In February 2019, Colombian coffee was trading below a dollar per pound on the New York Stock Exchange, and the domestic price was not enough to cover production costs. The coffee growers worked at a loss, and despite the growing volume of the harvest, which has remained around 14 million bags each year, the profitability expectations of this agricultural activity were quite precarious, and even negative.
However, the persistence of the nearly 550 thousand coffee-growing families has allowed the cultivation to be maintained, although with some delays in renewal and fertilization of the plants, which has been reflected in a drop in productivity, and some effects on quality. These are situations that will have to be efficiently recovered now that the prospects for Colombian coffee growing are improved.
We already know that growers in Colombia are permanently exposed to these fluctuations, and that it is increasingly necessary to know how to manage resources in such a way that times of lean cows can be faced with the savings of times of prosperity.
We must also be aware that the current good situation, when the international price is over 2 dollars per pound and the domestic price is around $ 1,750,000, almost double that of recently, is directly related to the fall. in Brazilian production, due to climatic problems.
We are two weeks away from starting to harvest the coffee harvest, which in the case of Caldas corresponds to 70% of the annual production. The economic results can be formidable, but we cannot lose focus of the great objective of accelerating the renewal of crops, keeping them properly fertilized and working to be more competitive. We must catch up on debts, repair and modernize rural homes, and work together to raise the quality of life throughout the region.
In addition, the Coffee Price Stabilization Fund must be consolidated, so that it can better face the difficult times that will surely come. For this reason, the need for the union leadership to be more austere should not be forgotten, even at times like the present, and the risk of wasting the possibility of general growth in the coffee regions should be avoided.
What is happening should lead us to accelerate special coffee programs, which provide greater profitability, and strengthen the Coffee Cultural Landscape, which can provide synergy to all economic activity inherent to coffee growing. It is no secret that, amid the difficulties caused by the covid-19 pandemic, coffee has done well, and that gives us a not inconsiderable comparative advantage, which must be protected.
It is confirmed that those who have remained in the coffee industry made the best decision, and that despite the bad times, it is necessary to be positive and persistent. We must work to further increase production, which will allow us to obtain more wealth and take better advantage of good prices. The improvement of tertiary roads and the expansion of internet connectivity in rural areas are strategic to have a modern coffee industry that brings wealth to all of Colombia.
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