Daily Coffee Report 11/6/26
Daily coffee report
StoneX Coffee Team
- Coffee
Colombia’s Coffee Growers Request Coffee Federation Modify Yield Factor Amid Disastrous Effects of El Nino on Beans
Diana Delgado
Contractor
Colombia’s Coffee Growers Request Coffee Federation Modify Yield Factor Amid Disastrous Effects of El Nino on Beans
Bogota (Coffee Network)- Coffee growers in Colombia have requested that the National Federation of Coffee Growers (FNC) modify the official yield factor standard after months of severe climate disruption. Growers find themselves crushed by a mathematical threshold that no longer reflects reality on the ground, according to Faber Buitrago, a union leader in Colombia’s primary coffee-producing department of Quindío.
Under normal weather conditions, achieving the standard Factor 94—requiring approximately 94 kilograms of dry parchment coffee to produce a 70-kilogram bag of export-grade green coffee—is manageable. However, severe climate impacts have created a stark disconnect between standard metrics and actual harvests, prompting Buitrago to issue an urgent SOS demanding that the Federation immediately relax the yield factor tolerance from 94 to 98 to prevent thousands of farming families from financial ruin.
The underlying cause of the degraded harvest stems from prolonged heat and dry spells brought on by El Niño. The heat triggered widespread infestations of broca (the coffee berry borer beetle) and drastically increased the proportion of pasilla—lightweight, defective, or hollow beans.
When smallholders bring their harvest to purchasing stations, the high percentage of damaged fruit pushes their yield factor far past the 94 benchmark. Because the Federation’s official purchasing formula heavily penalizes coffee that exceeds this standard, the actual cash paid to the grower is severely discounted, falling far below the published reference price and well beneath the true cost of labor, fertilizer, and farm maintenance.
This quality penalty strikes at a moment when macroeconomic pressures are already devastating farmgate revenues. A steep 20% appreciation of the Colombian peso against the US dollar, combined with a record harvest in Brazil reaching 67.6 million bags (as reported by CONAB), has flooded global markets and depressed local prices. In just one year, the base price per carga (125 kilograms) has plummeted from COP $3 million down to around COP $2 million. For smallholders operating on razor-thin margins, losing additional income to rigid yield factor penalties turns a severe downturn into a full-scale crisis.
In Quindío, the situation turned catastrophic following a recent earthquake that rattled the department. Seismic tremors destroyed farm infrastructure, cracking concrete drying beds and shattering wet-milling systems (sistemas de beneficio) across dozens of rural properties. Today, exhausted families with depleted funds are scrambling to assemble makeshift processing channels using timber and plastic tarps to save what remains of their crop. Those without savings face complete paralysis, unable to wash or process their beans and watching their annual yield deteriorate.
Beyond requesting the Federation's adjustment to Factor 98, Buitrago's appeal calls on the Ministry of Agriculture and the Ministry of Finance to immediately activate the Coffee Price Stabilization Fund (FEPC) and launch a pilot income-hedging plan to protect growers against further price declines. Furthermore, the union leader appealed to the national government to establish a compensatory dollar mechanism to restore export competitiveness across Colombia's agricultural sector before the coffee heartland loses the families who sustain it.
By Diana Delgado
Source: Faber Buitrago Patiño
- Coffee
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