Colombian Coffee Growers: A Moment of Prosperity Demands Prudent Planning
Twenty twenty-four has been a veritable boon for Colombia’s coffee growers. Record high prices, reaching $2.8 million per 125-kilogram load, combined with an expected yield of over 13 million bags – two million more than last year – and improved coffee quality have brought a surge of optimism to the industry.
Celebrating Success While Maintaining Discipline
However, amidst this wave of prosperity, a note of caution prevails. “We must not declare victory and indulge in excessive spending or impulsive debt, as if we were experiencing a period of limitless prosperity,” advises Germán Bahamón, manager of the National Federation of Coffee Growers (Federacafé). The call for prudence and responsible management echoes throughout the coffee-growing regions.
Coffee: A Driving Force in Colombia’s Economy
The strength of the coffee sector is evident in its contribution to the national economy. In the third quarter of 2024, Colombia experienced a 2% growth rate, with the agricultural sector, fueled by coffee production, leading the way at 33.6%. This economic engine powers 603 municipalities, representing 54.6% of Colombia’s total, effectively signifying that more than half of the country is interwoven with coffee cultivation.
Cenicafé: Weathering the Storm of Climate Change
Colombia’s coffee industry is not only about production figures; it’s also a testament to innovation and resilience. Cenicafé, nestled in the rural area of Manizales, close to Chinchiná, has emerged as a research and development powerhouse. Its work has yielded coffee varieties and cultivation techniques resilient to the ever-changing climate.
Thanks to these advancements, Colombia’s coffee production has remained steady even after 36 months of the La Niña phenomenon, a stark contrast to the struggles faced by other coffee-producing nations.
Looking Ahead: Investing in Sustainability and Growth
Despite the promising present, it’s essential to remember that coffee cultivation is a seasonal industry. This year’s gains must serve to balance the losses endured in 2023, a year that proved challenging for many growers.
“Good conditions should be harnessed to generate savings, starting with coffee institutions and trickling down to the individual growers,” emphasizes Bahamón. He further stresses the importance of continued collaboration with the national government to develop robust fertilization plans – a cornerstone of good agricultural practices, essential for productivity and profitability – and to prioritize the essential refurbishment of coffee plantations.
Utilizing the Coffee Price Stabilization Fund for Long-Term Benefits
Federacafé proposes a strategic use for the funds from the Coffee Price Stabilization Fund (FEPC), which is designed to protect grower income. They advocate channeling these resources towards enhancing fertilization and plantation renewal, bolstering protection against coffee borer and rust, and implementing mechanisms to enhance grower income, all while supporting coffee grower cooperatives.
This proposal comes at a critical juncture, as the national government recently proposed increasing the coffee contribution by one cent per pound of exported coffee, a proposal that was met with resolute opposition during the recent Coffee Congress held in Bogotá.
The resounding message from Colombia’s coffee community is clear: this moment of prosperity is not a time for complacency but a time to strategically invest in the long-term sustainability and growth of the industry. By prioritizing responsible financial management, embracing innovation, and fostering collaborative efforts, Colombia can solidify its position as a leader in the global coffee market.
What specific strategies is Federacafé advising growers to adopt for responsible financial planning during this period of high coffee prices?
## Interview with Germán Bahamón, Manager of Federacafé
**Interviewer:** Germán, Colombia’s coffee growers are experiencing a fantastic year with record prices and a booming harvest. How do you explain these remarkable results, and what does it mean for the future of Colombian coffee?
**Germán Bahamón:** Yes, 2024 has been a true blessing for our coffee growers. We are seeing record prices—reaching $2.8 million per 125-kilogram load—and expect to harvest over 13 million bags this year, surpassing last year’s yield by 2 million bags. This is due to a combination of factors, including favorable weather conditions, improved coffee quality, and strong global demand.
**Interviewer:** This prosperity is certainly cause for celebration, but your cautionary message resonates. What are your concerns, and what advice are you giving growers?
**Germán Bahamón:** Absolutely. We must not fall into the trap of overspending or taking on unnecessary debt, mistaking this period for unlimited prosperity. [ [1](https://espressorivo.com/colombian-coffee/) ]Colombian coffee has a rich history of resilience, and we must remember that coffee cultivation is a seasonal industry subject to market fluctuations. We encourage responsible financial planning, strategic investments for the future, and continued focus on sustainability.
**Interviewer:** When you mention sustainability, you’re referring to the ongoing challenges posed by climate change, right? How is Colombia’s coffee industry adapting to these pressures?
**Germán Bahamón:** Climate change presents significant challenges for coffee production globally. Fortunately, Colombia has been proactively investing in research and development through institutions like Cenicafé, which has developed new coffee varieties and cultivation techniques specifically designed to withstand the effects of climate change. These advancements have proven invaluable lately, allowing us to maintain steady production despite the prolonged La Niña phenomena that has affected other coffee-producing nations.
**Interviewer:** So, despite the current success, the future of Colombian coffee rests on continued innovation and responsible practices.
**Germán Bahamón:** Precisely. We need to strike a balance between celebrating our achievements and recognizing the need for continued adaptation, sustainable practices, and smart investments to ensure the long-term health and prosperity of Colombia’s coffee industry.
**Interviewer:** Germán, thank you for sharing your insights. Your message of prudence and vision is certainly a valuable one for the Colombian coffee industry.
