STiR coffee and tea magazine

Volume 4, Number 4

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34 STiR tea & coffee industry international / Issue 4, 2015 (August/September) By Dan Bolton Photo by Dan Bolton Global Solubles Manufacturing soluble coffee is a growing, profitable and important market stabilizer for coffee producing nations CHINCHINÁ, Colombia Coffee producing nations blessed with the climate and courage to carve a place among the world's top suppliers will ultimately confront the shortcomings of a cyclical crop in a volatile commodities market. Colombia has met these challenges in part by developing a competitive solubles industry that supplies freeze-dried arabica and coffee concentrates globally while in- creasing domestic volume an amazing 17% since 2008. The country, a global leader in producing value-added coffee, is a model of ef- ficiency in disposing of each year's crop because of its commitment to improve the quality of life of coffee growers through a garantía de compra or "purchase guarantee." "FNC (Colombia Coffee Growers Federation) purchases the crop from growers at a market price, enhancing the negotiation power of individual producers with domestic buyers in Colombia's 590 coffee growing communities," explains FNC spokesman and chief marketing officer Luis F. Samper. "Of course, if coffee is bought by the FNC it must be sold. This is the reason why the FNC has become an important exporter in the world, both of green coffee and freeze-dried soluble coffee through its Buencafé operation," he said. Colombia's investment in value-added specialty coffee in 2013 yielded six times the 2002 market price, bringing growers an additional $149 million in revenue, premiums that were directly transferred to growers. Its solubles industry generates $200 million a year, of which half come from FNC operations. Coffee exports increased 31% in June 2015, reaching a total of 997 million 60 kilo bags. Europe is the top export destination for instant coffee, annually purchasing 43% of Colombia's coffee exports. North America is second, purchasing 28% followed by Asia-Pacific (17%), Colombia (6%), and Central and South America (6%). Colombia's domestic market for solubles is growing at a quick pace. Coffees produced by Buencafé include some of the world's top-selling instant brands. All are made with 100% Colombian arabica sourced nearby.

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