FNC to Present Proposal for Continued Management of Colombia’s National Coffee Fund
Bogotá (Coffee Network) – Colombia’s National Federation of Coffee Growers (FNC) is expected to formally present its proposal today for the continued administration of the National Coffee Fund (FoNC), as negotiations with the government intensify ahead of the July 7 expiration of the current management contract.
The proposal follows a meeting held Friday between Finance Minister Germán Ávila, Agriculture Minister Martha Carvajalino, and FNC General Manager Germán Bahamón, during which both sides discussed the future of the fund and the possibility of extending the agreement that allows the federation to administer one of the country's most important agricultural institutions.
Bahamón described the discussions as “frank” and said the federation would submit its management proposal after reviewing an initial government draft. The talks come amid growing controversy over the future of the fund, following signals from President Gustavo Petro’s administration that it was considering changes to the current arrangement due to disagreements with the federation’s management.
The administration contract must be renewed before July 7 or risk entering a period of uncertainty that industry leaders warn could disrupt key activities across Colombia’s coffee sector.
“If a new contract is not signed or the current one is not extended, fundamental activities that depend on National Coffee Fund resources could be paralyzed while negotiations continue,” said Óscar Gutiérrez, leader of coffee growers’ group Dignidad Cafetera. “The damage to producers, marketers, exporters and the national coffee economy would be enormous.”
The National Coffee Fund finances a broad range of programs and services for coffee growers, including Colombia’s coffee purchasing guarantee, technical assistance programs, and research conducted by Cenicafé, the federation’s renowned coffee research center.
Although the resources are contributed directly by coffee producers through export levies, they are classified as parafiscal funds and therefore remain subject to government oversight.
Debate Over Future Management
The future of the fund has become increasingly uncertain following repeated calls by President Petro to reform the coffee sector’s institutional structure. The president has previously argued that coffee growers’ resources are being consumed by bureaucracy and administrative expenses and has advocated for greater state involvement in the management of the sector.
In 2025, Petro reiterated his proposal to restructure the administration of the National Coffee Fund and reform the federation’s role within Colombia’s coffee industry.
The Federation has emphasized that these funds are not part of the General Budget of the Nation, as they are contributed by coffee producers. However, since they are parafiscal contributions, they are treated as public funds, and therefore the Government exercises oversight and control over their administration.
The decisions to be made regarding the administration contract for the National Coffee Fund remain an enigma. But in recent days, controversy has arisen about what might happen, as it should be remembered that the president has spoken on several occasions about a possible restructuring of the National Federation of Coffee Growers and changing the management of the National Coffee Fund. At the time, Colombian President Gustavo Petro stated that coffee growers' money was being spent on bureaucracy and travel. He asserted that the coffee revenue was in the hands of the "bureaucracy" and that the State needed to take control. In 2025, he reiterated his call to restructure his administration.
Fund Financed by Coffee Growers
The National Coffee Fund is financed primarily through a coffee levy paid by Colombian producers on coffee exports. According to the FNC, growers contribute US$0.06 per pound of exported green coffee, US$1.08 per pound of roasted coffee, US$0.48 per pound of soluble coffee, and US$0.36 per pound of coffee extract.
The Federation maintains that these resources are generated by coffee growers and, by law, must be used exclusively to support the welfare, sustainability, and competitiveness of the sector.
Analysts Warn of Risks
Coffee-sector analysts say uncertainty has increased as the expiration date approaches.
Guillermo Trujillo, a former FNC executive and current coffee-sector columnist, said there is widespread speculation that the government may seek changes to the administration agreement, although the details remain unclear.
"There are rumors that modifications to the agreement are being considered," Trujillo said. "The focus appears to be on incorporating broader public-policy objectives into the administration of the fund."
Another senior industry expert, who requested anonymity, warned that allowing the contract to expire without a replacement could create significant legal and operational challenges.
"If the contract expires without a new agreement in place, the fund's resources could effectively be frozen and the Federation would lose access to them," the analyst said.
Such a scenario could disrupt coffee purchases, export support programs, technical assistance services, and research activities financed through the National Coffee Fund.
The uncertainty comes at a critical time for Colombia's coffee sector as growers continue to navigate volatile international markets, rising production costs, and mounting climate-related challenges.
By Diana Delgado
Sources: FNC, analysts
This material should be construed as market commentary and represents the opinions and viewpoints of the author, and does not reflect tailored advice associated with any specific account.
The views are current only through the date stated and are subject to change at any time based upon market or other conditions, and StoneX Group Inc. (“SGI”) disclaims any responsibility to update such views. Actual results, performance, or achievements may differ materially from those expressed or implied. Information is based on data gathered from what we believe are reliable sources. Past performance does not guarantee future results.
The StoneX Group Inc. group of companies provides financial services worldwide through its subsidiaries, including physical commodities, securities, exchange-traded and over-the-counter derivatives, risk management, global payments and foreign exchange products in accordance with applicable law in the jurisdictions where services are provided.
