For Colombian coffee growers, betting on the production of the highest-quality coffees continues to bear fruits. That’s the case of 25 producers in the Huila department who recently received an average of US$650 per load of 125 kilograms of parchment coffee (more than twice the average domestic price).
This number is the sum of the coffee price of the day and the quality premiums paid to farmers by international buyers.
This coffee is marketed through the Colombian Coffee Growers Federation (FNC) Microlots Program, executed with resources from the National Coffee Fund and aiming to satisfy sophisticated buyers who demand the highest-quality coffees.
Thanks to the FNC’s successful commercial strategy in international markets, the payments of quality premiums were 836,000 Colombian pesos on average and totaled more than 313 million pesos.
The added value paid to farmers serve as a way of recognizing them for their efforts in producing high-quality coffee, which in turn translates into more security and better incomes for these farmers and their families.
It should be noted that the proceeds from sales of these coffees are transferred to each of the producers involved. The National Coffee Fund and the FNC, as the program administrator, do not get margins by providing this service.
More than US$700,000 have been paid as quality premiums
Since 2010, the FNC Microlots Program has liquidated quality premiums of more than US$700,000 to more than 320 producers in the country and microlots have been sold to 93 customers abroad, mainly from Japan, South Korea, the United States, Australia and Scandinavian countries, among others.
The microlots are considered unique, exceptional and exclusive coffees because of their organoleptic attributes and because they are produced on a small scale in specific locations of the country. They are works of art of Colombian coffee growing.
The diversity of the Colombian coffee sector, favored by many microclimates and soil conditions, coupled with the producers’ excellent harvest and post-harvest processing work, gives each microlot outstanding features.
The FNC microlots are subjected to strict logistics processes throughout the supply chain that ensure their quality: timely transport, storage in controlled conditions, specialized threshing and innovative packaging such as vacuum boxes or special plastic bags (Grainpro).
The Federation’s experience has allowed to identify and project the country’s best cup profiles, which in turn allow them to offer differentiated coffees to specialized clients and consumers that meet their needs. The program also provides collection and export services to customers and producers who have made their negotiations individually, taking advantage of the FNC’s infrastructure and logistical capacity.
Making access to markets easier for farmers
The FNC’s Microlots Program is an important gateway to differentiated and high-value markets for Colombian coffee growers; it is a commercial tool of the coffee institutions that enables producers to continue climbing up the value chain.
This initiative is complemented by other programs led by the Federation to facilitate direct access of individual farmers to international markets, including the agreement that provides training to producers in partnership with ProColombia (formerly Proexport).
