Report Highlights:
Better weather conditions and the first harvests of the rust resistant varieties replanted in 2010 are supporting a production recovery after three years of yields decimated by excessive rains and the aggressive spread of coffee rust or the fungus (Hemileia Vastatrix). Post forecast is that coffee
production will rebound to 8.3 million bags (1 bag = 60 kilograms – unless otherwise noted) in marketing year (MY) 2012/13, up eight percent from the previous year, increasing further to 9 million bags for MY 2013/14. On the other hand, lower international and domestic coffee prices, increasing
production costs and less price competitiveness due to a strong Colombian peso (CP) have squeezed grower margins to the point of not being able to break even. Demanding government action, the economic issues impacting the sector resulted in upheaval with growers conducting week-long
countrywide protests and road blockades in February/March 2013. The protests motivated the Government of Colombia (GOC) to act by establishing additional subsidies to ease the economic burden to growers.
