Colombia’s Rural Development Agency to Scout New Markets for Small Coffee and Cocoa Producers
The Colombian Rural Development Agency (ADR) has announced a tour of European countries to open new markets for small-scale coffee and cocoa growers from eight Colombian departments. The aim is to establish Colombia as a leading source of high-quality agroalimentary products.
Confirmed Visits to Finland and Slovakia
The ADR delegation, led by Director César Pachón, will attend the Colombian Taste and Quality event and the Helsinki Coffee Festival in Finland. Pachón sees Slovakia as a potential gateway for Colombian coffee processing in Europe. He explained, “Slovakia could be where we set up agroindustrial operations in Europe, process the green coffee, roast and grind it there. This way, 45% of the value remains with Colombian producers and not European intermediaries.”
Trade Barriers and Opportunities
Currently, agroindustrialized coffee faces a 45% tariff when entering the EU. However, green coffee beans are exempt from this tax. Pachón highlighted the current situation in Colombia, where 80% of coffee is bought by multinational corporations, while the remaining 20% is purchased by the Federación Nacional de Cafeteros.
He continued, “Multinationals come to Colombia, buy coffee, transport it to countries like the UK (which earns significant dollars from coffee exports), agroindustrialize it, and export it. The added value is substantial, and that’s what we aim to replicate.”
Impact on Small Producers and the Colombian Economy
By positioning Colombia as a high-quality agroalimentary products supplier, the ADR’s initiative aims to empower small-scale coffee and cocoa producers. This strategy can lead to:
- Increased Income for Producers: By capturing more value within the Colombian production chain, small producers can earn higher incomes.
- Diversification of Export Markets: Expanding into the EU market reduces reliance on traditional markets, like the UK.
- Promotion of Sustainable Practices: Emphasizing quality and sustainability can attract eco-conscious consumers and premium pricing.
- Strengthening of Rural Economies: Support for small producers contributes to the development and stability of rural communities.
Key Questions and Answers
- What is the main objective of the ADR’s European tour? The primary goal is to open new markets for small-scale coffee and cocoa producers from eight Colombian departments, positioning the country as a leading source of high-quality agroalimentary products.
- Why are Finland and Slovakia important for this initiative? These countries represent potential markets and agroindustrial partners that can help Colombian producers capture more value in the European market.
- What challenges does the coffee sector currently face in Colombia? Currently, 80% of Colombian coffee is bought by multinational corporations, leaving small producers with only 20% of the market. Additionally, agroindustrialized coffee faces a 45% tariff when entering the EU.
- How can this initiative benefit small coffee and cocoa producers? By capturing more value within the production chain, promoting sustainable practices, and diversifying export markets, small producers can increase their income and contribute to rural economic development.
