The coffee harvest in the beautiful Sierra Nevada de Santa Marta has brought several challenges for local coffee growers, despite current market prices. While producers have benefited from price increases, they face logistical and climatic difficulties that complicate the harvesting and commercialization process.
Climate Impact
Weather conditions have played a crucial role in the setbacks of this harvest. Heavy rains at the beginning of the season caused cherries to fall prematurely and led to over-ripening in some coffee varieties. Additionally, the harvest has not ripened uniformly, requiring up to five separate "passes" to collect the full yield.
The labor shortage for coffee picking remains a recurring challenge, intensifying with each harvest.
Production and Expectations
According to Isaías Piñeros, Technical Director of the National Federation of Coffee Growers of Colombia, the harvest in the Magdalena region is projected to reach 18 million kilograms of dried parchment coffee, representing approximately 1.8% of the country's total production. Despite the challenges, ongoing efforts in farm renovation and proper fertilization aim to push this figure beyond 2% through continuous productivity improvements. He shared these insights during a recent discussion with a member of our team.
Financial Challenges for Producers and Associations
One of the biggest financial challenges lies in the price levels of coffee, which have doubled compared to the previous harvest. Small producer associations struggle to purchase coffee from their members under these conditions, putting additional pressure on the supply chain.
Logistical and Financial Challenges for Exporters
As an exporter, RioSierra has faced logistical complications due to container shortages and limited space on cargo ships. This has led to repeated "roll-overs" and reduced warehouse capacity at the port, affecting the availability of space for coffee shipments.
Additionally, the time required to recover payments from coffee lots has increased, creating a liquidity shortage that affects the ability to purchase coffee for upcoming shipments.
Adaptation and Continued Collaboration
Despite these challenges, the overall outlook remains positive. While delays and complications have arisen, there have been no defaults, demonstrating the resilience of the industry. Adaptability and ongoing collaboration with our clients are essential to overcoming these obstacles.
At ElevaFinca, we remain committed to supporting our partners and clients, upholding our dedication to quality and value across our joint ventures in Colombia (Riosierra), Peru, and Honduras. The coffee industry continues to evolve, and together, we can navigate these challenges with agility and efficiency.
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