The National Federation of Coffee Growers of Colombia, (), abbreviated as Colombian Coffee Growers Federation or Fedecafé, is a non-profit business organization, popularly known for its "Juan Valdez" marketing campaign. The Federation was founded in 1927 as a business association that promotes production and exportation of Colombian coffee. It currently represents over 540,000 producers, most of whom are small family owned farms.

While many factors contributed to the impressive increase in production and revenue, the rise and success of the Colombian coffee industry reflects the Federation's rigid adherence to the three objectives which were originally offered to justify its creation: 1) to protect the industry, 2) to study its problems, and 3) to further its interests.

The Federation supports research and development in the production of coffee through grants to local universities and through Federation sponsored research institutes. The Federation also monitors production to ensure export quality standards are met.

The highly successful Juan Valdez branding concept was launched in 1960 to distinguish 100% Colombian coffee from coffee blended with beans from other countries. The trademark character made its debut on a whole-page ad in the Sunday edition of The New York Times on January 6, 1960, featuring a country farmer (campesino) carrying coffee on his mule Conchita.

In November 2019, the Federation received the Distinguished Leadership Award for Social Equity from the Inter-American Dialogue. The award was presented by the vice president of Colombia, Marta Lucía Ramírez.

The arrival of coffee in Colombia

First cultivated in the Dutch East Indies, the species of Coffea arabica came to Americas around the year 1690. The Dutch sent the coffee seeds to their colonies in Surinam, and thereafter to the French Guiana and Brazil. The French, through other routes, took it to Guadeloupe and Martinique, their main two colonies in the Caribbean.

It seems that the Jesuits were the first to introduce seeds of coffee in the "Nueva Granada" (today Colombia) by the year 1723. The first experiments in growing coffee in Colombia are recorded in the 18th century. Although some coffee plantations were initiated during the first half of the 19th century, it was not until the second half of the Century that the coffee industry was consolidated as an economic generator of employment, wealth, and hard currencies.

Coffee seeds arrived late in Colombia, compared with other Latin American countries. According to historians, the first seeds came in through Cúcuta, coming from the Venezuelan Andes, and penetrated all across the Santander provinces. From there, its cultivation spread to Cundinamarca and other provinces.

Nobody knows for sure who brought the first coffee seeds into the country. Some historians give credit to the Jesuits monks, who had farming lands in the "Llanos Orientales", Valle del Cauca and other regions. Other historians point to father Romero, the parochial priest of Salazar de las Palmas, Norte de Santander. There are stories that narrate that father Romero would impose to his parishioners, in penance for their sins, to plant coffee seeds in their backyards. The initiative for the development, investment and expansion of coffee growing in Colombia came from a group of national dignitaries and pioneers, who devoted their personal talents and resources into a venture of slow turnaround and high risk. Especially Colombian magnate Mr. Carlos Pinzón, virtually the founder of Colombia's modern coffee export business. In many ways, Mr. Carlos Pinzon's coffee empire was the precursor of the present-day Coffee Grower's Federation, overlording consignments, tying up export orders, arranging insurance, and, in many cases, financing. From 1870 on, large coffee plantations began to flourish, and this translated into a vigorous expansion of the nation's economy in international trade and commerce. The Colombian coffee industry began to operate as a powerful engine for the development of the nation's economy.

In 1879, the Colombian Congress passed the Coffee Act, known as the Law 29, by which the government would foment and sponsor the growing of coffee in the provinces better qualified for it, according to climate and terroir. As a result of this promotional effort, the production of coffee in Colombia grew enormously, which between 1880 and 1920 went from 107,000 to 2.4 million bags per year (60 kilograms per bag).

By 1920, small growers had done more to develop the industry than any other group. For many decades they planted, processed and sold their coffee virtually unnoticed by Colombia's government. On the other hand, the large growers began voicing their opinions and grievances against the Government through the Agricultural Society of Colombia (Sociedad de Agricultores de Colombia). By the start of the 20th century, there were about 750 coffee farms and plantations. Between 1910 and 1932, this number had increased to more than 150,000 farms and plantations, according to the Coffee Census of 1932.

History of the Coffee Federation

Given the positive advancement of coffee growing in Colombia, an important group of coffee growers, dedicated to the export of the beans, organized an association to regulate the market. Thus, in 1904, the coffee producers organization ("Sociedad de Productores de Café") was established. Although its good intentions, it failed to regulate the industry and the market. It was a difficult task, as the global conditions were complicated due to overproduction, price volatility and the events of World War I. The coffee industry in the nation was evolving and growers, merchants and exporters could not agree on policies and regulations to organize and consolidate it.

By the end of deliberations, the Second National Congress of Coffee Growers had agreed to establish the "National Federation of Coffee Growers of Colombia" (Federación Nacional de Cafeteros de Colombia). The Federation was created as a trade association, private entity and non-profit organization.

