From farmers to consumers, JDE Peet’s strives to champion an inclusive and regenerative ecosystem through its Common Grounds Programme which is comprised of three pillars: Responsible Sourcing, Minimising Footprint and Connecting People.

This recognition, based on the company’s improved CSA score, underscores JDE Peet’s’ longstanding commitment to creating a sustainable future.

Fabien Simon, CEO of JDE Peet’s, commented, “Three years ago, we engaged in a turnaround, which led us to rediscover the power of our brands. While we stepped up investments, execution and innovation, we brought back relevance for our consumers and our customers. Sustainability is playing an important role to enable relevance, as we became committed to foster an inclusive ecosystem. I am very proud of the progress we have made on our sustainability journey, in parallel with transforming the operational performance of JDE Peet’s. We acknowledge there is much more to do in order to reach 100% responsibly sourced coffee by 2025 and meeting our net-zero carbon emission target by 2050. Yet, we are greatly encouraged by the external recognition of the leading position of JDE Peet’s, which is the only coffee company included in the prestigious Dow Jones Sustainability Europe Index. We remain committed to continually improve our performance to deliver sustainable value for all our stakeholders and secure the future of coffee and tea.”

JDE Peet’s also performed particularly well in the fields of Emissions, Resource Efficiency & Circularity, Waste Management, Human Capital Development, Talent Attraction & Retention and Cybersecurity & System Availability.

Laurent Sagarra, VP of sustainability at JDE Peet’s, commented, “Sustainability is a journey, where every step counts. Over the past years we’ve stepped up from being directly involved at origin in over 60 farmer projects to actively playing our part in reducing scope 1,2 and 3 emissions. While we recognise that there’s still a long road ahead, I’m very proud of the positive impact we are already having around the world to improve the lives of nearly 600,000 smallholder farmers.”

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“At Starbucks, we envision a future where every beverage can be served in a reusable cup,” said Michael Kobori, Starbucks chief sustainability officer. “Offering customers more options to use a personal cup when they visit Starbucks marks tangible progress towards the future. We know our customers are passionate about the planet, and now, they can join us in our efforts to give more than we take, no matter how they order.”

Starbucks is the first national coffeehouse in the US to offer customers the option to use their personal
cup when mobile ordering. In Canada, Starbucks is the first to offer customers the option to use their
personal cup in mobile order for all drinks and all sizes. This is part of a larger cultural movement the
company is leading to shift toward reusables and away from single-use plastics, making it convenient for customers to use their own personal cup for every visit.

“As we know, the most sustainable cup is likely the one you already own. Bringing your own cup to
stores is a critical step toward reducing single-use packaging waste. Starbucks is a leader in this work, as the first national retailer of scale to offer personal cup ordering in every channel, including mobile order,” said Kate Daly, managing director and head of the Center for the Circular Economy at Closed Loop Partners. “The NextGen Consortium is proud to have Starbucks as a founding member of the Consortium to reduce packaging waste and looks forward to supporting Starbucks in their work to
advance a waste-free world.”

How It Works

Customers at participating stores in the US and Canada who bring any clean, personal cup will receive a $0.10 discount on their beverage, and in the US, Starbucks Rewards members will receive 25 Bonus
Stars.*

• In café, customers tell the barista when they order that they brought their own personal cup. Customers choosing to sit and stay in café can also request a reusable ceramic or glass cup at most stores.
• In drive-thru, while ordering, customers order their beverage as usual, and let the barista know they brought their own cup. At the pickup window, baristas will collect customers’ personal cup without the lid using a contactless vessel to ensure hygiene and safety. The beverage will be returned the same way.
• When customers order via the Starbucks app, first they will hit the “Customization” button and then select “Personal Cup” in the customization menu and continue ordering as normal. When they get to the store, customers connect with their barista at the pickup area, and hand over their clean personal cup without the lid. The barista will hand the beverage back in a contactless vessel.

*Valid at participating stores on in-store, drive-thru, or in-app beverage purchases only (max 3x per day).

Frequently Asked Questions

Can customers bring any personal cup?
Customers are welcome to use any clean, personal cup. Now every cup can be a Starbucks cup!
What beverages can customers order in their personal cup? All Starbucks standard size options (Short,
Tall, Grande, Venti) and beverage formats (hot, iced, and blended) are eligible to be ordered in a
personal cup.

How do baristas ensure the correct beverage when it’s ordered in a personal cup?
Customers order their beverage as they would normally, letting the barista know they brought their own
clean, personal cup and the size they would like. Baristas then build the beverage using a new, custom
beverage craft smallware that has standardised lines partners need for measurements, before pouring the beverage into customers’ personal cup, and adding any toppings.

