The Argentinian tea and coffee markets are steadily growing this year thanks to generally improving economic situation in the region and stable domestic demand.

Argentina has rich traditions of tea and coffee drinking. While the Covid-19 pandemic and serious financial problems of the country had resulted in a serious drop of consumption of both drinks, the market has almost completely recovered, although the rise of coffee prices by almost 150 percent in the last year put a serious pressure on the market.

For many global coffee majors, the expansion into Argentina along with Brazil, is a priority due to the potential, which is associated with the Latin American region and the exodus of business from the markets of Russia and Ukraine — once the most important emerging markets for them.

With the population of more than 47 million people and a status of the second largest country in the Latin American region, Argentina has always been under the radar of some major tea and coffee producers.

Emanuele Uccellini, the Caribbean and Latin America BU Director for Lavazza Group BU Americas told T&CTJ in an exclusive interview, that Lavazza has been present in the Argentina for many years, and that the market represents a top priority within the Latin America region for two main reasons:

1. The growing interest of consumers in high-quality coffee brands. The demand for specialty coffees has been increasing significantly, especially during the pandemic, and we’ve seen the trend keep growing, mostly among younger consumers.
2. The relevant presence of people with Italian roots: they always feel at home when they sip a good Lavazza cup of coffee.

The Argentinian coffee market has always been of interest to other global majors as well.

One of them is JDE Peet’s, which in recent years has significantly strengthened its positions in the local market. A spokesperson for JDE Peet’s, said, “JDE Peet’s does sell a range of products across our brand portfolio in Argentina including NCC capsules. We anticipate that the demand for coffee and tea will only continue to grow globally. We recently signed an agreement to acquire Marata’s coffee and tea business in Brazil, and South America in general is an area in which demand for coffee and tea is increasing.”

The Argentinian market also attracts the interest of global coffee chains, many of which are considering accelerating expansion in the local market in years to come, which is primarily done through the expansion of the existing portfolio. One example is Starbucks, which considers the local market as a priority for its growth.

A Starbucks’ spokesperson told T&CTJ, “Starbucks entered Argentina in 2008 with our first store in Buenos Aires. Today, the brand operates over 130 stores in the market, providing employment opportunities to over 1,700 green apron partners,” noting that earlier this year, Starbucks celebrated its 15^th anniversary in Argentina, together with its licensed business operator, Alsea.

In April 2023, the spokesperson said that Argentina took a significant step toward a more sustainable future by certifying its first two Starbucks Greener Stores. “This is part of Starbucks global vision to have 3,500 Greener Store-certified locations worldwide, aiming to cut our climate, water, and waste footprints in half by 2030. Starbucks Argentina also continues to expand its plant-based menu offerings in an effort to deliver increased options for our customers.”

Furthermore, in collaboration with Alsea, Starbucks announced plans to operate 2,000 Starbucks stores in the 12 markets where Alsea operates the brand globally by the end of 2025.

Starbucks and other leading Western coffee chains operating in the country have faced strong competition with local players. An example of this is Café Martinez chain, a local chain that has almost doubled the number of its outlets within Argentina the last few years and which plans to continue its active expansion in years to come.

Coffee consumption is growing

A senior researcher at Euromonitor International said that in 2022, the total volume sale of coffee in Argentina is set to post a third consecutive year of growth, following a decline during the outbreak of Covid-19. “For the current year and beyond even though consumers have returned to pre-pandemic habits, total volume consumption is forecast to grow much slower. This is due to the long-term unstable economy, increased poverty, and high inflation, which is diminishing the purchasing power of middle and low-income consumers.”

However, coffee is set to post the highest total volume and current retail value growth in hot drinks, driven by the widening use of instant coffee, which began seeing consumption growth in 2021 and 2022. Instant coffee benefits from being affordable, while offering a widening variety of coffee mixes. New coffee consumers tend to start with lighter options, with less coffee flavour and with more milk content, with the inclusion of chocolate and other ingredients.

The coffee industry has suffered a major world price hike due to drought conditions in Brazil, which led to considerably lower production and higher freight costs. Coffee pod consumption rocketed as consumers prioritised high-quality coffee with a desire to replicate foodservice experiences at home. The coffee pod category was also stimulated by a continuous entry of new brands, including La Morenita, La Virginia, Jacobs, L’Or, Viaggio, and Nestlé Argentina’s latest novelty with Starbucks. Sales of coffee pods were fueled by the growth of ecommerce, the fastest-growing channel in the hots drinks industry in 2022.

According to Euromonitor’s spokesman, retail value sales of coffee in Argentina increased by 67 percent in current terms in 2022 to ARS 80.3 billion The instant coffee mix category was the best performing one in 2022, with retail value sales rising by 75 percent in current terms to ARS 5.4 billion. Retail sales in 2022 had a CAGR of 59 percent, hitting ARS 811 billion (CAGR of 15 percent over the forecast period 2022-2027).

Coffee does grow in Argentina; however, it is produced in only a single plantation in the Yungas — a bioregion of a narrow band of forest along the eastern slope of the Andes Mountains from Peru and Bolivia. It emerged in the early 1970s under the name of Café Baritú when authorities in the province launched an ambitious plan to make Northern Argentina a coffee-producing area.

Graciela Ortiz, the owner of Café Baritú in an interview with the Argentinian iProfesional business paper said that the coffee produced on the Salta farm is Arabica. “It is actually a mixture of two Arabicas, one Colombian and the other Brazilian,” he specifies. “It has a very subtle flavour, with fruity, perfumed notes.”

As for coffee, although Argentina is still far from countries like Norway, Finland or the United States in terms of coffee consumption – being stagnant for years at a per capita consumption of only one kilo per year – the sector has shown sustained growth recently, which is mainly due to the rise of popularity of coffee among local customers.

According to a study conducted by the Argentine Coffee Chamber in collaboration with the firm The Brand Bean, today, coffee in Argentina represents 45 percent of the beverages chosen compared to all other beverages and is consumed mostly by people between 25 and 44 years old.

Most local citizens prefer milder coffees instead of stronger roasts as in many European countries. According to some media reports, an average of one kilo of coffee per capita is consumed annually (208 cups) in the country, with the instant variety being the most consumed. Nine out of 10 Argentines prepare it at home and approximately 50 percent of consumers add milk.

Regarding the most chosen varieties, young people seek to customise it and choose to consume cold and instant coffees. On the other hand, those over 35 years of age choose the capsule format.

According to experts of La Nacion, local consumers are increasingly interested in knowing everything about the product: who makes it, what differential attributes it has, what extraction method enhances it, what the differences are between varietals and what the different types of filtering are like. In addition to choosing coffees from more exotic origins, such as Kenya, the Dominican Republic, Honduras or Haiti, they also turn to cold brew when the temperature rises.

Tea-growing & consuming are strong

In the case of tea, retail value sales grew by 62 percent in current terms in 2022 to ARS 21.3 billion. Green tea was the best performing category in 2022, with retail value sales rising by 73 percent in current terms to ARS131 million.

Retail tea sales had a CAGR of 41 percent in 2022, reaching ARS 118 billion (constant value CAGR of 2% over the forecast period).

Tea sales saw growth in total retail volume terms in 2022; resulting from the increasingly positive perception of tea as a healthy option. Argentinian consumers have always been very health conscious, but the outbreak of Covid-19 increased this, with consumers discussing and looking for ways to boost their immune systems. Greater interest has been given to specific functional benefits offered by different tea varieties, particularly those claiming to strengthen the immune system or provide a calming effect. Thus, green tea and herbal/fruit tea have seen strong growth, driven by their functional fortified options.

Argentina has a more robust tea production than that of coffee. According to Argentinian Mitre Y Elcampo business paper, tea production is in the southernmost part of Argentina, located between 26° and 28° South latitude, there are about 6,800 producers with an area of 40,500 hectares. About 94 percent of them are located in the province of Misiones, and the remaining 6 percent are in Corrientes. A characteristic of Argentine tea is its high concentration of polyphenols.

Approximately 90 percent of Argentine tea production is destined for foreign markets and its volume represents almost 2 percent of world consumption. The main destination is the United States, with 70 percent of the production. Currently, Argentina is the main exporter of tea to the United States of America. Other important destinations are Chile, Poland, Russia, Germany; followed by the United Kingdom, India, Malaysia and 30 other countries

The annual volume of tea exports from Argentina are varied in range of 70,000-75,000 tonnes mostly black tea for about USD $75 – $83 million in value terms. Nearly 64 percent of the cultivated area is certified with the RAS Standard (Sustainable Agriculture Network, triple impact).

Tea consumption in Argentina has been steadily growing with the biggest demand being observed in case of gourmet tea. This has even stimulated the development of tea tourism in the region, with the province of Misiones, which is located in the northeastern corner of the country in the Mesopotamia region, at forefront of this.

• Eugene Gerden is an international freelance writer, who specialises in covering the global coffee, tea and agricultural industries. He worked for several industry titles and may be reached at gerden.eug@gmail.com.

The post Argentinian tea and coffee markets show growth potential appeared first on Tea & Coffee Trade Journal.

The ICO Composite Indicator Price (I-CIP) averaged 154.53 US cents/lb in August, posting a median value of 152.10 US cents/lb and fluctuating between 148.79 and 163.62 US cents/lb.

