Colombian Coffee Exports Surge Amid Global Supply Challenges

By The Rio Times | Created at 2024-10-30 13:20:12 | Updated at 2024-10-30 17:21:25 5 hours ago
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Colombia’s coffee sector is experiencing a significant upturn, with production and exports showing remarkable growth.

Gustavo Gómez, president of the National Association of Coffee Exporters (Asoexport), reports that coffee production has increased by over 20% this year.

This surge comes at a time when global coffee prices are rising due to supply issues in other major producing countries. The United States remains Colombia‘s primary export market, accounting for over 40% of shipments.

However, China has emerged as a rapidly growing destination for Colombian coffee. Exports to China have skyrocketed, increasing by 130% in 2023 and 190% in 2024.

Young Chinese consumers are driving this trend, viewing coffee as a modern beverage compared to traditional tea. Global coffee prices are on an upward trajectory due to production challenges in Vietnam and Brazil.

Colombian Coffee Exports Surge Amid Global Supply ChallengesColombian Coffee Exports Surge Amid Global Supply Challenges. (Photo Internet reproduction)

Vietnam, the world’s largest robusta producer, has faced climate-related issues affecting its crop. Meanwhile, Brazil, the top arabica producer, is grappling with drought concerns.

These factors have created a favorable price environment for Colombian exporters. While higher prices benefit Colombian producers, production costs remain a concern.

The cost of growing coffee in Colombia varies by region but averages between 1.3 and 1.4 million pesos per load. Current prices of around 2.2 million pesos per load provide a modest profit margin for farmers.

Colombia’s coffee sector is capitalizing on these market conditions to strengthen its position in the global coffee trade. Colombian coffee is reinforcing its reputation on the world stage with exports to over 110 countries.

In short, the growing demand in emerging markets like China and the Middle East further supports this trend.

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