Coffee Exports in 2027: The FTDC Contribution Must Be Factored into Pricing and Cash Flow Today

International coffee prices command much of the attention of producers, coffee processors, traders, and exporters. For 2027, cost structures must also account for a specific factor: the contribution payable per quintal exported to the Coffee Sector Transformation and Development Fund (FTDC, its Spanish acronym).

Under MIFIC Ministerial Agreement No. 010-2026, published in La Gaceta No. 194 on October 22, 2026, the contribution for calendar year 2027 was set at US$4.00 per quintal of Arabica coffee exported and US$2.50 per quintal of Robusta coffee exported. The average international reference prices underlying this determination correspond to the 2025/2026 coffee year: US$311.78 for Arabica and US$172.80 for Robusta.

The contribution forms part of the mechanism established under Law No. 853, Ley para la Transformación y Desarrollo de la Caficultura (Law on the Transformation and Development of the Coffee Sector), which provides for contributions per quintal exported and an annual determination based on international reference prices.

A Unit Cost That Affects Profitability

The contribution may appear modest on a per-quintal basis. However, its financial impact increases with export volume and should be reflected in net pricing, producer settlements, and the cash flow of each transaction.

An Arabica coffee exporter projecting 10,000 quintals in 2027 will need to account for US$40,000 in its cost structure for this contribution. For the same volume of Robusta coffee, the contribution would amount to US$25,000.

These amounts should be assessed alongside freight, financing, insurance, certifications, processing, commissions, and other export-related costs. The objective is to establish the actual margin on each contract before setting prices or committing to export volumes.

A Sector of Growing Economic Significance

This assessment becomes increasingly relevant as the sector expands. The Central Bank of Nicaragua (BCN) reported that coffee exports reached a record US$918.4 million in 2025.

For 2026, the National Production, Consumption and Trade Plan projects coffee exports of US$1,026.3 million, with a volume of 3.49 million quintals and an average price of US$294.30 per quintal.

The figures cited present coffee exports on an aggregate basis, without distinguishing between Arabica and Robusta. Accordingly, the applicable contribution must be calculated based on each company's coffee variety and export volume, while Central Bank data provide a broader perspective on the sector's significance to Nicaragua's export economy.

What Businesses Should Review Before 2027

Preparation should begin with projected export volumes by coffee variety and contract. On this basis, producers, cooperatives, coffee processors, traders, and exporters can determine how to incorporate the contribution into their respective cost structures and financial arrangements.

At a minimum, businesses should review the following:

• Cost budgets and margins per quintal exported.
• Purchase and sale agreements and price adjustment mechanisms.
• Settlement criteria for producers or suppliers.
• Cash flow associated with harvesting, collection, coffee processing, and exports.
• Operational and documentation responsibilities throughout the commercial supply chain.

The central question is straightforward: Will the price agreed for 2027 preserve the expected margin after accounting for all transaction costs, including the FTDC contribution?

Contract Pricing and Execution

The MIFIC Agreement provides a regulatory reference point, but its impact ultimately materializes through business decisions. Profitability will depend on the ability to structure clear contracts, forecast costs in advance, and coordinate information across production, commercial, finance, and export functions.

At ARCA, we believe international trade operations are strengthened when regulatory requirements are incorporated into contractual arrangements, costs are reflected in financial controls, and operations are prepared for effective execution. Legal + Financial Control + Business Operations.