The Colombian Milds-Other Milds decreased by 1.6% and 3.5%, to 187.55 and 186.73 US cents/lb, respectively, in August 2023. Accentuated by a greater falling rate, the Other Milds fell back below the Colombian Milds. The Brazilian Naturals-Robustas both contracted by 3.0% and 2.3%, reaching an average of 154.66 and 124.62 US cents/lb, respectively. ICE’s New York market fell by 1.9%, whilst the London Futures market shrank by 2.0 % to 156.56 and 111.34 US cents/lb, respectively.

The Colombian Milds-Other Milds differential pivoted from –2.91 to 0.82 US cents/lb, returning to the positive after an inverted differential in July 2023. On the one hand, the Colombian Milds-Brazilian Naturals differential grew 5.8% to 32.89 US cents/lb, whilst the Colombian Milds-Robustas differential contracted 0.1% from July to August 2023, averaging 62.93 US cents/lb. Meanwhile, the Other Milds-Brazilian Naturals, Other Milds-Robustas and Brazilian Naturals-Robustas differentials contracted by 5.7, 5.8 and 5.9%, reaching 32.07, 62.11 and 30.04 US cents/lb, respectively.

In August 2023, the Colombian Milds-Other Milds Arabica differential had been narrowing considerably and, after thirty-four business days of negative differentials, this trend was reversed on 10th August. The Colombian Milds-Other Milds Arabica differential closed August on a one-month high, though it has not reached such positive lows in four and a half years. In late July and August 2023, the Arabicas-Robusta price movements recoupled, moving once again in tandem. Since April 2023, the price movements of the Arabicas and Robusta were decoupled under price substitution-related pressure, where demand for higher-end qualities has waned in favour of more competitively-priced coffees. However, the recoupling appears to indicate that the price differentials are now sufficiently narrow, and relative price-driven changes in demand (Arabica versus Robusta) may have come to an end.

Arbitrage, as measured between the London and New York Futures markets, narrowed by 1.6% to 45.23 US cents/lb in August 2023. This marks the lowest point since June 2020, where arbitrage sat at 44.73 US cents/lb.

Intra-day volatility of the I-CIP followed a consistent downtrend, reaching 7.0%, a 0.8 percentage point decrease between July and August 2023. The Other Milds presented the strongest volatility decrease, with a 3.7 percentage point drop, averaging 7.3% for the month of August. The Colombian Milds’ and Brazilian Naturals’ volatility also contracted to 7.5% and 8.8%. Meanwhile, the Robustas’ volatility dropped by 2.3 percentage points to 8.7% from July to August 2023, whilst the London futures market’s volatility increased by 0.2 to 9.4%. However, the New York futures market’s volatility moved in the opposite direction from London, retracting by 0.5 percentage points and reaching 8.6% for New York.

The New York and London certified stocks decreased in tandem by 3.0% and 34.6%, respectively, closing in at 0.57 million 60-kg bags, whilst certified stocks of Robusta coffee reached 0.58 million 60-kg bags, the lowest in over 20 years.

Downward pressure on prices could be attributed to the lack of aggressive buying of green coffee through the world. Indeed, for the current and previous coffee years (2021/22 and 2022/23), a combined underproduction of 14.4 million 60-kg bags is estimated. At present, there is an apparent decoupling between consumption and exports. There is little evidence of the former falling, while the latter for the current coffee year is down 5.7%. A plausible explanation could be the drawing down of stocks. During the Covid-19 pandemic, buyers, roasters and traders would have built up large stocks of coffee that must now be utilised before they perish. This may help to explain why exports are falling, coffee year on coffee year, thus applying negative pressure on the I-CIP. The broad drawdown of stocks is perhaps, further illustrated by the historic lows of the ICE stocks.

Exports by Coffee Groups – Green Beans
Global green bean exports in July 2023 totalled 9.31 million bags, as compared with 9.3 million bags in the same month of the previous year, up 0.1%. As a result, the cumulative total for 2022/23 to July is 93.56 million bags versus 99.2 million bags over the same period a year ago, down 5.7%.

Shipments of the Other Milds decreased by 13.7% in July 2023 to 2.20 million bags from 2.55 million bags in the same period last year. As a result, the cumulative volume of exports continued to fall, decreasing by 12.2% in the first 10 months of coffee year 2022/23 to 18.64 million bags versus 21.22 million bags over the same period in 2021/22.

Green bean exports of the Brazilian Naturals increased in July 2023, rising by 2.8% to 2.6 million bags. For the first 10 months of coffee year 2022/23, green bean exports of the Brazilian Naturals amounted to 28.4 million bags, down 9.7% from 31.45 million bags over the same period a year ago. Changes to the fortunes of the Brazilian Naturals are mainly due to changes in Brazil’s total green bean exports, the biggest producer and exporter of the Brazilian Naturals, which also increased in July 2023 (10.8%) to 2.7 million bags from 2.43 million bags in July 2022.

Exports of the Colombian Milds decreased by 8.1% to 0.93 million bags in July 2023 from 1.01 million bags in July 2022, driven primarily by Colombia, the main origin of this group of coffee, whose exports of green beans were down 16.0% in July 2023. This is the thirteenth consecutive month of negative growth for the Colombian Milds and, as a result, the exports of this group of coffee for October 2022 to July 2023 were down 12.9%, at 9.11 million bags from 10.46 million bags in the first 10 months of coffee year 2021/22.

Green bean exports of the Robustas amounted to 3.59 million bags in July 2023, as compared with 3.22 million bags in July 2022, up 11.6%. This is the fourth consecutive month of positive growth for the Robustas and, as a result, the exports of this group of coffee for October 2022 to July 2023 were up 3.8%, at 37.45 million bags, as compared with 36.08 million bags in the first 10 months of coffee year 2021/22.

Exports by Regions – All Forms of Coffee
In July 2023, South America’s exports of all forms of coffee decreased by 2.2% to 4.16 million bags, mainly driven by Colombia and Peru, which saw their exports fall by 17.1% and 37.5%, respectively. For Colombia, the latest downturn is the thirteenth consecutive month of negative growth, the second longest since the 22-month long streak observed between July 2008 and March 2010. As a result, Colombia’s exports for the first 10 months of coffee year 2022/23 are down to 8.79 million bags, the lowest level over the same 10-month period since coffee year 2012/13, when 7.24 million bags of coffee were shipped from the origin. Issues with local production, caused by meteorological factors, were the reason behind the downturn in exports for much of the current coffee year.

However, since June 2023, price substitution appears to be the main driver of the downturn in exports, with demand switching between the Arabicas, away from the Colombian Milds, of which Colombia is the largest producer, to the Other Milds. In Peru, the weather also played a part in the sharp decrease in exports. The Peruvian National Institute of Statistics and Informatics (INEI) reported that increased rainfall was behind the 1.9% decrease in production in June 2023, which may have filtered through to exports as a reduced availability of supply. However, the magnitude of the decrease in July 2023 is a more reflection of the 64.7% increase in July 2022 – the largest volume of July exports in the last 10 years (0.4 million bags versus an average 0.34 million bags (2013-2022)).

Exports of all forms of coffee from Africa decreased by 1.1% to 1.37 million bags in July 2023 from 1.39 million bags in July 2022. For the first 10 months of the current coffee year, exports totalled 10.84 million bags as compared with 11.27 million bags in coffee year 2021/22, down 3.8%. Once again, however, the relatively shallow negative growth rate of the region masked the dynamic changes at the individual country level. Two origins experienced strong positive growth rates (Tanzania and Uganda), with a combined 23.6% increase in July 2023, while two others experienced sharp negative growth rates (Côte d’Ivoire and Ethiopia), with a combined 26.7% decrease. In Ethiopia, contract disputes arising out of a mismatch between the local purchasing prices and the global market prices continue to negatively impact the volume exports, with exporters withholding the coffee until the disputes are resolved. Uganda’s exports increased by 12.0% in July, which were driven by a good crop harvest in South-Western region, and exporters releasing their stocks.

In July 2023, exports of all forms of coffee from Mexico and Central America were up 9.4% to 1.66 million bags as compared with 1.51 million in July 2022. As a result, total exports are down 1.8% for October 2022-July 2023 at 13.46 million bags, as compared with 13.71 million bags in the same period a year ago. Honduras was the main driver of the positive growth in July 2023.

Exports of all forms of coffee from Asia and Oceania decreased by 6.2% to 3.01 million bags in July 2023 and but were up 2.7% to 38.57 million bags in the first 10 months of coffee year 2022/23. July’s downturn was due to the top four origins of the region, India (-3.5%), Indonesia (-9.7%), Papua New Guinea (-25.9%) and Vietnam (5.1%).

Exports of Coffee by Forms
Total exports of soluble coffee decreased by 16.6% in July 2023 to 0.84 million bags from 1.0 million bags in July 2022. In the first 10 months of coffee year 2022/23, a total of 9.58 million bags of soluble coffee were exported, representing a decrease of 5.7% from the 10.16 million bags exported in the same period during the previous coffee year. Soluble coffee’s share in the total exports of all forms of coffee for the year to date was 9.2% in July 2023, which matched the year-ago period. Brazil is the largest exporter of soluble coffee, shipping 0.31 million bags in July 2023.

Exports of roasted beans were down 12.7% in July 2023 to 57,299 bags, as compared with 65,601 bags in July 2022. The cumulative total for coffee year 2022/23 to June 2023 was 0.6 million bags, as compared with 0.67 million bags in same period a year ago.

