- Title: Colombian coffee percolating from rising prices, high premiums, fall in peso
- Date: 12th March 2020
- Summary: BUENAVENTURA, COLOMBIA (FILE) (REUTERS) VARIOUS, SACKS OF COFFEE STACKED FOR EXPORT VARIOUS, SACKS OF COFFEE IN WAREHOUSE FOR EXPORT
- Keywords: Colombia benefit coffee devalue drop economy export lower peso price sales
- Reuters ID: LVA007C4R011J
- Location: HUILA, BOGOTA, CHINCHINA & BUENAVENTURA, COLOMBIA
- City: HUILA, BOGOTA, CHINCHINA & BUENAVENTURA, COLOMBIA
- Country: Colombia
- Duration: 00:00:27
- Aspect Ratio: 16:9
- Topics: Commodities Markets,Economic Events
- Story Text: Colombian coffee producers are benefiting from the falling value of the peso against the dollar, rising internal prices and a higher premium, which will help them recoup losses from recent years, the head of the National Federation of Coffee Growers said.
Coffee growers in the South American country, the largest producer of washed arabica, have faced a crisis in recent years because of low prices.
Colombia lost 40,000 hectares of coffee cultivation between 2015 and 2019 as farmers decided to abandon the industry due to low prices. The country has 855,000 hectares of coffee crops, on which more than 500,000 families depend.
"We're a long way from talking about a bonanza but what we can say is that we have reached a level where coffee growing is profitable, from which Colombian coffee growers can earn enough to live decently," federation head Roberto Velez told Reuters on Wednesday (March 11).
The situation is a stark contrast to a year ago, when prices on ICE were below $1 per pound and internal prices failed to cover production costs.
Velez forecast the coffee harvest in 2020 at 9 trillion pesos - a 25% increase on last year. Production for the year is expected in a range of 14 million and 14.2 million 60-kilogram bags, Velez added, though global consumption will drop because of the impact of coronavirus.
"What you see is that despite downturns in the economy, people still drink coffee. They keep enjoying the small luxury of a quality cup of coffee," he said.
(Production: Camilo Cohecha, Herbert Villarraga, Daniel MuÃ±oz)
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