How is the coffee

price formed?

The purchase price of the load of dry parchment coffee in Colombian pesos depends entirely on the behavior of the following market variables: price on the New York Stock Exchange, quality premium recognized to Colombian coffee, and exchange rate of the Colombian peso against the dollar. In the following infographic you will find in a clear and simple way the factors that determine the domestic price.

¿What is the  yield factor?

The cooperatives of coffee growers buy coffee daily taking as reference the domestic price of dry parchment coffee per load of 125 kg and pay a premium for coffee quality according to the yield factor and specialty coffee programs accessible the producers. Coffee receives premiums according to quality conditions of dry parchment coffee established for each program. 

The yield factor is the amount of dry parchment coffee (dpc) needed to obtain a 70-kg bag of excelso coffee and is determined when doing the physical analysis of the coffee to be sold.

Given the coffee quality conditions at country level, the average yield factor is 92.8, that is, 92.8 kg of dry parchment coffee is needed to obtain 70 kg of excelso:

 

A good yield factor is obtained from the very crop. The care taken in collection, wet milling and drying determines the factor based on which the producer receives a quality premium when selling coffee at the cooperative.

 

When does it apply?

When selling coffee at the point of purchase of the cooperative. This way of marketing must be requested by producers, who receive more value for quality of the coffee they produce.

The lower the coffee yield factor, the higher the price the producer will receive.

Coffee defects

In the cultivation and wet milling processes, coffee may feature defects that alter its physical appearance and affect the drink taste and aroma; get to know them so that you don’t lose money when selling coffee.

Where to sell your coffee

The FNC offers the purchase guarantee to all Colombian coffee producers through an extensive network of points of purchase of the coffee grower cooperatives. In the following map you can find the point of purchase that is closest to your farm.

Tools to

sell your coffee

Alternatives to manage the price before or during harvest

In search of profitability of coffee growers, the FNC, through the country’s extensive network of cooperatives, puts at their disposal the sales of coffee with future delivery, with immediate delivery, on deposit and with floor price. It is important to remember that the FNC has no control over the variables that determine the coffee price, that is, the international price on the NYSE and the exchange rate.

Know in detail each of these tools

Floor price

Deposit

Coffee sale future delivery

Immediate delivery

Export of coffee

in small quantities

For promoting the export of small quantities of coffee, the FNC has developed a simplified export procedure so that any natural person or legal entity, prior registration as coffee exporter, can make use of this method through postal and courier companies, which shall be registered in the FNC system for that purpose.

How do you conform
el precio del café?

The purchase price of the load of dry parchment coffee in Colombian pesos depends entirely on the behavior of the following market variables: price on the New York C contract, the quality premium recognized to Colombian coffee, and exchange rate of the Colombian peso against the dollar. In the following infographic you will find in a clear and simple way the factors that determine the domestic price.

What is the Factor de Rendimiento?

It is the amount of dry parchment coffee (CPS) that is needed to obtain a bag of 70 kilos of excellent coffee and is determined at the time of performing the physical analysis of the coffee to be sold. Given the quality conditions of coffee at the country level, the average Performance Factor is 92.8, that is, 92.8 kilos of dry parchment coffee is needed to obtain 70 kilos of Excelso:

A good yield factor is obtained from the crop. The care and follow-up that is carried out since the collection; Benefit and drying, determines the factor with which the producer receives an over-price for the grain, when selling it in the Coffee Growers Cooperative.

Tools for Sell your coffee

In the search for profitability of the coffee grower the Federation through the extensive network of coffee cooperatives in the country, makes available, sales of coffee with future delivery, with immediate delivery, on deposit and with flat price.
It is important to remember that the Federation of Coffee Growers has no control over the variables that determine the price of coffee. The two main variables that determine it are the international price of the New York Stock Exchange and the exchange rate.

Learn in detail each of these tools:

Conozca en detalle cada una de estas herramientas

Floor price
Floor price
Pdf
Deposit
Deposit
Pdf
Coffee sale with future delivery
Coffee sale with future delivery
Pdf
Immediate delivery
Immediate delivery
Pdf

Exportación de café en pequeñas cantidades

The National Federation of Coffee Growers of Colombia, with the objective of promoting the export of small quantities of coffee, has developed a simplified export procedure, so that any natural or legal person prior registration as a coffee exporter can make use of this modality, to through the postal traffic and express courier companies, which will be registered in the Federation system for that purpose.

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