Colombian Coffee

Colombian Coffee
Coffee has been cultivated in Colombia since approximately 1736, and its national expansion occurred in 1850. It is principally grown along the mountain slopes, harvested manually, during two harvest seasons a year, and processed in an artisanal fashion.3 Colombians take pride in their coffee, which is enjoyed by coffee drinkers worldwide. By 2006, coffee represented more than20 percent of Colombia’s Agriculture4 Gross National Product (GNP) and accounted for seven percent of national exports. Coffee growing was present in 50 percent of Colombia’s departments5 and 55 percent of its municipalities. There were about 566,000 coffee farmers, associated with four million inhabitants of coffee regions (or ten percent of the country’s population). The sector generated 27percent of direct, rural employment and one million indirect jobs (eight percent of total employment). Most coffee farmers were small producers; 94 percent operated farms of five, or less than five hectares, and 89 percent operated farms of less than three hectares.
In 2001, as a consequence of the collapse of the International Coffee Agreement in 1989, the lowest international price in the 180-yearhistory of coffee production was registered, with negative effects for Colombian producers. The crisis particularly affected low-income populations, located in marginal rural areas. Paramilitary groups and illegal crops tended to become the primary alternative to confront difficult economic and social situations. In 2002, amidst this international coffee crisis, the Coffee Shops, under theinitiative of the NFC and the banner logo of Juan Valdez®, were born.
The commercial development of specialized coffees6 from Colombia, such as those sold in the Juan Valdez® Coffee Shops and for which consumers accept higher prices, has created a “revolution in terms of income for the producer,” according to Gabriel Silva, NFC Manager.7 Those specialty coffees are the main, raw material of JuanValdez® Coffee Shops. In order to study the Coffee Shops, it is important to review the history of coffee, the NFC and the Juan Valdez® brand, as well as the social, environmental and economic values generated by Procafecol, the community enterprise running the Coffee Shops.
Case Study • Juan Valdez®: Fair Trade as an Inclusive and Sustainable Business 3
8 Available athttp://www.portafolio.com.co/port_secc_online/porta_ana_online/2007-04-09/ARTICULO-WEB-NOTA_INTERIOR_PORTA-3477079.html (April 2007)
National Federation of Coffee Growers
“Everyone asks why Colombia is so successful in the organization of coffee production and growers compared to other countries. The answer is that other countries have opted for methods that don’t account for the ability to generate the patience needed toachieve strategic results.”
Gabriel Silva, NFC Manager
The NFC is a non-profit and politically unaffiliated trade organization founded, in 1927 by Colombian coffee producers in the city of Medellín, to strengthen the industry, improve economic opportunities and provide social benefits to producers’ families. Its mission is to assure the well-being of Colombian coffee producers through aneffective, democratic and representative trade organization. Its vision for the year 2008 is to
achieve sustainable coffee production, strengthen the social fabric in coffee regions and maintain the prestige of Colombian coffee as the best in the world. By 2006, about 566,000 coffee producers from different regions have benefited from NFC’s activities.
The NFC is owned and controlled by Colombia'scoffee farmers. This is especially important because the average size of an individual coffee farm in Colombia is around five hectares. All resources are channeled back to the coffee producers and their communities. One important and direct result of the NFC's work has been the sale of Colombian coffee at a significant price premium on the international coffee market, providing a higher standard...