Colombian Coffee

The international price of grain rose to $ 2.11 last May 12. The union amended domestic price scheme. This price was reported by the International Coffee Organization (ICO) and, paradoxically, the institutions concerned national coffee.
According to the OIC, the reference price for the May 12, which is reported today is 211.32 cents per pound of Colombian soft Arabic. But in New York, even as the price reached 226.25 cents per pound.
The reference price is an average between the market in New York and Germany. In this country, the pound reached 199.58 cents. These prices are the highest since 1997.
The concern of the OIC and exporters same respondents is that Colombian coffee is rising simply because there is sufficient supply of winter after last year.
As prices rise to meet the commitments would have to respond with lower-quality coffee while producers of blended coffee drink with Colombia would replace the other.
The Government and the National Federation of Coffee Growers now define a strategy to try to make the most of high grain prices to records in the international market, despite the low production that brings the country.
Finance Minister Oscar Ivan Zuluaga, anticipated that there will be measures to ensure that growers can benefit 500,000 families of favorable prices. Thus, he said, will announce the implementation of a new system of valuation and the domestic price of grain. This is a scheme approved by the National Coffee Committee, which encourages grain quality and strives to improve the income of producers.
The exceptional price point has become a paradox for the whole sector, as there is enough coffee to sell.
Jorge Lozano, president of the Association of Coffee Exporters Private, Asoexport, saying "there is panic in the guild" because you do not have enough product to meet deliveries.
"The grower has to be happy because you are compensating for the lack of production with a very good price. Unfortunately not much to sell and that is our anguish, "admitted the manager. He said that despite the good prices the prospect of a boom not seen anywhere, simply because there is no grain available. "It's a very unpleasant situation for the toaster. He has the need to buy Colombian coffee and the high price does not like five. And it will look that's not happening again, "he said. "We have a client that is looking for alternatives. That's not convenient for the Colombian coffee, "the President of Asoexport.
Decreased production
Lozano said it is anticipated that between July 2008 and June next coffee production fall 2.5 million bags compared to the previous period. This is a "very big number," he said, facing a production of 11.5 million bags estimated for the entire year.
The leader also revealed that although no figures have been delivered last April production, "the drop was substantial because the records of coffee for export stood at about 450,000 bags, 200,000 less than normal."
According to the National Federation of Coffee Growers, Colombian production fell 30% in the first two months of 2009 compared to the same period last year, while exports declined by 20%.
According to the report, the fall was due to "lower production of grain, fruit of the renovation of coffee plantations, the effects of less fertilization and winter of the last months of 2008."
Meanwhile, the escalating price of coffee is given by economic analysts to the phenomenon of market speculation. Indeed, investors fear that this year there will be a substantial reduction in the supply of large producing countries like Brazil, and have begun to bet on higher prices in the future, so the price began to climb. In Brazil, the production will fall about six million bags this year, according to estimates by the Government of that country.

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Tags: Germany , Asoexport , Brazil , Colombian coffee , coffee prices , the National Federation of Coffee Growers , New York , International Coffee Organization , international prices , coffee prices

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