Single origin Archives - Tea & Coffee Trade Journal https://www.teaandcoffee.net/core_topic/single-origin/ Thu, 16 Nov 2023 16:43:45 +0000 en-GB hourly 1 Uganda devises a roadmap to transform its coffee industry  https://www.teaandcoffee.net/feature/33192/uganda-devises-a-roadmap-to-transform-its-coffee-industry/ https://www.teaandcoffee.net/feature/33192/uganda-devises-a-roadmap-to-transform-its-coffee-industry/#respond Thu, 09 Nov 2023 17:51:09 +0000 https://www.teaandcoffee.net/?post_type=feature&p=33192 Despite its high coffee export volumes, Uganda has a low profile in the global market — but the country aims to gain greater recognition internationally and increase exports, and has outlined an ambitious ‘coffee roadmap’ to accomplish this. By Vanessa L Facenda

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Despite its high coffee export volumes, Uganda has a low profile and questionable reputation in the global market — but the country aims to gain greater recognition internationally, improve quality, expand production and increase exports in all coffee sectors, and has outlined an ambitious ‘coffee roadmap’ to accomplish this. By Vanessa L Facenda.  All images courtesy of the author 

Uganda is the largest coffee exporter in Africa and the eighth largest exporter of coffee by volume in the world, yet when it comes to coffee-producing countries in Africa, Uganda is not the first one to come to mind. But the ‘Pearl of Africa’ is working diligently to change that. 

Uganda is focusing on doubling its total agricultural exports from USD $6.629 billion to USD $12 billion by 2027. Odrek Rwabwogo, chairman of the Presidential Advisory Committee on Exports and Industrial Development (PACEID), in a presentation to an international group of journalists on a government-sponsored media tour of Uganda earlier this year, said that coffee is a top target for growth. PACEID advises President Yoweri Museveni on ways to improve and increase Uganda’s export potential in a variety of sectors. 

Historically, Uganda coffee has been used for blending and not identified, but the country wants to change that by improving quality. Within coffee, Uganda’s current exports are around $627 million annually, with the goal in five years being $1.5 billion — a 28 percent increase. Rwabwogo said that further goals include growing annual coffee production from approximately seven million bags to 20 million bags by 2030.

Currently, Uganda’s major coffee export is robusta. In August, its exports rose by 48.4 percent to 0.74 million bags from 0.5 million bags in August 2022, per the International Coffee Organization. This represents the second largest monthly exports on record, just behind the 0.79 million bags exported in March 1973. Although robusta is the largest export, Ugandan officials believe there is opportunity in premium coffee (arabica), roasted coffee and soluble/instant coffee. 

Uganda’s Ministry of Agriculture, Animal Industry and Fisheries has stated that coffee is a “strategic commodity in the agro-industrialisation programme under the National Development Plan III (NDP III)’. It has been prioritised for the country’s march towards middle-income status and poverty eradication programme.” The Ministry reported that coffee provides the needed foreign exchange and is a source of income for 1.8 million households in the country that are involved in its cultivation. 

The Uganda Coffee Development Authority (UCDA), which was established in 1991, monitors and regulates the country’s coffee industry, and advises the Ugandan government on policy issues. In addition to having the responsibility of increasing quality coffee production and productivity, the UCDA is also charged with growing domestic coffee consumption. Given that coffee has been identified as the leading commodity for growth, the UCDA has devised an aggressive roadmap –it includes nine initiatives (see chart below) – to elevate Uganda’s reputation in coffee and transform its coffee sector to achieve the stated growth goals. UCDA managing director, Dr Iyamulemye Emmanuel, said that the government is undertaking a number of measures to ensure that farmers are producing coffee that meets international market standards and requirements. He noted that Uganda is looking to export to emerging markets as well as developed markets. 

Challenges to achieving growth 

The goal to raise Uganda’s coffee reputation on the global stage is ambitious and the impediments to growth in most agricultural sectors are vast: overcoming long-held stereotypes, perceived low quality because of low-standard inputs (seeds, pesticides, chemicals, banned substances still being used, etc), lack of investment, no economies of scale, minimal understanding and sharing of information relating to regulations, weak cooperatives, high transportation costs (handling fees, limited infrastructure when receiving), and most commodities go to the low end of the market and take cost-cutting measure. 

Within coffee, the biggest challenges – aside from the average age of a coffee farmer being 63 – are the lack of branding (coffee is rarely identified as being from Uganda versus origins that are highlighted such as Ethiopia, Kenya, Colombia, Brazil, etc), changing the mindset of the producers who view coffee as just a cash crop (most producers don’t even sample their own coffee), and the perception of the global coffee industry, which views Ugandan coffee overall as low quality — but the potential is there. 

