UPDATE: Colombia Revises Upward Coffee Production To 13 Million Bags in 2024
UPDATE: Colombia Revises Upward Coffee Production To 13 Million Bags in 2024
Bogota (Coffee Network)- The Colombia’s coffee growers federation FNC has revised upward the country’s coffee output target to around 13 million bags of 60-kg as droughts earlier this year prompted improved flowerings, German Bahamon, general manager of the coffee growers federation said.
FNC has initially expected coffee production of around 12 million bags of 60-kg, but water stress linked to the El Niño weather phenomena earlier this year, prompted better-than-expected flowerings. In 2023, Colombia produced 11.3 million bags, which implies a recovery of about 1.7 million bags higher.
“In the 12-month period, we already broke the threshold of 12 million (bags). Without having a precise harvest for the second half, we should be producing around 13 million bags,” he told reporters during a presser.
Colombia is expected to export around 12 million bags in 2024, up from 10.5 million in 2023. Some 1 million bags will stay in the local market.
In coffee year 2023-2024, Colombia, the world’s third-largest producer, is seeing producing 12.6 million-12.7 million bags, which is higher than the initial estimate of 12.5 million bags.
In the 2023-2024 coffee year, exports should reach around 11.7 million bags, Bahamon noted.
Colombia, known for its high-quality, mild coffees, has the capacity to produce around 14 million bags annually.
But between 2009 and 2012, the country - the world's third-largest coffee producer after Brazil and Vietnam - missed its production target due to heavy rains.
Coffee growers should not believe high coffee prices represent a bonanza. Coffee growers are recovering the losses they registered last year when local coffee prices were around COP1.3 million, which did not allow them to pocket gains, Bahamon stressed. International coffee prices have risen 50% in the last year, while the exchange rate ranges between COP3,800 and COP4,200 pesos to the dollar.
Renovation
Colombia has renovated 53,000 hectares as of June, but the nation is aiming to renovate 100,000 hectares. In 2023, Colombia renovated 77,000 hectares.
FNC has invested COP27.8 billion in the renovation of coffee land, while the agricultural bank and the government bank Finagro invested an additional 85 billion. Separately, the Ministry of Agriculture has invested 58 billion for a total of COP170.8 billion ($42.7 million).
The coffee research entity Cenicafe launched a new variety Castillo 2.0, which seeks to strengthen the protection of coffee plantations to roya and broca.
Consumption
Colombians are consuming 2.2 kilos per capita of coffee, but FNC sees increasing consumption with the aim of reaching 3kg per capita in the near future.
“Local consumption is growing by 10% in volume, while in value coffee consumption is advancing by 25%. We should soon reach 3kg per capita,” he said.
Risks
FNC’ Bahamon said coffee growers are worried with increased insecurity at coffee farms as farmers are seeing rising robbery and extortion.
European Union
The coffee growers federation has asked the European Union to postpone the entrance of the deforestation law in a bid to avoid a distortion in the coffee market, Bahamon stressed. As much as 27% of Colombia’s coffee exports go to the European Union.
The European Union approved a law which states that to fight climate change and biodiversity loss, companies must ensure products sold in the EU have not led to deforestation and forest degradation. Companies will only be allowed to sell products in the EU if the supplier of the product has issued a so-called “due diligence” statement confirming that the product does not come from deforested land or has led to forest degradation, including of irreplaceable primary forests, after 31 December 2020.
By Diana Delgado
