“Green gold” of Guatemala: optimistic production prospects for cardamom
The current 2021/22 season gives bright prospects for Guatemala’s cardamom production. According to recent updates from market players, the harvest of this aroma spice in the country is projected at 37,000 tons, 10% more than in the 2020/21 season. The key contributor to a positive forecast is favorable weather conditions in the country. The combination of the right amounts of rainfalls in the main production area during intensive flowering months, April-May, together with sufficient sunshine have created ideal conditions for plant growth.
Source: Tridge
Another factor that is adding to higher production is an increase in plantation areas by producers, whose motivation to expand is connected to the high profitability of the crop. The launch of the cardamom support program by the global humanitarian organization Mercy Corps, in partnership with the Guatemalan Cardamom Association, is also helping to extend the production of cardamom in the country.
Thanks to favorable weather, the cardamom harvesting kicked off two weeks earlier and began in the last week of September. The already mentioned weather factor has also contributed to the high quality of the crop, indicated by, as the wholesalers reported, a good size, as well as an intense green color of the cardamom pods.
Three crop cuts define export dynamics
At the end of October, the pace of harvesting had picked up and passed the most crucial milestone, the so-called first cut, when the major output was harvested. It may take another 3 to 4 weeks to move the spice along the value chain to make the commodity ready for exports. The other two crop cuts are usually done at the end of December/January and at the end of March/beginning of April.
Source: Tridge
As the freshly gathered, sorted, and graded cardamom becomes available for exports in November, the shipment of the fragrant spice gains momentum and becomes stronger in December/January. According to data of the Central Bank of Guatemala (CBG), in 2021, Guatemalan traders exported more than 18,200 tons of green cardamom in November/January 2020/21, which accounts for 53% of the total country’s exports. In February/March, the volumes of exports slowed down slightly, though remaining high, as the main buyers, Saudi Arabia, OAE, and other Arab countries were accumulating stocks ahead of Ramadan.
Source: Central Bank of Guatemala
In total, Guatemala exported 33,800 tons of green cardamom in the first 11 months of the 2020/21 season, which is on par with the previous season’s figure. However, the value of exports decreased by 19% to $592 million amid lower prices compared to the 2019/20 season caused by a rebound in global cardamom supplies.
Guatemala’s prospects for cardamom exports look very promising for the 2021/22 season. Thanks to the already mentioned expectations of a bumper crop. Given the fact that the country’s domestic consumption is estimated at only 0.1% of total production, Guatemala’s cardamom exports may reach 37,000 tons in the current season.
A rise in production begins to exert pressure on export prices for green cardamom in the current season. In October 2021, export prices were reported to be stable at $18/KG (6-7 mm pods), as main buying countries were taking a waiting stance to evaluate the situation on the market. However, in the second week of November, the spice was already offered at $17/KG, being pressured by the newly arrived crop.
Sources:
Elperiodico.com.gt More supply affects the price of cardamom
USDA Cardamom reportCardamom - The 3Gs -- Green Gold of Guatemala
UN CONFERENCE ON TRADE AND DEVELOPMENTHarnessing Agricultural Trade for Sustainable Development: Guatemala
Diaro De Centro AmericaCardamom sales grew 75.4%
Mercy CropsMercy Corps and Twinings to Improve Cardamom Production in Northern Guatemala