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). For the full report, visit: icocoffee.org.

The post Robusta prices hit near record highs in August appeared first on Tea & Coffee Trade Journal.

Despite strengthening of the BRL, where conventionally Brazilian Naturals might see an uptick in price, they contracted 11.4% in the month of June, hinting that the current and upcoming favourable weather in the region outweighs the USD/BRL variation. The Robustas, on the other hand, have been supported by a strong London market, where the arbitrage has declined to a two-and-a-half-year low, as the rate of growth outpaces that of the Arabicas. 

Average prices for all group indicators decreased in June 2023, with the Robustas being an exception, gaining 7.8% and averaging 132.13 US cents/lb. The Colombian Milds and Other Milds decreased by 6.6% and 5.8%, to 211.85 and 207.39 US cents/lb, respectively, in June 2023. The Brazilian Naturals contracted by 5.5%, reaching an average of 176.48 US cents/lb. ICE’s New York market fell by 4.7%, whilst the London Futures market grew by 5.9% to 174.54 and 119.23 US cents/lb, respectively. 

The Colombian Milds-Other Milds differential contracted by 34.5% to 4.46 US cents/lb. The Colombian Milds-Brazilian Naturals and Colombian Milds-Robustas differentials both contracted 11.9 % and 23.6% from May to June 2023, averaging 35.36 and 79.72 US cents/lb in the latter month, respectively. The Other Milds-Brazilian Naturals differential presented a more moderate loss of 7.3%, averaging 30.90 US cents/lb. However, the Other Milds-Robustas and Brazilian Naturals-Robustas both contracted by 22.9% to 75.26 US cents/lb and by 31.0% to 44.36 US cents/lb, respectively. 

In June 2023, the Colombian Milds-Other Milds Arabica differential has been narrowing considerably where, in the latter third of June, the differential averaged -2.57 US cents/lb. The Colombian Milds declined at rate of 13.4% in June, whilst the Other Milds contracted at the rate of 9.6% for the same month. The faster rate of decline of the Colombian Milds compared to the Other Milds had a knock-on effect for the last seven business days of the month. The Colombian Milds-Other Milds differential turned negative, making the Other Milds more expensive than the Colombian Milds. This trend feeds into a wider phenomenon, where the Arabica and Robusta prices have been decoupled, with the Robustas benefitting from a price-driven demand substitution for cheaper coffee versus the higher-quality and priced Arabicas. However, it is important to note that only Colombia, Kenya and Tanzania produce Colombian Milds, thereby making any shifts on the demand side more noticeable due to the smaller share of the total Arabica production. Thus, due to strong demand for Robustas in the month of June, they lost a marginal 1.8%, albeit exhibiting the highest monthly average since February 1995. 

The current Arabica-Robusta differentials are at their lowest point since October 2020, where demand for higher end qualities has waned in favour of more competitively priced coffees. Groups of coffee with varying qualities are seeing their differentials tighten throughout the board. This convergence marks a three-and-a-half-year low for the Colombian Milds-Brazilian Naturals, Colombian Milds-Robustas, Other Milds-Brazilian Naturals and Other Milds-Robustas differentials. The tightening of the spread between different growths can be attributed to the global increase in interest rates, actioned by the European Central Bank, the Bank of England and the US Treasury. 

This has the direct effect of making money more expensive to borrow, thereby limiting extensive leverage to coffee supply chain stakeholders as interest rate repayment fees eat disproportionately into operations profits. In turn, this limits how big purchasing budgets can be, with buyers focusing on more competitive origins and shying away from the more expensive growths. The trend of consumers and manufacturers shifting towards cheaper Robustas, due to the high cost of living, and the greater availability of coffee due to the ongoing harvest of the world’s largest Arabica producer (Brazil), may together explain the Arabica differentials being at a three-and-a-half-year low, in addition to a continuous rise in the price of Robustas. 

Arbitrage, as measured between the London and New York Futures markets, contracted by 22.6% to 50.31 US cents/lb in June 2023 as the Robusta growth rate outstripped the New York Market. This marks the lowest point since November 2020, where arbitrage sat at 52.66 US cents/lb. Intra-day volatility of the I-CIP followed a consistent downtrend, reaching 8.1%, a 0.5 percentage point decrease between May and June 2023. The Other Milds and Robustas presented the strongest volatility increases, with a 0.8 percentage point expansion, averaging 11.1% and 8.2% for the month of June. Whilst the Colombian Milds’ and Brazilian Naturals’ volatility contracted to 8.2% and 9.5%, the Robustas’ volatility expanded by 0.8 percentage points to 8.2% from May to June 2023. However, the London and New York futures markets’ volatility moved in the opposite direction from one another, retracting by 0.8 percentage points and reaching 9.6% for New York, whilst the Robusta contraction averaged 8.2% in June 2023, a 0.7 percentage point increase. 

The New York and London certified stocks decreased in tandem by 8.5% and 9.7%, respectively, closing in at 0.60 million 60-kg bags, whilst certified stocks of Robusta coffee reached 1.25 million 60-kg bags.  

Exports by Coffee Groups – Green Beans 

Global green bean exports in May 2023 totalled 9.56 million bags, as compared with 9.61 million bags in the same month of the previous year, down 0.6%. The downturn was driven by the Colombian Milds and the Brazilian Naturals. This is the sixth consecutive month of negative growth for total exports of green beans since the start of coffee year 2022/23. As a result, the cumulative total for 2022/23 to May is 74.59 million bags, down 5.6% from the year-ago period to 79.01 million bags. 

Shipments of the Other Milds increased by 8.7% in May 2023 to 2.57 million bags from 2.36 million bags in the same period last year. This is the second month of positive growth for green bean exports of the Other Milds since March 2022, when it increased by 1.9%. Despite the rebound, the cumulative volume of exports continued to fall, decreasing by 10.5% in the first eight months of coffee year 2022/23 to 13.77 million bags versus 15.38 million bags over the same period in 2021/22. 

Green bean exports of the Brazilian Naturals fell in May 2023, falling by 14.8% to 2.43 million bags. For the first eight months of coffee year 2022/23, green bean exports of the Brazilian Naturals amounted to 23.4 million bags, down 9.8% from 25.93 million bags over the same period a year ago. Changes to the fortunes of the Brazilian Naturals are mainly due to changes in Brazil’s green bean exports, the biggest producer and exporter of the Brazilian Naturals, which also fell in May 2023 (-16.2%) to 2.12 million bags from 2.53 million bags in May 2022. 

Exports of the Colombian Milds decreased by 7.2% to 0.91 million bags in May 2023 from 0.98 million bags in May 2022, driven primarily by Colombia, the main origin of this group of coffee, whose exports of green beans were down 10.3% in May 2023. This is the eleventh consecutive month of negative growth for the Colombian Milds and, as a result, the exports of this group of coffee for October 2022 to May 2023 were down 14.1%, at 7.28 million bags, as compared with 8.48 million bags in the first eight months of coffee year 2021/22. 

Green bean exports of the Robustas amounted to 3.65 million bags in May 2023, as compared with 3.42 million bags in May 2022, up 6.8%. In the first eight months of coffee year 2022/23, 30.13 million bags of Robustas were exported as compared with 29.22 million bags in the same period in 2021/22. 

Exports by Regions – All Forms of Coffee 

In May 2023, South America’s exports of all forms of coffee decreased by 11.5% to 3.47 million bags, driven by the three main origins of the region, Brazil, Colombia and Peru, which saw their combined exports fall by 12.29%. The two major origins of the region, Brazil and Colombia, saw their respective shipments of coffee decrease by 12.2% and 10.6% in May 2023, falling to 2.46 million and 0.85 million bags. In both countries, the availability of supply is the reason behind the decreases in their respective exports. Heavy rain led to a 21% fall in production in May 2023 in Colombia, while Brazil’s supply is relatively tight due to the two consecutive years of below-par harvests, especially in the current 2022/23 season which has been hampered by both frost and droughts. 

Peru is continuing to see its exports fall at a significantly faster rate, plunging by 24.9% in May 2023. Again, erratic weather played a part in Peru’s downturn, in addition to continuing social unrest which began in December 2022. However, the main reason behind the exceptional rate of decrease in May 2023 is mechanical. The May 2022 growth rate was up 54.7% at 137,948 bags, while the average volume of exports for May in 2014–2021 was 97,969 bags and 103,649 in May 2023, a 5.7% increase when compared against the average. 

Exports of all forms of coffee from Africa decreased by 7.2% to 1.14 million bags in May 2023 from 1.23 million bags in May 2022. For the first eight months of the current coffee year, exports totalled 8.1 million bags as compared with 8.6 million bags in coffee year 2021/22, down 5.8%. Côte d’Ivoire and Ethiopia are the main drivers behind the fall in the region’s exports, with their combined shipments decreasing by 19.4% to 0.45 million bags as compared with 0.56 million bags in May 2022. In Ethiopia, contract disputes arising out of a mismatch between the local purchasing prices and global market prices have been affecting the volume of exports since the early months of 2023, with exporters withholding the coffee until the disputes are resolved. 

