Colombian coffee has high production cost

Produce one ton of coffee in Colombia costs more than $ 2,700, said the director of the called Mission for Competitiveness of the Coffee Sector, Juan Jose Echavarria. However, a ton of mild coffees are produced on average U.S.$ 1,450 in Latin America and $ 1,400 in the rest of the world.
The mission, which ended last week, will deliver the results on the 12th of February and not during the sessions of the Congress of coffee later this month, as indicated by the President of Colombia for almost a year.
Echavarria said there are 16 topics that are currently discussed with your work team. These are divided into groups, with three studies on the world coffee market; another on productivity, costs, innovation and the environment, three analyses of stabilization and insurance, while on the subject of producer associations. The director of the mission highlighted a number of themes that turn into question the competitiveness of coffee farming.
Besides the already said about production costs, these have been increased by $ 700, with respect to the data reported between 2003 and 2011. On the other hand, the area of coffee production remained relatively constant, while the participation of Colombia in world coffee exports fell from 25% in 1992 to 7% today.
With regard to direct subsidies from the national budget to coffee farming, these increased exponentially from 14 billion pesos (U.S.$ 7.29 million) in 2006 to 892 billion pesos ($ 464.78 million) this year.
For 2014, are estimated subsidies to coffee price of no less than one billion pesos, as the PIC allowance (Income Protection to the grower) is 145,000 pesos (U.S.$ 75.55) when the price of domestic purchase is less than 700,000 pesos (U.S.$ 364.73) per load of 125 pounds, but rises to 165,000 pesos (U.S.$ 85.97) when this low of 480,000 pesos (U.S.$ 250.10). Today, the national market opens on 378 125 pesos (U.S.$ 197.02) per charge.
Finally, Echavarria mentioned some coffee uncertainties. Among others, highlighted the current price of Robusta coffee cultivation, expansion to non-traditional areas, negotiation and conflict and, finally, the exchange rate.
Moreover, the president of the association of private exports, ASOEXPORT, Ignario Carlos Rojas, said that Echavarria measurements not consider that the years 2011 and 2012 were the lowest production in 35 years. He also stressed that these costs are higher due to the fact that infrastructure money is fitted to a production of 12 million bags and disability on the main roads.
Source: Revista Cafeicultura