References to certain OTC products or swaps are made on behalf of StoneX Markets, LLC (SXM), a member of the National Futures Association (NFA) and provisionally registered with the U.S. Commodity Futures Trading Commission (CFTC) as a swap dealer. SXM’s products are designed only for individuals or firms who qualify under CFTC rules as an ‘Eligible Contract Participant’ and who have been accepted as customers of SXM.
StoneX Financial Inc. (SFI) is a member of FINRA/NFA/SIPC and registered with the MSRB. SFI is registered with the U.S. Securities and Exchange Commission (SEC) as a Broker-Dealer and with the CFTC as a Futures Commission Merchant and Commodity Trading Advisor. StoneX Financial (Canada) Inc. (SFCI) is registered in Canada and is a member of CIRO and CIPF. References to certain securities trading are made on behalf of the BD Division of SFI and are intended only for an audience of institutional clients as defined by FINRA Rule 4512(c). References to certain exchange-traded futures and options are made on behalf of the FCM Division of SFI. Wealth Management is offered through SA Stone Wealth Management Inc., member FINRA/SIPC, and SA Stone Investment Advisors Inc., an SEC-registered investment advisor, both wholly owned subsidiaries of SGI.
R.J. O’Brien & Associates, LLC (RJO) is registered with the CFTC as a Futures Commission Merchant and is a member of NFA.
StoneX Financial Ltd (SFL) is registered in England and Wales, company no. 5616586. SFL is authorized and regulated by the Financial Conduct Authority (FCA) (registration number FRN:446717) to provide services to professional and eligible customers including: arrangement, execution and, where required, clearing derivative transactions in exchange traded futures and options. SFL is also authorized to engage in the arrangement and execution of transactions in certain OTC products, certain securities trading, precious metals trading and payment services to eligible customers. SFL is authorized and regulated by the FCA under the Payment Services Regulations 2017 for the provision of payment services. SFL is a category 1 ring-dealing member of the London Metal Exchange. In addition SFL also engages in other physically delivered commodities business and other general business activities which are unregulated and not required to be authorized by the FCA.
This communication is issued in the European Economic Area by StoneX Financial Europe GmbH (SFEG). StoneX is the trade name used by STONEX GROUP INC. and all its associated entities and subsidiaries. StoneX Financial Europe GmbH (“SFEG”) is a securities trading firm registered in Germany under Company No. HRB 80844.
StoneX APAC Pte. Ltd. (“SAP”) (Co. Reg. No 200616676W) is regulated as a Dealer (PS20190001002) under the Precious Stones and Precious Metals (Prevention of Money Laundering and Terrorism Financing) Act 2019 for purposes of anti-money laundering and countering the financing of terrorism. SAP is an “Approved International Trading Company” authorized to act as a “Spot Commodity Broker” under the Commodity Trading Act.
StoneX Financial Pte Ltd (Co. Reg. No 201130598R) (“SFP”) is regulated by the Monetary Authority of Singapore and is a Capital Markets Service Licence holder (for dealing in capital market products), an Exempt Financial Adviser (for advising on investment products and issuing or promulgating analyses/ reports on investment products) and a Major Payment Institution (for domestic and cross-border money transfer services).
SFP may distribute analysis/report produced by its respective foreign affiliates within the StoneX Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations Recipients should contact SFP at (65) 6309 1000 for any matters arising from, or in connection with, this webinar.
StoneX APAC Pte. Ltd. (“SAP”) (Co. Reg. No 200616676W) is regulated as a Dealer (PS20190001002) under the Precious Stones and Precious Metals (Prevention of Money Laundering and Terrorism Financing) Act 2019 for purposes of anti-money laundering and countering the financing of terrorism.
StoneX Financial (HK) Limited (CE No.: BCQ152) (“SHK”) is regulated by the Hong Kong Securities and Futures Commission for Dealing in Securities and Dealing in Futures Contracts.
StoneX Financial Pty Ltd (ACN 141 774 727) holds an Australian Financial Service License (AFSL: 345646) for Dealing in Securities, Exchange-Traded Derivatives Contracts, OTC Derivatives Contracts and Foreign Exchange Contracts, and is regulated by the Australian Securities and Investments Commission.
StoneX Securities Co., Ltd. (“SSJ”) (Co. Reg. No 010401047199) is regulated by the Japanese Financial Services Agency as a Type-I Financial Instruments Business Operator (Kanto Local Finance Bureau (FIBO)No.291’), is a member of the Financial Futures Association of Japan for dealing and broking FX and FX Option transactions, and is a member of the Japan Securities Dealers Association for dealing and broking stock indices and option transactions.
Trading swaps and over-the-counter derivatives, exchange-traded derivatives and options and securities involves substantial risk and is not suitable for all investors. Past performance of any futures or option is not indicative of future success. Indicators are not a trading system and are not published as a specific trade recommendation. The information herein is not a recommendation to trade nor investment research or an offer to buy or sell any derivative or security. It does not take into account your particular investment objectives, financial situation or needs and does not create a binding obligation on any of the StoneX group of companies to enter into any transaction with you. You are advised to perform an independent investigation of any transaction to determine whether any transaction is suitable for you. No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior written consent of StoneX Group Inc.
The report/analysis herein is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation.
© 2026 StoneX Group Inc. All Rights Reserved.