In May 2023, exports of all forms of coffee from Mexico and Central America were up 12.4% to 2.14 million bags as compared with 1.91 million in May 2022. This latest month of positive growth is the third in the first eight months of the current coffee year. As a result, the rate of decrease of the cumulative total has decelerated sharply, up to 2.1% in the first eight months of the current coffee year, totalling 10.03 million bags, as compared with 5.4% rate of fall for the first seven months. Honduras was the main driver of the positive growth in May 2023, up 58.0%, to 0.83 million bags from 0.52 million bags in May 2022, the biggest rate of growth for the month of May since its 80.4% increase in 2000. This large jump in exports was mainly due to two factors. The first was mechanical, reflecting the 37.3% year-on-year (YOY) decrease in exports in May 2022, while the second was logistical, where deliveries scheduled for April 2023 were delayed to May. In the first eight months of the current coffee year, Honduras has exported 3.58 million bags, as compared with 3.33 million bags in 2021/22, up 7.5%. 

Exports of all forms of coffee from Asia and Oceania increased by 13.1% to 3.94 million bags in May 2023 and rose 3.2% to 31.73 million bags in the first eight months of coffee year 2022/23. Indonesia is the main source of the strong positive growth rate of the region, with exports increasing by 171.7% in May 2023, which in turn is a reflection of the 52.8% YOY fall in May 2022. Indonesia’s average exports for May amount to 0.54 million bags (2017–2021), though these fell to 0.23 million bags in May 2022 before leaping back up to 0.62 million bags in May 2023, the fourth highest volume for the month on record. Measured against the average (2017–2021), the May 2023 exports are up 14.9%, more in line with the year-to-date growth rate of 8.1% (October–May 2022/2023 vs 2021/22). 

Exports of Coffee by Forms 

Total exports of soluble coffee increased by 24.6% in May 2023 to 1.07 million bags from 0.86 million bags in May 2022. In the first eight months of coffee year 2022/23, a total of 7.93 million bags of soluble coffee were exported, representing a decrease of 0.4% from the 7.96 million bags exported in the same period during the previous coffee year. Soluble coffee’s share in the total exports of all forms of coffee was 9.6% (measured on a moving 12-month average) in May 2023, up from 9.0% in May 2022. Brazil is the largest exporter of soluble coffee, shipping 0.32 million bags in May 2023. 

Exports of roasted beans were down 4.8% in May 2023 to 72,925 bags, as compared with 68,003 bags in May 2022. The cumulative total for coffee year 2022/23 to May 2023 was 0.48 million bags, versus 0.52 million bags in the year-ago period. 

Production and Consumption 

The estimates and outlook for 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 accumulated 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. 

For the ICO’s full Coffee Report and Outlook (CRO), visit: icocoffee.org. 

The post Robusta prices hit a 28-year in June appeared first on Tea & Coffee Trade Journal.

Responsible coffee sourcing is critical in effectively addressing widespread poverty among smallholder coffee producers and farm workers with coffee companies expected to pursue favourable practices such as pricing as well as technical and financial support to the producers.

A July 2021 report by Columbia Center on Sustainable Investment, a joint center of Columbia Law School and Columbia Climate School at Columbia University in New York, says the low coffee prices for the 2017-2019 period brought to the fore ”how the coffee sector has failed at lifting producer incomes and set in motion new efforts to achieve a living income for all producers.”

“Despite the many responsible sourcing efforts in the coffee industry, trends illustrate the continued disconnect between procurement priorities and sustainability commitments within many companies and within the sector at large,” the report says. It defines responsible sourcing as “decisions and actions related to procurement of coffee beans that enables economically, socially, and environmentally sustainable production, including producer and farmworker well-being.”

The report, titled “Responsible Coffee Sourcing: Towards a Living Income for Producers”, shows that in a sample of ten coffee producers, only in two, Brazil and Vietnam, do farmers earn income that is above poverty line. The international poverty line has been put at USD $2.15, $3.65 and $6.85 for low income, low-middle-income and upper-middle-income countries respectively.

In the other eight countries the average income is below the poverty line. The ten countries analysed in the Columbia report have an estimated 89 percent of global coffee exports and 62 percent of producers globally.

Brazil, which is projected to report a 2.4 million bags decline in coffee exports to 36.65 million bags in the 2022/23, is the only country among the ten analyzed in the report where the average coffee farmer earns a net coffee income that is above some living income estimates.

East Africa’s leading coffee producer Uganda was listed among countries with the largest gap to living income, with the report estimating average earnings from coffee by farmers at $88 annually relative to living income reference values that range from over $2,000 to nearly $6,000.

The report attributes the huge gaps in achieving living income for coffee producers to two emerging trends including the transfer of risk to coffee producers away from other supply chain actors as well as removing roasters and retailers from the sphere of sustainable production by confining it to the farm level. The report identifies company sourcing practices as being “a critical part of closing the living income gap for producers and ensuring living wages for farmworkers.”

Coffee companies either active or that source their coffee from the 12.5 million coffee producers in the more than 30 producing countries, are at different levels of achieving full responsible sourcing practices with the International Coffee Organization (ICO) saying the firms and other actors have an opportunity to “develop more direct, transparent and stable commercial relationships with suppliers that reward good performance (such as quality and sustainability) with price incentives and responsible sourcing practices (such as contract and payment terms).”

However, the ICO says despite “existing sustainability claims and initiatives, suppliers (coffee farmers) often cannot meet their cost of production or living.”

Interest vs practice

Dublin, Ireland-based multinational taste and nutrition company Kerry Group, said the concept of responsible coffee sourcing “is not yet very widespread.” However, Kerry’s own previous research findings “continuously show an overwhelming consumer interest in supporting sustainability initiatives” according to Coralie Garcia-Perrin, global marketing director for taste at Kerry Group.

The company, which celebrated its 50^th anniversary last year along with a 19.3 percent increase in revenues to €8.8 billion ($11.058 billion), has committed to have its coffee suppliers “farm for a long time, receive a good return for their coffee and that their farming local community is maintained and thrives with their coffee sales and exports,” according to Garcia-Perrin.

“Kerry is focused on developing high-value extracts from coffee sourced from our suppliers under the Café Femenino programme,” she said. “Since 2003, the Café Femenino coffee program has been an ethical sourcing model committed to ending the cycle of poverty affecting women coffee farmers around the world.”

The Café Femenino programme is operational in Peru, Indonesia, Brazil, Guatemala, Nicaragua, Bolivia, Mexico, Colombia and Rwanda. Under the programme, which was co-founded by Peruvian women farmers alongside Organic Products Trading Company, more than 4000 women coffee farmers are reaping the benefits of ethical sourcing practices.

“Café Femenino provides direct compensation to women farmers for their coffee beans, along with the opportunity and resources to enact positive change in their communities and on their own terms,” Garcia-Perrin said. Through Café Femenino’s efforts, subscribed women coffee farmers “receive payments and payment premiums directly, and assume leadership roles, such as in co-op voting and on boards.” The members also secure rights to the land they farm to produce Fair Trade Certified and organic-certified coffees.

Finding gaps in the approach

The Columbia Institute Centre report analyses several other coffee companies’ approach to responsible sourcing including Nestlé, JDE Peet’s, Smucker, Starbucks, Lavazza, Tchibo, Keurig, Costco, Tata, and Unilever. The evaluation exposed huge disparities in their programmes especially when it comes to pricing, traceability and support for coffee producers.

“While all of the companies have established sustainability commitments or projects relevant to producers, none are able to guarantee that all viable producers in their supply chains earn a living income,” the report says. Some of the areas the companies need to do more include committing to have long-term contracts with coffee producers and ensuring the price coffee farmers receive “commensurate with the Living Income Reference Price or even better.”

Moreover, gaps emerged when it came to tracking of prices or premium offers to ensure coffee producers received them especially for coffee that has been certified or verified as responsibly sourced according to the report. When it came to cost-plus margins, the report says there is lack of transparency by coffee companies that have specialised programmes.

However, Starbucks, the Seattle, Washington-based multinational chain of coffeehouses and Reserve Roasteries that has been ranked the world’s largest coffeehouse chain, says on its website it takes “a holistic approach to ethically sourcing coffee through responsible purchasing practices, farmer loans and forest conservation programs.”

“When we buy coffee this way, it helps foster a better future for farmers and a more stable climate for the planet, and it helps create a long-term supply of the high-quality beans we’ve been carefully blending, roasting and packing fresh for more than forty years,” it says.

Starbucks, which by 2021 had 33,833 stores in 80 countries, credits Conservation International, a nonprofit environmental organisation based in Virginia, for the buying guidelines, dubbed Coffee and Farmer Equity (C.A.F.E.) Practices, which the company uses to address ethical coffee sourcing.

Most coffee producers, says Rainforest Alliance (RA) in a February 2023 statement, have “little to no power in negotiating prices, terms of trade, and the additional resources required for sustainable production.” RA says coffee producers bear most of the risks, burden of compliance, and impacts of climate change, yet only a small part of the value of certification reaches them.

RA, an international non-profit organisation working at the intersection of business, agriculture, and forests to promote responsible business practices, had previously included ‘shared responsibility’ in its 2020 Sustainable Agriculture Standard for the purpose of “addressing inequity in global supply chains.” Through the shared responsbility concept, RA has pledged its support in addressing existing constraints facing farmers by ensuring they are rewarded for their sustainability efforts and that the “costs of investments in more sustainable farms and production are shared between farmers and companies.”

