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Colombian President Announces Government Takeover of FNC: The Coffee Industry Enters a New Era of State Leadership

Source: Coffee Reviews Author:前街 Published:1792206916

Earlier, Colombia suffered from internal unrest and external troubles. First, armed conflict broke out between government forces and the Central General Staff, a branch of the Revolutionary Armed Forces of Colombia, damaging multiple industries, especially agriculture. The coffee industry in particular faced problems such as weather changes, rising prices of fertilizer and other inputs due to geopolitics, shrinking planted area, the national political system, exchange rates, and coffee competition from other American countries.

It is understood that Colombia's coffee has always been produced mainly by small coffee farms. To protect the interests of small coffee farms, in 1920, at the proposal of coffee farmers, the Colombian Coffee Federation was established. Through subsequent development, it led to the more authoritative and standardized National Federation of Coffee Growers of Colombia, known as FNC. Although this organization has always represented Colombian coffee, the FNC has always been a private company rather than a government organization, and is therefore restricted in many ways.

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Recently, a large coffee producers' conference was held in Colombia. At the conference, Colombian President Gustavo Petro stated that the state must take over the National Federation of Coffee Growers (FNC) to protect and properly utilize public resources, and that state intervention will enable the coffee industry to industrialize and thereby export better products.

He also stated that the FNC currently has funds but is not using them correctly, and that after the government takes over, it will direct resources to benefit all regions, small producers and farm technification. He also proposed establishing credit lines for producers, modernizing infrastructure and connecting farms with fiber optics, with the focus on establishing coffee cooperatives controlled by the same members. The state will provide economic help to advance these projects so as to industrialize the coffee sector and enable coffee exports.

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In addition, the coffee industry has encountered many problems earlier,producers said they would protest and demand that relevant departments take measures to control coffee prices, and stated that if the government does not solve the problems, by the4end of the month a nationwide strike would be held.However, at the coffee conference, based on data collected through technical analysis, the government determined that international price fluctuations, rising production costs and the impact of El Nino on the coffee industry were significant, and decided to launch a "coffee price stabilization fund."

This"coffee price stabilization fund" willprovide coffee growers with economic compensation of up to the price of80%per kg of coffee beans, to mitigate the losses suffered by coffee growers due to international market price fluctuations or increased production costs.

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Although the government intends to improve the current state of the domestic coffee industry, the country's internal unrest remains unresolved. On4month7day, the Central General Staff issued a statement warning civilians not to approach patrols, military, police forces and any other armed units of the authorities, because new armed clashes may occur.

In addition, despite issuing threats of military action, the Central General Staff still demanded dialogue with the president. Therefore, on4month8day, the Colombian government and the rebel armed group decided to hold a new round of dialogue on4month12day in Caracas, the capital of Venezuela, hoping to resolve the issue peacefully.。

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