Government Plans to Allocate $63 Million for Colombia’s Coffee Industry
On Wednesday, the government of Colombia announced that they will put more or less $64 million to the country's coffee stabilization fund. The fund intends to give protection to local farmers of coffee in Colombia.
It was stated in an article from Remezcla that the investment will support financial stability to the coffee farming industry in the country. Also, the money will be used to fund technical resources to increase Colombia's coffee production and its quality. The expected results of the act include higher income-earning possibilities for Colombian coffee products in the coffee market.
The Effect on Coffee Prices
The effect of the initiative on daily coffee prices is still unclear. However, based on past reports by the Colombian Coffee Growers Federation (FNC) there is an expected increase in the price of coffee from $1.40 to $1.50 per pound. The current price level of coffee in the market is at $1.06.
Opportunities for Colombian Coffee Farmers from the Investment
The investment will provide Colombia's coffee farmers with certainty and peace of mind regarding their coffee products due to the presence of predetermined prices. This will allow the coffee farmers of Colombia to put fewer worries on the ups and downs of the coffee industry of the country. According to the Minister of Finance in Colombia, Alberto Carrasquilla, this will allow the coffee farmers of the country to focus on making the best quality coffee products they can offer.
Last Year's Coffee Industry Performance
In the previous year, Colombia attained good results in terms of productivity. This had been its best in the past 27 years. However, the achievement was disadvantaged due to the decreasing trend of commodity prices. The commodity prices in the country had been changing but the prices had significantly dropped compared to the 2011 statistics. These results mean that the prices of the products traded by Colombia had fallen while Colombia's coffee production levels had increased in the country. The fund intends to serve as a balance for the two inequalities in the country.
Colombia is known as the second-biggest producer of Arabica coffee in the entire world. Also, the country is recognized as the third biggest producer of coffee in the entire world. The two largest suppliers of coffee in the globe are Brazil and Vietnam.
The Benefits of Consuming Coffee
Coffee is an important part of almost every person's lifestyle. It is a wanted commodity worldwide. This is one of the primary reasons why the government is investing, improving and protecting the industry.
According to an article from the website Caffeine Informer, coffee offers many benefits to people.
One benefit of drinking coffee is it helps reduce muscle pain. By drinking a cup of coffee, muscle pain is reduced by at least 48 percent.
Another, it helps protects a person from getting cirrhosis in the liver. Together with lessening alcohol intake, a cup of coffee helps lower liver enzymes in the body.
Additionally, it can lower the risk of a person getting Type 2 Diabetes. For people who get to consume 6 or more cups of coffee a day, their risk of getting diabetes is reduced to 22 percent.
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