Colombia, the world's third-largest coffee exporter, has effectively halted coffee exports following a magnitude 7.4 earthquake that struck on August 10, according to a report by Bloomberg on August 11. As a result, the price of Arabica coffee, which Colombia primarily exports, has surged to its highest level in five weeks.
The earthquake has blocked several sections of the Cali-Buenaventura highway, a key route to Colombia's Pacific coast. Access to Buenaventura, the port city where Colombia's main coffee export terminal is located, is now virtually impossible.
Currently, operations related to coffee exports at Buenaventura port are suspended or limited as damage assessments are underway. While other ports, such as Cartagena and Santa Marta, have not reported significant damage, a shortage of available trucks is complicating the transport of coffee to these locations.
Gustavo Gómez, president of the Colombian Coffee Exporters Association (Asoexport), stated, "Coffee export operations have been halted. Some areas may be operating under restrictions, but for now, coffee export activities are suspended." He added, "There has been no official announcement regarding when the roads will fully reopen."
Additionally, coffee processing facilities have also sustained damage due to the earthquake, further complicating export efforts. Gómez noted, "So far, there have been no reports of serious structural damage to coffee processing plants, but power outages, communication disruptions, and the impact on employees who have lost their homes are causing operational delays. This will ultimately lead to delays in coffee shipments, and even when the situation normalizes and operations resume, it will put pressure on the coffee supply chain."
In response to these developments, Arabica coffee futures for September rose 1.04% to $334.75 on the New York ICE futures exchange, marking a five-week high.
The earthquake, which occurred on August 10, is the largest to hit Colombia in the 21st century, with the mountainous region of Risaralda, home to many major coffee-producing areas, suffering the most casualties. As of now, 254 fatalities have been reported, including 101 in Pereira, a key coffee production center, according to Reuters.
Meanwhile, President Abelardo de la Espriella, who took office on August 7, declared a national emergency on August 10 and is focusing efforts on rescue and recovery operations.
* This article has been translated by AI.
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