Colombia has been positioning itself for years as the third-largest coffee- producing country in the world, and the leading producer of the famous Arabica bean grown in the high Andean mountain ranges (Antioquia, Huila, Tolima, and NariΓ±o).
The coffee industry in Colombia represented 15% of the agricultural GDP in 2021, and 1% of the country's overall GDP. Coffee production in our country provides approximately 2.5 million jobs (direct and indirect) and is a source of income for more than half a million families.
In 2022, several phenomena occurred that impact coffee production in Colombia , generating a decrease in the figures compared to 2021. Therefore, we thought it was important to tell you about these causes and thus understand what is the current situation of the most important resource for our country and national identity.
Statistics on coffee production in Colombia
Let's start with the numbers! According to the National Federation of Coffee Growers, Coffee production in Colombia in 2022 contracted and closed at nearly 11.1 million 60kg bags, which represents 12% less than the nearly 12.6 million bags produced in 2021.
In December alone, production reached 981,000 bags, a 29.2% decrease compared to December 2021 (1,385,000 bags).
Furthermore, if we take into account the period better known as the "coffee year," which runs from October to December, we also find a contraction, but this time by -17%.
According to this graph, we can observe how historically There is a natural decline in coffee production In January, compared to December (for 2022 it was -37%), however, during the year we did not observe significant peaks that exceed the average of the 2021 figures.
We can also observe that in the Q4 quarter, the month with the highest production was November, which reached 1,060 bags per thousand cases per kg.
In fact, coffee production in December 2022 was the second lowest compared to our country's performance over the last decade, as in 2012, only 904 60kg bags were produced. An interesting fact is that 2020 was our highest production year in this period, reaching 1,743 bags per year.
Despite this scenario, 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). This is because the price of coffee in general had a significant increase in 2022. , especially in December, which started at USΒ’163.35/lb and closed at USΒ’167.30/lb.
Likewise, the price of Colombian mild coffee showed an upward trend : It started December at USΒ’223.08/lb and closed at USΒ’225.33/lb.
In an interview for the program Signo $ on Noticias Caracol, the Manager of the Federation of Coffee Growers, Dr. Roberto Velez Vallejo, explained that The decrease in production was offset by the good prices that coffee maintained throughout the year on the international market. , due to supply cuts (when supply decreases, but not demand, prices increase)
Added to this are the benefits of the dollar-peso exchange rate differential and the market recognition our coffee has, which adds 60 to 70 cents to its price on the New York Stock Exchange.
What caused the drop in coffee production in 2022?
Since August 2021, Colombia has been affected by the weather phenomenon popularly known as "La NiΓ±a" This causes heavy rains, floods, and droughts. For more than 26 months, coffee-growing areas have been impacted by these irregularities.
Heavy rainfall interferes with the development and nutrient absorption of coffee plants, as well as the quality of the fruit. Cloud cover prevents the sun from shining directly on the coffee-growing areas, so the coffee plantations cannot flourish at their full potential.
On the other hand, when a water shortage occurs in the soil, associated with low levels of precipitation and few rainy days, it also causes damage to the coffee crop, especially if it coincides with the flowering or fruit-filling season.
So, unlike other years, This climatic phenomenon generated less activity in the coffee plants. And this explains the contractions the country experienced compared to 2021, in terms of coffee production.
It is expected that by the first quarter of this year 2023, the impacts of "La NiΓ±a" will diminish and coffee production will return to normal, however, we have observed how intense rains continue throughout the national territory, generating landslides that keep Cauca and NariΓ±o isolated from the rest of the country.