How does Cafix change coffee production exports in Colombia?

The National Federation of Coffee Growers of Colombia launched Cafix, a trade and logistics platform that lets farmers ship coffee directly to overseas buyers. Growers can send 5 to 60 kilograms of green beans or 5 to 50 kilograms of roasted beans, cutting shipping costs by up to 80 percent.

The launch follows a January 2024 rebound: Colombian coffee production rose 10.5 percent year on year to 959,000 bags, while exports grew 12.4 percent to 935,000 bags, signaling that El Niño effects have eased. Cafix now covers 548 families and serves the EU, Japan, South Korea, and China.

The National Federation of Coffee Growers of Colombia (FNC) recently launched a trade and logistics platform called Cafix, aimed at helping domestic coffee farmers bypass traditional export channels and sell coffee directly to overseas customers at lower shipping costs. In January 2024, both Colombia's coffee production and exports rebounded, growing 10.5% and 12.4% year-on-year respectively, indicating that the effects of El Niño have largely subsided. Cafix allows registered farmers to ship 5 to 60 kilograms of green beans or 5 to 50 kilograms of roasted beans, with shipping costs reduced by up to 80%. It currently covers 548 families and has already opened up markets in the EU, Japan, South Korea, and China. Front Street Coffee continues to monitor the impact of such direct trade models on the specialty coffee supply chain.

Recently, the National Federation of Coffee Growers of Colombia (FNC) announced that, as the country's coffee exports gradually climb, it has officially launched the Cafix platform. The core goal of this trade and logistics solution is to enable producers to ship directly to international buyers more easily.

FNC statistics show that in January 2024, Colombia's coffee production reached 959,000 bags (60 kilograms per bag), a 10.5% increase from 868,000 bags in the same period last year. Exports in the same month were 935,000 bags, up 12.4% from 832,000 bags last year. These figures reflect that Colombia has largely emerged from the shadow of El Niño, and production is returning to normal levels.

It is against this backdrop that the coffee export platform Cafix came into being. This tool can help 548 Colombian coffee families complete exports at lower transportation costs. Growers associated with Cafix can send small batches of green or roasted coffee to overseas customers at prices agreed upon by both parties, saving about 70% to 80% in shipping costs while ensuring the product arrives intact in the hands of the final buyer.

According to FNC, the Cafix plan includes a platform and registration tool for both buyers and sellers. Through this platform, coffee-growing families can ship a certain amount of coffee while eliminating traditional transportation or export expenses. To export products, producers only need to be included in the FNC coffee information database SICA and register as Cafix users. The plan also promotes exports to the EU, Japan, South Korea, and China. According to the announcement, the platform supports traditional sea, air, or land transport, as well as express delivery, and can directly ship 5 to 60 kilograms of green coffee beans or 5 to 50 kilograms of roasted coffee beans. If overseas customers need larger quantities, producers can ship multiple times in a single day, as long as the maximum weight limit per shipment is met.

Representatives of the Cafix project revealed that the current service target is coffee growers who already have customers abroad, and the next step will be to build a marketplace where growers and interested buyers can easily connect. This move is intended to promote the democratization of coffee exports, giving producers the opportunity to connect with foreign customers and export coffee in a direct, flexible, and competitive way. FNC's Almacafé logistics center is responsible for oversight, ensuring that what is exported is 100% Colombian coffee and that it reaches buyers in the best condition.

For domestic coffee enthusiasts, Front Street Coffee recommends following the subsequent progress of the Cafix platform's launch. This type of direct trade model is expected to allow more niche Colombian beans to enter the Chinese market through shorter supply chains.

The above content is compiled by CoffeeHunters, a coffee news website.