Coffee production in Colombia rebounded, and coffee exports increased by 30% in November.
Recently, the Colombian National Federation of Coffee growers (FNC) released that Colombia's coffee production reached 1.28 million bags in November, an increase of 21% over last year, and for the third month in a row. In addition, total Colombian coffee exports increased by 29 per cent.
And from January to November, Colombia produced 10.1 million bags of coffee, an increase of 0.3 per cent over the same period last year. However, with the increase in production, the spot premium of coffee in the producing area fell.
Colombia has experienced a lot in the past three years, and has recently been affected by La Nina and El Ni ñ o. Colombian production has been declining and planting costs have been increasing over the past three years.
A Colombian coffee plantation owner said that the cost of producing a bag of coffee now increases by more than 50%. According to the coffee farm, a 125-kilogram bag of coffee now costs about $600, but it cost about $400 three years ago. Planting costs are rising.
In terms of exports, Colombia exported 1.09 million bags of coffee in November, an increase of 29% over the same period last year. Between January and November, Colombia exported a total of 9.5 million bags, but decreased by 8% compared with the same period last year.
Earlier, before La Nina weather turned into El Ni ñ o, it led to continuous rain and delayed the flowering and ripening of local coffee trees. Colombia produced 11.08 million bags of coffee in 2022, the lowest level since 2013. In addition, production has been cut for three consecutive years in 2022, resulting in a sharp rise in the spot price of Colombian coffee.
Recently, La Nina has been transformed into an El Ni ñ o phenomenon, which has a serious impact on other countries, but it is good for Colombia, improving the weather in Colombia and leading to the resumption of coffee production in Colombia.
So FNC expects Colombia to produce between 11.6 million and 12 million bags of coffee in 2024 and will be able to accept a three-year cut. And the USDA expects Colombian coffee production to reach 10.7 million bags of 60 kg per bag in 2023 / 24. And the export volume of coffee in 2023 and 24 is estimated to be 12 million bags and 60 kg per bag.
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