Mountain Harvest, an exporter, producer and provider of farmer services based in Mbale, aims to ‘challenge the status quo of coffee production in Uganda for the sake of smallholder farmers’ as its company mission asserts. “We want to show the market that Uganda has great coffee and that we can consistently deliver it,” said managing director, Kenneth Barigye. 

Mountain Harvest produces, processes and exports organic, Fair Trade and Rainforest Alliance-certified coffee. It maintains eight processing facilities throughout Uganda, where it employs washed, natural and honey processing techniques. The Mt Elgon facilities are overseen by processing manager, Ibra Kiganda, who is also the 2023 African Fine Coffees Association barista champion. Kiganda is passionate about coffee processing and likes to experiment with anaerobic fermentation, carbonic maceration and other new techniques (using microlots grown at elevations between 1,600 and 2,200 meters above sea level). 

The majority of coffee producers in Uganda grow coffee on farms that average one acre at best, typically they are smaller. Mountain Harvest teaches producers, especially women – who do the bulk of the labour on smallholder farms in Uganda – better farming methods and techniques (such as stumping, pruning, irrigation, fertilising, using organic pesticides/weedicides, etc), and is working to change their mindsets when it comes to selling their coffee. The farmers are also taught the importance of intercropping with bananas, avocados and other trees that provide shade for the coffee as well as incremental revenue. 

Better livelihoods through better pricing 

Mountain Harvest provides micro-financing that educates producers on savings and loans, in addition to covering expenses in the off-season. The financial training builds their capacity to manage money while creating a transaction history the future lenders will require. “We are not an NGO — we do not give handouts,” asserted Barigye, noting the 2 percent interest loans the company offers to producers. “Our hope is that after three years, the farmers can go to a commercial bank that has more money.” 

The loans are ‘kick-starter financing’ for the farmers, but said Barigye, they also help build trust with the farmers so they will sell Mountain Harvest their cherries rather than process and accumulate coffee at their homes. 

Farmers receive more money for their coffee – about 20 percent more – if they sell Mountain Harvest the cherries rather than the parchment but are not always willing to do so. Company COO, Nico Herr, said that many farmers will think about when they will need money for the family (school clothes, books, etc) so they will hold onto the coffee and ‘play the market’ to see if someone else will offer them a higher price. “It is degrading the crop, but you have to consider that this is the traditional way of processing coffee in Uganda,” she explained, “we’re introducing a new way to do coffee.” 

Herr, a certified Q grader, shared that Mountain Harvest is also working to shed Uganda’s reputation for ‘fast fading’ coffees. Coffees that ‘tasted great’ on cupping tables in Mbale deteriorated during transportation oversees. They discovered that it was a warehousing issue. 

Mountain Harvest now has one of the few climate-controlled warehouses in the country and has grown over the past few years from filling three containers of coffee annually to 11. 

Recruiting youths is critical 

Instrumental to the growth of Uganda’s coffee industry is ensuring that younger generations remain interested in coffee farming and not all flee to urban areas for higher paying jobs. One factor in Uganda’s favour is that although the average age of a coffee farmer is 63, more than half the population is under the age of 18. 

“For us to have sustainable coffee production, we have to attract young people while their parents are still there to train them,” stressed Barigye. 

The government has extension programmes but it is overwhelmed so individual companies provide these services. Companies like Mountain Harvest, Endiro Coffee and Masha Coffee, with the support of the UCDA, are teaching Ugandans – both young and old – on all facets of the coffee industry: from proper farming techniques to elevate quality and improved processing and storage methods, to better record keeping, microfinancing, quality control, and how to cup, as well as training young men and women to be baristas. 

Coffee cupping at Mountain Harvest Coffee

Mountain Harvest selects the top 20 students from a local university each year to be trained in agronomy and microfinance. After six months of training and work, it offers permanent positions to the top achievers among those students. Another programme is its ‘Professional Pickers’, which hires local youth for assistance during the harvest and to do other tasks the remainder of the year. 

Ugandan officials and private sector companies realise, however, that the key to growing Uganda’s coffee industry, is through women. Women in Uganda, as in many coffee (and tea for that matter) producing countries, have not had a ‘seat at the table’. Women have long been heavily involved in the labour aspect of coffee production (picking and sorting for example) but have not had the opportunities for training and education or been involved with business transactions because of conflicting familial activities. 

Endiro Coffee and Masha Coffee are both female-owned and operated companies and work with women producers — training them in all segments of coffee production, hiring them, and of course, sourcing coffee from them. Mountain Harvest also taps women to be its team leaders (most farms are still owned by men) so they are also involved on the business side. 

