Colombia’s coffee sector is facing mounting pressure from the rapid appreciation of the peso, which has significantly reduced export competitiveness and growers’ incomes, according to Germán Bahamón, CEO of the National Federation of Coffee Growers (Fedecafé).
At the start of the year, the Colombian peso became the most revalued currency in Latin America, appreciating by nearly 16.62% in January alone. While the stronger currency has been welcomed by some as a positive macroeconomic signal, Bahamón stressed that the impact on export-driven sectors—particularly coffee—has been largely negative.
“In a country where a substantial part of the economy depends on production and exports, especially agriculture and food and beverages, such a rapid appreciation has a real cost,” Bahamón said. “We lose competitiveness, and the incomes of those who generate foreign exchange and economic development are reduced.”
According to Fedecafé, the appreciation of the peso against the US dollar translates into losses of approximately 650 to 750 Colombian pesos per carga (125 kilograms) of coffee for every peso the exchange rate strengthens, depending on international prices and the premium paid for Colombian coffee. This represents a loss of between 500,000 and 550,000 pesos per carga exported.
“At the national level, this amounts to several trillion pesos in reduced income for the coffee sector,” Bahamón added.
The impact is being felt across Colombia’s coffee-growing regions, affecting more than 540,000 coffee-farming families. Bahamón noted that producers have seen their earnings decline despite meeting increasingly demanding standards for quality and sustainability.
While the total impact of the peso’s appreciation during 2025 is difficult to quantify—given that the currency strengthened gradually—Bahamón emphasized that coffee sold today at the current exchange rate yields significantly less revenue than it would have at the beginning of last year.
Guillermo Trujillo Estrada, an economist and coffee market analyst, said this is not the first time Colombia has experienced a rapid currency appreciation. As in previous episodes, export-oriented sectors have borne the brunt of the adjustment.
“These are fundamentally export products, so the entire productive sector, including coffee, is affected,” Trujillo said. However, he noted that more than 90% of coffee producers—small and medium-sized farmers—have greater resilience to withstand such shocks. Larger producers, by contrast, are more exposed due to higher labor costs and greater operational scale.
Trujillo also argued that the current debate reflects more of a “nostalgic” comparison with past gains rather than a true collapse in farmers’ purchasing power. “What happened in 2024 and 2025 was exceptional: strong harvests, high international prices, and a favorable exchange rate. It is rare for all three variables to align so positively,” he said.
Looking ahead to 2026, Bahamón warned that the sector will face additional challenges from rising costs, driven by increases in the minimum wage, inflation, and interest rates. Although it is still early to assess the impact on production, he cautioned that lower incomes combined with higher costs could undermine investment, farm renovation, and long-term productivity.
In a direct critique of President Gustavo Petro’s administration, Bahamón said that calls to safeguard competitiveness are not about seeking privileges but about protecting rural incomes, employment, and exports. He argued that mitigating the effects of currency appreciation requires “credible fiscal policy, more efficient public spending, macroeconomic stability, and better risk-management tools,” so that the exchange rate can once again support, rather than hinder, Colombia’s productive economy.
