Colombia is one of the world's leading coffee exporters. Its specialty coffee production is recognized for its high quality and distinctive flavor, highlighting the country's coffee tradition. The coffee industry is not only fundamental to the economy but also has a profound cultural impact. Green Hills Coffee is proud to be part of this legacy, offering a variety of coffees and services related to production, marketing, and export.

At Green Hills Coffee, we offer a wide selection of coffees from all over Colombia. We are a company that not only produces its own coffee but also works hand in hand with other producers to help generate greater added value for our products. We select coffee based on customer preferences and ship it to the destination with all legal guarantees.

Coffee export process

The coffee export process in Colombia is a fundamental issue that involves various regulations and the collaboration of key organizations. This process ensures that Colombian coffee reaches international markets with the quality that characterizes it.

Registration and regulations

For coffee producers to export their products, it is essential to comply with certain requirements and regulations that ensure the transparency and quality of Colombian coffee. These procedures are regulated by the National Federation of Coffee Growers of Colombia (FNC).

Registration in the National Registry of Coffee Exporters

The first step in the export process is registration in the National Registry of Coffee Exporters. This registration is mandatory and allows coffee growers, whether individuals or legal entities, to export their coffee to international markets. Registration requires submitting documents demonstrating the legality of the product and the exporter's ability to comply with the regulations established by the FNC.

Compliance with quality regulations

Once registered, the exporter must ensure compliance with quality regulations that guarantee the authenticity and standards of Colombian coffee. This includes testing the purity of the coffee, as well as verifying the production and harvesting conditions. This process is vital to maintaining the reputation of Colombian coffee worldwide.

Coffee price structure

The price structure of coffee in Colombia is composed of various economic factors that influence the final cost of the product. These elements are essential to understanding the value of Colombian coffee in the domestic and international markets.

Domestic reference price

The domestic reference price for dry parchment coffee is set based on variables such as product quality and market conditions. Currently, the price is around $1,993,000 per 125 kg load. This figure can fluctuate depending on demand and other economic factors.

Factors affecting price

Coffee prices are not static and are subject to numerous factors that influence both the local and international levels. Understanding these factors helps contextualize market fluctuations. Some of the most significant are highlighted below:

Distance and collection costs

One of the most determining factors in setting coffee prices is the distance between the producer and the point of purchase. The greater the distance, the higher the harvesting and transportation costs, which directly impacts the final price of the coffee.

Small coffee farmers, in particular, face logistical challenges that can make getting their produce to market more expensive. This can entail additional costs related to manual harvesting and transportation in difficult terrain.

Dollar fluctuations and international market

The dollar's exchange rate is another factor that impacts the value of coffee. Exchange rate fluctuations can influence import and export costs, thus affecting domestic prices. When the dollar strengthens, coffee prices on the international market tend to rise, which can benefit exporters.

The price of coffee on stock exchanges, such as the New York Stock Exchange, is also a key indicator. For example, during certain periods, the price of Arabica coffee can fluctuate significantly, impacting the local prices offered by producers for their harvest.

Farm pass and other costs

Another important aspect of coffee pricing is the farm-raised cost of the raspberry. This price is referenced at approximately $37,500 per arroba. This cost is essential to consider when evaluating the profitability of coffee production.

In addition to the farm pasilla, there are other costs associated with production and preparation that affect the price of coffee. This includes expenses related to:

• Labor for coffee harvesting.
• Coffee processing, which may include energy and water consumption.
• Quality control and certifications required for export.

All of these elements are intertwined in market dynamics, defining not only the price of coffee in Colombia but also its competitiveness in a global environment. The interaction of these costs is critical to ensuring that Colombian coffee growers receive a fair return for their efforts and dedication to producing quality coffee.