The manager of the National Federation of Coffee Growers, Luis Genaro Muñoz, gave an interview in response to his critics.
What is happening with coffee production?
The dramatic decline in coffee production in 2009 is explained by the simultaneous occurrence of exceptional circumstances: rain levels higher in coffee areas up to 150 percent historical average and lower fertilizer application due to rising oil prices .
During the first quarter of 2010 has collected the coffee harvest product blooms that sprang up in August 2009 and which were affected by the relentless winter of last year.
What next?
For the remainder of the year, we expect an increase in coffee production in the first half to 4.5 million bags and a total annual production of around 11 million bags. The basis of optimism is in the excellent behavior of the climate and the increase of 40 percent in fertilization.
We must not forget that the best coffee crops in Colombia's history, have occurred in the years of occurrence of El Niño.
What happened to rust?
At present there are still 75,000 hectares planted in marginal areas not suitable for coffee cultivation, which were affected significantly by the rust last year and have not been converted to varieties developed by Colombia and Castillo Cenicafé resistant to this disease.
To address this problem with Fertifuturo offered, discounts for the purchase of fertilizers, as well as through the coffee renovation program, loans on favorable terms to renew those resistant coffee varieties.
And the bit?
I have to say that the country has learned to manage this pest by cultural practices such as the Re-Re that requires the collection of grains mature, over-ripe and dried they are both in the tree, and on the ground. This makes it a wasteful activity, which is mainly carried out with rigor by the owners of small coffee crops.
This is evidenced Almacafé records in which there are departments with infestation levels of 15 percent and others with bit 2 percent.
Is it true that the Federation had large losses for violating export contracts in 2009?
The Federation did not breach any export contract in 2009. The commitments of coffee that had some delay in delivery during the first months of 2009 were fulfilled.
Obviously, last year the shortage of coffee in Colombia affected the entire export sector. Fortunately, with a great effort from both private exporters, and the National Coffee Fund could honor the international commitments on many occasions at the expense of normal business margins.
Was there coffee imports to pass that grain as Colombian and sell abroad?
That is impossible because the rule requires that the coffee entering Colombia destined for the roasting industry must meet phytosanitary protocols, which require a degree of roasting to achieve the minimum humidity admitted.
This makes coffee denatured, not capable of being exported as green coffee because the beans change color. Additionally, the Colombian industry is very serious and if that happens, the quality controls carried out in port does not allow this coffee out of the country. Making such claims is an irresponsible act that jeopardizes the credibility of Colombia as a serious supplier of coffee.
What is the cause of these imports?
First of all I must clarify that coffee imports are not controlled by the Federation of Coffee Growers and the freedom to make is part of the country's trade agreements. The roasting industry in Colombia are carried out to provide themselves with cheaper raw materials because they can not actually move the international price of our coffee to Colombian consumers.
Forcing Colombian coffee growers to sell their coffee at half price, would be an injustice by seeking subsidies to domestic consumers. As a representative of the farmers I see with great pleasure that farmers sell their coffee to two dollars abroad and not at half price as required by national roasters.
What is the international market situation?
The market until the late 90's was a market over-bid. Since 2002, demand for coffee is greater than supply. This situation is mainly due to stable and sustained growth in consumption, which will cause the world coffee market in front during the coffee year 2009/10, which ends in September, a deficit of 6.3 million bags.
The premium is paid for Colombian coffee is very high. Is not there a danger that the price will pick up production if?
To answer this question we need to analyze the behavior of soft coffee market, a segment which is the production of Colombia, Central America and African countries like Kenya, Tanzania, Ethiopia and Burundi.
None of them, except for Colombia, has the capacity to increase exports. What I mean is that although Colombia regains its full level of production during the second half, the market has enough room to absorb this increase, as well as inventories in origin, roasters and the bag are very low. This suggests that the premium of Colombia does not fall abruptly.
How to recover lost market internationally?
Loyal customers at home, such as those involved in the program 100 percent Colombia coffee and those who have products and programs related to Colombia, are continuing.
Our current priority is to concentrate all efforts on satisfying the demand that exists for coffee from Colombia, to recover our participation in the business of each customer. This is because the low availability of other circumstantial similar to the Colombian coffee, which is why we feel that roasters will go back to Colombia, the only country that offers fresh coffee producer in significant amounts throughout the year.
Does the National Coffee Fund's ability to increase their inventories?
Building strategic inventories is not an issue of the situation because each grain that Colombia produces is required by the international market.
Should they be brave domestic producers?
While producers have also suffered from the decline of their crop in the recent past, now look at your business and your coffee and feel optimistic that we started to turn the page. The excellent blooms, the state of the coffee, the discounts offered by Fertifuturo to purchase fertilizers, credit demand and optimism about the harvest of the second half, suggest that 2010 is the year of recovery of Colombian coffee.
What private exporters?
Last year was very difficult for both private exporters and for the Federation. Fortunately the private export sector is made up of national and multinational companies linked to our country for decades and who know the market very well. We have the responsibility of the original warranty period we developed through more than 500 points of purchase, which is to ensure the producer far getting your coffee at a market price.
Of the 7.8 million bags last year Colombia was only 5 million were available for the export of green coffee undifferentiated, since the rest was used by the domestic industry or sold as specialty coffee priced higher than standard coffee Colombia.
Thus the mass available for the export sector has decreased, which further explains why the business has been difficult.
Why are you giving so much stick?
Many third-party interests that promote debates against the Federation. And this is not the first nor the last time this happens. The machine is quiet leadership fulfilling the mission of the institution, which is to bring the greatest good coffee to 527,000 families, of which 510,000 have less than 5 hectares. They are peasants living on his farm and work from dawn to dusk.
So our mandate of maximizing farmer income, often at odds with the economic interests of many of the owners of the club. However, I believe that the country demands results. What you called stick against me, I interpret as the sum of concerns of the country, facing the future of an activity that constitutes a strategic capital for the Colombian countryside. As we progress, I understand the barking.
We hear a lot of investment of the Federation, as the Merchant Fleet Bank and Coffee, etc.. What do you think?
The truth I'm not concerned with these issues. The fleet is over 18 years, the Bank ceased to be the guild for 11. My work now focuses on securing the future of 527,000 coffee producing families.