Can a barista help clean a customer’s personal cup before adding the beverage ordered?
For customers’ safety and ours, baristas are unable to rinse personal cups in Starbucks equipment sinks. For this reason, no dirty cups will be accepted.

Can customers use personal cups at licensed Starbucks locations (like those in grocery stores)?
Participation by licensed Starbucks stores may vary. We recommend customers ask their barista during
their next visit.

Designed with Partners and Customers in Mind Starbucks is able to offer personal cup ordering in all channels as a direct result of its test and learn approach, informed by partners (employees) in Starbucks Tryer Innovation Lab and at pilot locations across the US.

Building off a successful personal cup test at 200 drive-thru stores across Colorado last spring, Starbucks store partners informed and helped co-design the custom reusable cup smallware all stores will now use to transfer orders to personal cups.

“As long as we are following all our procedures and steps, it doesn’t add any more time, and it is actually making customers happier,” said Brook, a partner who worked at a store that participated in the
Colorado test. “This has been a really big hit.”

Starbucks has been championing reusable cup options for 30 years, and in recent years Starbucks has
conducted more than 20 reusables tests in stores around the world with more planned in the year
ahead.

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This phenomenon occurs when carbon sequestration from the soil and plants is greater than emissions, and by analysing the farms’ GHG emission estimates, Imaflora arrived at an absolute value of 15,400 tCO2e.year-1, which is considered low.

The use of organic fertilisers (chicken litter, cattle manure, etc.) and vegetable waste (from pruning, straw and grasses) used on the analysed farms was a positive factor in mitigating greenhouse gases, to the detriment of adding chemical nitrogen. The addition of these inputs can also increase the amount of carbon stored and improve soil quality, which in the medium and long terms increase nutrient cycling, porosity and water retention in the soil.

“Expocacer’s members are always at the forefront of technology, innovation and sustainability. The carbon balance carried out in partnership with Imaflora showcases the sustainable work that our members have been doing for over ten years. We’re moving forward together, towards an increasingly sustainable, low-emission coffee plantation,” said Farlla Gomes, Expocaccer’s technical coordinator for sustainability.

Also according to the survey, other relevant aspects to be considered are increased energy efficiency in the use of machinery, which can be achieved with improved process traceability and georeferenced technology, contributing to the reduction of diesel, man/machine ratio and soil compaction.

“The Carbon on Track platform carries out a series of studies on agriculture on demand. In the coffee sector, the emphasis remains: farms with more sustainable agricultural techniques are not only able to reduce their emissions, but also contribute to carbon sequestration. This carbon-negative grain gains added value and shows that sustainability is good business,” believes Alessandro Rodrigues, projects and services coordinator for Imaflora’s Climate and Emissions area.

For Expocacer, the trend towards reducing greenhouse gases is something that should be followed by other farms around the world. Every farm has the potential to contribute, for example, by applying organo-mineral fertilisers and organic compounds instead of chemical ones. If it is necessary to use chemical fertilisers because the cost is lower, they should be used via fertigation (aquammonia), avoiding the spraying of pure urea or formulated fertilisers. Straw and bark waste can also be reused in the form of organic compost to reduce the potential mineralisation of nitrogen in the soil, there are many ways to achieve sustainable production.

The cooperative was recently named the first coffee cooperative in the world to be awarded the Regenerative Certification by Regenagri, a global organisation that aims to guarantee the health and preservation of the soil, with certification from the British Control Union. This seal confirms the integrity of the cooperative’s processes in receiving and processing certified regenerative coffees, highlighting the sustainable practices that are carried out, such as renewable energy, selective collection and the traceability of stored coffees, following the product’s journey from its entry into warehouses, to distribution centers and to consumers.

The study also points out that the use of sustainable practices helps to reduce greenhouse gas emissions in the long term, as they tend to improve soil quality and reduce the use of external inputs such as nitrogen, phosphorus and glyphosate.

Scope of the study – Expocacer’s cooperative farms, that took part in this project are located in the region of Patrocínio, Minas Gerais, in the Cerrado biome. The average coffee production area of these farms is 192.4 ha, ranging from 40 to 371 ha with very dense areas, with an average stand of 4,370 plants.ha-1. This farms are generally fertirrigated and highly mechanised (planting, fertilising and harvesting are mechanised in most areas). The average yield was 30.6 bags.ha-1, considered above the Brazilian average (21 bags.ha-1).