Although RAs uses Rainforest Alliance Certification Program “to drive more economic transparency and steer more resources to farmers,” the Columbia Centre report identifies shortcomings on the contribution of the voluntary sustainability standards (VSS) used in coffee towards achieving living income and wages. Living income has been described as the net earnings necessary for a coffee producer to afford a decent living depending on where one lives while living wage is payment needed to enable employed farm workers afford a decent living standard and is usually higher compared to the minimum wage in a specified place.

“VSS are not sufficient to significantly improve producer income or to enable them to achieve a living income,” the report says. It argues that the VSS does “not benefit the poorest producers, and that much of the additional retail costs of certified products are captured by roasters and retailers, rather than producers.”

Apart from the Rainforest Alliance other leading external third-party VSS in the global coffee industry include Fairtrade and 4C. There are also verifications that offer second party assurance in the industry including SMS Verified, Enveritas Gold, NKG Bloom, and AtSource.

Ensuring commitments

Responsible coffee sourcing would require the commitment of all actors in the coffee value chain with coffee companies taking a lead role.

“It implies building partnerships across supply chains in which the terms of trade and price match the objective of increasing the profitability and sustainability of coffee production,” says the ICO in another report, further noting, “this match could mean less dependence on the commodity markets (de-commoditisation) and that the prices and premiums paid are informed by cost of production, living income or living wage benchmarks.”

Kerry Group’s Garcia-Perrin said coffee companies can drive responsible sourcing by “committing to fair pricing and making commitments to support the environment around coffee farms and helping [farmers develop] a sustainable living community.” A key aspect, she added, “is committing contractually to compensate farmers over an extended period of time hence providing a measure of stability to allow the farmers and their communities to plan for the future.”

The discussion around responsible coffee sourcing comes at a time when the performance of global coffee market is improving despite a slight dip in production. Although world coffee production declined by 1.4 percent to 168.5 million bags in coffee year 2021/22, consumption rose 4.2 percent to 175.6 million bags for the same period. Consumption is expected to reach 178.5 million bags in  coffee year 2022/23.

How increased export sales and consumption volumes translates into a better living income for coffee producers and living wage for farm workers continues to ignite debate among coffee industry actors in nearly all the 30 coffee producing countries.

• Shem Oirere is a freelance business journalist based in Nairobi, Kenya. He has spent more than 25 years covering various sectors of Africa’s economy including the region’s agribusiness. He holds BA in International Relations and Diplomacy from the University of South Africa and earned a higher degree in journalism from the London School of Journalism and is also a member of the Association of Business Executives (ABE).

The post Achieving responsible coffee sourcing appeared first on Tea & Coffee Trade Journal.

Since 2019, Cimbria has been strengthening its position in the green coffee processing market in South America. This move into South America is an expansion of Cimbria’s position in the global green coffee market. With approximately 80% market share in Ethiopia, Africa’s biggest producer of coffee, Cimbria’s experience is extremely valuable for the South American expansion:

“We focus on helping our clients grow their green coffee businesses in the best possible way. We focus on high-volume plants for coffee exporters, larger coffee cooperatives, and specialty coffee processing lines. Our Ethiopian success is built on solid and long-term representatives and customer relations with local service teams as one of the most vital parts of our business and a main reason for success. Thus, establishing local service teams in South America is also a vital part of our expansion plans,” explains Stefan Lautner, Cimbria sales manager in South America.

Stefan Lautner currently lives in Lima, Peru, to ensure Cimbria’s South American expansion strategy over the coming years.

“As one of the only European operators working in the South American market, we have a big opportunity. We are well-known for our premium equipment and turnkey solutions, which match the requirements for high-quality systems and end products in South America. The requirements are increasing very fast, and this is a perfect opportunity for us to meet these demands,” says Stefan Lautner.

He continues: “Specialty coffee processing is a very sensitive process that requires no loss of beans and no change of taste or quality of the coffee. Cimbria supports strong development of local micro lot processors and specialty coffee exporters in recent years through our custom-made solutions.”

So far, Cimbria has completed projects for various green coffee processing plants in Central and South America, including a state-of-the-art processing plant for one of Mexico’s top coffee exporting companies and the most modern coffee processing plant in Peru for Café Selva Norte.

For the Peruvian project, Cimbria built a dry mill for coffee cooperatives that collects coffee from small producers. This dry mill allows small producers access to high quality processing equipment, resulting in higher-quality coffee, reduced post-harvest loss, and improved traceability.

“Our machinery uses highly precise separation to guarantee very high purity in the final product. When the cooperative or client finalizes their specifications for each coffee delivery, the machinery is calibrated to achieve the highest output of their desired quality specifications,” explains Stefan Lautner.

He continues: The Café Selva Norte dry mill has two processing lines. The processing flow includes pre-cleaning, destoning, hulling, gravity separation, and color sorting, and in the end, the coffee beans are automatically being weighed and filled into bags.”

Cimbria and Café Selva Norte are working closely together to ensure quality and to adapt capacity to the continuously increasing demands.  

The post Cimbria expands its green coffee activity in South America appeared first on Tea & Coffee Trade Journal.

A joint investment of US$8.1 million will fund extension services, infrastructure, certification, and training, designed to improve yields, quality, and access to premium markets for 1,000 smallholder farmers over a five-year period.

Peru is known as the largest exporter of organic coffee, but growth is largely uneven across the country. Despite being the principal crop for smallholder farmers in Junín, there is inadequate access to inputs and a lack of technical and managerial capacity, which pose significant production constraints.

With combined resources, the partnership aims to develop more inclusive value chains that generate opportunities for 1,000 farmers and their families in the Junín region. These include:

• Increased productivity from training on sustainable and organic farming, GAP (Good Agricultural Practices), and quality testing
• Improved profitability from training on bookkeeping and better farm management
• Access to quality and differentiated markets with post-harvest processing workshops and equipment, including solar dryers, composters, and wet mills
• Improved health and well-being with medical screenings and nutrition education to reduce malnutrition rates and anemia in young children and pregnant women.

Some of this work is already underway, with the installation of wastewater treatment systems on 250 farms, distribution of 150 solar dryers, and farm financial assessments conducted with 100 coffee producers.

“In the context of the ongoing climate uncertainty and the pandemic, a traditional crop like coffee now has an even more important role to play in uplifting Peru’s producers,” said Prashant Jalan, sr. vice president coffee at ofi.

“ofi already works with more than 10,000 coffee smallholders in Peru through sustainability programs. This partnership with USAID allows us to upskill more farmers to produce higher quality beans that will qualify for specialty markets, where prices are higher and more stable. We rely on structured collaboration to scale up our impact and for roasters and other customers, it offers an opportunity to engage with partners on the ground to help drive their own sustainability agendas.”

Jene Thomas, USAID Peru mission director added “This partnership with ofi will improve extension services and access to digital technologies for 1,000 Peruvian coffee farmers. It will help smallholder farmers transition from conventional production to organic production, increase productivity, and improve product quality. By helping these farmers qualify for organic and sustainable certifications to facilitate their entry into premium markets, the partnership will enable them to remain competitive despite international price volatility, thus increasing their incomes and motivating them to continue to pursue licit livelihoods.”

Discover much more about what ofi has to offer at ofi.com.

The post USAID partners with ofi to yield greater opportunities for coffee farmers appeared first on Tea & Coffee Trade Journal.

The I-CIP lost 0.1% from December 2022 to January 2023, averaging 156.95 US cents/lb for the latter, whilst posting a median value of 155.54 US cents/lb. In January 2023, the I-CIP fluctuated between a minimum and maximum of 145.54 and 174.95 US cents/lb, whilst opening the month at 157.31 and ending January on 174.95 US cents/lb.

Average prices for all group indicators remained stable, with a slight decrease in January 2023. The Colombian Milds and Other Milds decreased by 2.3% and 1.7%, to 218.91 and 206.76 US cents/lb respectively, in January 2023. However, the Brazilian Naturals and the Robustas gained 0.6% and 2.4%, reaching an average of 170.03 and 95.98 US cents/lb. The London Futures market grew 2.2% whilst ICE’s New York market shrank by 3.9%.

Across the board, price differentials shrank, with the Colombian Milds-Other Milds and Colombian Milds-Brazilian Naturals differentials leading the way by shrinking 12.5% and 11.3% to 12.15 and 48.88 US cents/lb, respectively. The Other Milds-Brazilian Naturals differential also lost 10.9%, averaging 110.78 US cents/lb for the month of January 2023. Presenting more moderate losses, the Colombian Milds-Robustas and Other Milds-Robustas differentials declined by 5.7% and 4.9%, closing the month at 122.93 and 100.78 US cents/lb. The Brazilian Naturals-Robustas differential also presented a moderate loss of 1.6% from December 2022 to January 2023, reaching 74.05 US cents/lb.

The arbitrage, as measured between the New York and London Futures market lost 10.1%, closing in at 73.97 US cents/lb in January 2023, from 82.26 US cents/lb in December 2022.

Intra-day volatility of the I-CIP decreased 0.5 percentage points between December 2022 and January 2023, reaching 8.6%. Robustas and the London Futures market were the least volatile amongst all group indicators, at 6.0% and 6.8%, respectively, in January 2023. The Brazilian Naturals’ volatility was the highest amongst the group indicators, averaging 12.7%, a 0.6 percentage point increase from the previous month. The variation in volatility of the Colombian Milds and Other Milds for December 2022 to January 2023 is -2.4 to 9.2% and -0.8 to 8.9%, respectively. The variation of the New York Futures market’s volatility contracted 0.2 percentage points, averaging 12.3% for the month of January 2023.

