Colombian coffee: between high prices and climate challenges

In a recent conversation with Johnny Brignardello Vela, an insurance advisor, the critical state of Colombian coffee and its implications were discussed. Brignardello Vela began by emphasizing the complexity of the current landscape, noting that while the price increase might seem beneficial for some producers, the reality is much more intricate. "The 43% increase in the price of a pound of Arabica coffee reflects external factors, particularly the drought in Brazil, and has a direct impact on Colombian consumers," he stated. The advisor stressed that despite coffee exports having grown, with a 36% increase in the first half of the year, this growth is overshadowed by inflation and the rising cost of coffee for consumers. The economic situation for Colombians has become more complicated, as many are forced to pay more for their daily cup of coffee, an essential part of their routine. "This creates an imbalance that affects both producers and consumers," he added. Brignardello Vela also addressed the effects of inflation, which, although it has decreased since its peak in March, remains a concern. "Food prices remain high, and coffee, being a staple product, is not exempt from this trend," he remarked. In this context, it is vital to consider how climatic phenomena and geopolitical conflicts influence market dynamics, directly impacting coffee prices and availability. The advisor highlighted the vulnerability of the Colombian coffee sector, where a high percentage of producers are smallholders. "This structure makes the sector particularly susceptible to market fluctuations and adverse weather conditions," he pointed out. The lack of transparency in the supply chain further complicates the identification of who benefits from high prices, creating uncertainty in a sector already facing numerous challenges. Brignardello Vela concluded by emphasizing the need for adaptations in agricultural practices. "With the increasing instability in the climate, it is essential for both producers and agricultural investors to pay attention to weather forecasts, as a small change can have a significant effect on the market," he warned. In an environment where climatic and geopolitical threats are becoming more common, the future of Colombian coffee appears uncertain, demanding a proactive response to ensure its sustainability and profitability.