Report Highlights:
Colombian coffee production reached 11.05 million bags in the October-September 2003/04 commercial year and it is estimated to increase to 11.6 million bags for the 2004/05 year. Exports are forecast to increase 2 percent to 10.4 million bags. The U.S. joining the ICO has raised expectations of a more stable coffee market, and increased hopes that this will open opportunities for quality recognition and cooperation.
Executive Summary
Colombian coffee production fell by 5 percent to 11.1 million 60-Kg bags in the 2003/04 commercial year. Production is expected to increase to 11.6 million bags in the 2004/05 year due to good weather thus far in the season and the continuing renovation of old plantings.
The decision of the U.S. to rejoin the ICO has raised the expectations of a more stable international coffee market. Colombian coffee growers and exporters also feel that this will open opportunities for developing international cooperation in quality recognition, technical cooperation, research and marketing efforts.
Colombian exports are projected to reach 10.39 million bags in 2004/05 commercial year. Under current market conditions, Colombian growers forecast international prices to stay at around $0.80 per pound.
The project of the Coffee Federation and the Colombian government to renovate coffee plantings has now concluded renovation of 50 percent of the area located at the best altitude and with a more modernized production process. The higher density of coffee plants and increased production per area are impacting on coffee production, which is offsetting the reduced area in marginal production regions.The production target of the industry is between 11 and 12 million bags of green coffee under normal weather conditions.