Colombian coffee production reached 689,000 60-kg bags in May, while exports reached 592,000 bags, country's National Federation of Coffee Growers says

Nevin Barich

Nevin Barich

Jun 12, 2012 – Colombian Coffee Growers Federation

BOGOTA, Colombia , June 12, 2012 (press release) – For the second month in a row Colombian coffee production increased. While on May 2012 production reached 689 thousand 60 kilo bags, coffee exports reached 592 thousand bags. Similarly, in the past twelve months, the world´s number one supplier of mild washed Arabica coffee produced 7,1 million 60 kilo bags of which 6,9 million were exports.

The presence of La Niña phenomenon in the past few years strongly affected Colombian coffee production by decreasing the blooming of coffee plantations and increasing the attacks of coffee leaf rust fungus. The production increase registered in April and May of the current year shows that the yield curve trend is starting to reverse.

According to Luis G. Muñoz, CEO of the FNC, “These are the first symptoms of a trend turnaround. We expect that with improved weather conditions and the arrival of a productive stage to renovated hectares, 2012´s second semester will show more production.” Additionally, Muñoz encouraged growers, who in order to avoid low prices are keeping their production in their farms, to sell their coffee.

Colombia´s 560 thousand coffee producers benefited from the country´s total coffee harvest value of the past twelve months which reached US$ 2,2 billion.

One of the consequences of decreasing prices is the declining share of buyers other than the FNC. This confirms the importance of the purchase guarantee policy which is the most valuable public asset offered to Colombian growers. Thanks to the purchase guarantee policy, growers count with a permanent buyer willing to purchase their coffee at a calculated price based on market variables.

While in 2011 the FNC´s participation in coffee commercialization was of 25.2%, between January and May 2012 it reached 29%.

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