The worldwide Arabica coffee industry is navigating through a series of challenges that impact its dynamics. Importers are grappling with high stocks in their warehouses, leading to sluggish coffee purchases. Brazil's ongoing recovery from various factors is affecting the market, and fluctuations in coffee prices on the New York Stock Exchange add to the complexity. Moreover, new pricing regulations have been introduced by Fairtrade International and the European Union's Deforestation-Free Regulation, reshaping the industry landscape.
Colombian Coffee Farming in Focus
Despite the global challenges, let's zoom in on the status of Colombian coffee farming in the current coffee year. The prices of Colombian coffee differentials have experienced a steady decline in 2023. A substantial drop of up to USD$ 36 cents per pound has been recorded, marking the lowest differential since July 2019. Internally, the coffee price has also seen a variation of -16% from May to June, adding to the complexities faced by growers.
Facing Uncertainty with El Niño
The announcement of the El Niño phenomenon brings uncertainty and concern among Colombian coffee growers. The previous La Niña phenomenon, characterized by heavy rains, delayed flowering and production during this coffee year. As they gear up for the harvest season, coffee farmers are navigating challenging weather patterns and their impact on crops.
Volume and Production
Coffee export volume from Colombia in the current coffee year has seen a decrease of 14% compared to the preceding year (2021/2022). The decline in domestic coffee production is a result of abundant rainfall experienced in coffee-growing regions.
*Producer Luis Ernesto Moya Cala receiving his delivery of young plants.
News and Webinar
As we move forward, the central region of Colombia starts its main harvest, while the south concludes its harvesting efforts. Meanwhile, the northern part of the country is preparing for the upcoming harvest in October.
Additionally, on August 15th, coffee-producing organizations from Colombia, Peru, and Honduras, in collaboration with ElevaFinca, will host a virtual webinar. The webinar aims to introduce the European Union's Deforestation-Free Regulation, highlighting the shared commitment to sustainable practices and environmental stewardship among these coffee-producing nations.
You are cordially invited to join this webinar. However, kindly note that the session will be conducted in Spanish and the content of the presentation has primarily been tailored for cooperative members. Get in touch with us by replying to this email if you would like to receive an invitation.
*Here's an image depicting José Barreto offering technical support at RioSierra's apiary.
As the Colombian coffee industry faces these challenges amidst the global Arabica coffee landscape, resilience and collaboration are essential for the future. By working together and embracing sustainable practices, we can navigate uncertainties and foster growth in this dynamic sector. Our commitment to improving agricultural practices through large-scale projects at origin remains unwavering, and we invite you to be part of this journey toward a thriving and sustainable future for Colombian coffee. Together, let's shape the path ahead and ensure a prosperous coffee community in Colombia.
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