Colombia expects stagnant coffee harvests in 2022 — MercoPress

Colombia expects stagnant coffee harvests in 2022

Wednesday, August 3, 2022 – 21:32 UTC

Colombia is ready for lower prices resulting from a rebound in Brazilian production, Velez says

Colombian coffee production for the year 2022 will reach 12 million bags, weighing 60 kilos each, according to Roberto Velez, director of the National Federation of Coffee Producers (FNC).

“Wonderful news for coffee producers, but when you see 12 million bags and rejoice, you remember that not so long ago we had 14 and 14.5” million bags of production annual, said the spokesperson for the guild which brings together more than 500,000 families.

The decline in local production is linked to climatic factors that directly affect the coffee tree. “The amount of rain that has fallen each month for the past 26 months is more than has traditionally fallen,” Velez said.

He also pointed out that the lack of sunshine affects this type of crop, which needs heat to speed up the grain ripening process.

Velez also explained that the bushes need a certain “hydric stress” to reach “their full expression in terms of production”. Permanent rains alter the natural development of the coffee bean.

The other problem facing the industry is the high global price of fertilizers, which has affected global food production since the start of the war between Russia and Ukraine, two of the largest suppliers of urea. in the Colombian market.

“The price of gas, which is the feedstock for urea, is at high highs and we don’t see that there will be any downward movement in the price of this feedstock and therefore the price of urea itself doesn’t have to go down,” Vélez argued in an interview published Tuesday.

Regarding fertilizers, Vélez said his guild had already taken initial steps with the new government of Gustavo Petro to stimulate local production of fertilizers in order to reduce Colombia’s dependence on imports from Spain. Europe, United States and Asia.

Meanwhile, Brazilian coffee growers expect this year’s harvest to be large, raising fears of lower prices due to abundant supply.

“We will have to wait for August to pass and September and October to arrive, which is the flowering season, to understand what could be next year’s crop in Brazil,” Velez also pointed out.

He also admitted that the price of coffee beans around the world over the past four years has enabled local producers to overcome the economic problems they have dragged on for years. This effect, in addition to the devaluation of the Colombian peso against the dollar, has improved the price of crops.

Velez said Colombia was prepared for lower prices resulting from a rebound in Brazilian production.

When the “price crash” comes, Colombian coffee growers will be strong enough not to lower their selling prices. He also predicted that Colombian coffee would be above the international price.

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