Cafeteros rethinking
strategy
Coffee growers in Colombia are rethinking their strategic,
and trying to lower production costs while keeping the quality as high or
better.
However, a quick research of the global and US markets
indicates that the issue is that coffee retailers are trying to improve a variety of coffee crops from their suppliers in Central America and Vietnam, major competitors to Brazil and
Colombia. Cafeteros are
advised to both diversify and blend their crops into new varieties, by enhancing and creating new specialty
grains. Besides, further research
indicates that from the buyers' perspective, it would be smarter to bundle
coffee exports with other agricultural products such as banana and cocoa, both of which are growing markets with great profitability. In order to do this, coffee growers would
need to invest in other crops in other Colombian regions or partner with banana and cocoa leaders as well, thus creating multi-crop
enterprises possibly with the government support or NGO's interested in this venture. Each one of these products sell together in most coffee retail
places and they encompass together a good proportion of larger sales markets as well. Market penetration of other markets like Europe, and France, and retaking a clear presence in the Tour de France advertisement and promotion are key. The
marketing 4 Ps are good for coffee growers in the growing Latin American
economy. However, the model described here could be a transparent one, where Colombian Coffee Growers Federation can still be quite independent and the actual plan and its implementation left for the export brokers to accomplish.
Cafeteros are very worried as their revenue and net profits decreased in 2012 with respect to the previous years, with a similar trend for 2013, in spite of the economic growth, and even the perception of Colombia as a new solid emerging economy in the region.
American Stock Indexes on the Rise
American indexes continue to rise and the DJI is expected to
surpass the 15000 index for the first time in history.
