In Colombia, the coffee year 2017-2018 was better in soluble coffee and roasted in grain

Published on 08 January 2019

During a period in which the volume and the value of the shipments of the main export presentation (unroasted grain) were reduced, two with greater processing stood out.

The coffee year that closed in September 2018 was not the best for Colombia due to an oversupply caused by increases in the production of competing countries such as Vietnam and Brazil, as well as the Central American region. However, the presentations of added value, such as roasted and instant coffee, had a performance contrary to the global trend of falling prices: world production grew 5.7%, compared to a 1.8% increase in consumption, which led the average price to fall from US $ 1.31 per pound to US $ 1.1 per pound, according to an analysis published in the newspaper La República de Colombia.

According to Veritrade information, the average price of shipments of Colombian coffee in the coffee year 2017-2018 fell from US $ 3,598 per kilo to US $ 3.25 per kilo. In contrast, the average price of freeze-dried soluble coffee shipments increased from US $ 12,144 per kilo to US $ 12,829 per kilo, while that of non-decaffeinated roasted coffee increased from US $ 8,852 to US $ 6,920 per kilo. , the exported merchandise added a weight of 2,671 tons, against 1,792 tons of the previous coffee year (an increase of 49%).

In the following table, you can see the performance of total exports of the three products in mention during the last two coffee years.

It is worth mentioning that the reduction in exports of coffee beans coincides with a slight drop in the production of Colombian coffee, which fell 3.3% compared to the coffee year 2016-2017. The challenge for the local producer is to continue working on the rejuvenation of crops to raise productivity, and of course, to continue with the development of value-added alternatives, which also has a greater diversification in terms, as seen when reviewing the participation of main countries to which Colombian coffee is sent in different presentations.

In the case of unroasted or decaffeinated coffee beans, which is the most prominent commodity in tropical countries, the United States is by far the most important destination. Not only is it a huge market in terms of consumption, but the main traders of the world use it as a logistics center.

In the case of soluble and roasted coffee in grade, regional trade becomes important. For this reason, unlike unroasted coffee, for which more than 99% of shipments are made by sea, 7% of soluble coffee is exported by land and more than 92% by sea. While in roasted coffee beans, 3.7% is sent by air, 3.4% by land, and the rest by sea.

On the other hand, it highlights the difference between the type of destination to which the unroasted grain is sent, and where the soluble or roasted coffee goes. In the first case, all the main destinations are developed markets, in which, as in the United States, the traders have a development space for storage or reimbursed with the final product.

For more information about Colombian coffee exports, you can go to the Veritrade page.
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