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- Colombian coffee production surged 20% in the latest harvest year, solidifying its position as the world’s second-largest coffee producer.
- A new export model allows Colombian coffee to reach the U.S. market in under 72 hours, enhancing competitiveness against Brazil.
- Coffee exports and domestic consumption saw significant increases, driven by favorable prices and improved logistics.
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Essential Context
Colombia has experienced a remarkable growth in its coffee sector, with production increasing by 20% between October 2023 and September 2024. This growth has positioned Colombia as the world’s second-largest coffee producer, just behind Brazil.
Core Players
- National Federation of Coffee Growers (FNC) – Key organization driving coffee production and export initiatives.
- Almacafe – Logistics operator facilitating rapid coffee exports to the U.S. and other markets.
- German Bahamon – General manager of the FNC, leading efforts to increase global recognition of Colombian coffee.
Key Numbers
- 12.75 million – Number of 60-kilogram bags of coffee produced in the latest harvest year.
- 20% – Increase in coffee production from the previous year.
- 16.4% – Growth in coffee exports in the first half of 2024 compared to the same period in 2023.
- $3.3 billion – Projected coffee export earnings for 2024.
- 13.9 million – Record number of 60-kilogram bags produced in 2024, a 23% increase from 2023.
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The Catalyst
The recent surge in Colombian coffee production is attributed to several key factors, including improved agricultural practices, favorable prices, and enhanced logistics. The National Federation of Coffee Growers has been instrumental in these efforts, driving initiatives in renovation, fertilization, and the use of growth-resistant varieties of coffee.
“The efforts made by coffee growers and led by the industry in matters like renovation, fertilization, and growth-resistant varieties of coffee are the key to this increase in production,” said German Bahamon, general manager of the FNC.
Inside Forces
The internal dynamics of Colombia’s coffee industry have been crucial. The FNC’s strategies have focused on increasing production efficiency and quality. Additionally, the new export model developed by Almacafe allows for coffee to be exported to the U.S. in less than 72 hours, significantly reducing costs and enhancing competitiveness.
This model eliminates intermediaries and utilizes transnational e-commerce platforms like Amazon and Walmart.com to facilitate direct sales to consumers.
Power Dynamics
The power dynamics within Colombia’s coffee sector are shifting, with the FNC and Almacafe playing pivotal roles. By reducing production costs by up to 50% and offering a sustainable economic model, these organizations are strengthening the commercial capacities of coffee growers and ensuring that profits remain in Colombia.
“The commercialization of processed coffee via Almacafe provides a competitive advantage by reducing production costs by up to 50 percent compared to those generated in other countries,” said Ivan Galindo, manager of Almacafe.
Outside Impact
The broader implications of this growth are significant. Coffee exports increased by 16% in 2024, with 12.3 million bags exported internationally. This growth has contributed to historically high record prices for Colombian coffee, with one pound selling at $3.20 in November 2024, a rate not seen since 1977.
The increased demand and favorable prices have also led to a decrease in coffee imports by 54% compared to the previous cycle, further boosting the local industry.
Future Forces
Looking ahead, the Colombian coffee industry is poised for continued growth. The FNC aims to extend its new supply chain model to Europe and Asia by 2025, further expanding its global market reach.
The industry is also exploring new markets and working to increase global recognition of Colombian coffee. By establishing direct connections with consumers, the FNC and Almacafe aim to generate more value for Colombian coffee growers.
Data Points
- October 2023 – September 2024: Period of 20% increase in coffee production.
- 12.75 million: Number of 60-kilogram bags produced during the latest harvest year.
- 16.4%: Increase in coffee exports in the first half of 2024.
- $3.3 billion: Projected coffee export earnings for 2024.
- $3.20: Price per pound of coffee in November 2024.
- 54%: Decrease in coffee imports compared to the previous cycle.
As Colombia continues to strengthen its coffee industry, the outcomes are likely to have a lasting impact on both local and global markets. The combination of improved agricultural practices, efficient logistics, and favorable market conditions positions Colombian coffee for sustained growth and increased global recognition.