“We have found that when the women handle the money, there is more for the children for clothing and school items, for food and savings,” said Millie Drijaru, head of coffee, Endiro Coffee. Both Barigye and Sylvia Achebet, executive director of Masha Coffee echo the sentiment. 

Endiro Coffee was founded in Kampala in 2012 by Gloria Katusiime as a café to provide employment opportunities to Ugandan youths. In 2014, Endiro switched from buying roasted coffee to sourcing green coffee directly from Ugandan farmers, paying them a premium for their high quality beans. It partnered with a roaster in Kampala for its blends. 

Endiro started with 50 farmers that formed the Endiro Growers Bukalasi Women’s Group, which has now grown to a network of more than 500 farmers across four growers groups throughout Uganda. Endiro offers training and support, and in return is receiving higher quality coffee and greater yields, which allows it to offer farmers better prices, thereby improving their livelihoods. Endiro Coffee, which received its B Corp certification in 2019, now operates 14 coffee shops in Uganda, one in Kenya and one in Aurora, Illinois. It plans to open its own roastery in Uganda this year. 

Kween-based Masha Coffee buys coffee cherries from a network of nearly 1,000 female-led farms –ranging in elevation from 1,800 to 2,400 meters above sea level – in the Kween, Kapchorwa and Bukwo districts. Masha sends field officers to train local farmers in best practices multiple times throughout the year. Trainers offer guidance on agronomy methods from planting seedlings to soil management to harvesting, etc, and said technical manager, Eunice Chekaptui, “how to be environmentally friendly,” – all to ensure a consistent supply, which benefits both Masha Coffee and the farmers. Masha Coffee also hires local youths to assist with production and processing in Kween. 

Endiro Coffee’s shop in Sipi Falls at Lacam Lodge

Masha Coffee has begun shipping roasted coffee to wholesale customers internationally and is exploring distribution opportunities in other countries, including the United States. The coffees Masha processes in Kween are carried in parchment to facilities in Mbale for hulling, and then to Kampala for roasting and packaging. Having to haul the coffee to so many different facilities and towns is costing Masha “time, money and security,” said Achebet, noting her dream would be “to have everything done here.” She said that having everything done in one place would reduce risks. First up would be purchasing a huller, with roasting being the final phase of the plan. 

Joining forces to meet demand 

Along with 16 other Uganda companies, Masha Coffee is a member of the Coffee Investment Consortium of Uganda (CICU), a Ugandan trade group that shares resources and connections to meet international demand. 

By collaborating to deliver higher volumes of higher quality Uganda coffee on the global market, the CICU’s mission is to attract investments specifically to cover expenses and the cost of exporting. Nelson Tugume, CEO of Inspire Africa and chairman of the CICU, said there is no export financing, no available or product-oriented credit. “Coffee is different from other commodities like bananas, from a manufacturing and housing [perspective], therefore you need a particular [type] of financing.” 

PACEID is consulting with financial groups and institutions, including lenders, equity funds, foundations and the Uganda Bankers’ Association to develop an export credit fund that will provide affordable financing for producers of coffee and other products. And while many are hopeful such a fund will be established and available soon, the CICU believes time is of the essence. “[International] buyers are saying they want to buy the coffee directly, [but are asking] ‘do you have what it takes?’,” said Tugume. He shared that Uganda needs to create a better environment for investors to bring in the financing. “In terms of production, the farmers can manage it, if you give them a better price. They can manage it at the production level, [but the difficulty] is in the market.” 

The UCDA, along with Mountain Harvest Coffee, Endiro Coffee, Masha Coffee and other CICU members firmly believe that as more companies start producing higher quality, Uganda’s profile will be elevated. “The market is going to know Uganda as an origin,” said Barigye, “and it’s going to appreciate Uganda as an origin because we have great coffees.” 

  •  Vanessa L Facenda joined T&CTJ in 2012 as editor. She was previously editor of Retail Merchandiser and has written for a variety of magazines including Consumer Reports, Brandweek, Adweek, Hollywood Reporter, and Specialty Food Magazine, among many others. She may be reached at: vanessa@bellpublishing.com. 

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Global green coffee exports drop 5.5% for CY 2022/23 https://www.teaandcoffee.net/news/33154/global-green-coffee-exports-drop-5-5-for-cy-2022-23/ https://www.teaandcoffee.net/news/33154/global-green-coffee-exports-drop-5-5-for-cy-2022-23/#respond Mon, 06 Nov 2023 19:00:18 +0000 https://www.teaandcoffee.net/?post_type=news&p=33154 The ICO reports that NY and London certified trend down as global green coffee exports fall 5.5% to 110.81 bags in coffee year 2022/23.

