No 30

The Importance of the National Coffee Fund

August, 2016

100% NOTEWORTHY

The Importance of the National Coffee Fund

The Colombian government recently signed with the Colombian Coffee Growers Federation (FNC) a new contract to manage, for ten more years, the National Coffee Fund (FoNC), which enables to finance public goods and services that have given Colombian coffee farming many of its competitive advantages.

The FoNC is a parafiscal account, fed mainly with the coffee contribution paid per each pound of coffee exported, that enables to finance public goods and services that benefit all Colombian coffee growers, such as the Purchase Guarantee, scientific and technological research, and technical assistance provided by the Extension Service, as well as promotion and marketing activities that have contributed to position Café of Colombia as the best mild washed coffee in the world.

“For coffee growers and the FNC, the signing of this contract means the renewed confidence by the national Government for the management of the Fund to remain a responsibility of the Colombian coffee growers’ organization. It means having the bases and resources to achieve the coffee farming we need for the next 10 years,” said the FNC CEO, Roberto Vélez.

“The challenges ahead are important, because we have to ensure sustainability of an activity that faces economic, social and environmental risks. It is about building, over the next 10 years, a 100% sustainable and globally competitive coffee farming,” Vélez added.

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The financing of public goods and services that benefit all coffee growers, such as the Purchase Guarantee (one of their main instruments to transfer the best possible basic price to farmers), and the network of cooperatives, which purchase coffee, is maintained in the new contract.

The Coffee Growers Committees’ important contribution to development and well-being of coffee areas is recognized, continuing their role in construction of economic and social infrastructure in coffee areas. Importance of research and technical assistance to coffee farmers is strengthened, among other management measures and policies.

The new contract conforms to current legislation and removes old remains and realities already repealed, such as provisions on coffee retention, quota agreements and some obstacles related to coffee exports, now more flexible.

It incorporates the principles of planning, efficiency, effectiveness, economy, transparency, responsibility, objective selection, due diligence and communication in execution of resources of the FoNC, as well as of Good Governance.

As we can see, with the joint commitment of the Colombian Government and the FNC, the Fund is an instrument that has been key not only in Colombia’s coffee policy, but to bring well-being to the whole of Colombian coffee farmers, contributing also to position Café de Colombia in different markets.

Participation in different international coffee expos throughout the year (including ExpoEspeciales), design and launch of ad campaigns, as well as conduction of courses to specialists and sponsorship of barista workshops and competitions, have helped raise and strengthen recognition of unique attributes of Colombian coffee in the most diverse markets.

 


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