A magnitude 7.4 earthquake in Colombia, the world's No. 3 coffee producer, has disrupted operations at key coffee export roads and ports. With international coffee prices already up on concerns about El Niño, Colombia's logistics disruptions are adding to worries over global green coffee supplies.
On the 12th local time, the Financial Times (FT) said the quake blocked a main road that handles about 60% of Colombia's coffee exports. The road is a key export route linking Colombia's major coffee-growing regions with the Pacific coast's Buenaventura port. Most coffee exports from Colombia pass through Buenaventura.
According to the National Federation of Coffee Growers, landslides from the earthquake blocked the access road to Buenaventura port. The port terminal also temporarily halted operations to inspect its infrastructure.
Still, Colombia's coffee exports have not been completely suspended. The federation said exports continue through ports on the Caribbean coast. Authorities are still assessing the exact extent of damage to key infrastructure such as roads and coffee processing facilities.
Colombia is the world's No. 3 coffee producer after Brazil and Vietnam. It is the world's largest producer of high-quality mild-washed Arabica, known for its acidity and flavor, and it holds a large share of the global premium green coffee market. About 20% of the coffee imported by the United States is from Colombia. Global coffee companies such as Starbucks also use Colombian beans in key products. Starbucks uses Colombian beans as a core ingredient in its Espresso Roast.
With the global coffee industry highly dependent on Colombian beans, the quake has emerged as another variable for international coffee prices. Arabica futures have risen about 30% since early June on concerns that El Niño could affect yields in key coffee regions. On the 11th local time, they climbed to $3.26 per pound, the highest in weeks. The industry is watching how this quake will affect supplies of Colombian beans.
Tight Arabica inventories are also seen as a factor heightening supply anxiety. Agricultural commodities expert Kona Haque said Arabica stocks held in Intercontinental Exchange (ICE) warehouses are very low, and since Colombia is a major producer of mild-washed Arabica, any local supply disruption could prompt a sensitive reaction in the coffee market.
The impact of El Niño on future harvests is another variable. German Bahamón, president of the National Federation of Coffee Growers, said a short, moderate El Niño could help coffee production, but a prolonged, strong El Niño could significantly affect harvests in Colombia, Brazil and Vietnam, destabilizing global green coffee supply and demand.
In this context, Colombia's coffee production is expected to decline from last year. The federation projects this year's output at about 12.8 million 60-kilogram bags. Last year's production was 14.8 million bags, the largest in 33 years. The federation plans to begin this month assessing how El Niño will affect Colombia's 2027 harvest.
Meanwhile, Colombia is on the third day of search operations for survivors after the quake. Reuters said that as of the 12th local time, at least 265 people had died and about 500 were missing. The number of injured has reached 3,770, and more than 9,550 dwellings have been destroyed. Rescuers are currently focusing their search for survivors on collapsed buildings in affected areas. The Colombian government plans to set up an emergency reconstruction fund to restore damaged facilities such as hospitals, schools and dwellings.