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The International Coffee Organization (ICO) announced in its October report that New York and London certified stocks trended downward amid global green bean exports for coffee year 2022/23 falling 5.5% to 110.81 million bags from 117.28 million bags in coffee year 2021/22. World coffee production is expected to increase by 1.7% to 171.3 million bags in CY 2022/23. Under the current circumstances, the world coffee market is projected to undergo another year of deficit, with an estimated shortfall of 7.3 million bags in coffee year 2022/23.

Green Coffee Price
The ICO Composite Indicator Price (I-CIP) averaged 151.94 US cents/lb in October, a 0.8% decline from September 2023. The I-CIP posted a median value of 151.58 US cents/lb, having fluctuated between 145.99 and 160.09 US cents/lb.

The Colombian Milds and Other Milds increased by 0.5% and 0.2%, to 185.97 and 183.95 US cents/lb, respectively, in October 2023. The Brazilian Naturals presented the strongest growth of 0.9%, reaching an average of 155.52 US cents/lb. However, Robustas retracted 4.1% to 118.83 US cents/lb. ICE’s New York market grew by 1.5% whilst the London Futures market shrank by 3.4%, to 155.91 and 105.40 US cents/lb, respectively.

The Colombian Milds-Other Milds differential grew 38.5% to 2.02 US cents/lb. The Colombian Milds-Brazilian Naturals differential shrank 1.1% to 30.45 US cents/lb, whilst the Colombian Milds-Robustas differential also expanded 9.9% from September to October 2023, averaging 67.14 US cents/lb. Meanwhile, the Other Milds-Brazilian Naturals differential contracted 3.1%, reaching 28.43 US cents/lb. However, the Other Milds-Robustas and the Brazilian Naturals-Robustas differentials expanded 9.2% and 21.1%, averaging 65.12 and 36.69 US cents/lb, respectively, in October 2023.

Arbitrage, as measured between the London and New York Futures markets, widened by 13.7% to 50.51 US cents/lb in October 2023.

Intra-day volatility of the I-CIP remained stable at 6.3% between September and October 2023. The Colombian Milds’ and Other Milds’ volatility also increased to 6.8% and 7.6%. Meanwhile, the Brazilian Naturals’ volatility rose by 0.5 percentage points to 8.6% from September to October 2023. The Robustas presented the smallest volatility increase, with a 0.1 percentage point gain, averaging 7.5% for the month of October. The London Futures market’s volatility decreased by 0.6 percentage points to 6.7%. Lastly, the New York futures market’s volatility moved in the opposite direction to that of London, expanding by 0.4 percentage points and reaching 8.1%.

The New York and London certified stocks moved in the same downward direction, where London retracted by 7.9% to 0.67 million 60-kg bags, whilst certified stocks of Arabica coffee reached 0.44 million 60-kg bags, a 10.7% decrease and the lowest figure since October 2022.

Exports by Coffee Groups – Green Beans
Global green bean exports in September 2023 totalled 7.8 million bags, as compared with 8.83 million bags in the same month of the previous year, down 11.6%. For coffee year 2022/23, exports of green beans were down 5.5% to 110.81 million bags from 117.28 million bags in coffee year 2021/22. The global macro-economic environment was not conducive to consumer confidence in coffee year 2022/23, with global inflation and interest rates in many of the key advanced economies high and rising, increasing the cost of living and thus reducing disposable income levels for a very large section of the world.

These conditions seemingly support a downturn in the consumption of coffee and consequently in global exports of green beans. Nevertheless, the global economy was not only projected to expand in calendar year 2023, but the outlook was also raised between April–October 2023 by the International Monetary Fund (IMF), which suggests otherwise. The drop in global exports of green beans in coffee year 2022/23 may therefore lie more with logistics/the supply chain than the economy and actual consumption of coffee. Average green bean exports amounted to 118.13 million bags in coffee years 2018/19–2021/22, as compared with an average 109.59 million bags for coffee years 2014/15–2017/18, a jump of 8.54 million bags. This suggests a build-up of stocks in non-producing countries which have been heavily drawn down in the past 12 months.

Shipments of the Other Milds decreased by 13.1% in September 2023 to 1.57 million bags from 1.8 million bags in the same period last year. For coffee year 2022/23, exports of the Other Milds were down 12.1% to 22.11 million bags from 25.16 million bags in coffee year 2021/22. Green bean exports of the Brazilian Naturals decreased in September 2023, falling by 13.4% to 2.69 million bags. For coffee year 2022/23, exports of the Brazilian Naturals were down 8.5% to 34.17 million bags from 37.33 million bags in coffee year 2021/22. Exports of the Colombian Milds increased by 6.7% to 0.87 million bags in September 2023 from 0.82 million bags in September 2022. For coffee year 2022/23, exports of the Colombian Milds were down 11.2% to 10.77 million bags from 12.14 million bags in coffee year 2021/22. For coffee year 2022/23, total green bean exports of the Arabicas were down 10.1% to 67.05 million bags from 74.63 million bags in coffee year 2021/22.

