Colombia’s coffee production has reached high projected targets for 2014, up 26% from the previous year, according to a report by the National Federation of Coffee Farmers on Wednesday.
Colombia’s National Federation of Coffee Workers (FNC) announced Wednesday that production reached 11.5 million bags between July 2013 and June 2014, creating 165,000 additional jobs in a 12 month period, reported Colombia’s El Espectador newspaper.
Meanwhile, international exports increased 30% in comparison with the previous year, from over 8.1 million bags to 10.6 million bags.
A combination of increased production, higher production values, and loss of competitors due to weather conditions has positioned Colombia well this past year in what is a highly volatile global market.
MORE: Colombia coffee production jumps amid continuing sustainability concerns
According to Nasdaq, coffee prices increased substantially over the past 18 months, but took a dive in May and June, having yet to recover.
The slump in the dollar remains a concern for Colombia’s producers, as does the approach of weather phenomenon, El Niño, which has yet to affect coffee crops. The dollar closed at 1,897 Colombian pesos on Tuesday, driving down the value for coffee beans on the New York market, according to business magazine Portafolio.
MORE: Colombia will experience ‘El Niño’ well into 2015: govt
The FNC reported that domestic prices fell to below $358 per 123lb bag on Wednesday, with which farmers will have to pay back a “Coffee Income Protection subsidy” of around $18 per bag.
Sources
- Producción cafetera llegó a 11,5 millones de sacos (El Espectador)
- Se crece el subsidio para los cafeteros (Portafolio)
- Latest Price & Chart for Coffee (NASDAQ)