Nro 27

New Contract of Management of the National Coffee Fund is Signed

July, 2016


New Contract of Management of the National Coffee Fund is Signed

It is the main mechanism to finance public goods and services very valued by producers such as the Purchase Guarantee, scientific research and technical assistance by the Extension Service, which represent conquests and competitive advantages of Colombian coffee farming.

With the presence of President Juan Manuel Santos, members of his cabinet and major coffee leaders from all over the country, the Colombian government signed on July 9, in the municipality of La Mesa, Cundinamarca, the new contract to manage the National Coffee Fund (FoNC) for ten more years.

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 research, technological development 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 renewed confidence by the national Government so that management of the Fund remains a responsibility of the FNC, 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 CEO of the Colombian Coffee Growers Federation (FNC), 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.

The FNC CEO also reminded that many recommendations of the so-called Coffee Mission have been taken into account, such as the strengthening of the regional Coffee Growers Committees and the Extension Service, but made it clear that there are immovable issues for Colombian coffee growers such as the Purchase Guarantee or the high profile of the National Coffee Growers Committee.


What is maintained with regard to previous contracts?

The financing of public goods and services that benefit all coffee growers, such as the Purchase Guarantee (one of their main instruments), and the network of cooperatives 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.

The importance of research and technical assistance to coffee growers is strengthened, as well as importance of bodies of government and administration of the contract, namely: the National Coffee Growers Committee and the budget, trading and intellectual property commissions.

What are the changes or modifications for the new contract?

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.

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

Principles of good governance are also introduced, with which the FNC will have to issue a code of ethics and good governance that gathers and communicates the ethical principles, values, policies and guidelines regarding:

  • Transparency to effectively share information with members, coffee growers, workers and authorities.
  • Governance that guarantees to have a representative and democratic organization in search of profitability and sustainability of coffee growers.
  • Management control in the eyes of members, workers and authorities, as well as timely and effective accountability to the Federation itself, its employees and bodies of management and representation.
  • Ethical principles, understood as the basic beliefs and ethical values on which the institution builds correct internal and external relations and administration and good use of resources.

And in general, all those contributing to increase transparency standards for its own management as an entity representative of coffee growers, entitled to manage resources of the FoNC.

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