Overall, for the Arabicas, exports were seemingly negatively affected by the drawdown of stocks in consuming countries, with buyers staying away from the markets in coffee year 2022/23. Furthermore, substitution towards the more competitively priced Robustas, induced by the increased cost of living and reduced disposable income, would have also added to the downturn (see Green Coffee Price).

Exports of the Colombian Milds fell below the 11.0 million bags mark for the first time since coffee year 2012/13. These exports were primarily driven by Colombia, the main origin of this group of coffee, and weather-related disruption affected supply throughout most of coffee year 2022/23. Indeed, Colombia’s green bean exports contracted for the first 11 months of coffee year 2022/23, with only September 2023 showing an expansion. Figures for the year show that, overall, the country’s exports declined 13.1% to 9.42 million bags, the first time they have dropped below 10.0 million bags since coffee year 2013/14.

Green bean exports of the Robustas amounted to 2.67 million bags in September 2023, as compared with 3.09 million bags in September 2022, down 13.8%. For coffee year 2022/23, exports of the Robustas were up 2.6% to 43.76 million bags from 42.66 million bags in coffee year 2021/22. Of the four groups of coffee, the Robustas were the only group to experience positive growth in coffee year 2022/23, benefitting from macro-economic-induced substitution away from less competitively priced Arabicas.

The September 2023 exports represent the lowest September volume for the Robustas since the 2.58 million bags shipped in 2012 and were a result of the 43.4% decrease in exports from Vietnam, the world’s largest producer and exporter of the group, which only shipped 0.81 million bags – the lowest September exports since 2008 (0.79 million bags). Vietnam has been struggling with supply since the start of Q4 of coffee year 2022/23, when very low in-origin stock levels were reported at a time when the start of the harvest still remained three to four months away. The low September 2023 export levels appear to be a continuation of the industry’s deepening struggle with supply issues.

Exports by Regions – All Forms of Coffee
In September 2023, South America’s exports of all forms of coffee decreased by 3.4% to 4.74 million bags. For coffee year 2022/23, the region’s exports were down 11.0% to 50.59 million bags from 56.83 million bags in coffee year 2021/22. The region’s two largest producers and exporters, Brazil and Colombia, saw their total exports fall by 7.9% and 12.8%, respectively. South America’s fortunes are closely tied to the fortunes of the Arabicas and many of the same factors that explain the latter’s double-digit fall also explain the former’s. After all, from coffee year 2018/19 to 2022/23, 93.2% of the total green bean exports from South America were Arabicas, on average. The drawdown of stocks in consuming countries and substitution towards the Robustas are the two main factors. Two specific and additional factors are that (i) Brazil’s export performance was poor due to its relatively limited supply following two consecutive years of below-par harvests; and (ii) Colombia struggled with weather-impacted supply conditions that negatively affected the origin’s export volume.

Exports of all forms of coffee from Africa decreased by 1.9% to 1.21 million bags in September 2023 from 1.23 million bags in September 2022. For coffee year 2022/23, the region’s exports were down 1.4% to 13.53 million bags from 13.73 million bags in coffee year 2021/22. The relatively strong global demand for Robustas was the fundamental source of Africa’s positive export growth rate in coffee year 2022/23. Moreover, particularly during Q4 of coffee year 2022/23, the reduced volume of exports from the Asia and Oceania region, and more pointedly from Vietnam, strengthened Africa’s own export performance. Uganda, the largest producer and exporter of Robusta coffee in Africa, took the opportunity to fill the gap in the market left by Vietnam and the Asia and Oceania region as a whole.

In September 2023, exports of all forms of coffee from Mexico and Central America were down 9.2% to 0.74 million bags as compared with 0.81 million bags in September 2022. For coffee year 2022/23, the region’s exports were down 3.1% to 15.3 million bags from 15.78 million bags in coffee year 2021/22. The downturn was primarily driven by Guatemala and Mexico, which suffered 11.5% and 16.5% decreases, respectively. However, the mitigating factor that limited the region’s fall in exports to a low single-digit decrease was Honduras’ 13.5% increase.

