
Daily Coffee Report 8/11/26
Daily coffee report

- Coffee
By: Diana Delgado, Contractor

Colombia’s Coffee Processing Plant to Improve Income to Growers: FNC Manager
Bogota (Coffee Network)- Colombia’s National Federation of Coffee Growers (FNC) inaugurated yesterday a new coffee processing and transformation center today in the municipality of Gigante, Huila, the country’s largest coffee-producing department, which above all will improve the coffee growers’ income, German Bahamon, general manager of the coffee growers federation said today.
“The inauguration of the Jorge Villamil Coffee Processing and Transformation Center represents far more than an infrastructure project. It represents a strategic decision about the future of Colombian coffee and, above all, about improving coffee growers’ income,” Bahamon said in an editorial published at the financial newspaper Portafolio.
Coffee growers in its area of influence will no longer need to make individual investments in processing machinery and equipment; they will avoid maintenance costs, significantly reduce energy and water consumption, and lower risks associated with workplace accidents. But perhaps the most significant change lies in cash flow. Producers will no longer have to wait 28 days for drying before they can sell their coffee, while assuming the risk that the product may deteriorate during the process due to inadequate, Bahamon said.
The project involved an investment of more than COP10 billion pesos ($2.70 million) and, “for the first time in the history of the FNC, allows control over every stage of the production process with a level of precision that makes it possible to design specific cup profiles according to destination markets and consumer preferences,” he added.
Not all markets demand the same profile, Bahamon said. Producing for Saudi Arabia is not the same as producing for Germany, he added.” This system adds value at origin and transfers that added value directly to Colombian producers. Quality ceases to be a generic attribute and becomes a manageable, measurable and profitable variable,” he noted.
This plant is also FNC’s first facility, in its 99-year history, designed under circular economy principles as there will no waste.
Coffee pulp is transformed into biomass through a specialized drying system. Mucilage is converted into biofertilizers and energy gels for human consumption. And soon, a distillation tower for ethanol production will begin operating. This is not a technological promise. It is the development model that Colombia’s coffee-growing regions deserve.
“We are beginning to build a new industrial vision around Colombian coffee, where every component of the coffee cherry holds economic, environmental and social value,” he added.
The global coffee industry is undergoing profound transformation. Consumers, sales channels, technologies and environmental demands are changing. Those who fail to adapt will be left behind in a market that rewards differentiation, traceability and sustainability. That is why we have led this transformation of the Federation under three non-negotiable principles: austerity, operational efficiency and innovation, he added.
The initiative, built by FNC’s logistics arm Almacafé and operated by the Coocentral coffee cooperative, aims to raise quality standards for parchment coffee and green excelso coffee while generating greater value through the use of residual raw materials. The new Gigante plant will begin operations with a capacity of 35,000kg/day and is expected to gradually expand to 116,000kg/day, FNC confirmed to Coffee Network. Almacafé general manager Iván Andrés Galindo recently told Coffee Network in an interview similar figures
The new model is also expected to significantly reduce the workload for coffee growers. Under the traditional system, producers can spend between 15 and 20 days on post-harvest activities, including storing, washing, pulping and drying the beans. With the new facility, the process is reduced to a single day and two basic steps: harvesting the coffee cherries and delivering them to the center, where farmers receive immediate payment without having to process the coffee into dried parchment themselves.
FNC general manager Germán Bahamón said the transformation will positively affect more than 10,000 coffee growers in the surrounding area, mainly in the municipalities of Gigante, Garzón and El Agrado, who are expected to benefit through better prices and lower operating costs.
Bahamon reminded that over the past three years, they have worked to modernize the National Federation of Coffee Growers (FNC) and restore it to the position it deserves, aligned with the demands and trends of the global market. Today, both the Federation and its affiliated companies are delivering historic results, and this project marks a turning point in that transformation.
The plant will initially have the capacity to process 35,000kg of coffee cherries per day, equivalent to around half a million cups of coffee.
Almacafé’s logistics transformation
Almacafé begun a broader restructuring of Colombia’s coffee logistics chain aimed at determining where coffee should be stored, milled and refrigerated, a process expected to generate annual savings of COP10bn ($2.56mn).
Traditionally focused on storing and milling coffee, Almacafé is now expanding its role to become the federation’s integrated logistics arm.
To ensure homogeneous high-quality Arabica coffee, Almacafé plans to help finance the construction of three coffee processing plants, each with a capacity of 105,000kg/day to receive coffee cherries, Almacafé general manager Iván Andrés Galindo told Coffee Network in an interview. Each plant requires an investment of COP6.5billion ($1.48mn), with Almacafé financing 50% of the cost.
Colombia is seeking to transform the way coffee growers market their beans by adopting a model similar to Costa Rica’s, where most farmers do not process coffee individually but instead harvest cherries during the day and deliver them to centralized regional mills.
Almacafé currently operates three processing plants in Quindío, Huila and Antioquia in partnership with cooperatives. The largest facility, located in Antioquia, has an installed capacity of 100,000kg/day.
Almacafé is also promoting the use of 1,000kg bulk bags instead of traditional 70kg coffee sacks to reduce logistics costs. The larger bags can be loaded and unloaded at ports using cranes rather than manual labor, improving efficiency and lowering handling costs. The company aims for at least 20% of the federation’s coffee exports to be shipped using bulk bags.
By Diana Delgado
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Daily coffee report


August 11 – It was generally a quiet night for the markets until early this morning when a headline hit that Iran and Oman were close to reaching a deal. Stock futures rallied, while the dollar index followed Treasury yields lower, along with active selling in the energy- and food-based commodities. The headline had limited impact though in a world that has become skeptical of promises of peace. Stock futures remain steady to firmer at this hour, while the VIX trades near 16 – just above 2026 lows. The dollar index is trading near 99.8 this morning, after recovering from its early morning selloff over the following hour of trade. Yields on 10-year Treasuries are trading near 4.69%, while yields on 2-year Treasuries trade near 4.22%. WTI crude oil is trading near $82 per barrel at this hour, while Brent trades near $88. The grain and oilseed markets are mostly weaker, after failing to recover from this morning’s early selloff that started in the crude oil market.


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