July figures on Colombian coffee production, exports and imports are bittersweet
The information released by the National Federation of Coffee Growers regarding imports of coffee in Colombia in July is an estimate, according to the calculation of production of the coffee industry that the coffee growers’ guild carries out every month. This is a preliminary figure and could present changes.
Imports of coffee in Colombia decreased
According to the National Federation of Coffee Growers, the month of July closed with a strong fall in the external purchases of coffee.
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Imports of coffee in Colombia experienced a drastic reduction of 50% compared to the previous year, going from 171 thousand bags in July 2022 to 86 thousand bags in 2023.
This reduction in imports is a positive trend for national producers, since during the last few years the consumption of imported coffee has progressively increased, while local production has been destined to the foreign market.
Although the country is a loyal consumer of coffee, the products marketed tend to be of foreign origin, which limits the growth of the Colombian coffee industry and at the same time promotes dependence on international producers.
How is coffee production in Colombia faring?
During the month of July, and for the second consecutive month, the production of coffee beans showed signs of stability, reaching 947,000 bags of 60 kg.
However, the sector has been experiencing a negative trend in the last 12 months. In the last year, coffee production in Colombia presented a decline of 11% with respect to the previous year.
This decrease is explained by a variety of factors, among which are the low profit margins of producers, the aging of coffee plantations, the high costs of production and the change in the climatic conditions of the region that end up negatively impacting the production of coffee in the country.
Have coffee exports fallen in Colombia?
In terms of Colombian coffee exports, the outlook is not very encouraging either, as the figures show a decreasing trend.
In July 846 thousand bags were shipped abroad, 17% less than the same month of the previous year.
The data provided by the National Federation of Coffee Growers highlights the importance of carefully addressing the factors that are affecting the performance of Colombian coffee exports, among which they mention the changing climatic conditions experienced in several regions of the country. They also emphasize the need to maintain the trend towards the reduction of coffee imports into Colombia.
The ideal panorama for the Colombian coffee industry is marked by the decrease of coffee imports in Colombia and by the growth of coffee bean exports and the consumption of Colombian coffee throughout the national territory.
Panorama of the Colombian coffee agroindustry
According to the Gran Encuesta Integrada de Hogares (GEIH) of DANE, the coffee agroindustry employed 560 thousand people in 2022. This figure represents 16% of employment in the agricultural sector and 2.5% of national employment.
The Regional Opportunities Map (MARO), the official statistics platform of Colombia Productiva, reveals that this sector has lost 47,500 jobs in the last seven years.
Coffee cultivation is present in more than 600 municipalities in 23 departments of Colombia. The National Administrative Department of Statistics (DANE) estimates that, in the last two years, this crop contributed 8% of the agricultural Gross Domestic Product (GDP) and 2.7% of the GDP of the food industry.
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