It is expected to increase production by 1.1%! Colombia distributes millions of coffee seedlings

Recently, according to media reports, Starbucks partnered with the Colombian Coffee Growers Union (FNC) to distribute 55.7 million coffee seedlings to local coffee farmers as part of a program to support Colombian growers.

It is reported that this is the Starbucks Fincas C.A.F.E.Practices M á s Productivas project, which was first announced in November 2020. the initial goal is to distribute 23 million coffee seedlings, and then the project was expanded in April 2022 to provide an additional 22 million coffee seedlings. The goal is to provide seedlings of rust-resistant and berry disease-resistant varieties to help Colombia renovate coffee plots.

The initiative benefited more than 17000 coffee growers in 17 sectors in the country, supported the renewal of 7200 hectares of resistant coffee varieties in Colombia and increased the production capacity and profitability of the farm. In addition to distributing coffee seedlings, free fertilizers are provided to farmers to support the early stages of coffee plant growth and to encourage farmers to continue to renovate their coffee farms and increase their long-term productivity.

This is of great help to the Colombian coffee industry. Last year, the coffee industry in Colombia was affected by El Ni ñ o, and coffee production declined. In August and September this year, dry weather swept across South America, and agricultural industries in countries such as Brazil, Colombia and Peru were affected. In addition to drought, they were also threatened by forest fires.

According to Colombia's National risk and disaster Management Agency, nearly 11000 hectares of land have been destroyed and large areas of forests, vegetation and farmland have been destroyed due to the spread of fires caused by dry environments and strong winds. In addition, water levels in many rivers and reservoirs have fallen sharply, by 80 to 90 per cent, resulting in a shortage of water resources, restrictions on irrigation for crops such as coffee, and finally a continuous decline in coffee production between July and September.

Coffee production did not rise until October, when Colombia entered the rainy season, mitigating the effects of drought, and the market is now optimistic about future coffee production in Colombia. According to FNC's estimate, coffee production will reach 12.8 million bags (60 kg / bag) by the end of the 2023 Compact 24 coffee year, a cumulative increase of 20.2% over the previous coffee year.

In addition, the United States Department of Agriculture's Foreign Agriculture Service (FAS) recently released its annual market report for Colombia, which estimates that the annual coffee production in Colombia will reach 12.9 million bags, thanks to the current good climatic conditions and improved agronomic practices in the country, and according to statistics, about 87% of the coffee growing areas in the country grow coffee varieties that prevent leaf rust. In addition, Colombia's domestic coffee consumption will reach 2.3 million bags, an increase of 4 per cent over the same period last year, so coffee exports are expected to be 12 million bags in 2024 / 25.

At present, due to the bad weather in Brazil, the market is generally not optimistic about Brazil's next coffee production and supply, coupled with the impact of logistics and shipping delays at Brazilian ports, geopolitics, and the possible imposition of tariffs by the United States, leading to a sharp rise in Arabica coffee prices in November, reaching a 47-year high.

Although there has been a lot of good news in recent days that the coffee industry in Colombia has improved and coffee production in Colombia has increased, the growth rate is relatively low, so the market believes that coffee prices will not slow down until 2025.

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