Strike in Colombia affecting coffee prices

Production coffee

Here is the latest report received this morning form Colombia shedding some light into why prices have been so volatile.

It is day 41  since the transport strike began and we are not able to receive parchment or dispatch coffee from our Milling Plant, given to this situation we’ve completely stopped our production process.

Negotiations between government and transport companies have not reach any agreement and discussions have not yielded results. The truckers, on strike since June 7, are demanding a rise in cargo prices, cuts to motor fuel prices and road toll costs and a plan to rid highways of older trucks. The government has submitted different proposals to deal with those topics at negotiations with union leaders to end the strike, but any agreement has reached yet.

“The strike is indefinite”, Pedro Aguilar, the head of the truckers union, told Reuters, because “the government proposals are not concrete.”

President Juan Manuel Santos ordered the military to deploy as many as 13,000 soldiers to free up the roads and the government has revoked more than 900 cargo licenses,  at this time – things have gone violent and many riots are held in the roads.

“The ongoing truckers’ strike has disrupted Colombian coffee exports,” Abah Ofon, a lead analyst at Agrimoney and a former director of agricultural commodities research at Standard Chartered Plc, said in a report e-mailed Thursday. “August exports may also be affected.”

Once transport companies and government reach an agreement we will have delays as we have to wait until we receive parchment at our Milling Plants and begin our production schedule again.