After meeting with coffee farmer representatives, the Colombian government on Wednesday agreed to keep giving subsidies to coffee farmers amidst a hostile price environment, but many farmers have claimed the subsidy is still too low.
The subsidy measure was set up in late 2012 in order to compensate losses incurred by farmers whose costs of production grossly outweighed their income. Multiple coffee growers on Wednesday told Colombia Reports that they make $282 for every sack of coffee produced but the costs of producing are equivalent to $366, so even with the government’s $33 subsidy, farmers are still under water.
BACKGROUND: Coffee growers to block roads across Colombia as crisis besets industry
Colombia’s National Federation of Coffee Growers (FNC) recently requested that the support fund be extended beyond its scheduled expiration date.
BACKGROUND: Coffee farmers demand more support amidst hostile price environment
According to reports, tens of thousands of coffee growers have planned a massive strike for February 25th in case the government does not address their plight. The strike, coffee growers have promised, would block roads across Colombia.