Colombia’s coffee sector has recorded one of its worst months for sales with 13 consecutive days of price drops and an accumulated loss drop of 7% in the New York stock exchange, according to a leading industry organization.
Manager of the National Federation of Coffee Growers, Luis Genaro Muñoz, added that the coffee futures market also had problems with a roughly 10% fall in prices.
Muñoz said that the problems in the markets are being caused in large part by the rise in production in other coffee producing countries such as Brazil.
He said: “Our grain, as with other agricultural and financial products, does not escape the law of the market, but we will not abandon our serious and sustained efforts to provide a grain of higher quality, which is recognized, appreciated and increasingly coveted around the world.”
The coffee industry has had mixed year in terms of success and has at times been mired in controversy. Mauricio Galindo, the head of operations at the International Coffee Organization (ICO) told Colombia Reports in May this year that Colombia was benefiting from “the dynamism of emerging markets and economies in the coffee trade,” particularly pointing to Asia as a new source of demand.
However, Colombian coffee growers have also suffered from low prices, a flooded market and controversies surrounding its government subsidy programs. Last month Muñoz spoke out against the country’s Coffee Farmer Income Protection Fund (PIC), claiming that it was being abused. He said: “What we have seen in recent days is an increase in fraudulent attempts to scam the resources of the PIC which are funds for the producers.”
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