FNC and Colombian Government Postpones Meeting About Management of National Coffee Fund
Bogotá (Coffee Network) – Colombia’s National Federation of Coffee Growers (FNC) and the government postponed a key meeting regarding the administration contract of the National Coffee Fund until next Tuesday, FNC general manager reported Germán Bahamón said.
The meeting will feature an extensive agenda, running from 9:00 a.m. to 4:00 p.m., and will also include the participation of the Minister of Agriculture. The objective will be to reconcile the points that must be included in the new administration contract of the Fund.
"Today I had a fluid conversation with the Minister of Finance, and we agreed to postpone our meeting until next Tuesday, in which the Minister of Agriculture will also participate," Bahamón said.
The CEO of the Federation explained that the meeting will seek to "decisively advance in reconciling the points that will go into the Fund's administration contract."
The tone of the statement aims to de-escalate tension between the government and the coffee institution, amidst a sensitive discussion due to the upcoming expiration of the National Coffee Fund's administration contract on July 7.
Bahamón highlighted the willingness of the head of the Finance Ministry and assured that there is political will to close the deal before the deadline. "I value the transparency and willingness expressed by the Minister of Finance to have the contract ready before the deadline expires," he stated.
This nuance is relevant to avoid misinterpretations. The information provided does not indicate that the contract has already been renewed or that a closed agreement exists. What has been confirmed is a new meeting between the Government and the Federation to reconcile outstanding points.
The negotiation arrives under two simultaneous pressures. On one hand, avoiding an administrative vacuum before the contract expires. On the other, defining eventual adjustments to the governance, oversight, and management of the Fund's resources.
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.
The meeting will happen after the second-round of presidential elections set to take place on Sunday June 21 in which far-right candidate Abelardo de la Espriella could become the next president for the upcoming four years. The next president takes the helm on August 7.
“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’s German Bahamon, analysts
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