of Guatemala's oldest and best-known coffee-growing regions. Its volcanoes and shallow water table help create the dry microclimate, with low humidity, lots of sun, and cool nights.
The coffee region of Antigua is an enclosed valley formed by three volcanoes: Agua, Acatenango and Fuego. Its terrain is flat and gently sloping, unlike the other volcanic coffee regions, which are more rugged. Most of the coffee trees are planted on the valley floor, already at 5,000 feet; and, some farmers also cultivate the slopes of the volcanoes up to 5,600 feet. The high pumice content in Antigua’s soil (from the active Fuego volcano) keeps the relative humidity steady at 65 percent year round, unlike the other coffee regions, where humidity varies significantly between dry and rainy seasons.
Rich volcanic soil, low humidity, lots of sun and cool nights characterize the Antigua region. The valley is dominated by the magnificent Agua, Acatenango and Fuego volcanoes. Every once in a while, Fuego –one of Guatemala’s three active volcanoes– adds a fresh dusting of mineral rich ash to Antigua’s soil. Volcanic pumice in the soil retains moisture, which helps offset Antigua’s low rainfall, the lowest of Guatemala’s eight coffee regions. Like all of Guatemala’s specialty coffee, Antigua Coffee is cultivated under shade. In Antigua, shade is especially dense to protect the coffee trees from the region’s occasional frost during the chilly nights from December to February. The dense shade, combined with the region’s shallow water table, produces a distinct microclimate within the coffee fields.
Guatemalan Coffees
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More than half of Guatemalans are descendants of indigenous Mayan peoples. Westernized Mayans and mestizos (mixed European and indigenous ancestry) are known as Ladinos. Most of Guatemala's population is rural, though urbanization is accelerating. The predominant religion is Roman Catholicism, into which many indigenous Guatemalans have incorporated traditional forms of worship. Protestantism and traditional Mayan religions are practiced by an estimated 40% and 1% of the population, respectively. Though the official language is Spanish, it is not universally understood among the indigenous population. The peace accords signed in December 1996 provide for the translation of some official documents and voting materials into several indigenous languages.
The Mayan civilization flourished throughout much of Guatemala and the surrounding region long before the Spanish arrived, but it was already in decline when the Mayans were defeated by Pedro de Alvarado in 1523-24. The first colonial capital, Ciudad Vieja, was ruined by floods and an earthquake in 1542. Survivors founded Antigua, the second capital, in 1543. Antigua was destroyed by two earthquakes in 1773. The remnants of its Spanish colonial architecture have been preserved as a national monument. The third capital, Guatemala City, was founded in 1776.
Guatemala gained independence from Spain on September 15, 1821; it briefly became part of the Mexican Empire, and then for a period belonged to a federation called the United Provinces of Central America. From the mid-19th century until the mid-1980s, the country passed through a series of dictatorships, insurgencies (particularly beginning in the 1960s), coups, and stretches of military rule with only occasional periods of representative government.
After the signing of the final peace accord in December 1996, Guatemala was well-positioned for rapid economic growth over the next several years, until a financial crisis in 1998 disrupted the course of improvement. The subsequent collapse of coffee prices left what was once the country's leading export sector in depression and had a severe impact on rural income. On a more positive note, Guatemala's macroeconomic management is sound, preserving stability and mitigating the slowdown in growth brought on by the global economic crisis in late 2008. While Guatemala’s foreign debt levels are modest, recent deficit spending and low tax collection have limited the space for further accumulation of debt.
President Colom has continued programs initiated by prior governments to promote foreign investment, enhance competitiveness, and expand investment in the export and tourist sectors. These programs and the implementation of the U.S.-Central America-Dominican Republic Free Trade Agreement (CAFTA-DR) led to increases in foreign direct investment (FDI) inflows from $592 million in 2006 to $753 million in 2008. According to official projections, FDI inflows declined 25.8% in 2009 to $559 million as a result of the global economic crisis.
