Colombia Launches $64-Million Fund To Steady Coffee Prices, Protect Farmers
BOGOTA (Reuters) – Colombia, the world’s biggest producer of washed arabica coffee, launched a fund worth 218 billion pesos ($63.9 million) on Wednesday, aiming to stabilize coffee prices and shield farmers from volatile markets.
Output of 14.8 million 60-kilogram bags in 2019, boosted by good weather, was Colombia’s highest in 27 years, and the fund will allow coffee growers to cover production costs and avoid losses in case of unexpected falls in prices.
The government will provide the bulk of the resources for the fund, although coffee growers will also contribute financially, Finance Minister Alberto Carrasquilla said.
“It will give certainty and reassurance that prices are secure, so farmers can dedicate their time to growing the best coffee in the world and not worry about fluctuations,” he added.