In 1928, the first regional committee was established as the Coffee Growers Committee of Antioquia (Comité de Cafeteros de Antioquia). Mariano Ospina Pérez was its first President, and the first registered member of the association.

The first Board of Directors of the newly organized Federación Nacional de Cafeteros de Colombia assembled in Bogotá, on August 3, 1929. Its first members were Mariano Ospina Vásquez, Alberto Camilo Suárez, Gabriel Ortiz Williamson, Carlos Caballero, Jesús del Corral and Mariano Ospina Pérez, for whom the organization of the national coffee industry was one of his most serious and ambitious concerns.

thumb|Mariano Ospina Pérez was President of Colombia between 1946–1950 and General Director of the FNC from 1930–1934.

In the election of members of the Board of Directors in 1954, Ospina Pérez was installed as President of the Board of Directors. His return to the Federation marked the reappearance of one of Colombia's most important coffee names in an active role in the industry. Under Ospina Pérez' aegis, the National Federation of Coffee Growers of Colombia successfully consolidated the nation's coffee industry and promoted it in the world markets to great effect. Colombia became the largest producer of prime Coffea arabica coffee in the world. He laid a very solid corporative foundation, and today, the Colombian Coffee Federation congregates and supports over 500,000 independent coffee growers and small farmers.

The managers of the Coffee Federation

The general managers or directors of the National Federation of Coffee Growers of Colombia do not just function as business managers or administrators, given the fact that in furtherance of their normal business activities in running efficiently and effectively a private enterprise, they actively participate in the formulation and implementation of national policy for the coffee industry and they may substantially influence the macro-economic policy of the country. The general Managers have had a seat in the board of directors of the Banco de la República, in the Council of Economic and Social Policy (Consejo de Política Económica y Social) and in the Council of International Trade and Commerce. Furthermore, they direct and preside the diplomatic missions that represent the nation in international conferences and forums, which may influence foreign policy as well.

The enterprises of the Coffee Federation

The Colombian Coffee Federation has created and promoted various enterprises to further support and provide adequate service to the coffee growers. The most significant of these enterprises are the "Flota Mercanmte Grancolombiana", the "Banco Cafetero" and the "Compañia Agricola de Seguros". Although some of these institutions have faced financial difficulties, and one has been sold, it is relevant to describe the nature of their services and performance.

Flota Mercante Grancolombiana

The "Flota Mercante Grancolombiana" (Colombian ocean freight merchant fleet) was created in 1946, with the purpose of establishing new routes and offering better rates for the exportation of Colombian coffee, and thus, to make this commodity more accessible and affordable in international markets. At that time, the shipping consortium "Grace Line" dominated the ocean forwarding lines and had very high freight rates.

The globalization of world economies and the interdependence of the ocean freight industry during the decade of the 90s, made shipping business more efficient and competitive. Major shipping companies sought strategic alliances and partners. In order to compete in the global market, "la Flota", in 1996-97, entered in partnership with the "Transportacion Marítima Mexicana", a Mexican company with ample experience in ocean shipping. The "Fondo Nacional del Café" acquired 40% of the new company, called "Transportacion Marítima Grancolombiana".

The company eventually extended its services to cover production risk and liability, hedging, calamity, auto, life and health insurance to all of the members of the Coffee Federation, offering if lower premiums and higher benefits. The company suffered heavy losses during the earthquake that destroyed Armenia, as this was a highly concentrated area of coffee growers.

During the 20th century, Colombia became the number one producer and exporter of premium mild washed coffee in the world. This has been a very significant achievement, attained by the combined efforts of the private sector, the gremial organizations and the Federation's institutions. The successful model of Colombian coffee production and commerce is the outcome of a well balanced combination of efficient private enterprise and a well planned macroeconomic policy by the government. This economic model has become the organizational archetype for more than fifty coffee producing countries in Africa, Asia and Latin America.

Trademarks and patents of the Federation

The FNC owns several trademarks for its products. Its first trademark, "Juan Valdez", was registered with the USPTO back in 1960, and the word mark for "100% Colombian coffee" was registered in 1969. The letters and stylized form of the name "Juan Valdez" is internationally protected through the Madrid system, and registered in many countries including the European countries and United States. Other trademarks registered with the USPTO include, among others, Buendia, Variedad Castillo and Juan O'Clock. Many of these as well as other marks are registered in the European countries.

The FNC applied for a patent for an invention related to a protein from coffee berry borer (a small beetle) with the USPTO; a PCT application for the same invention has also been filed and FNC entered into the regional phase at the European Patent Office and national phase in Japan.

See also

  • Anacafé
  • National Coffee Association
  • Specialty Coffee Association of America

Footnotes

References

  • 1998 Lockwood Trade Journal Co., Inc.
  • Juan Valdez site
  • Juan Valdez site