Guatemala's economy is dominated by the private sector, which generates about 90% of GDP. Agriculture contributes 13.4% of GDP and accounts for 26% of exports. Most manufacturing is light assembly and food processing, geared to the domestic, U.S., and Central American markets. Over the past several years, tourism and exports of textiles, apparel, and nontraditional agricultural products such as winter vegetables, fruit, and cut flowers have boomed, while more traditional exports such as sugar, bananas, and coffee continue to represent a large share of the export market.
The United States is the country's largest trading partner, providing 36.5% of Guatemala's imports and receiving 40.7% of its exports. The government's involvement is small, with its business activities limited to public utilities--some of which have been privatized--ports and airports, and several development-oriented financial institutions.
Guatemala ratified the U.S.-Central America Free Trade Agreement (CAFTA-DR) on March 10, 2005, and the agreement entered into force between Guatemala and the U.S. on July 1, 2006. CAFTA-DR eliminates customs tariffs on as many categories of goods as possible; opens services sectors; and creates clear and readily enforceable rules in areas such as investment, government procurement, intellectual property protection, customs procedures, electronic commerce, the use of sanitary and phyto-sanitary measures to protect public health, and resolution of business disputes. It also provides for protection of internationally recognized labor rights and environmental standards.
At only 10.4% of GDP in 2009, Guatemala’s tax collection is low compared to the Latin American average of 14.5%. In addition to raising overall tax revenues, continuing priorities include increasing transparency and accountability in public finances, broadening the tax base, strengthening the enforcement of tax laws, and completing implementation of financial sector reforms.
The United States, along with other donor countries--especially France, Italy, Spain, Germany, and Japan--and the international financial institutions, have increased development project financing since the signing of the peace accords. However, donor support remains contingent upon Guatemalan Government reforms and counterpart financing.
According to the World Bank, Guatemala has one of the most unequal income distributions in the hemisphere. The wealthiest 20% of the population consumes 51% of Guatemala’s GDP. As a result, about 51% of the population lives on less than $2 a day and 15% on less than $1 a day. Guatemala's social development indicators, such as infant mortality, chronic child malnutrition, and illiteracy, are among the worst in the hemisphere. The United States has provided disaster assistance and food aid in response to natural disasters including Hurricane Stan, which caused extensive mudslides in Guatemala in October 2005, and in response to El Niño-related drought in 2009 and 2010.
The Antigua valley is one of Guatemala's oldest and best-known coffee-growing regions. Its volcanoes and shallow water table help create the dry microclimate, with low humidity, lots of sun, and cool nights.
The coffee region of Antigua is an enclosed valley formed by three volcanoes: Agua, Acatenango and Fuego. Its terrain is flat and gently sloping, unlike the other volcanic coffee regions, which are more rugged. Most of the coffee trees are planted on the valley floor, already at 5,000 feet; and, some farmers also cultivate the slopes of the volcanoes up to 5,600 feet. The high pumice content in Antigua’s soil (from the active Fuego volcano) keeps the relative humidity steady at 65 percent year round, unlike the other coffee regions, where humidity varies significantly between dry and rainy seasons.
Rich volcanic soil, low humidity, lots of sun and cool nights characterize the Antigua region. The valley is dominated by the magnificent Agua, Acatenango and Fuego volcanoes. Every once in a while, Fuego –one of Guatemala’s three active volcanoes– adds a fresh dusting of mineral rich ash to Antigua’s soil. Volcanic pumice in the soil retains moisture, which helps offset Antigua’s low rainfall, the lowest of Guatemala’s eight coffee regions. Like all of Guatemala’s specialty coffee, Antigua Coffee is cultivated under shade. In Antigua, shade is especially dense to protect the coffee trees from the region’s occasional frost during the chilly nights from December to February. The dense shade, combined with the region’s shallow water table, produces a distinct microclimate within the coffee fields.
Guatemalan Coffees
Information Source
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