- While Colombia has had a micro lot monopoly for some time, larger-scale Central American producers are starting to compete
- Colombia’s market share for micro lots is shrinking alongside a reported 20% increase in coffee production in 2024
- This has been driven by competition and high production costs
COLOMBIA has long been viewed as the ultimate source for experimental coffees. For decades it has been synonymous with high-quality micro lots with exceptional processing standards.
But an increasing number of coffee-producing nations are challenging Colombia’s dominance in this segment.
Countries like Costa Rica, Honduras, and Nicaragua are gaining recognition for producing micro lots that rival Colombian coffee – and often at more competitive prices. Has Colombia lost its micro lot edge?
Central American countries are rapidly emerging as formidable competitors in the micro lot market. Nations like Honduras have not only improved their coffee quality but have also gained international acclaim through coffee events, auctions and increased market interest.
While Colombia remains a must-have origin for many specialty coffee buyers, its ability to command premiums for micro lots is being undermined by more affordable alternatives from these emerging competitors.
“Factors contributing to the rise of micro lots in competing countries include the availability of land, and the ways in which farmers plant and cultivate their coffee trees,” says Miguel Hoyos Uribe, CEO and Founder of Flor a Fruto.
“The coffee culture in Central America is quite distinct from Colombia’s. In Colombia, around 95% of coffee farmers work on less than 1.5 hectares of land, whereas Central America tends to have larger landowners.
This scale allows for more extensive infrastructure, such as on-site milling and processing facilities, giving them a competitive edge. With this setup, they can innovate more easily and lower processing costs effectively.”
Costa Rica and Nicaragua are heavily investing in infrastructure to solidify their positions in the specialty coffee market. This includes sustainable practices, processing facilities, and marketing. Meanwhile, the growing reputation of other neighbouring countries as producers of quality coffees, like Honduras and Guatemala for example, is further eroding Colombia’s dominance.
Although there is a growing domestic market in Colombia for quality, specialty coffees, its international market share is shrinking – driven not only by competition, but also by higher production costs stemming from its challenging terrain and reliance on smallholder farms.
Despite the country’s reported 20% increase in coffee production in 2024, how much of that is micro lots? While they may still be doing well, it is becoming increasingly difficult to keep up with competition in a saturated market and a depressed economic landscape.
“Competitors with lower costs and innovative approaches are increasingly drawing the attention of coffee roasters and importers,” says Miguel.
“Competing countries have adopted innovative processing methods, such as controlled fermentations and experimental varieties, making their coffees increasingly attractive in specialised markets.”
Colombia’s micro lot legacy
Colombia’s reputation for micro lots was built over decades, driven by its diverse growing regions, multiple harvest cycles, and robust processing infrastructure. The National Federation of Coffee Growers (FNC) played a pivotal role in establishing this legacy.
“The FNC’s strategy has been to maintain the recognized profile of Colombian mild washed coffee, which has earned the country the reputation of producing one of the best mild washed coffees in the world,” Miguel explains.
Colombia’s washing stations, dry mills, and efficient logistics gave it a competitive edge, enabling producers to consistently deliver high-quality micro lots to global markets. The country’s leadership in innovation – particularly in fermentation protocols and advanced processing techniques – helped it stay ahead.
“The country is at the forefront of coffee innovation, particularly in controlled fermentation protocols and advanced processing techniques,” Miguel says.
“This continuous improvement helps producers to improve the quality of their coffee, replicate successful results and remain competitive, unfortunately only for farms or coffee growers with the capacity to invest.”
Additionally, the popularity and reputation of Colombian coffees in specialty coffee businesses has been aided by ongoing success and presence in major industry events, including global coffee competitions.
“In recent years, Colombian coffees have become popular choices for the best baristas in the World Barista Championship. They frequently obtain positions among the top five or even win, which further reinforces Colombia’s prestige in the specialty coffee industry,” Miguel says.
However, as other nations adopt similar models of quality and traceability, Colombia’s unique appeal is diminishing.
The rise of international recognition for alternative origins is shifting buying preferences, challenging Colombia’s longstanding position as the default choice for micro lots. The country’s legacy still holds weight, albeit with diminishing returns.
“Although increased competition could balance prices, Colombian micro lots are likely to maintain a premium due to their established value in the market,” he says.
What’s next for Colombia and micro lots?
To reclaim its micro lot leadership, Colombia’s coffee sector must maintain and refine its focus on innovation and differentiation. Producers are already exploring advanced microbiological techniques and cultivating exotic coffee varieties to enhance their offerings.
In addition, the growing demand for sustainable products – both from consumers and as part of regulatory practices in large consuming markets – provides a way for Colombian producers to remain competitive, provided they engage in the right practices and certifications.
“Some Colombian coffee producers are differentiating their offerings by cultivating exotic or distinct coffee varieties and applying advanced microbiological techniques,” says Miguel.
“Additionally, certifications and the growing trend of regenerative, environmentally friendly agriculture attract conscious consumers and increase the market value of coffee.”
In that context, sustainability and storytelling will also play crucial roles in helping Colombian producers stand out.
However, without targeted support, smaller producers may struggle to adapt to these changes and risk being sidelined in a crowded market. Increased competition could also lead to further consolidation within the industry, potentially marginalising smallholders.
Despite these challenges, Colombia’s established infrastructure and expertise offer a path forward.
“In order to satisfy the growing demand for specialty coffees, Cenicafé, the coffee research center of the FNC, is developing and investigating techniques to improve the fermentation processes at a low cost so that it can impact more coffee growers.”
The rise of micro lots across multiple origins signals a broader shift in the global coffee value chain. While this competition is driving innovation, it also underscores the need for Colombia to adapt and evolve.
By building on its legacy and embracing new strategies, Colombia has the potential to redefine its strengths and identity to sharpen its edge in the micro lot segment.
Coffee Intelligence
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