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Three Major Industrial Transformation Projects Presented to Incoming New Colombian Government

By: Diana Delgado, Contractor

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Three Major Industrial Transformation Projects Presented to Incoming New Colombian Government

Bogota (Coffee Network )- The general manager of the Colombian Coffee Growers Federation (FNC), has presented a proposal to the incoming administration of President-elect Abelardo De La Espriella aimed at modernizing the nation's coffee sector. The plan outlines three major industrial projects: expanding Colombia's only freeze-dried coffee plant, building a new decaffeination facility, and constructing 10 regional processing centers, German Bahamon general manager of the coffee growers federation said.

The first proposal targets the Buencafé plant in Chinchiná, Caldas. The facility transforms 538,000 bags of coffee annually into 12,500 metric tons of freeze-dried coffee for export. However, the plant has hit its physical capacity limit despite rising global demand. The FNC aims to scale up processing to 700,000 bags at origin and boost exports to 16,500 metric tons. To fund the expansion, the federation proposes leveraging equity from the National Coffee Fund alongside government-subsidized credit lines.

Speaking in an interview with the country's largest newspaper El Tiempo, Bahamón emphasized that the federation is not seeking state handouts, but rather a restored working partnership with the government.

The second project focuses on constructing a decaffeination plant along Colombia's Caribbean coast. Pointing to rising international demand for decaffeinated coffee, the federation aims to position a production facility near shipping ports to serve export markets efficiently.

The third initiative proposes a fundamental shift in the economic model for coffee farmers. Instead of requiring growers to process their harvest down to dry parchment on the farm, the FNC wants to buy raw coffee cherries directly. To enable this transition, the sector is calling for 10 regional processing and transformation centers built through a joint effort between the Rural Development Agency, regional governorships, and the FNC.

As a member of the National Coffee Committee, the incoming administration holds key voting power to approve these strategic investments and help facilitate favorable loan terms to drive regional job creation.

Peso Appreciation Weighs on Farm Incomes

Beyond industrial infrastructure, the sharp drop in the U.S. dollar exchange rate remains the coffee sector's primary short-term concern. Over the past year, the peso's appreciation has reduced grower revenues by up to 690,000 pesos (US$215) per load exported.

The federation has requested that the new government collaborate on an export competitiveness agenda. While leaders are not asking for an artificially manipulated exchange rate, they are calling for targeted policy support to protect farm-level profitability.

A Circular Economy for Coffee Waste

The strategy to purchase coffee as whole fruit also aligns with a new environmental initiative. In meetings with the designated Minister of Environment, FNC representatives detailed a circular economy model that utilizes coffee pulp and mucilage—residual waste traditionally left on farms.

By converting these agricultural byproducts into biofertilizers, biomass, animal feed, and ethanol, the sector aims to eliminate farm-level pollution while building new, value-added industries across Colombia's coffee-growing regions.

By Diana Delgado

Source. FNC

 

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