Coffee lovers, wine enthusiasts, tea devotees—Colombia’s coffee market is in a rare moment of sustained strength. The USDA FAS report reveals production is still near record levels, even as output dips slightly from last year. With 13.8 million bags forecast for 2025/26, Colombia remains a powerhouse, though signs of fatigue are emerging. The 2024/25 surge, fueled by aggressive pruning and a weak La Niña, has left plantations struggling to maintain momentum. Prolonged rains now threaten flowering, hinting at a potential slowdown. Yet, the numbers tell a different story: exports are still robust, with the U.S. absorbing nearly 40% of the crop.
The U.S. remains Colombia’s largest buyer, but the trade landscape is shifting. A 10% tariff introduced in April 2025 briefly raised costs, yet Brazil’s 50% tariff on goods during August–November gave Colombian coffee a competitive edge. Meanwhile, the EU, Canada, and China are key markets, though the enforcement of the EUDR regulation looms. Fedecafé is preparing a geospatial platform to track farms and meet traceability demands, a move that could redefine how Colombian coffee is sold globally.
Domestic prices are soaring, reflecting both global demand and a weaker peso. Farmgate prices hit a record 3.12 million pesos per 125-kilogram bag in February 2025, a 70% spike from the previous year. However, input and labor costs remain high, creating pressure on smallholders. While exports are projected to fall slightly to 12.5 million bags, the domestic market is growing. Over half a million families rely on coffee, making Colombia’s role as a global arabica supplier more critical than ever.
Colombia’s coffee industry is at a crossroads. The country’s young, technified plantations are producing at historic levels, but sustainability and trade dynamics will test its resilience. As the EUDR deadline approaches and new markets like China emerge, how will Colombia balance tradition with innovation?
As Colombia navigates this tightrope of production and trade, what role will emerging markets like China play in shaping the next chapter of its coffee story.
As Colombia navigates this tightrope of production and trade, what role will emerging markets like China play in shaping the next chapter of its coffee story?
Questions & Answers
What factors are keeping Colombia coffee prices high?
High production costs, strong global demand, and limited supply due to weather issues and pests are keeping Colombia coffee prices elevated.
How much coffee did Colombia produce in 2023?
Colombia produced around 14.4 million bags of coffee in 2023, maintaining historically high output levels.
Information sourced from industry reports and news outlets.
