Colombian Coffee Up
19 May 2006 A slight increase is expected in Colombia’s coffee crop in 2006/07, up to 11.6 million 60 kilogram (kg) bags. In 2005/06, production reached 11.55 million bags, according to the US Department of Agriculture’s Foreign Agriculture Service (USDA-FAS).
Coffee growers in the most productive coffee area have adopted the national plant renovation program (the Colombian Coffee Federation has been encouraging coffee tree renovation for several years). On average, 20% of the coffee area is renovated each year and the average age of coffee plants is now five years. This renovation program is expected to result in a low variation in production from one year to another, with most production changes depending on weather and improvements in efficiency.
Although new areas planted are likely to arise, they will do so slowly, as the strong peso and high production costs will keep new plantings in check. However, good prices for coffee are allowing growers to gain efficiency through better practices and crop protection products, and investors are adding fuel to the fire.
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