Exports of all forms of coffee from Asia and Oceania decreased by 35.7% to 1.91 million bags in September 2023 as compared with 2.98 million bags in September 2022. For coffee year 2022/23, the region’s exports were down 0.9% to 43.56 million bags from 43.95 million bags in coffee year 2021/22. Asia and Oceania’s fortunes are closely tied to the fortunes of the Robustas and many of the same factors that explain the latter’s single-digit increase also explain the former’s. From coffee year 2018/19 to 2022/23, 89.1% of the total green bean exports from Asia & Oceania were Robustas, on average. In coffee year 2022/23, Vietnam’s exports were up 0.4% to 28.29 million bags from 28.19 million bags in coffee year 2021/22.

Exports of Coffee by Forms
Total exports of soluble coffee decreased by 27.3% in September 2023 to 0.75 million bags from 1.03 million bags in September 2022. For coffee year 2022/23, soluble coffee exports were down 5.7% to 11.47 million bags from 12.16 million bags in coffee year 2021/22.

Soluble coffee’s share in the total exports of all forms of coffee for the year to date was 8.7% in September 2023, down from 10.4% for the same period a year ago. For coffee year 2022/23, soluble coffee’s share of the total exports was 9.3%, the same as in coffee year 2021/22. Brazil is the largest exporter of soluble coffee, having shipped 0.27 million bags in September 2023 and 3.77 million bags in coffee year 2022/23.

Exports of roasted beans were down 26.7% in September 2023 to 55,203 bags, as compared with 75,355 bags in September 2022. For coffee year 2022/23, roasted coffee exports were down 16.0% to 0.71 million bags from 0.84 million bags in coffee year 2021/22.

Production and Consumption
Under the current circumstances, the estimates and outlook of production and consumption for coffee years 2021/22 and 2022/23 remain the same.

World coffee production decreased by 1.4% to 168.5 million bags in coffee year 2021/22, hampered by the off-biennial production and negative meteorological conditions in a number of key origins. However, it is expected to bounce back by 1.7% to 171.3 million bags in 2022/23. Increased global fertiliser costs and adverse weather conditions are expected to partially offset the positive impact of biennial production from Brazil, explaining the relatively low rate of growth in coffee year 2022/23.

The impact of biennial production is anticipated to drive the outlook for Arabica, which is projected to increase by 4.6% to 98.6 million bags in coffee year 2022/23, following a 7.2% decrease in the previous coffee year. Reflecting its cyclical output, Arabica’s share of the total coffee production is expected to increase to 57.5% from 55.9% in coffee year 2021/22. South America is and will remain the largest producer of coffee in the world, despite suffering from the largest drop in output for almost 20 years, which fell by 7.6% in coffee year 2021/22. The recovery in coffee year 2022/23, partly driven by biennial production, is expected to push the region’s output to 82.4 million bags, a rise of 6.2%.

World coffee consumption increased by 4.2% to 175.6 million bags in coffee year 2021/22, following a 0.6% rise the previous year. Release of the pent-up demand built up during the Covid-19 years and sharp global economic growth of 6.0% in 2021 explains the sharp bounce back in coffee consumption in coffee year 2021/22. Decelerating world economic growth rates for 2022 and 2023, coupled with the dramatic rise in the cost of living, will have an impact on the coffee consumption for coffee year 2022/23. It is expected to grow, but at a decelerating rate of 1.7% to 178.5 million bags. The global deceleration is expected to come from non-producing countries, with Europe’s coffee consumption predicted to suffer the largest decrease among all regions, with growth rates falling to 0.1% in coffee year 2022/23 from a 6.0% expansion in coffee year 2021/22.

As a result, the world coffee market is expected to run another year of deficit, a shortfall of 7.3 million bags.

The outlook is taken from the newest publication of the Statistics Section of the Secretariat of the International Coffee Organization (ICO), the Coffee Report and Outlook (CRO). To download the full CRO or for more information, visit the ICO website: icocoffee.org.

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BSCA to forensically verify its coffee’s provenance https://www.teaandcoffee.net/news/33010/bsca-to-forensically-verify-its-coffees-provenance/ https://www.teaandcoffee.net/news/33010/bsca-to-forensically-verify-its-coffees-provenance/#respond Wed, 11 Oct 2023 11:04:00 +0000 https://www.teaandcoffee.net/?post_type=news&p=33010 Brazil Specialty Coffee Association (BSCA) teams up with forensic origin-tracer, Oritain, to guarantee the provenance of Brazilian regional coffees.

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Brazil Specialty Coffee Association (BSCA) teams up with forensic origin-tracer, Oritain, to guarantee the provenance of Brazilian regional coffees.

Oritain’s innovative forensic science provides a guarantee of Brazilian coffee’s provenance and origin no matter where it ends up in the world. Building on existing provenance mapping work in Brazil with Nestlé and the Federation of Coffee Growers of Cerrado Mineiro, this initiative puts Brazil at the forefront of scientific traceability in coffee. Through this work with the BSCA, Oritain will be able to ascertain, at any point in the supply chain, the origin of Brazilian coffee at both a national and regional level, providing a new level of assurance and transparency to buyers and consumers.