“Our intention is to promote real sustainability, in line with our purpose of inspiring, fostering and nurturing cutting-edge coffee growing linked to impact. We understand that the market is increasingly demanding and that we have to meet and accompany the movement towards a healthy environment. To this end, we have an exclusive department for sustainability issues, where we also guide and encourage good practices among our members,” said Simão Pedro de Lima, managing director of Expocacer.

Carbon on Track – This is an Imaflora programme designed to raise the profile of low-carbon Brazilian agriculture and forest restoration on the climate agenda. Through the programme, agricultural enterprises can contract the calculation of the carbon balance that shows the estimated emission and removal of greenhouse gases from their activities, based on internationally recognised methodologies.

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The Sustainability Awards were created in 2004 to promote, encourage and honour the efforts of those serving as role models through sustainable projects in the specialty coffee sector. Each year, aligned with our Sustainable Coffee Agenda, an ad hoc SCA Sustainability Committee reviews dozens of applications from around the globe. The deadline to submit an application is 31 January 2024. The 2024 Sustainability Awards will recognise for-profit and non-profit organisations that advance sustainability in the coffee sector while inspiring others to design and initiate similar endeavors innovations.

Nominations for each category below can be submitted at sca.coffee/sustainabilityawards.

Sustainability Award: For-Profit

This award recognises the role that for-profit companies play in the sustainability of the coffee sector. Please note that this award is for businesses that have been operating for at least three years. Products, projects, and ideas do not qualify for the award.

Sustainability Award: Non-Profit

This award celebrates a non-profit organisation (or one of its projects) that advances the coffee sector’s pursuit of sustainability. Please note that this award is only for organisations/projects that have been operating for at least three years. Products, companies, business models, and ideas do not qualify for the award.

A note on the previous category of the Individual Award: The SCA is reevaluating how to best identify and celebrate individuals from across the value chain who have contributed to advancing sustainability in the coffee industry and will pause the Individual Award until further notice.

Finalists will be announced in February of 2024.

The Sustainability Committee of the SCA Sustainability Center will review all applications and consider a wide range of applicants, reflecting the depth and breadth of sustainable work being done in all areas across the specialty coffee industry.

If you have any questions on how to complete your application, contact
sustainability@sca.coffee.

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The CSP allows ofi to model the outcome of different decarbonisation interventions tailored to local contexts, so it can work with its customers to plan and cost out climate actions. It helps ofi customers tackle the complex and challenging issue of Scope 3 emissions which occur in a company’s value chain and make up the bulk of the food and beverage industry’s carbon footprint.

Dr Christopher Stewart, global head of sustainability at ofi, said, “We’re delighted that Food Ingredients Europe has chosen to recognise the progress we’ve made. For our customers, knowing where carbon emissions are coming from in their supply chains is critical to understanding how to reduce them cost-effectively, and meet science-based climate targets. The Carbon Scenario Planner translates ideas into detailed, robustly modelled scenarios that can deliver long-term greenhouse gas reductions.”

The tool is embedded into ofi’s sustainability management system, AtSource, which provides customers with data and insights for use in reporting their environmental, social, and economic impacts. ofi recently used the tool with a global coffee company to whom it supplies Guatemalan coffee beans. It modelled a 32% carbon reduction scenario to help support the customer’s climate commitments, identifying three impactful scenarios: using training for farmers to help them upcycle coffee waste, replacing chemical fertiliser with organic, and providing farmers with semi-mechanised tools to improve yields.

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Having collaborated on numerous initiatives over the years, the SCA and ICO, bound by this MoU, aim to harness their combined outreach and expertise. This dynamic partnership sets out to design and implement interventions that will benefit coffee stakeholders worldwide through knowledge-sharing, education, and capacity building. Under the MoU, both organizations pledge to create training programs and foster skill development across diverse segments of the coffee value chain — from production and trade to roasting, brewing, and preparation methods.

Notably, the MoU outlines a joint commitment to expanding market promotion and encouraging the consumption of high-quality coffee. The SCA and ICO are united in their mission to facilitate constructive dialogue, linking ICO Members, industry experts, and coffee professionals. This collaboration and the programs to follow will actively promote sustainable practices and will provide increased visibility in specialty markets, with an emphasis on attributes, consuming markets, communication, and skill building. This program aims to empower producer organizations to access specialty coffee and embrace higher value trading models through the use of the SCA Coffee Value Assessment and its tools.

This agreement reflects the dedication of the Specialty Coffee Association to make coffee a thriving equitable and sustainable activity for the entire value chain, in tandem with the International Coffee Organization.

