Plans to produce fine wood from coffee trees

The association of coffee farmers in Colombia, Federacion Nacional de Cafeteros (Federacafe), is promoting a project to produce fine wood from coffee trees. The project is supported by the Andean Development Corporation (CAF) and the Inter-American Development Bank (IADB) and is aimed at bolstering and diversifying the local coffee industry.

At present, coffee plantations in Colombia span around 1.1mn hectares, which could produce around 4mn cubic metres of processed wood. Domestic demand for wood in Colombia is estimated at around 10mn cubic metres per year, with 7mn of them being used by paper companies and 3mn for carpentry. The project also encompasses the production of some 2.8mn cubic metres of ethanol by using wood shavings from coffee trees.

Publication: Esmerk - News monitoring
Provider: Esmerk
September 8, 2009

Aliar SA using high plains for grain and pork

Aliar SA is consolidating an agro-industrial plan in Puerto Gaitan (Meta) via investment of US$130mil, explains company manager Jaime Lievano, the idea being to use the high plains locally for maize and soya, imitating successful Brazilian methods. The soil's acidity must be corrected and its aluminium levels must be reduced.

A late addition to the plan has been the farming of pigs with the maize and soya providing food for the 750 animals the project should eventually boast; the pigs will then become pork at Bogota's Frigorifico Guadalupe under the brand-name La Fazenda.

Publication: SABI - Business News
Provider: South American Business Information
Date: April 8, 2008

Coffee - Colombia has its best year for a decade

Colombia's coffee industry had its best year in 2007 for 10 years. Export revenues rose at their fastest rate since 1998 and hit US$1.9bn. The coffee industry is the biggest employer of rural labour. Around 500,000 families depend on the industry. The industry accounts or about 24% of total agricultural output.

On official statistics, the coffee industry is far more important to the economy than the illegal drug industry, though in cash terms the illegal drugs industry probably has a turnover equivalent to about 10% of the country's total official GDP of US$135bn in 2006, according to the World Bank.

Coffeemen said that the good result in 2007 is the product of an improvement in productivity which has led to an increase in the acreage planted with coffee and a replacement of exhausted coffee bushes. In 2007 the industry increased its production by about 500,000 (60kg) to 12.6m bags according to the Federación Nacional de Cafeteros. This was 4% up on 2006 and the highest production figure for 10 years. Unusually, the surge in production was accompanied by an increase in coffee prices. The average price of Colombian coffee was US$1.26 per pound, 8% up on 2006's average.

The main reason for the run-up in the international price has been poor coffee crops in Brazil and Vietnam, the two big swing producers in the world coffee industry. Colombia's elaborate system of minimum prices that are linked to the international market price means that 92% of the international price finds its way to growers. In most coffee producing countries, middlemen scoop out between 15% and 25% of the export price. Colombian coffee still commands a premium in the crucial US market.

Publication: LatinNews - Economy & Business
Provider: Latin American Newsletters
Date: January 26, 2008