Colombia: Law No. 1969 of 2019 Establishing the Coffee Price Stabilization Fund (FEPC)

Colombia's Law No. 1969 of 2019, enacted on July 11, 2019, establishes the Coffee Price Stabilization Fund (FEPC) to help stabilize the income of Colombian coffee growers against fluctuations in coffee prices. The fund operates as a special account without separate legal personality and is administered by the National Federation of Coffee Growers under a specific agreement with the national government. Its financial resources and accounting must remain separate from those of the National Coffee Fund. The law identifies Colombian mild Arabica coffee as the product eligible for stabilization and limits beneficiaries to coffee growers registered in the Coffee Information System (SICA), excluding transactions conducted exclusively between traders or intermediaries. Authorized mechanisms include stabilization contributions and compensation payments, financial options and other instruments approved by the Fund's Governing Committee to mitigate the effects of significant price declines on growers' income. The legislation also provides for financial hedging mechanisms, establishes eligibility criteria and limits on the volume of production covered, and regulates funding sources, administration and financial oversight. It defines the responsibilities of the competent ministries and the National Federation of Coffee Growers in the Fund's governance, monitoring and implementation of stabilization mechanisms. The law entered into force on July 11, 2019, and does not establish an expiration date. Its application must take account of subsequent legal amendments, including the repeal of the paragraph of Article 9 by Law No. 2294 of 2023.