The New York certified stocks increased by 4.3% from the previous month, closing in at 0.91 million 60-kg bags, whilst certified stocks of Robusta coffee reached 1.04 million 60-kg bags, representing a decrease of 3.8%.

Exports by Coffee Groups – Green Beans
Global green bean exports in December 2022 totalled 9.81 million bags, as compared with 10.64 million bags in the same month of the previous year, down 7.7%. The downturn was spread across all coffee groups except for the Robustas, which recorded a marginal gain of 1.1%. As a result, the cumulative total exports of green beans for coffee year 2022/23 are down 1.1% as compared with 2.4% increase for the first two months of the current coffee year. The cumulative total for 2022/23 to December is 27.26 million bags as compared with 27.67 million bags over the same a year ago, down 1.5%.

Shipments of the Other Milds decreased by 24.8% in December 2022 to 1.24 million bags from 1.65 million bags in the same period last year. This is the third consecutive month of negative growth for green bean exports of the Other Milds since the start of the new coffee year. As a result, the cumulative volume of exports fell by 17.8% in the first three months of coffee year 2022/23 to 3.54 million bags from 4.3 million bags over the same period in coffee year 2021/22. The latest downturn is primarily driven by Honduras and Peru, down 33.7% and 41.4%, respectively in December 2022 as compared with December 2021.

Green bean exports of the Brazilian Naturals also declined in December 2022, falling by 10.3% to 3.24 million bags, following a 15.2% increase in November 2022. For the first three months of coffee year 2022/23, green bean exports of the Brazilian Naturals amounted to 10.32 million bags, up 5.8% from 9.76 million bags over the same period a year ago. Not surprisingly, the shifting fortunes of the Brazilian Naturals reflected the changes in Brazil’s green bean exports, the biggest producer and exporter of the group, which also fell in December 2022 (down 14%) as compared with November 2022 (up 15.5%).

Green bean exports of the Colombian Milds decreased by 7.5% to 1.08 million bags in December 2022 from 1.18 million bags in December 2021, driven primarily by Colombia, the main origin of this group of coffee, whose exports of green beans were down 11.8% in December 2022. As a result of the sharp downturn, exports of the Colombian Milds from October to December 2022 were down by 12.7%, at 2.85 million bags, as compared with 3.27 million bags in the first three months of coffee year 2021/22.

Green bean exports of Robustas amounted to 4.25 million bags in December 2022, as compared with 4.21 million bags in December 2021, up 1.1%, continuing to build on the 2.6% increase in November 2022. The two consecutive months of positive growth meant that shipments in the first three months of coffee year 2022/23 were up 2.0% to 10.55 million bags from 10.34 million bags in the same period in coffee year 2021/22.

Exports by Regions – All Forms of Coffee
In December 2022, South America’s exports of all forms of coffee decreased by 17.3% to 4.64 million bags. The two major origins of the region, Brazil and Colombia, saw their respective shipments of coffee fall by 15.2% and 11.0% in December 2022, falling to 3.21 million bags and 1.05 million bags, respectively, from 3.79 million bags and 1.18 million bags in December 2021. Ecuador and Peru, however, saw their volume of exports fall by nearly half, plunging by 45.2% and 41.5%, respectively. For Colombia, the sharp downturns continue to be linked to local production conditions. Persistent bad weather linked to the La Niña phenomenon caused Colombia’s December 2022 coffee output to drop by 29%, the country’s fourth consecutive month of negative growth, with a consequent impact on exports.

In Peru, weather-driven elongation of the current harvesting period and intermittent rains hampering the drying process, both of which negatively affect the quality of dried beans, have been affecting the supply of coffee beans since the beginning of the 2022/23 season. However, since the beginning of the last month of 2022, social unrest in the country may have added to supply problems, leading to December 2022 having the lowest volume of exports since 2015, when only 310,000 bags were shipped from Peru. As for Ecuador, the sharp fall in December 2022 can be attributed to the previous anomalous growth in December 2021, when the export volume of all forms of coffee increased by 164.4%. The 57,599 bags of coffee exported in December 2022 is in line with the current trend and previous volumes for the month, averaging 57,508 bags in 2016–2020.

Exports of all forms of coffee from Asia and Oceania increased by 4.2% to 4.59 million bags in December 2022 and were up 2.0% to 6.57 million bags in the first three months of coffee year 2022/23. The region’s increase is explained by Vietnam (up 16.4%), the largest producer and exporter of coffee from Asia and Oceania, which shipped 3.38 million bags in December 2022. However, the region’s relatively small increase was due to the 39.0% decrease in exports of the region’s third-largest exporter, India, which shipped only 0.42 million bags as compared with 0.68 million bags in December 2021. It was also the fifth consecutive month of negative growth for the origin’s exports. The downturn is to be expected, however, as coffee year 2021/22 was a record-breaking year for India, with the origin shipping 7.24 million bags as compared with 5.95 million bags in coffee year 2020/21.

Exports of all forms of coffee from Africa decreased by 9.0% to 0.97 million bags in December 2022 from 1.13 million bags in December 2021. For the first three months of the current coffee year, exports totalled 3.17 million bags as compared with 3.22 million bags in coffee year 2021/22, down 1.4%. Uganda is the main driver behind the fall in the region’s exports, with shipments of coffee from the region’s largest producer and exporter falling by 21.9% to 0.42 million bags as compared with 0.54 million bags in December 2021.

This is now the 12th consecutive month of decline for Uganda, with its cumulative total exports from January to December 2022 having amounted to 5.63 million bags, as compared with 6.77 million bags over the same period a year ago (January–December 2021), equating to a 20.25% or 1.14 million bag decrease. Drought in most of the coffee growing regions, leading to a lower and shorter main harvest season in central and eastern parts of Uganda and hence lower output, is continuing to hamper Ugandan coffee exports. As noted previously, Africa’s export performance is not entirely hindered by Uganda, with Côte d’Ivoire (up 69.4% to 0.19 million bags), Kenya (up 33.2% to 0.12 million bags) and Tanzania (up 18.6% to 0.34 million bags), giving the region tremendous uplifts in the first three months of coffee year 2022/23.

In December 2022, exports of all forms of coffee from Mexico and Central America were down 15.2% to 0.69 million bags, as compared with 0.81 million in December 2021. For the first three months of the current coffee year, exports were also down 15.2%, totalling 1.55 million bags as compared with 1.83 million bags in October–December 2021/22. The region’s latest decline, the third consecutive month since the start of coffee year 2022/23, is mainly a reflection of Honduras, the largest exporter and producer of the region, with a 33.7% decrease (99,918 bags) in exports in December 2022. Two reasons explain the latest fall for Honduras: (i) continuing struggles with leaf-rust, or roya, affecting the origin’s harvests for coffee year 2022/23; and (ii) a technical downturn reflecting a 46.3% increase in December 2021. Costa Rica, Guatemala and Nicaragua were the region’s other major origins making negative contributions to Mexico and Central America’s exports in December 2022, decreasing by 23.3% (31,848 bags), 20.7% (87,100 bags) and 35.1% (103,290 bags), respectively.

Exports of Coffee by Forms
Total exports of soluble coffee decreased by 15.9% in December 2022 to 0.98 million bags from 1.17 million bags in December 2021. In the first three months of coffee year 2022/23, a total of 2.8 million bags of soluble coffee were exported, representing a decrease of 13.6% from the 3.25 million bags exported in the same period during the previous coffee year. Soluble coffee’s share in the total exports of all forms of coffee was 9.0% (measured on a moving 12-month average) in December 2022, down from 9.1% in December 2021.

Brazil is the largest exporter of soluble coffee, shipping 0.34 million bags in December 2022, followed by India with 0.22. Exports of roasted beans were up 4.7% in December 2022 to 75,852 bags, as compared with 72,446 bags in December 2021. The cumulative total for coffee year 2022/23 to December 2022 was 208,975 bags, as compared with 221,554 bags in the same period a year ago, down 5.7%.

Production and Consumption
The latest provisional estimate for total production in coffee year 2021/22 remains unchanged at 167.2 million bags, a 2.1% decrease as compared to 170.83 million bags in the previous coffee year. World coffee consumption is projected to grow by 3.3% to 170.3 million 60-kg bags in 2021/22 as compared to 164.9 million for coffee year 2020/21. In 2021/22, consumption is estimated to exceed production by 3.1 million bags. The ICO will be publishing shortly new consolidated revised values for production and consumption for 2021/22.

For more information or the full report, visit the ICO’s new website: icocoffee.org.

The post Coffee prices stabilised in January, with a slight decrease appeared first on Tea & Coffee Trade Journal.

The study, titled Fairtrade certification and producer resilience in times of crises and conducted by Scio Network and Athena Infonomics, examined the experiences of Fairtrade and non-Fairtrade coffee, banana and flower producers in Indonesia, Peru, and Kenya, finding that households belonging to Fairtrade-certified producer organisations were 12% less likely to report “a high or very high impact” from COVID-19, as compared to non-Fairtrade households.

“Our research shows that Fairtrade certification increased the social well-being of households by up to 20%, as opposed to no or alternative certification,” said Manuela Günther, lead on monitoring and impact evaluation at Scio Network and the study’s research manager. “Households related to Fairtrade certified producer organisations also had a higher economic resilience, which helped them to better weather the impact of COVID-19 and will contribute to greater resilience in the face of future crises as well.

