Post on 05-Jul-2020
Colombia: A Renewed Coffee Growing
Colombia: Una
Caficultura Renovada
November 2012 © Copyright FNC (2012)
Juan Esteban Orduz President
Colombian Coffee Federation New York
November 2012 © Copyright FNC (2012)
The Perfect Storm
• 2008 - 2009
• El Niño (Higher temperature – change in currents and winds in the Pacific Ocean)
– Non typical dry weather in Colombia » Increased berry borer
• Low Fertilization
• Lower production as of 2009
November 2012 © Copyright FNC (2012)
40,000
50,000
60,000
70,000
80,000
90,000
100,000
110,000
1,500
3,500
5,500
7,500
9,500
11,500
13,500
15,500
17,500
19,500
Jan-
07
Feb-
07
Mar
-07
Apr
-07
May
-07
Jun-
07
Jul-0
7
Aug
-07
Sep
-07
Oct
-07
Nov
-07
Dec
-07
Jan-
08
Feb-
08
Mar
-08
Apr
-08
May
-08
Jun-
08
Jul-0
8
Aug
-08
Sep
-08
Oct
-08
Nov
-08
Dec
-08
COP
/ 5
0 k
g ba
g
Sal
es (T
ons)
High oil prices increased the cost of fertilizers - Less fertilization
Source: Agroinsumos del Café
During 2008 the urea sales fell 26%, if compared with 2007.
Urea Sales to Coffee Cooperatives
2007: 117.328 Tons 2008: 86.590 Tons
November 2012 © Copyright FNC (2012)
0,00%
1,00%
2,00%
3,00%
4,00%
5,00%
6,00%
7,00%
Jan-‐07
Feb-‐07
Mar-‐07
Apr-‐0
7May-‐07
Jun-‐07
Jul-‐0
7Au
g-‐07
Sep-‐07
Oct-‐0
7No
v-‐07
Dec-‐07
Jan-‐08
Feb-‐08
Mar-‐08
Apr-‐0
8May-‐08
Jun-‐08
Jul-‐0
8Au
g-‐08
Sep-‐08
Oct-‐0
8No
v-‐08
Dec-‐08
Jan-‐09
Feb-‐09
Mar-‐09
Apr-‐0
9May-‐09
Jun-‐09
Jul-‐0
9Au
g-‐09
Sep-‐09
Oct-‐0
9No
v-‐09
Dec-‐09
Jan-‐10
Feb-‐10
Mar-‐10
Apr-‐1
0May-‐10
Jun-‐10
Jul-‐1
0
National Average % of Coffee Beans Affected by the Borer at the Purchasing Point
Higher temperatures in 2009 increased coffee berry borer infestation
7% of infestation
November 2012 © Copyright FNC (2012)
The Perfect Storm
• 2009 – 2010 – 2011 – 2012 (1st. Sem.) • LA NIÑA (Lower temperature in the Pacific
Ocean, affecting climate in Asia and America) – Rain above normal levels
Less than sufficient sunlight and high humidity » No hydric stress » Low and / or delayed flowering » Increase in coffee rust
• Older trees and non resistant varietals • Less coffee production
November 2012 © Copyright FNC (2012)
Since 2008, coffee regions were affected by an increase in rain levels never seen before…
Observed Rainfall change from historic average (2008 – 2011)
La Niña phenomenon Rain prolongation El Niño
phenomenon La Niña
phenomenon
-‐100%
-‐50%
0%
50%
100%
150%
I -‐2008
II -‐2008
III -‐2
008
IV 20
08
I -‐2009
II -‐2009
III -‐2
009
IV 20
09
I -‐2010
II -‐2010
III -‐2
010
IV 20
10
I -‐2011
II -‐2011
III -‐2
011
IV-‐2011
Sur (El Tambo) Centro (Naranjal) Norte (Pueblo Bello)
November 2012 © Copyright FNC (2012)
… Decreasing the amount of sun exposure hours of the coffee trees
Observed solar light change from historic average (2008 – 2011)
La Niña phenomenon Rain prolongation El Niño
phenomenon La Niña
phenomenon
-‐40%
-‐30%
-‐20%
-‐10%
0%
10%
20%
I -‐2008
II -‐2008
III -‐2
008
IV 20
08
I -‐2009
II -‐2009
III -‐2
009
IV 20
09
I -‐2010
II -‐2010
III -‐2
010
IV 20
10
I -‐2011
II -‐2011
III -‐2
011
IV-‐2011
Sur (El Tambo) Centro (Naranjal) Norte (Pueblo Bello)
November 2012 © Copyright FNC (2012)
And causing falls in the average temperature
Observed temperature change from historical average (2008 – 2011)
La Niña phenomenon Rain prolongation El Niño
phenomenon La Niña
phenomenon
-‐8%
-‐6%
-‐4%
-‐2%
0%
2%
4%
6%
8%
10%
I -‐2008
II -‐2008
III -‐2
008
IV 20
08
I -‐2009
II -‐2009
III -‐2
009
IV 20
09
I -‐2010
II -‐2010
III -‐2
010
IV 20
10
I -‐2011
II -‐2011
III -‐2
011
IV-‐2011
Sur (El Tambo) Centro (Naranjal) Norte (Pueblo Bello)
November 2012 © Copyright FNC (2012)
5.000
6.000
7.000
8.000
9.000
10.000
11.000
12.000
13.000
14.000
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Saco
s de
caf
é ve
rde
(millo
nes)
ProducciónPromedio hasta 2008
Adverse Weather Conditions Affected the Coffee Production
Coffee production vs. Weather conditions (Niño/Niña) (1998-2011)
Neutro Niño Niña
(mile
s)
November 2012 © Copyright FNC (2012)
6,000
7,000
8,000
9,000
10,000
11,000
12,000
13,000
14,000
