Issue No. 43

Non-traditional markets open up opportunities for Colombian coffee

October, 2019

Analysis

Non-traditional markets open up opportunities for Colombian coffee

Innovation and sophistication have played an important role. As mature markets, the US and Japan remain two of the main destinations for Colombian coffee.


Innovation and sophistication in the world coffee industry have opened up important business opportunities in different countries for Colombian coffee.

This was shown in the presentation “Opportunities for coffee exports” by representatives of ProColombia, the country’s government agency that promotes exports and investment, and the Colombian Coffee Growers Federation (FNC), as part of the academic agenda of Cafes of Colombia Expo, the most important specialty coffee expo in Latin America and the Caribbean.

Germany has become the second buyer of Colombian coffee mostly because it has become a major re-exporter of processed coffee.

In the United Kingdom and China, coffee has continued gaining ground against tea, which for decades has been the traditional beverage.

In countries such as Turkey, Mexico and Brazil, consumption is increasingly sophisticated, while in Canada (the fourth destination of Colombian coffee), the Netherlands and France, innovation in products and presentations has intensified.

“We have seen that consumers are increasingly looking for authentic, high-quality coffee,” said Margarita Arango, ProColombia’s Agrifood Coordinator at the Vice Presidency for Sectoral Innovation and Intelligence.

Ethics and sustainability have also begun to play a crucial role in consumption, because, according to recent surveys, in Germany 47% of consumers think that ethical brands are the only ones worth buying, while in the UK 45% of people would be willing to pay more if the price really reaches producer communities.

In the case of Mexico, soluble coffee consumption has shown important growth, while in 2018 Colombian coffee arrived for the first time in Latvia, Cyprus, Lithuania, Croatia and Libya, among others, according to ProColombia.

Jaime Jaramillo, of ProColombia’s Coordination of Projects for Internationalization, presented the so-called Export Factories, as well as the Export Consortiums (voluntary alliances), schemes that promote and facilitate Colombian exports through synergies and joint actions.

FNC, a key ally for coffee growers
On its turn, the FNC presented the regulations governing the export of small quantities of coffee (a program born in 2016), carried out by air and which has proved a successful initiative.

In addition to specific regulations, which include registering as an exporter and paying the coffee contribution per each pound of coffee exported, the general regulations governing exports in customs, exchange and tax matters must be taken into account.

The FNC also presented FNConecta, an important initiative by the coffee institutions to facilitate exports of Colombian coffee to higher-value markets that translate into better income for producers. Shorter and more efficient supply chains, and costs adapted to the reality of Colombian coffee growers are some advantages of this innovative program.

Finally, the FNC presented some of the main advantages and benefits of the 100% Colombian Coffee Program to add value to Colombian coffee and improve income of producers. With partnering brands that use Colombian coffee as raw material or ingredient, the 100% Program guarantees consumers that they are receiving authentic Colombian coffee, for which a higher price is paid, for the benefit of producers.

Different legal tools such as Denomination of Origin or Protected Geographical Indication, which help protect Colombian coffee as an exceptional origin with unique quality attributes in various markets, were also explained.

Every year, Cafés de Colombia Expo brings together the entire coffee value chain, from seed to cup.

You are invited to learn more about our coffee family and our products, visiting the COLOMBIAN COFFEE INSIGHTS sections on the top of this page.