On this partnership, Vanúsia Nogueira, executive director of the ICO stated, “Promoting comprehensive training is not just a necessity; it is one of the most important elements to fuel the future of the coffee sector. Education and skills development are the keys to unlocking the full potential of our industry, ensuring a robust foundation for sustainable growth, fostering innovation, and empowering every actor in the value chain, from bean to cup. The specialty coffee segment is synonymous with quality and excellence, and I am confident that many stakeholders, especially in coffee producing countries, will benefit from this important partnership with SCA.”

Yannis Apostolopoulos, chief executive officer of the SCA added, “[This] signature marks a significant stride towards sustainability by creating new opportunities for knowledge transfer across the coffee sector. The SCA is committed to supporting institutions, organizations, and platforms in the coffee sector who are dedicated to building an equitable and sustainable industry, and the association believes that collaborative and diverse approaches, like this partnership with the ICO, will play a crucial role in making the rewards of the specialty coffee segment accessible worldwide.”

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The ICO Composite Indicator Price (I-CIP) averaged 161.53 US cents/lb in November, a 6.3% increase from October 2023. The I-CIP posted a median value of 161.63 US cents/lb, having fluctuated between 153.32 and 169.99 US cents/lb. The November 2023 I-CIP is above the November 2022 I-CIP by 3.1%, with the 12-month rolling average at 163.69 US cents/lb, having ranged in between 151.94 in October 2023 and 178.57 US cents/lb in April 2022. The I-CIP has remained stable around the 160 US cents/lb mark, with daily price variation declining on average for the October 2022 to November 2023 range, only 0.04%.

The Colombian Milds and Other Milds increased by 5.3% and 7.2%, to 195.85 and 197.18 US cents/lb, respectively, in November 2023. The Brazilian Naturals presented the strongest growth of 8.8%, reaching an average of 169.25 US cents/lb. However, the Robustas also grew by 3.2% to 122.63 US cents/lb. The International Coffee Exchanges’s (ICE) New York market was a strong driver of the positive growth, growing by 9.2% to 170.25 US cents/lb whilst the London Futures market expanded by 4.8%, to 110.45 US cents/lb.

The Colombian Milds–Other Milds differential contracted from 2.02 to 1.33 US cents/lb. The Colombian Milds–Brazilian Naturals differential shrank 12.6% % to 26.60 US cents/lb, whilst the Colombian Milds–Robustas differential also expanded 9.1% from October to November 2023, averaging 73.22 US cents/lb. Meanwhile, the Other Milds–Brazilian Naturals differential contracted 1.8%, reaching 27.93 US cents/lb. However, the Other Milds–Robustas and the Brazilian Naturals–Robustas differentials expanded 14.5% and 27.1%, averaging 74.55 and 46.62 US cents/lb, respectively, in November 2023.

Arbitrage, as measured between the London and New York Futures markets, widened by 18.4% to 59.81 US cents/lb in November 2023. Intra-day volatility of the I-CIP was raised to 8.0% between October and November 2023. The Colombian Milds’ and Other Milds’ volatility also increased to 8.7% and 8.8%. Meanwhile, the Brazilian Naturals’ volatility rose by 1.1 percentage points to 9.7% from October to November 2023. The Robustas presented the smallest volatility increase, with a 0.8 percentage point gain, averaging 8.3% for the month of November. The London Futures market’s volatility decreased by 2.4 percentage points to 9.1%. Lastly, the New York futures market’s volatility moved in tandem to that of London, expanding by 2.4 percentage points and reaching 10.5%.

The New York and London certified stocks continued on their downward trajectory, where London retracted by 49.2% to 0.34 million 60-kg bags, the lowest figure recorded since March 2014. Certified stocks of Arabica coffee reached 0.32 million 60-kg bags, a 24.5% decrease.

Exports by Coffee Groups – Green Beans
Global exports of green beans in October 2023 totalled 8.57 million bags, compared with 8.61 million bags in the same month of the previous year, down 0.4%. The downturn was driven by the Robustas, the only one of the four groups to start coffee year 2023/24 with negative growth.

The Brazilian Naturals made a strong start to the new coffee year, with exports increasing by 10.0% to 4.02 million bags from 3.66 million bags in October 2022. This is the second-highest volume exported in the month of October on record, just behind the 3.9 million bags shipped in 2020. Brazil was the main driver of this strong start, with the origin’s total green bean exports up 23.0% to 4.08 million bags in October 2023, which is also the country’s second-highest volume of exports in the month of October to be documented.