Jan-
07
Mar
-07
May
-07
Jul-0
7
Sep-
07
Nov
-07
Jan-
08
Mar
-08
May
-08
Jul-0
8
Sep-
08
Nov
-08
Jan-
09
Mar
-09
May
-09
Jul-0
9
Sep-
09
Nov
-09
Jan-
10
Mar
-10
May
-10
Jul-1
0
Sep-
10
Nov
-10
Jan-
11
Mar
-11
May
-11
Jul-1
1
Sep-
11
Nov
-11
Production and Exports 000´s 60kg bags
exports
Production
November 2012 © Copyright FNC (2012)
In a nutshell
2009 to 2011 Colombian coffee production and exports decreased:
• Bad weather: El Niño and La Niña (2008 – 2012). • Low fertilization: Mostly due to high prices of oil
(2008). • Rust and berry borer: The weather and the lower
use of fertilizers caused higher levels of rust and berry borer.
• Old and non rust resistant trees: Low productivity due to old coffee trees.
November 2012 © Copyright FNC (2012)
Light at the End of the Tunnel
RECONFIGURATION: • Our goal is to reach higher productivities and production every
year.
Renovation: • Renovation: 117.000 hectares (290.000 acres) renovated in
2011. The process will continue at a rate of approximately 120,000 hectares (297,000 acres) renovated with resistant varietals per year.
• High productivity and rust resistant varietals: Castillo varietal and its regional strands in all coffee departments.
• Climatically Intelligent Coffee Agriculture: This is our top challenge this year. Since not all its repercussions manifest in the same form in the different coffee regions, multilevel solutions are the answer - CENICAFE
November 2012 © Copyright FNC (2012)
Circumstances have improved and measures have been taken:
• Better weather: End of La Niña phenomenon / mid 2012. • Good flowering: Less rain at the beginning of 2012 has
resulted in a better main crop. • More fertilizers: Lower prices and FNC incentives with
governmental support. • Renovated areas start producing: The results from the
first stages of the renovation start to increase productivity. • Expansion of total cultivated areas: Incentives for
expansion of the total cultivated areas. Now Colombia has 917,000 (2.26 million acres) cultivated hectares compared to 850,000 hectares (2.1 million acres) a couple of years ago.
Light at the End of the Tunnel
November 2012 © Copyright FNC (2012)
85.853 78.748
72.145
83.732 94.496 95.153 96.737
-‐
20.000
40.000
60.000
80.000
100.000
120.000
2006 2007 2008 2009 2010 2011 2012
Sales of Fertilizers January -‐ July [Tons]
May 2012: Inicio Fase II Ola Invernal
Source: FNC -‐ Inteligencia Competitiva
November 2012 © Copyright FNC (2012)
Better Weather Conditions (Hydric Stress) and flowering for Mitaca
November 2012 © Copyright FNC (2012)
STAGE I (2011)
STAGE II (Until Sep 10 of 2012)
161 K hectares (398 K acres)
180 K coffee
growers
US$ 31 million
90 K hectares (222 K acres)
105 K coffee
growers
US$ 11 million
EMERGENCY PLAN EXECUTION FOR PRODUCTION RECOVERY. II STAGE (2012)
Como complemento a los recursos aportados por Colombia Humanitaria, los cafeteros han invertido $24.454 millones en la compra de fertilizante.
As a complement of the resources given by Colombia Humanitaria, coffee growers have invested $20.237 millions buying fertilizers.
In 2012, we will continue fighting against rust through the execution of the second phase of the “Ola Invernal”
program
November 2012 © Copyright FNC (2012)
0
5
10
15
20
25
30
35
40
Mayo Julio Noviembre Febrero Mayo Julio Noviembre Febrero Mayo Julio
2010 2011 2012
Porcentaje
As a result of these programs, the rust infection percentage has declined sharply.
Rust infection. National average( July 2012)
National mean: 7,7%
November 2012 © Copyright FNC (2012)
November 2012 © Copyright FNC (2012)
Thanks to the renovation program, the area planted with young technified coffee in resistant varieties has
doubled in the last three years.
TJ Resistente
21%
TJ Susceptible
40%
Tradicional14%
Tecnificado Envejecido
25%
TJ Resistente
43%
TJ Susceptible
30%
Tradicional7%
Tecnificado Envejecido
20%
Productive structure 2008 Productive structure 2012 (Aug)
The area planted in young technified and resistant coffee is 418.000 hectares (1 million acres).
