What Slower Coffee Production Means for Colombia
Colombia's coffee production in February 2024 was 961,000 bags, down 6.2 percent from the same month last year, according to the National Federation of Coffee Growers of Colombia. Exports in February rose 12.5 percent to 1.04 million bags, but total exports over the past 12 months fell 3.1 percent to 10.8 million bags. La Niña is expected between June and August.
Twelve-month production still reached 11.3 million bags, up 1.73 percent year on year, so the country is recovering from El Niño even though drought damage to coffee trees has not fully cleared. Cheaper coffee of similar quality from Peru, Guatemala, Costa Rica, Nicaragua, and El Salvador has pulled buyers away. The FNC met grower representatives on preventive measures and launched the Cafix export platform to cut shipping costs.
The latest report from the National Federation of Coffee Growers of Colombia (FNC) shows that the country's coffee production in February 2024 decreased by 6.2% year-on-year. Although export volumes grew month-on-month, overall exports over the past 12 months fell by 3.1%. Despite having emerged from the effects of El Niño, La Niña weather is expected to arrive in June-August and may persist throughout the second half of the year, bringing new challenges to coffee production. To this end, the FNC held a steering committee meeting with grower representatives from various regions to discuss preventive measures to safeguard coffee farmers' incomes. Meanwhile, the FNC launched an export platform called Cafix, aimed at reducing transportation costs and simplifying export procedures. Front Street Coffee continues to follow Colombian coffee developments, bringing the latest origin news to enthusiasts.
According to a report released by the National Federation of Coffee Growers of Colombia (FNC), the country's coffee production in February 2024 was 961,000 bags, a slight rebound from 9.959 million bags in January, but down 6.2% compared with the same period last year. Despite the single-month decline, Colombia's total coffee production over the past 12 months still reached 11.3 million bags, up 1.73% year-on-year, showing a modest overall growth trend.
On the export side, Colombia's coffee exports in February were 1.04 million bags, up 12.5% from 929,000 bags in the same period last year. However, as coffee production recovered in neighboring origins such as Peru, Guatemala, Costa Rica, Nicaragua and El Salvador, buyers were able to obtain coffee of similar quality at lower prices, causing Colombia's total coffee exports over the past 12 months to reach 10.8 million bags, down 3.1% year-on-year. These data indicate that Colombia is gradually emerging from the effects of El Niño and production is beginning to recover, but the obstacles to coffee tree growth caused by the earlier drought have not been fully eliminated, and current production has not yet reached its optimal level.
More worrying is that although El Niño has faded, La Niña is expected to appear between June and August and may last throughout the second half of the year. Colombia had already suffered from La Niña during 2022 to 2023, when temperatures in coffee-growing areas dropped, the coffee growing period was prolonged, and estates had to invest more manpower and resources. Combined with geopolitical factors pushing up fertilizer costs, the production cost per bag of coffee increased by 50% at that time.
Considering that La Niña may impact future coffee harvests, the head of the FNC and grower representatives from various coffee-producing regions of Colombia recently attended an FNC steering committee meeting to jointly discuss disaster prevention measures to safeguard coffee producers' incomes.
To promote Colombian coffee, the FNC announced the launch of an export platform called Cafix. The platform helps export coffee at lower transportation costs. Growers cooperating with Cafix can export small quantities of green or roasted coffee to overseas customers at mutually agreed prices. The platform can save growers about 70% to 80% in shipping costs and ensure that products arrive intact to the final buyer. At present, Cafix already provides services to growers who have foreign customers, and the next step will be to build a trading marketplace connecting growers with interested buyers. This initiative aims to promote the democratization of coffee exports, giving producers the opportunity to connect directly, quickly and competitively with foreign customers and achieve coffee exports.
The above content is compiled by CoffeeHunters, a coffee news website.
