El Salvador Coffee Report: Exports Rise Though Structural Challenges Remain

Daily Coffee News Staff | May 21, 2025

El Salvador’s coffee sector is expected to show modest production gains in the 2025/26 market year, with a forecast of the equivalent of 597,000 60-kilogram bags, up 6.4% from the previous year, according to the latest USDA estimates.

The increase comes after a challenging 2024/25 harvest season, when torrential rainfall caused heavy berry drop and quality loss. Improved weather conditions are expected to support the coming year’s harvest, although underlying structural issues persist.

Total exports are forecast to reach 583,000 bags in 2025/26, up slightly from an estimated 578,000 bags the previous year. Growers have been responding to high international prices by accelerating sales, especially to the United States and Europe. However, low profitability, aging coffee trees and limited financial access continue to restrict the sector’s full recovery.

Domestic consumption is projected to increase to 316,000 bags, supported by rising tourism and a growing coffee shop culture. Still, soluble imports dominate consumption, with over 260,000 bags expected to be imported in 2025/26, mainly from Mexico and Brazil.

These and other predictions are outlined in the latest USDA Foreign Agriculture Service annual report on the El Salvador coffee sector.

[Note: This is part of a series of DCN stories that will explore USDA FAS annual coffee reports. The information agency typically delivers more than a dozen country-level reports on the coffee sector, each coming from different authors and field offices.]

📉 Export Outlook

Total exports for 2025/26 are projected at 583,000 bags, up from 578,000 in 2024/25, driven by strong global prices and continued liquidation of stocks.
The United States remains the largest buyer, accounting for 47% of exports in 2024/25 (271,660 bags).
Other top destinations include Belgium (69,360 bags), Italy (39,304), Germany (25,432), Saudi Arabia (23,120) and Japan (21,964).
Specialty and certified coffees command significant price premiums, especially when associated with international auctions such as Cup of Excellence.
More than 230 farms and 34 mills have earned Rainforest Alliance certification, with other programs such as Starbucks Cafe Practices, Fairtrade and UTZ also prominent among the nation’s exports.

🌱 Production and Growing Conditions

Total production for 2025/26 is forecast at 597,000 bags, up from 561,000 the previous year.
Production suffered in 2024/25 due to extreme rainfall in December 2024, which damaged ripening cherries and reduced milling quality.
El Salvador’s coffee-growing area remains stable at 118,000 hectares, despite the currently high coffee prices, reflecting low profitability, aging trees and farmer migration out of the sector.
The Government of El Salvador is continuing plant distribution programs, focusing on smallholders with less than 10 hectares, although limited financing and late seedling deliveries have reduced impact.
Many farms face severe labor shortages, especially for pruning, fertilization and harvesting, due to rural outmigration and competition domestically from construction jobs.

☕ Domestic Consumption

Consumption is forecast to rise to 316,000 bags in 2025/26, up from 310,000 the year prior.
This growth is linked to a surge in tourism, both from domestic and international travelers, attributed to improvements in El Salvador’s international security ratings.
Consumption remains dominated by soluble coffee, which accounts for 275,000 of the 316,000 total bags consumed.
Major soluble suppliers include Mexico, Brazil, Colombia and Nicaragua. Local brands such as Coscafe and D’Cafe lead on the domestic market.
Coffee shop expansion is ongoing, led by international brands like Starbucks, McCafé and Juan Valdez, as well as local chains such as Viva Espresso and The Coffee Cup.

🏷️ Imports and Stocks

Total coffee imports are projected to reach 274,000 bags in 2025/26, up from 266,000 in 2024/25, reflecting stronger demand from retail and foodservice outlets.
Mexico is now the top supplier, expected to ship 128,232 bags of soluble coffee in 2025/26.
Other key suppliers include Brazil (87,406 bags), Colombia (21,920), Nicaragua (13,152) and the United States (6,850).
Roasted coffee imports are expected to reach 12,000 bags, while soluble imports are forecast at 262,000 bags.
Ending stocks are projected to fall to 17,000 bags in 2025/26, down from 45,000, as farmers continue to sell in response to high commodity prices.

🏛️ Policy and Sector Support

El Salvador lacks a comprehensive national coffee strategy, with most support limited to small-scale seedling and fungicide distribution programs, according to the USDA analysis.
Approximately 30 million new high-quality, rust-resistant plants are needed annually for the next 10 years to renovate aging farms, according to sources from the Salvadoran Coffee Association.
Labor shortages and aging trees continue to hamper productivity. For every 100,000-quintal drop in production, about 10,000 rural jobs are lost, according to the analysis.
The MOCCA project, backed by USDA and Technoserve, has been assisting 5,000 farmers with improved practices and loan guarantees.
The federal government of El Salvador is promoting coffee sector debt restructuring, infrastructure investment and marketing reforms, though implementation remains limited by fiscal constraints.