Traditional 17%
Traditional 7%
Non resistant Technified 61%
Non resistant Technified 43%
Resistant Technified 50%
Resistant Technified 22%
November 2012 © Copyright FNC (2012)
The sun is shining again
Higher production
Renovation
Healthy coffee trees
More fertiliztion
Better weather
conditions
November 2012 © Copyright FNC (2012)
5351.106
1.6822.262
2.951
3.6654.333
4.8985.417
7.809
8.923
7.812
0,00,51,01,52,02,53,03,54,04,55,05,56,06,57,07,58,08,59,09,5
10,010,511,011,512,0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2012 2011 2010 2009
Colombian Coffee Production[Thousand 60Kg Bags]
Source: Competitive Inteligence -‐ FNC
November 2012 © Copyright FNC (2012)
Positive trend in production and exports
9,582
7,040
7,593
8,532
7,016
7,256
6,000
6,500
7,000
7,500
8,000
8,500
9,000
9,500
10,000 Ja
n-10
Feb-
10
Mar
-10
Apr-
10
May
-10
Jun-
10
Jul-1
0
Aug-
10
Sep-
10
Oct
-10
Nov
-10
Dec
-10
Jan-
11
Feb-
11
Mar
-11
Apr-
11
May
-11
Jun-
11
Jul-1
1
Aug-
11
Sep-
11
Oct
-11
Nov
-11
Dec
-11
Jan-
12
Feb-
12
Mar
-12
Apr-
12
May
-12
Jun-
12
Jul-1
2
Aug-
12
Exports
Production
November 2012 © Copyright FNC (2012)
Despite the production crisis, FNC has developed multiple strategies to add value to Colombian Coffee
November 2012 © Copyright FNC (2012)
From the Farm to the Cup
• CENICAFE - The most modern Research Center in coffee producing countries
• “Extension” Service – Productivity, social fabric and traceability
• Quality Control – Labs, directions, inspection at port • Value Added
– Specialty Coffees – Cup profile, origin, certified – Freeze-dried coffee (high quality soluble coffee) – Juan Valdez Café (Cafés in the U.S., Colombia,
Ecuador, Chile and Spain) – Coffee Extract
November 2012 © Copyright FNC (2012)
The Manuel Mejía Foundation is a private entity created by the
coffee guild back in 1960. It is an asset of the coffee
growers with the mission of
teaching the coffee grower, its family and the rural community to
contribute to their well being, competitiveness and
sustainability.
Manuel Mejia Foundation
November 2012 © Copyright FNC (2012)
Technical Support: Direct Contact with the Communities in the Coffee Region
The Extension Service (more than 1,400 agronomists and technicians) helps the rural population to: • Improve the agricultural methods and techniques, hence ensuring quality • Raise productivity and earnings, and • Improve the educational and social standards of the rural life with the assistance of educational methods.
November 2012 © Copyright FNC (2012) 27
Updated Information
Daily
Regionals Weekly
Committees
INFORMATION CYCLE
Headquarters
Monthly
Coffee grower Farms
Education
Lots Crops
Visits
Coffee farm
SICA
November 2012 © Copyright FNC (2012)
2011-2012 Between 4 to 5 thousand
coffee growers will have tablets for virtual information.
Last minute information about
coffee prices, weather and real time data without even leaving
the farm.
Technology and Education From the Farm to the Tablet
November 2012 © Copyright FNC (2012)
68.624 66.912
103.275109.77
0
20.000
40.000
60.000
80.000
100.000
120.000
140.000
2008 2009 2010 2011 jun-‐12
Certificados Verificados
129.627
Currently, 20% of Colombian coffee growers produce coffee under differentiated production programs
Number of coffee growers in certification or verification programs (2008 – 2012)
November 2012 © Copyright FNC (2012)
Structure of coffee exports 2000 – July 2012
Colombia’s structure FoNC’s structure
70% 36%
This has led to a change in the structure of the coffee exports: At the beginning of 2000 only 9% of coffee exports was sold
with aggregated value, in 2012 aggregated value exports account for 36%
November 2012 © Copyright FNC (2012)
70%80% 80% 76%
63%52%
43%
27%34%
29% 24%
2%
1% 1% 7%27%
37%47%
63% 51% 60% 65%
28%19% 18% 17%
10% 11% 11% 9%15% 12% 11%
209.385 542.923 676.558 616.018 713.668 771.411 1.068.631 991.065 750.444 966.459 598.109
-‐
2 0 0 . 0 0 0
4 0 0 . 0 0 0
6 0 0 . 0 0 0
8 0 0 . 0 0 0
1 . 0 0 0 . 0 0 0
1 . 2 0 0 . 0 0 0
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
FNC: Specialty Coffee ExportsPreparation Sustainable Origin
Source : Inteligencia Comptetitiva -‐ FNC2012 until July
Preparation Sustainable Origin
THANK YOU