Colombian Coffee Farmers Hopeful over H2 Harvest
Whilst there has been some concern as to Columbia’s coffee output due to poor weather conditions and tree renovation, local coffee farmers have anticipated a strong harvest for the second half of the year to boost overall performance for 2010.
Expecting a total output of 10 million 60kg bags for the year, Columbia – the leading producer of high quality washed Arabica coffee, is predicting that it will be able to achieve an ambitious 6 million bags in the latter half of 2010, potentially one of the best harvests in several years.
This view has been backed through interviews with numerous coffee operators in addition to a visit to a coffee plantation in central Columbia, where farmers such as Victor Alvarez proudly showed their ripe fruit-bearing trees, soon be harvested.
Since the country’s output for the first half of 2010 was only 4 million bags, some coffee exporters and industry analysts were fearing that the second half year harvest would at best reach 5.5 million bags, however there is increasing support for the figure of 6 million bags, 9 per cent higher than originally expected.
Coffee growers’ representatives in the provinces of Quindio, Caldas, Antioquia, Risaralda and Valle del Cauca, which together account for almost two thirds of the country’s total production, have expressed their confidence in this target. With growers in these central regions harvesting their main second crop of the year during from October to December and their first between April and June, warmer weather in the more southern of the provinces may allow for an additional collection between now and the end of the year.
Colombian Coffee Output for April up by 88%
Whilst exports in April fell by 4 per cent to 528,000 sacks, down from 550,000 bags from the same period this time last year, Colombian coffee farmers have reported an 88 per cent increase in productivity last month after the country continued to recover from last year’s disappointing harvest.
Production levels rose to 647,000 sacks compared to last year’s levels of 345,000. The increase has been attributed to improved weather conditions by Colombia’s National Federation of Coffee Growers which issued a statement via email. The Federation, reporting the boost in output, said “Colombian coffee production as started to recover lost ground”.
Colombia is positioned as the world’s second-largest producer of Arabica coffee after Brazil. According to the federation’s forecasts, coffee production will increase by over 6 per cent in the first six months of 2010.
Production in the country will hit its peak in May and June, which will see figures in the first six months rise to 4.5 million 60 kilogram sacks, up from just under 4.25 million in the same period in 2009. The federation reiterated its forecast made last month.
Overall production for 2010 is expected to reach between 10 to 11 million sacks, which is a vast improvement from the disappointing 7.8 million sacks in 2009. Last year’s harvest was a tragedy for the country which relies heavily on its coffee production industry: figures fell by some 32 per cent on average, after heavy rainfall wreaked havoc on the crop.
Coffee prices rise due to shortage
Coffee prices have fluctuated across markets worldwide, after reports suggested that quantities would not meet demand in the coming months.
Earlier in the week Colombia, the world second largest producer, reported poor expectations as to upcoming harvests of the crop despite production doubling from this time last year. The problem is exacerbated by concerns over the quality of the beans produced. Trade in coffee is slowing down in the country as traders wait to find out exactly how much is likely to come through.
The news follows a report issued at the beginning of the week by the World Coffee Organisation stating that worldwide demand could soon exceed production, noting that production in the upcoming year from October 2009 looks set to fall by around 120 million bags, or 4.8% from the preceding year.
The African crop is fast approaching its end and beans emerging from the continent are at their poorest quality. Prices there have fallen drastically for grade AA beans, with 50kg bags down by more than $100 compared with last week.
However, prices for lower quality beans did not drop quite as dramatically. Grade AB beans fell by about half the amount of AA according to Mr Mbithi, an NCE official.
He added “we have a lot of pressure in terms of quality as we come to the end of the crop season… the low quality offers nonetheless continue to attract good prices because the market now has to do with what is available.”
Coffee growers in Colombia Set To See A Return To The Good Old Days
Coffee production in Colombia is set to increase by 41% in 2010 following last year’s 33-year low crop.
Production last year was severely hit by freak levels of rainfall in the country and saw the output reduced to 7.8 million 60kg bags. Despite these levels, the country still found itself ranked fourth in terms of global production. After rather more favourable weather at the early part of this year, the National Federation of Coffee Growers expects a return to in excess of 11 million bags.
Head of marketing, Juan Lucas Restrepo said: “We’ve had optimal conditions for the main crop, which will be harvested in the second half… we’re very optimistic on production in the 2010 calendar year”.
It is not only the change in weather that has contributed to the surge in production. Up to 20% more fertiliser has been used this year with the 300,000 tonnes expected to be used this year by far exceeding the 10-year average of 250,000.
The main crop harvest in Colombia occurs from October to December, with the mitaca, or mid-crop, being collected between April and June. Restrepo added: “From December to March, we’ve seen incredible flowering across Colombia, probably the best flowering in 10 years. In April, we’ll be registering a significantly higher output than last year. May and June will also be much better than last year.”
The forecasts are sure to provide great news for farmers in the country who suffered considerably in 2009.