Just as Colombia is the world's third-largest coffee producer, it also holds this position as an exporter. Its share of the global coffee market varies from year to year, but on average, Colombia produces around 10% of the world's coffee.
On the global stage, Colombia is usually among the five largest coffee exporters in the world. , along with Brazil, Vietnam, Indonesia, and Ethiopia. Despite this, Colombian coffee production and exports decreased in 2022: the former by 12% and the latter by 8%.
To understand the causes of these declines, in this article, we will analyze the statistics on coffee exports in Colombia in 2022.
Without production there is no export
Colombia's production in 2022 was affected by rains that prevented coffee-growing regions from producing their fruit to their full potential. This led to a decrease of -12%, meaning we produced 11.1 million 60-kg bags in 2022 and 12.6 million in 2021.
This phenomenon impacted our export levels: in December 2022, we exported 1,030,000 bags, 11.8% lower than the figure recorded in the same month in 2021 (1,167,000 bags).
In the 12 months of the year, our country exported 11,404 thousand bags, -8.3% less than in 2021 (12,439).
The estimated value of exports in December 2022 was US$305.35 million, down 7.2% from the value in December of the previous year.
In general, The accumulated value of exports for the year 2022 is estimated at US$3.488 billion. .
Colombia's aggressive export
In the following graph, we can see that in December 2022, exports exceeded production by a gap of +3.51%. This is because 90% to 95% of the coffee produced in Colombia is exported, according to the Manager of the Federation of Coffee Growers, Dr. Roberto Velez Vallejo, who also noted in an interview that "The vast majority of local consumption in Colombia is made with imported coffee because every bean produced goes to exports."
Thus, domestic demand (2.2 million bags) is being covered with coffee imports from Peru, Brazil, Ecuador, Honduras and Vietnam, and it is estimated that 45% of the coffee consumed in Colombia is imported.
"If you look at the domestic consumption figures, the vast majority of Colombia's local consumption is based on imported coffee ," said Vélez of the FNC.
For the National Federation of Coffee Growers , it is advisable to export Colombian coffee rather than selling it domestically, due to the price of this resource in the international market.
The price of Colombian mild coffee showed an upward trend on the New York Stock Exchange in December 2022: it opened at US¢223.08/lb and closed at US¢225.33/lb. The price is determined by market dynamics, not by the decisions of local producers.
Due to this phenomenon, the value of the current harvest accumulated in the 12 months to December amounted to COP 14.50 trillion, that is, +35% more than the income generated in 2021 (10.75 trillion).
In other instances, the price of coffee on the futures market also showed an upward trend during December: it opened at US¢163.35/lb and closed at US¢167.30/lb, with a peak price of US¢173.55/lb.
And when asked if it is counterproductive to import so much coffee, Vélez responded: “One does. could reduce exports, if and only if a local buyer were willing to pay the same as a foreign consumer pays for coffee A pound of Colombian coffee on the international market is worth $30,000 or $40,000 in Colombian pesos, while local consumers are accustomed to paying $12,000 per pound.
Main buyers of Colombian coffee
The United States remains the main destination for Colombian coffee. with more than 40% market share, followed by the European Union, Canada, Japan and others.
Coffee bean exports represent 90% of total Colombian exports, followed by instant coffee (8%) and roasted coffee (2%)," he explains.
What are the social phenomena surrounding the dynamics of coffee exports?
Surrounding the aggressive export dynamic are communities of dissatisfied producers. It seems that the growth in Colombian coffee sales that has been observed is not reflected in the Federation's purchases from local producers.
The National Federation of Coffee Growers stated that between January and September, the average purchase price paid by the organization was the highest in history ($2,440,000 Colombian pesos per load) - almost US$500 at the exchange rate of 02/18/2023.
However, Carlos Arturo López, spokesman for “Coffee Dignity of the Department of Quindío” stated that “ the coffee business is becoming unprofitable because for more than five years they have been affected by weather conditions and the low price of coffee on the domestic market.”
In fact, we can observe how the domestic price has contracted since November 2022, reaching $1,838,032 in January 2023, which represents a variation of -19.2% compared to October 2022.
Due to this situation, other organizations claim that without government assistance, it will be difficult to overcome the crisis they find themselves in, a result of falling purchasing prices and weather conditions.
They point out that it is necessary to set up a price stabilization fund that allows them to continue competing in the international market, since, in recent days, " Incomes have decreased drastically to the point where they do not even receive what it costs them to produce the cargo ”
In this sense, we hope that in 2023 the price situation and climate change will improve so that they no longer affect coffee production in the country and the quality of life of thousands of agricultural workers.