en.Wedoany.com Reported - According to the domestic coffee purchase price report, at the close of trading on June 4, Colombia's domestic coffee price stood at 2,005,000 pesos per bag, the lowest level since September 9, 2024, continuing its downward trend. Statistics from the National Federation of Coffee Growers of Colombia (FNC) show that the reference price had risen above 1,900,000 pesos on that day.

Since the beginning of 2026, the domestic coffee price has dropped by 648,000 pesos per bag, a significant decline. The expected decrease in 2026 production and the drought caused by the El Niño phenomenon have negatively impacted coffee growers, putting pressure on producers.

Germán Bahamón, General Manager of the Colombian Coffee Federation (Fedecafé), explained that the appreciation of the peso is one of the reasons for the decline in coffee prices. Over the past year, the exchange rate has fallen by approximately 549 pesos per US dollar. According to estimates by the industry leader, the peso's appreciation has resulted in a loss of over 400,000 pesos per bag of coffee, equivalent to a revenue reduction of about 17%.

"Defending the competitiveness of Colombian agriculture also requires understanding the impact of currency appreciation on those who create wealth in the rural heartland," Bahamón stated on X (formerly Twitter).

The decline in domestic coffee prices coincides with a 1% drop in coffee production in April, amid the peso's appreciation. Data from Fedecafé shows that coffee production in April was 697,000 bags, with harvests delayed due to rainfall at the end of 2025, which affected the flowering and fruit ripening of coffee trees. During the period from May 2025 to April 2026, coffee production totaled 12.4 million bags, a decrease of 2.5 million bags compared to the previous cycle. The reduction in production also led to a decline in exports in April, with coffee exports amounting to 682,000 bags that month.

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