Regulation is demanding origin verification. Verification systems put in place by BSCA and Oritain are compliant with recent European Union anti-deforestation regulations, which veto imports that do not comply with environmental requirements.

Consumers too are demanding proof of origin. Research commissioned by Oritain in May 2023 indicated that Brazilian consumers are deeply concerned about the origin of their products, especially coffee. It showed that 96.9% of respondents were positive toward manufacturers that disclose origin; and 78.2% considered that a product is only truly sustainable if its origin is known.  Coffee lovers in markets such as Europe, North America, New Zealand and Australia are also demanding proveable actions from coffee brands with regards to sustainability.

Vincius Estrela, executive director of Brazilian Specialty Coffee Association, shared the announcement; “Putting in place traceability systems is an essential way of walking the walk and avoiding greenwashing accusations. Sanctity of Brazilian origin is essential to our specialty coffee growers, roasters and exporters. Brazilian coffee is exported all over the world. We are looking for a way to provide a guarantee to regulators, investors, buyers and most importantly our valued customers all over the world that our coffee is 100% Brazilian and compliant with international regulations to combat deforestation, environmental harm, unethical labour practices and food fraud.

“Our partnership with Oritain and the ‘Oritain Fingerprint’ gives our customers, investors and partners 100% confidence that the coffee they enjoy every day is ethically sourced, environmentally positive and of Brazil. For BSCA, it supports our claim that Brazilian coffee is true to source, from earth to cup, we have always been able to taste the difference – today we can prove it scientifically, even at regional level.”

Pioneered in New Zealand, Oritain has become the global leader in applying forensic science and data to verify product origin.

Commenting on the partnership Oritain CEO, Grant Cochrane said “Oritain is delighted to be partnering with the Brazilian Specialty Coffee Association to leverage the integrity of forensic science for the benefit of award-winning Brazilian regional coffees. Oritain and Nestlé Brazil launched a partnership that covered three Brazilian regions in June this year. BSCA is building on this work and paving the way for coffee consumers worldwide to benefit from unmatched traceability of Brazilian coffee, which we can scientifically prove at farm, regional and country level. The strategic vision and commitment to the project by BSCA is key to establishing Brazil as a global leader in coffee traceability.”

How does it work?
Wherever you are in the world, the geochemistry of the land differs, even in the case of parcels of land that are only a few metres apart. As coffee grows, it absorbs a unique ratio of elements depending on the mesoclimate, altitude, precipitation, soil type and growing conditions. Using cutting edge forensic science, Oritain can identify this unique ratio in the soil that is ‘imprinted’, creating an unchanging scientific link that runs through the land, the beans and the eventual cup of coffee.

The BSCA partnership with Oritain will map key coffee regions of Brazil based on these geochemical elements, to create origin fingerprints that can be then used to test against.

Gabriela Castro-Fontoura, Oritain regional director for Latin America said, “Coffee lovers around the world demand to know that the coffee in their cup comes from its claimed region, is the genuine article and has not been a part of deforestation or unethical labour practices. Oritain’s partnership with BSCA means the Brazilian coffee industry can now offer buyers, traders, importers and roasters all over the world an enhanced level of traceability – which they can share with consumers, regulators and investors. At any stage of the supply chain, Oritain can verify and guarantee, with forensic science, the origin of the coffee at a regional level, no matter how many transactions are involved or how complex the market is. BSCA has paved the way for Brazilian producers and exporters, but also for importers, roasters and brands worldwide, to work with Oritain to share the outcomes of this origin mapping work with their customers, regulators and investors.”

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Cafédirect buys out UK-based Grumpy Mule https://www.teaandcoffee.net/news/32976/cafedirect-buys-out-uk-based-grumpy-mule/ https://www.teaandcoffee.net/news/32976/cafedirect-buys-out-uk-based-grumpy-mule/#respond Mon, 09 Oct 2023 11:04:44 +0000 https://www.teaandcoffee.net/?post_type=news&p=32976 It is the first time a social enterprise focused on social impact for smallholder coffee farmers has acquired a larger private sector company.

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A leading expert in fair trade organisations says Cafédirect’s recent takeover of Grumpy Mule could be a trailblazer for the sector – as it is the first time a social enterprise focused on social impact for smallholder coffee farmers has acquired a larger private sector company.

