A Fair and Transparent Price

The Federation represents more than 563,000 growers. The average size of a coffee plantation in the country is of 1,5 hectares.96% of the coffee producing areas coffee crops with less than 5 hectares, which account for 70% of national production.

Since the beginning, the enormous challenges of the Colombian topography and the small volumes of production in each coffee farm motivated coffee growers to unite in order to resolve their common logistical and commercial challenges. This need to develop mutually beneficial actions and policies generated conditions for the creation of the Federation in 1927, and in additioncreated  a commercialization philosophy that had a positive impact for the smallest and most vulnerable coffee growers. 

Within the framework of equitable trading practices, one of our most important business initiatives is the  Juan Valdez Cafe®brand, a necessary complement to our 100% Colombian Coffee Program, that helps to position  Colombian Coffee as a relevant option for upscale segments and consumption occasions. The Juan Valdez® brand belongs to Colombian coffee growers who, in turn, constitute the majority of shareholders of this business,  allowing them to participate in the segment of greatest value generation in the coffee business. It is a fair and transparent business par excellence. Other products with the Juan Valdez signature brand, such as Juan Valdez Café Reale ®, also reflect this philosophy.

Our actions within the arena of fair and transparent prices are not limited to one business concept. The greatest value added service we provide to coffee growers is offering them a network of over 541 points of purchase in every coffee region in the country, through our cooperatives network. In this way, smaller coffee growers  have the option to sell their coffee through the Federation having always a willing buyer at transparent prices. This policy also allows growers to make their selling decisions with autonomy because of the transparent communication of the FNC's base purchase price.  

This policy, conceptualized as a purchase guarantee, generates a minimum transaction price for coffee in every region in Colombia, where all market participants, including domestic intermediaries, need to offer similar or superior quotes for the purchase of coffee. Our Federation sells on behalf of Colombian growers nearly 30% of the coffee harvested in Colombia, making one of the largest exporters in the world. It also generates a positive impact on the prices paid for the rest for the remaining 70% of coffee produced in Colombia. 

Our message is simple: if you want to buy Colombian Coffee you need to be aware that our model is designed to provide our coffee growers with a remuneration that is fair and consistent with the market and in a way that is transparent and fair. 

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© Federación Nacional de Cafeteros de Colombia 2009.

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