Why Did Colombia Coffee Production Jump in May?
Colombia's coffee production reached 1.12 million bags in May, up 38.9% from the same month last year, according to the National Federation of Coffee Growers of Colombia. April exports were 792,000 bags, a 9.5% rise, and cumulative exports for the twelve months ending April totaled 11 million bags, 1.4% higher year on year.
The rebound follows a weak May 2023, when La Niña cut output. El Niño brought drought early this year but with milder effect, and the May rainy season eased it. Domestic prices still fell 4% month on month to about 1,596,129 pesos per carga, tracking a 4.2% drop in New York futures, while coffee production brazil and other origins watch the weather.
Latest data from the National Federation of Coffee Growers of Colombia (FNC) shows that Colombia's coffee production reached 1.12 million bags in May, a year-on-year increase of 38.9%, an impressive performance. In the same period of 2023, production was dragged down by La Niña, while in the first half of this year the drought brought by El Niño had a relatively limited impact, and the arrival of the rainy season in May eased the drought, allowing production to rebound. On the export side, exports in April were 792,000 bags, up 9.5% year-on-year. However, domestic coffee prices fell 4% month-on-month, mainly affected by the decline in New York futures contract prices as well as lower exchange rates and differentials. In addition, the FNC is holding the ninth "Colombia Diversity" coffee quality competition, aiming to enhance the international influence of Colombian coffee.
Recently, the National Federation of Coffee Growers of Colombia (FNC) released the production and sales situation of Colombian coffee in May: monthly production reached 1.12 million bags, a sharp increase of 38.9% compared with the same period last year, an overall good performance.
Looking back at May 2023, Colombia was then hit by La Niña, which led to a decline in production in the first half of 2023. In the first half of this year, El Niño also brought drought to Colombia, but the impact was relatively mild, and May has entered the rainy season, so the drought has been alleviated and production has begun to recover.
On the export side, Colombia's coffee exports in April were 792,000 bags (60 kg each), an increase of 9.5% compared with the same period in 2023. In the 12 months ending April 2024 (May 2023 to April 2024), exports increased by 1.4% year-on-year, reaching a cumulative total of 11 million bags.
In terms of prices, the average domestic coffee price in Colombia in May was 1,596,129 pesos per carga (125 kg) (about US$412), down 4% from April and down 15.8% from 1,895,968 pesos in the same period last year. The reason for the lower price was a 4.2% decline in the price of New York coffee futures contracts, while the year-on-year decline was affected by exchange rates and lower coffee differentials.
Although production increased in May and the impact of El Niño has basically been shaken off, the market still has concerns about subsequent weather conditions. Recently, many countries in Latin America have experienced heavy rainfall, triggering natural disasters such as floods and landslides, causing serious casualties and property losses.
At present, the floods and landslides are mainly occurring in Colombia's neighboring countries, such as Brazil, Chile, Ecuador and Guatemala. Colombia itself has not yet seen heavy rainfall, but the country is in the rainy season, and the meteorological department reminds people to take precautions to avoid serious losses.
Earlier, Colombia's internal conflict continued. According to reports, in Cauca Department in southwestern Colombia, violence by anti-government armed groups has recently intensified, with frequent bomb attacks and shootings, affecting the local coffee industry. However, good news has recently come: the Colombian anti-government armed group "National Liberation Army" held a meeting of representatives of various factions and issued a statement, reiterating that the organization is willing to abide by the commitments made in the peace agreement reached with the Colombian government.
In addition, the National Federation of Coffee Growers of Colombia (FNC) is holding the ninth "Colombia Diversity" coffee quality competition (Colombia Tierra de Diversidad). It is understood that this competition is similar to the Best of Panama (BOP) competition, aiming to connect Colombian coffee growers with domestic and international buyers, increase growers' income through coffee quality and differentiation, and enhance the international influence of Colombian coffee.
The above content is compiled by CoffeeHunters, a coffee news website.
