Weather impacting Coffee in Colombia
Hello Java Junkies.
The news on the wire isn't really good for Colombian Coffee. Take a look at the report below:
Outlook Grim for Colombia's Antioquia Main Coffee Harvest - Growers Outlook Grim for Colombia's Antioquia Main Coffee Harvest - Growers (CoffeeNetwork) Antioquia, an important coffee producing region in Colombia has started harvest of what's locally know as the main or principal crop, and the outlook looks grim for production, according to top sector representatives. According to Iván Arango Arcila, a director of the local coffee committee of the National Federation of Coffee Growers says that the harvest will sharply reduced if not altogether "poor". The crop will be picked from October to January. According to Mr. Arango Arcila, data gathered from growers point to a harvest of 1.5 million 60-kilo bags, which would be sharply down from the 2.5 million bags expected initially. Some regions, in particular in higher altitudes, show declines between 40-50%, he told daily El Colombiano. The estimates come amid traders' talk that Colombia's differentials remain very high for this time of year and coffee slows unusually sparse, which has raised concerns about the overall supply this time of year. Juan Francisco Suárez Moreno, producer and also a Committee representative, agrees that some areas in the region may see a decline of up 50%, mainly affected by a severe rainy season, which soaked plantings. In addition, receiving stations at cooperatives have seen little coffee flowing, plus many producers in areas around Andes, Ciudad Bolivar and Salgar have said they had no big need for labor as they have in recent years. "It's probable that the harvest will fall a bit, but I don't know what will be the size of the drop," said Luis Fernando Botero Franco, executive director at the local Federation Committee, according to the report. He said that the rains have wreaked havoc across the region and that the renovation program led by the Federation is also having an effect on the overall production as many new plants are not in production yet. The Federation is renovating 10,000 hectares per year in the area, as part of an overall effort to take the national output to 17 million bags over the next few years, which would be up from 12.6 million bags in 2007-08. The Antioquia region has about 129,000 hectares planted with coffee, harvested by 88,000 families. Annually, the committee invests 15 billion pesos in community projects. As reported, the Federation said this week that it expects the 2008-09 crop around 12 million bags, down almost 5% on year from 12.6 million bags, in part hurt by excessive rains and also by the renovation program. In MY 2007-08 (Oct-Sep) Colombia exported 11,522,000 bags, up 3% on year from 11,177,000 bags shipped a year earlier. Production in the first nine months of 2008 summed 8,501,000 bags, down 1% versus 8,593,000 bags harvested a year earlier. The 12-month production from Oct. 2007 to Sep. 2008 stood now at 12,515,000 bags, up almost 3% from 12,153,000 bags a year ago. Colombia is the world's largest producer and exporter of Washed-Arabica coffee. Edited by Marvin G. Perez Tuesday, October 28 2008, 09:38
What does this mean?
Well it's too early to tell, but coffee is a commodity. If the supply is low, prices generally trend upwards.
Will this impact coffee markets around the globe?
Generally speaking I'd say no. However, because Colombia is the worlds largest producer of Arabica Coffee, I would expect some lateral price inflation in the gourmet (Arabica) market.
Is weather the only thing that impacts coffee prices?
Interestingly enough the answer is no. Anything that impacts the availability of beans to the market impacts pricing. For instance, Ethiopian coffee's are pricing very high right now. The weather isn't a factor, but rather, farmers are growing high yield narcotics that return more for the effort. The supply of Ethiopian beans on the market is decreasing, causing prices to rise.
I'll be keeping my eyes open for high cupping coffees from other regions of the world. There are farms that meet my fair trade and environmental requirements experiencing exceptional growing seasons....I'll let you know when my new lots comes in.
Pour another cup....
Jo
The news on the wire isn't really good for Colombian Coffee. Take a look at the report below:
Outlook Grim for Colombia's Antioquia Main Coffee Harvest - Growers Outlook Grim for Colombia's Antioquia Main Coffee Harvest - Growers (CoffeeNetwork) Antioquia, an important coffee producing region in Colombia has started harvest of what's locally know as the main or principal crop, and the outlook looks grim for production, according to top sector representatives. According to Iván Arango Arcila, a director of the local coffee committee of the National Federation of Coffee Growers says that the harvest will sharply reduced if not altogether "poor". The crop will be picked from October to January. According to Mr. Arango Arcila, data gathered from growers point to a harvest of 1.5 million 60-kilo bags, which would be sharply down from the 2.5 million bags expected initially. Some regions, in particular in higher altitudes, show declines between 40-50%, he told daily El Colombiano. The estimates come amid traders' talk that Colombia's differentials remain very high for this time of year and coffee slows unusually sparse, which has raised concerns about the overall supply this time of year. Juan Francisco Suárez Moreno, producer and also a Committee representative, agrees that some areas in the region may see a decline of up 50%, mainly affected by a severe rainy season, which soaked plantings. In addition, receiving stations at cooperatives have seen little coffee flowing, plus many producers in areas around Andes, Ciudad Bolivar and Salgar have said they had no big need for labor as they have in recent years. "It's probable that the harvest will fall a bit, but I don't know what will be the size of the drop," said Luis Fernando Botero Franco, executive director at the local Federation Committee, according to the report. He said that the rains have wreaked havoc across the region and that the renovation program led by the Federation is also having an effect on the overall production as many new plants are not in production yet. The Federation is renovating 10,000 hectares per year in the area, as part of an overall effort to take the national output to 17 million bags over the next few years, which would be up from 12.6 million bags in 2007-08. The Antioquia region has about 129,000 hectares planted with coffee, harvested by 88,000 families. Annually, the committee invests 15 billion pesos in community projects. As reported, the Federation said this week that it expects the 2008-09 crop around 12 million bags, down almost 5% on year from 12.6 million bags, in part hurt by excessive rains and also by the renovation program. In MY 2007-08 (Oct-Sep) Colombia exported 11,522,000 bags, up 3% on year from 11,177,000 bags shipped a year earlier. Production in the first nine months of 2008 summed 8,501,000 bags, down 1% versus 8,593,000 bags harvested a year earlier. The 12-month production from Oct. 2007 to Sep. 2008 stood now at 12,515,000 bags, up almost 3% from 12,153,000 bags a year ago. Colombia is the world's largest producer and exporter of Washed-Arabica coffee. Edited by Marvin G. Perez Tuesday, October 28 2008, 09:38
What does this mean?
Well it's too early to tell, but coffee is a commodity. If the supply is low, prices generally trend upwards.
Will this impact coffee markets around the globe?
Generally speaking I'd say no. However, because Colombia is the worlds largest producer of Arabica Coffee, I would expect some lateral price inflation in the gourmet (Arabica) market.
Is weather the only thing that impacts coffee prices?
Interestingly enough the answer is no. Anything that impacts the availability of beans to the market impacts pricing. For instance, Ethiopian coffee's are pricing very high right now. The weather isn't a factor, but rather, farmers are growing high yield narcotics that return more for the effort. The supply of Ethiopian beans on the market is decreasing, causing prices to rise.
I'll be keeping my eyes open for high cupping coffees from other regions of the world. There are farms that meet my fair trade and environmental requirements experiencing exceptional growing seasons....I'll let you know when my new lots comes in.
Pour another cup....
Jo
Labels: Coffee, Colombia, Crop Yield, Pricing, Weather
posted by Water Bean at
7:39 PM
1 Comments:
I love Moback Java and the Sumatra coffee. It's a great blend of beans that make for a wonderful cup of coffee! I can't wait to start ordering them on-line!
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