In preparing the study, the researchers developed a resilience index based on the United Nations Food and Agriculture Organization (FAO), which includes four criteria, covering social wellbeing, economic resilience, good governance, and environmental integrity. Households from Fairtrade certified producers scored 9% higher on the overall index than non-certified counterparts (64% compared to 55%). On the dimension of social wellbeing – which includes elements such as food and nutrition security and children’s school attendance – Fairtrade certified producers scored 18% higher. Economic resilience – which includes financial literacy, bookkeeping, insurance, and savings – received a score of 6% higher. Good governance and environmental integrity scores, on the other hand, were more similar between Fairtrade and non-Fairtrade households.

“Although good governance and environmental integrity are very important in their own right, during the pandemic we found that aspects of social wellbeing, such as income diversification and food and nutrition security, and economic resilience, meaning access to credit for producer organisations and savings among households, were associated with a lower impact from COVID-19,” noted Bilal Afroz, senior consultant at Athena Infonomics and co-author of the report.

“Our study is one of the first to examine the key elements that empowered some producer organisations and farmer and worker households to get through the most intense period of COVID-19 in better shape than others,” Mr. Afroz added.

In analysing different product supply chains, Kenyan flower workers’ households belonging to Fairtrade producer organisations scored the highest with a resilience score of 70%, followed by Indonesian coffee farming households (67%), and Peruvian banana farming households (53%). In each case, these scores are higher than those of the non-Fairtrade counterparts, with the greatest difference between certified and non-certified farmers observed in coffee farmers. Fairtrade certified households in coffee value chains, in fact, score a full 13% points higher in the resilience metrics, compared to non-Fairtrade households.

The study also identifies key factors that relieved some of the burden of the pandemic on Fairtrade-certified organisations and households, including whether an organisation had pre-existing financial sustainability and access to credit; whether it received support from Fairtrade’s €15 million COVID-19 Relief and Resilience Fund; and whether it delivered income diversification and food security initiatives for its members and workers.

The report, commissioned by Fairtrade International through funding from the German Ministry for Economic Development Cooperation (BMZ) and the Swiss State Secretariat for Economic Affairs (SECO), echoes the findings from a similar Fairtrade study released in June 2022 on producer resilience. Key findings are being discussed at a virtual panel event on 18 October.

“We know that with climate change and current global political and economic instability, farmers and workers will face increasing challenges in the near future,” said Dr. Arisbe Mendoza, director of global impact at Fairtrade International. “That’s why we call on all actors to ensure that farmers continue to receive emergency cash contributions to tackle urgent health and safety needs and losses and damages, fairer prices through long-term trade relationships so they can build financial stability, and access to credit and income so that they are empowered to invest in a more sustainable and diverse mix of income streams.”

“The conclusions from this report are clear,” Dr. Mendoza added. “And we urge everyone – from companies and governments to civil society actors and beyond – to read this report, understand its lessons and apply them immediately, so that agricultural households and communities can strengthen their resilience to face the expected growth in shocks and stresses set to come.”

The post Study reveals Fairtrade-certified organisations fared better through the pandemic appeared first on Tea & Coffee Trade Journal.

The post Collaborative research underway to support living incomes of Peruvian coffee farmers appeared first on Tea & Coffee Trade Journal.

Synonymous with excellence and sustainability throughout the whole supply chain, every blend within Lavazza’s popular range contains coffees from communities involved in social responsibility projects – promoted and managed by The Lavazza Foundation – which are then carefully selected and gently roasted for a unique taste experience.

The revitalisation of La Reserva de ¡Tierra! sees the introduction of a new logo, packaging and a new blend for 2021, La Reserva de ¡Tierra! INDIA – reportedly the most sustainable blend yet, fully sourced and roasted in India.

To celebrate the relaunch of La Reserva de ¡Tierra!, Lavazza has created a new, unique logo which will feature on all packaging across the range. ‘Reserva’ symbolises Lavazza’s guarantee that each blend is linked to a particular project in coffee growing communities and this new logo aims to distinguish and elevate Tierra’s brand values and highlight the link between the product and The Lavazza Foundation.

Sustainability is at the core of The Lavazza Foundation, and provides the inspiration behind each blend within the La Reserva de ¡Tierra! range. Therefore, the new and improved packaging will now enable coffee professionals to discover the dedicated Lavazza Foundation project associated with each blend, dedicated to improving the productivity and quality of coffee cultivation as well as the entrepreneurship and independence of producers.

The relaunch also sees the introduction of new packaging for each variant within the La Reserva de ¡Tierra! range. The front of pack will now detail the USPs of each blend alongside the coffee origins and product lifecycles and back of pack will feature information around the craftmanship and extraction parameters for each variant, ensuring high quality in-cup results. Additionally, each pack within the range will be stamped with either RFA or organic certifications, signifying that each blend has been created according to sustainable agricultural practices to improve coffee quality production and the living and working conditions of coffee farming communities.

The relaunched La Reserva de ¡Tierra! range contains a total of six blends, all of which are supported by dedicated Lavazza Foundation initiatives:

La Reserva de ¡Tierra! INDIA

(Available in espresso; balanced flavour)

Taste profile: Contains selected Arabica (80%) and Robusta (20%) coffees for a sumptuous, creamy espresso with a rich and velvety body. A combination of washed Arabica, single-estate washed Robusta and the Indian specialty coffee, Monsooned Malabar, best known for its soft and mellow characteristics.

·       Origin: Created from three coffee types from the Karnataka state of India; Plantation A, Monsooned Malabar AA and Parchment AB

·       Certifications: 100% Rainforest Alliance certified

·       Blend: The velvety body derives from beans from Parchment AB and the Monsooned Malabar AA, whilst the sweetness originates from the Arabica Plantation A. The blend of the three coffee types brings out the spicy and cocoa notes

·       Lavazza Foundation project: This project aims to support the competitiveness of 1,000 small hold coffee farmers in Karnataka India, by training them in sustainable agriculture practices, improving coffee training and supporting the participation of women within the community in the coffee industry.

La Reserva de ¡Tierra! ALTECO and ALTECO Decaf

(Available in espresso; balanced flavour)

Taste profile: Sourced only from organic plantations and uncontaminated areas. Contains selected Arabica (60%) and Robusta (40%) coffees for a full body and balanced espresso with a velvety crema. An elegant cup with notes of honey, dried fruits and a persistent chocolate finish.

·       Origins: Coffee originates from Central America, South America and Africa

·       Certifications: certified BIO​, 100% Rainforest Alliance certified

·       Blend: The rich body is created by the washed Robusta and the natural Arabica. The natural and washed Arabica bring the sweetness and create a perfect balance of honey, dried fruits and chocolate notes

·       Lavazza Foundation project: The project in Chiapas, Mexico, aims to increase the resilience of Mexican coffee farmers my providing training on production and post-harvest practices, and through coffee plantation renovation to replace diseased, aged and/or unproductive coffee trees.

La Reserva de ¡Tierra! COLOMBIA 100% ARABICA

(Available in espresso and filter; aromatic flavour)

Taste profile: An aromatic harmony of flavours, characterised by sweetness, refined acidity and full body. Contains notes of tropical fruits accompanied by scents of lime zest and jasmine and has a mild liqueur-like aftertaste

·       Origin: 100% washed Arabica from different Colombian origins including Meta, Antioquia and Huila

·       Certifications: 30% Rainforest Alliance Certified

·       Blend: The Meta washed Arabica coffee brings body, while the sweetness and fruity notes derive from the Western Cordilleras (Antioquia) Arabica. Coffee from the South (Huila) also brings acidity

·       Lavazza Foundation project: Supports post war economic development in the Meta region of Colombia through improving coffee quality and plantation productivity. The Lavazza Foundation has also introduced Rainforest Alliance Sustainable agriculture standards within the production area

La Reserva de ¡Tierra! SELECTION 100% ARABICA

(Available in espresso and capsules; balanced flavour)

Taste profile: An aromatic espresso with medium body and a sweet taste. The skilful selection and combination of Arabica from the best origins of Central and South America, create this unique blend with delicate notes of jasmine flowers, almonds and milk chocolate.

·       Origin: 100% natural and washed Arabica from Brazil, Nicaragua, Honduras and Peru

·       Certifications: 100% Rainforest Alliance Certified

·       Blend: The natural Arabica from Brazil brings the body, while the sweetness and the acidity of the blend originates from the washed Arabica from Nicaragua, Honduras and Peru. Dried fruits and chocolate notes come from the Brazilian coffee beans, while the floral notes derive from Nicaragua, Honduras and Peru

·       Lavazza Foundation project: Has introduced integrated 3-year cycle training programmes and technical assistance to improve the sustainable wellbeing of 26 small coffee producers, farmers, and local communities in Jinotega, Nicaragua. This includes technical assistance visits, digital monitoring and training, technical and administration support and training on sustainable agricultural practices.

La Reserva de ¡Tierra! BRASILE 100% ARABICA

(Available in espresso and Roast & Ground; balanced flavour)

Taste profile: An intense, smooth and velvety espresso with round body and a strong taste. A premium blend of Brazilian natural Arabica. Notes of roasted cereal, honey and dark chocolate.

