After what the coffee sector announced a possible crisis due to the fall in prices and the low profitability of the sector “or null”, According to the words of the general manager of the National Federation of Coffee Growers (FNC), Germán Bahamón, a new concern is now brewing regarding compliance with international regulations.
(See: They obtain the reference genome of the most popular coffee in the world)
According to sources consulted by Portafolio and who asked not to be identified, it is estimated that the entire Colombian coffee industry will not be able to meet the requirements established by the European Union in the European Green Deal. which comes into effect at the end of 2024.
This, taking into account that until now it is not clear how the European Union is going to make the request for traceability information and zero deforestationbut, from the Colombian side, it is not known how the producer can have access to the data and in this way demonstrate its georeferencing.
For this reason, there is concern that part of the non-compliance could lead the Colombian agricultural economy to lose one of its great trading partners, such as the European territory.
It is worth detailing that according to Dane figures, total external sales to the European Union in 2023 They meant Colombia about US$6,809 million.
(Read more: Does the rise in coffee prices benefit coffee growers? This is what the union says)
Also, according to data from the National Association of Coffee Exporters of Colombia (Asoexport), total coffee exports fell 7.26% last year, standing at about 10.6 million bags, compared to 11.4 million sold internationally in 2022.
Now, according to the source, it is “very likely” that the producers that end up meeting the EU export requirements are those large ones that are certified, a fact that “It could end up excluding small producers who, with their limited economic capacities, will not be able to comply.”
Knowing this, Portafolio consulted the FNC, who assured that today 73% of the coffee exported to the European Union from The Federation has seals and certificates such as Rainforest Alliance, 4C, Café Practices, Fairtrade, AAA, among others, which enables them to implement the approval protocols for the European Green Deal regulation.
“We have a permanent dialogue with the EU, the European Union Space Program (EUSPA), the European Forestry Institute and the National Government, among others, in order to coordinate efforts and ensure that the sector is ready for January 1, 2025, the date on which this regulation is expected to come into force,” They responded.
Coffee.
(Read more: How Colombia can take advantage of the cocoa boom, an evolving market)
On the other hand, Gustavo Gómez, president of Asoexport, told Portafolio that taking into account that compliance with the regulations begins next year, they have joined forces with the Federation to make producers have access to the data.
“This is thanks to the Coffee Information System (SIC), regardless of the marketing chain through which they export to the European Union,” said.
Although the concern is latent, since Europe consolidates itself as one of Colombia's main trading partnersthe sector asks for peace of mind, as they believe that this is a partner that will not be lost.
This was confirmed by Javier Díaz, president of the National Foreign Trade Association, who stated that this is not a market that is going to be lost, but, “that there are some producers who are not yet ready with the demands regarding zero deforestation.”
(See: Minagricultura has granted more than $3 billion in resources to coffee growers)
The union leader even announced that the Ministry of Commerce, Industry and Tourism has said that they hope that from 2025, once the Pact comes into force, exports will grow towards this destination.
“The message is clear: we must not leave everything to the last minute and we must do our homework to continue growing in position in this block as important as that of the European Union,” he pointed.
While it is true that the regulations will be carried out from next year and that The EU has not shown intentions to extend the effective dateIt is also clear that Colombia maintains a Free Trade Agreement with this territory, so it would have to be reviewed, with the changes that the regulations imply.
According to Olga Lucía Salamanca, expert in trade policy and defense and partner at Araujo Ibarra Consultores, precisely what the FTA seeks is to be the instrument that guarantees the conditions of access between countries, a fact in which it has been mentioned that the regulations They could violate the rules of the World Trade Organization (WTO).
“There are some dispute resolution chapters that are precisely aimed at allowing Colombia to present its claim regarding the trade barrier into which this new Green Pact regulation would end up being translated,” Indian.
Although there is concern that, according to the source, stores that sell coffee would be affected, since the regulations do not They make the reservation that it is only for green or processed coffee.so companies may have to delay compliance with their suppliers.
Coffee
(See: New mission of Colombian companies travels to Venezuela in May in search of business)
The measures that coffee growers are carrying out
According to the Federation, work has been underway on the Deforestation Free Coffee pilot program, which is carried out in the department of Huila and which seeks to establish a comprehensive compliance model.
“We are working with the support of the different organizations that are part of the EU, the georeferencing and satellite image evaluation components. The Federation included educational programs related to risks and impacts within the operational plan of the more than 1,000 extension workers,” they say.
For this reason, María Claudia Lacouture, president of AmCham Colombia, highlighted that the country must continue to advance in this matter to guarantee the viability and acceptance of agricultural products in the EU.
“Losing that market would worsen the country's trade deficit and the reputation of Colombian products,” he concluded.
(See: Colombian imports continued with a downward trend in February)
DIANA K. RODRÍGUEZ T.
Briefcase