Cafédirect has been focused on ethical coffee trading in the UK since it was founded in 1991, becoming the first coffee brand in the country to carry the Fairtrade mark. In 2018, the Cafédirect management team made the strategic decision to focus on provenance, increasing efforts to build sales of their top-selling lines Machu Picchu and Kilimanjaro coffee in the grocery supermarket sector.

“For Cafédirect, this proved to be a fortuitous decision, as hot beverage sales in the grocery sector grew rapidly during the COVID-19 pandemic of 2020-2022,” said Professor Bob Doherty, a fair trade expert from the University of York’s School for Business and Society. “People started working from home and hospitality closed. Machu Picchu sales grew from £3m in 2017 to £12m by the end of 2022. In addition, Cafédirect sales overall grew from £8m to £18m, driven by increased sales in supportive supermarket chains such as Sainsbury’s, Co-op and Waitrose. The Co-op also decided to stock Machu Picchu coffee in all of their stores, helping raise sales from £300k to £2.2m between 2018-2023.”

At the same time, hot beverage companies which specialised in food service/out of home such as Grumpy Mule in Meltham, Yorkshire (owned by Irish hot beverage company Bewley’s) declined rapidly as venues shut down almost entirely in the pandemic.

In late 2022, Cafédirect entered into discussions with Bewley’s with a view to acquiring the Grumpy Mule business in the UK. This made strategic sense as Grumpy Mule were strong in food service, and had a manufacturing packing facility with a much greater capacity than Cafédirect. The Cafédirect London Fields facility has the capacity to roast approx. 400 tonnes per annum. In comparison, the Grumpy Mule facility in Meltham can roast 4,000 tonnes per annum. In addition, Cafédirect already had a strategic relationship with Bewley’s who have manufactured the Cafédirect retail coffee in Dublin for the past 16-years.

On 7 June 2023, Cafédirect acquired Grumpy Mule. Cafédirect and Bewley’s also came to a ten-year supply agreement on Cafédirect retail coffee. Cafédirect agreed to maintain the roasting operation in Meltham in Yorkshire. The acquisition was supported by Cafédirect investors Oikocredit and Triodos bank.

“All in all, this has been quite the turnaround for a company that in 2015 lost business in Tesco and Asda with key lines being destocked, and in 2016 carried out a rights issue with Triodos bank to raise funds,” says Doherty. “Cafédirect now has two commercial directors for grocery and food service, and the business has an annual turnover of over £30m, all providing increased returns to producers via the gold standard.”

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Nepal Tea Collective relaunches its Rose Label Reserve https://www.teaandcoffee.net/news/32642/nepal-tea-collective-relaunches-its-rose-label-reserve/ https://www.teaandcoffee.net/news/32642/nepal-tea-collective-relaunches-its-rose-label-reserve/#respond Wed, 16 Aug 2023 09:19:16 +0000 https://www.teaandcoffee.net/?post_type=news&p=32642 Nepal Tea Collective has announced the re-launch of its limited-edition hand-plucked Rose Label Reserve.

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Nepal Tea Collective has announced the re-launch of the limited-edition Rose Label Reserve. Hand-plucked and handcrafted from rare cultivars, this whole leaf luxury black tea boasts a pronounced and surprising fragrance and flavour of rose, with hints of camphor and rich honey.

Top Notes: Roses and camphor
Middle Notes: Sweet eucalyptus, layered with honey and brown sugar
Bottom Notes: Citrus and sweet mint.

Even among the unique flavours of Nepali black teas, the Rose Label Reserve stands apart. Earning its luxury status with its rich and complex flavours, says the company, this tea also comes with a prestigious history and a unique story of discovery.

The rare Bannockburn-157 cultivar from which this tea was hand-plucked has a prestigious history in Nepal. This special cultivar was gifted to a Nepali king decades ago and carefully reared on tea gardens in Eastern Nepal. However, it was the work of a young tea maker, who was only 19-years-old at the time, Nikesh Gurung’s experimental crafting process that highlighted the complex rose notes in these tea leaves.

For this year’s harvest of the Rose Label Reserve, the Bannockburn-157 cultivar, along with several other Wild Assamica cultivars growing in Eastern Nepal, were sequestered and carefully reared and hand-plucked during the summer months. The dry leaves, black with a red-tint, exude a delicate fragrance once steeped in hot water, brewing into deep-red liquor that is perfect to serve on special occasions.

“This tea is the embodiment of our passion for creating exceptional teas,” expressed Nishchal Banskota, founder of Nepal Tea Collective. “The Rose Label Reserve is a testament to the skill and dedication of our tea artisans, and we are thrilled to present this luxurious tea to tea enthusiasts worldwide.”

The Rose Label Reserve is available at USD $100 for 100 grams, for a limited time only. To purchase the Rose Label Reserve, please visit the Nepal Tea Collective website.

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