·       Origin: 100% natural Arabica from different Brazilian origins including Lambari and Minas Gerais

·       Certifications: 80% Rainforest​ Alliance Certified

·       Blend: The Cereja Apassita brings the body, while the Lambari Natural brings the acidity. Both coffees bring sweetness to the cup. Honey and chocolate notes come from the Cereja Apassita, while Lambari Natural Arabica brings the nutty flavour.

·       Lavazza Foundation project: Looks to empower small scale coffee farmers in Lambari, Brazil for global markets and climate change resilience. Farmers are trained on good agricultural practices, organisational development, marketing and commercialization and how to adapt to climate change

La Reserva de ¡Tierra! BRASILE

(Available in espresso; bold flavour)

Taste profile: A velvety espresso with an intense personality.  The best natural and semi-washed Brazilian Arabica meet the refined washed Conillon Robusta creating a full body and a round taste. Includes notes of dark chocolate, hazelnuts and cane sugar.

·       Origin: The blend is created from Lambari Natural Arabica, from Lambari, Minas Gerais, semi-washed Cereja Descascada Arabica from Sul del Minas (70%) and washed Conillon Robusta (30%) from Espirito Santo

·       Certifications: 30% Rainforest Alliance Certified

·       Blend: The washed Conillon Robusta and Lambari Natural Arabica create the body. Sweetness comes from the Lambari Natural Arabica while the Cereja Descascada brings the acidity. The nutty notes derive from the Lambari coffee, while the dark chocolate and cane sugar notes come through via the Washed Conillon.

·       Lavazza Foundation project: A dedicated project which looks to empower small scale coffee farmers in Lambari Brazil by educating them on Good Agricultural Practices (GAP), organizational development, marketing and commercialization and adaptation to climate change.

The post Lavazza reaffirms sustainability commitment with La Reserva de iTIERRA! relaunch appeared first on Tea & Coffee Trade Journal.

After falling by 8.9% in October, the monthly average of the ICO composite indicator rose by 3.6% to 109.70 US cents/lb in November 2020. The daily composite indicator ranged between 103.77 US cents/lb and 108.72 US cents/lb in the first two weeks of the month. In the second half of the month, however, it reached a low of 110.22 US cents/lb on 24 November and a high of 116.17 US cents/lb on 27 November. A delayed start to Vietnam’s harvest, concerns over the prolonged drought in Brazil, and the damage caused by hurricanes Iota and Eta in Central America boosted prices in November, though the bearish outlook for the global economy limited further recovery.

Prices for all group indicators rose in November 2020, except Other Milds, which fell by 0.9% to 150.73 US cents/lb. The average price for Colombian Milds rose by 4.5% to 161.21 US cents/lb. As a result, the differential between Colombia Milds and Other Milds more than quadrupled from an average of 2.22 US cents/lb in October to 10.48 US cents/lb in November 2020. The average price for Brazilian Naturals grew by 6% to 106.41 US cents/lb while Robusta prices averaged 72.38 US cents/lb, 5.9% higher than in October 2020. The average arbitrage in November, as measured on the New York and London futures markets, rose by 2.1% to 52.66 US cents/lb. Stocks of certified Arabica increased by 7.7% to 1.4 million bags in November 2020, which is the second consecutive month of increase. Certified Robusta stocks amounted to 2.25 million bags, 10.3% higher than in October 2020. The volatility of the ICO composite indicator price decreased by 2.3 percentage points to 6.5% as the volatility of all group indicators decreased. The volatility for Colombian Milds declined by 2 percentage points to 6.2%, for Other Milds by 0.8 percentage points to 7%. and for Brazilian Naturals by 2.8 percentage points to 9.4% in November 2020. The volatility for Robusta prices reached 6.1%, 3.4 percentage points lower than in October 2020.

Global exports in October 2020, the first month of coffee year 2020-21, totalled 9.67 million bags, which represents an increase of 3.2% compared to October 2019. Shipments of Robustas rose by 10.4% to 3.34 million bags and Arabicas fell by 0.3% to 6.33 million bags. Colombian Milds saw the largest decline, falling 12.3% to 1.16 million bags, while Other Milds declined by 6% to 1.43 million bags. Brazilian Naturals, conversely, saw an increase of 6.7% to 3.74 million bags compared to October 2019. The depreciation of the Brazilian Real against the US Dollar is a contributing factor for higher shipments of Brazilian Naturals while Robusta shipments are bolstered by sustained demand for soluble coffee. For the first ten months of 2020, total exports are 3.8% lower at 107.08 million bags, compared to 111.28 million for the same period last year. Shipments for all groups declined, apart from Brazilian Naturals, which rose by 1% to 33.65 million bags. In January to October 2020, exports of Colombian Milds decreased by 11.2% to 10.93 million bags, while shipments of Other Milds fell by 10.8% to 21.86 million bags and those of Robusta dropped by 1.3% to 40.65 million bags. World production in coffee year 2019-20 is estimated at 168.55 million bags, which is 1.6% lower than in 2018-19. Production of Robusta increased by 3.2% to 72.82 million bags with the largest increases in Viet Nam, Indonesia, and Uganda. Arabica production fell by 5.1% to 95.73 million bags, as increases in Colombia, Ethiopia, Indonesia, and Mexico could not offset losses in output from Brazil and Honduras.

Production in South America fell by 4.6% to 78.87 million bags and accounted for 46.8% of global output. The regional decline is largely due to the decrease in Brazil’s output, which fell by 6.1% to 59.5 million bags in 2019-20. Brazil’s Arabica output declined by 9.9% to 38.7 million bags, while Robusta rose by 2% to 20.8 million bags. Production in Colombia rose by 1.7% to 14.1 million bags, as replanted trees came into production and higher prices in several months encouraged farmers to harvest coffee. Peru’s output in 2019-20 declined by 4% to 4 million bags due to adverse weather and low prices leading farmers to turn to other crops with better returns. Output from Asia & Oceania rose by 4.1% to 50.07 million bags. Vietnam’s production increased by 4% to 31.5 million bags in 2019-20, of which around 5% is Arabica coffee. Indonesia’s production increased by 11.7% to 11.19 million bags in 2019-20, after three years of falling output. India experienced another fall in production in 2019-20 due to unfavourable weather, reaching 4.97 million bags, which is 6.7% lower than in 2018-19 and the third consecutive year of decrease. Central America and Mexico’s harvest declined by 4.5% to 20.76 million bags. Production from Honduras dropped by 15.4% to 6.2 million bags in the 2019-20 because of falling prices, adverse weather, and an outbreak of coffee leaf rust. Mexico’s output increased by 8% to 4.7 million with support from the Mexican government to promote coffee plantation renewal, value addition and biodiversity conservation. Meanwhile, Guatemala’s production decreased by 6.4% to 3.75 million bags.

Africa’s output remained stable at 18.86 million bags in 2019-20. Increases in production from Ethiopia and from Uganda were offset by declines in the region’s next three largest producers. Ethiopia harvested 7.7 million bags, 2.1% more than in 2018-19, due to beneficial weather and adequate rain. Uganda’s production increased by 11.6% to 5.25 million bags as result of good weather and higher yields from new trees coming into production. Côte d’Ivoire’s output decreased by 18.4% to 2 million bags, Tanzania’s by 17.3% to 926,000 bags, and Kenya’s by 8.6% to 850,000 bags. Global consumption from October 2019 to September 2020 is estimated to have fallen by 0.9% to 167.59 million bags, following an increase of 4.6% in 2018-19 to 169.11 million bags. As a result, a surplus of 961,000 bags is estimated for coffee year 2019-20, which limited recovery in the ICO indicator price for 2019-20 to an average of 107.25 US cents/lb, 6.7% higher than in 2018-19.

For more information, visit www.ico.org.

The post November coffee prices rise on concerns over 2021 production appeared first on Tea & Coffee Trade Journal.

“I feel happy and excited, I want to thank all my family, especially my husband and children, who have worked next to me unconditionally. Additionally, I would like to thank the cooperative ‘VALLE DE INCAHUASI’, including the manager and technicians who helped me in this journey through many adversities,” said Hilda Leguía Gonzales. “We started working with specialty coffees about 3-4 years ago, implementing all the care needed, and our next step is to plant more Gesha coffee plants in the following years. We trusted our coffee was going to give good results in the competition, because we drink it – roasted in clay pots – and it gives us a lot of energy. I’d like to invite everybody to drink Peruvian coffee.”

Of the 184 samples entered into the competition, 36 passed to the International stage of the competition held at Global Coffee Centers (GCCs) in Norway, The UK, USA, Korea, China, Australia and Japan. From this final evaluation, 24 coffees scored 87 points or more and were deemed Cup of Excellence coffees. There were also eight coffees passed as semifinalists, or National Winners.

The 24 winning Cup of Excellence coffees will be auctioned online on 3 December with opening prices starting at $5.00/lb. The National Winner auction will go from 30 November – 14 December with lowered, tiered opening prices: $3.50/lb for 86+ points and $3.00/lb for 85-85.99 points.

Geni Fundes, general manager of Central Café & Cacao and General Coordinator of Cup of Excellence Peru 2020, highlighted that this competition, which has been held in Peru since 2017, contributes to the increase in coffee exports. It has also promoted the professionalisation of national coffee growers and increased domestic consumption of specialty coffees.

The Awards Ceremony was held virtually on Friday 30 October via the Digital National Platform for the Promotion of Coffee.

The post Winners of Peru Cup of Excellence announced appeared first on Tea & Coffee Trade Journal.