Nicaragua and Coffee
Although Nicaragua had an established tradition in the world of coffee, the coffee was always underrated and also bore the stigma of the years of instability following the overthrown of the Somoza dictatorship and the revolution.
Nicaragua was particularly affected by the coffee crisis because at the time coffee farmers in the Highlands were just recovering from the devastation caused by Hurricane Mitch in 1998.
The history of coffee in Central America is part of a heritage and culture that is linked by the developments of the XIX century in the American continent. Nicaragua's strategic importance at the centre of the American continent between North and South America always attracted interest from outsiders and adventurers. With the discovery of gold in California and the emergence of the US as a world power,Nicaragua became an alternative and shorter route to reach the Pacific for US merchants who traditionally used ships to transport goods through the Cape Horn at the tip of South America.
Nicaragua's route also offered a cheaper and shorter alternative route not only to California but also attracted immigrants from different European countries. It was during this time that coffee was introduced by German settlers who arrived in the country and were attracted by the news of the wealth to be discovered in this part of the Americas.
Coffee was originally harvested in the Sierra nearby Managua on the Pacific coast. But it was the European migrants who took the first seeds to the Central Mountains. The European migrants, particularly of German origin, were also encouraged to settle in the Central regions (Highlands) of Nicaragua by the government which offered them subsidies to acquire cheap land.
The fertile volcanic soil and the micro-climates of the Highland Altitude Forests provided the perfect environment for the aromatic Arabica beans. The 'coffee boom' lasted just until the years before of WWII and coffee became one of Nicaragua's main pillars behind the economy. The backward attitudes of the ruling dynasty meant that there was never in place a clear attitude towards a defined coffee strategy. Yet, Nicaragua established a reputation for good coffees with terroir character that made them special among the best that could be chosen by coffee enthusiasts that triggered the 'Gourmet Boom' of the 1970s in the US.
The Revolution Years 1979 - 1990
Under the Sandinista Revolution many of the farms were abandoned by their owners and the blockade of the economy by the US government led to a decline in the coffee production nationwide. Nicaragua lost its rank as one of the most sophisticated coffee producers worldwide and became synonymous with low quality coffee. Until this period the coffee production was concentrated in big farms own by powerful landowners.
During this decade, the cooperative movement flourished across the country and the Sandinista government provided them with land confiscated from the landowners through land reforms and gave them also assistance. Supporters of the former regime formed the Contra resistance backed by the Reagan administration and with the trade embargo imposed on Nicaragua the entire economy collapsed. Despite the economic and political instability the 1980s environment attracted European and North American solidarity groups visits and the insignificant quantities of coffee produced in those years was also exported to Europe and North America as 'solidarity coffee' and this was the economic experiment that started fair trade coffee worldwide but the quality was still poor.
The Coffee Crisis
The unstable political situation continued in the 1990s and consequently also affected coffee exports. Another factor of instability in Nicaragua were the high levels of corruption of the Alemán Administration (1995-2000) and the final blow came when Hurricane Mitch destroyed the entire infrastructure of the coffee plantations in 1998. At the same time a parallel development took place in the coffee markets.
The coffee prices in the international markets fell to the levels of the 1920s and the consequences were tragic for farmer communities. After oil, coffee occupies the second place in the global economy and for some countries in Latin America it is a major source of revenue and for Nicaragua this meant more misery for the 30000 coffee producers.
Several factors were behind the coffee crisis. On one hand the World Bank encouraged Vietnam to plant Robusta coffee and its production in 2000-2001 swamped the market with coffee of low quality. This in turn pushed the prices down. On the other hand, this also led to the collapse of the International Coffee Agreement that was based on quotas from producer countries. Another structural aspect was also corporate control of the global trade system that did not leave any room for manoeuvre for the small economies that relied on the income of this precious commodity.
The coffee crisis also meant that the outdated 'Big Farm' model became under threat and it could not adapt itself easily to the new reality in the coffee markets. The cooperative model formed by small farmers managed to become an innovative and alternative economic structure and the small farmers learned through it about their potential in the production of certified organic coffee, fair trade and Specialty gourmet markets. Small farmers in the cooperative movement also learnt the skills to produce a more refined coffee that met the strict standards in the international markets and also could claim a good fair price for it.
The star is shining again
Founding and Training opportunities and learning what a good coffee should taste like were among the main elements that have helped the cooperative coffee movement in Nicaragua to find a way out of the crisis. Traditionally farmers in Nicaragua never used chemical pesticides and this was a favourable factor that laid the foundation for a 'New Coffee Boom'.
Despite the odds and all the obstacles Nicaraguan coffees have scored high in international competitions such as the Cup of Excellence and the hard work and commitment of the small farm cooperatives is paying off.
Nicaraguan terroir
Nicaraguan coffees are characterised by their aromatic range of flavours. The best coffees are produced in the Central Highland Regions and among the best a special position is occupied by those known as 'Strictly High Grown' (SHG). This type of bean grows at an altitude between 1000 and 1200 meters above sea level and they are characterised by their chocolate like taste. In other zones of the Highlands the coffee is also of an excellent quality and the texture and the flavour range resembles the complexity of the High Altitude Forest where they grow.