Exports of the Colombian Milds increased by 0.2% to 1.031 million bags in October 2023 from 1.03 million bags in October 2022. The near-stagnant start to the new coffee year was due to the conflation of the continued downturn in Colombia, the largest producer and export of the Colombian Milds, and the strong start made by Kenya and Tanzania, the two other origins that make up this coffee group.

Shipments of the Other Milds decreased by 1.8% in October 2023 to 1.59 million bags from 1.62 million bags in the same period last year. The main negative contributions came from Brazil (down 66.2% and 78,719 bags) and Papua New Guinea (down 34.3% and 53,737 bags), while Honduras provided the largest positive contribution (up 28.9% and 138,993 bags).

Of the four coffee groups, the Robustas have recorded the highest contraction in the new coffee year to date, with exports falling by 8.0% to 2.88 million bags from 3.14 million bags. Vietnam, the largest Robusta producer in the world, was the driver of the sharp downturn, with exports of Robusta green beans down 45.2% to 0.69 million bags in October 2023 from 1.26 million bags in October 2022.

Exports by Regions – All Forms of Coffee
In October 2023, South America’s exports of all forms of coffee increased by 16.4% to 5.95 million bags. Brazil was the main driving force of the double-digit growth of the region, having shipped 4.37 million bags in October 2023, a jump of 21.7%. Peru provided added support, with its exports increasing by 28.9% to 0.62 million bags from 0.48 million bags in October 2022.

Exports of all forms of coffee from Asia & Oceania totalled 2.05 million bags in October 2023, decreasing by 26.7%. Vietnam, the world’s second-largest producer and exporter of coffee, was the main driver of the region’s sharp downturn, with total exports down 44.7% to 0.75 million bags in October 2023 from 1.36 million bags in October 2022. This was the lowest volume of exports since the 0.7 million bags shipped in October 2008. A shortage of exportable materials within Vietnam, due to the lower-than-expected harvest in coffee year 2022/23, a delay in supply from the current coffee year’s harvest and a very strong export performance in the first nine months of the previous coffee year, explain the sharp downturn.

Exports of all forms of coffee from Africa decreased by 1.0% to 1.07 million bags in October 2023 from 1.08 million bags in October 2022. Ethiopia (–13.5%), Rwanda (–34.8%) and Cameroon (–57.4%) were the three main origins making a negative contribution to the region’s exports, in absolute terms, while Burundi (200.0%), Côte d’Ivoire (40.9%), Kenya (31.4%) and Uganda (2.8%) were the main origins making positive contributions. According to the Uganda Coffee Development Authority, the promising export performance in October 2023 was due to adequate supply from a good crop harvest in the South-Western region and the prevailing good prices on the global scene which prompted exporters to release their stocks. In Ethiopia, contract disputes arising out of a mismatch between local purchasing prices and the global market prices, first reported in the middle of coffee year 2022/23, continue to negatively impact export volume in the new coffee year.

In October 2023, exports of all forms of coffee from Mexico & Central America were up 0.4% to 0.459 million bags as compared with 0.457 million in October 2022. The performances of individual origins belied the less-than-dynamic growth of the region, with very strong negative and positive growth rates registered in October: Costa Rica (212.7%), El Salvador (69.6%), Guatemala (18.0%) and Nicaragua (15.6%) on the expansion side against the decreasing Dominican Republic (–80.1%), Honduras (–39.2%) and Mexico (–11.1%).

Exports of Coffee by Forms
Total exports of soluble coffee increased by 16.9% in October 2023 to 0.91 million bags from 0.78 million bags in October 2022. Soluble coffee’s share in the total exports of all forms of coffee for the year to date was 10.6% in October 2023, up from 9.0% for the same period a year ago. Brazil is the largest exporter of soluble coffee, having shipped 0.28 million bags in October 2023. Exports of roasted beans were down 20.4% in October 2023 to 49,185 bags, as compared with 61,781 bags in October 2022.

Production and Consumption
World coffee production increased by 0.1% to 168.2 million bags in coffee year 2022/23. The stagnant growth rate belies the tremendous changes at the regional level, with the coffee world neatly split between the expanding Americas and the shrinking rest of the world.

Asia & Oceania and Africa’s 4.7% and 7.2% decreases in production to 49.84 million bags and 17.9 million bags, respectively, can be attributed to adverse weather conditions negatively affecting key producers in the regions, particularly Vietnam, Côte d’Ivoire and Uganda. The magnitude of the fall in outputs of the two regions was entirely mitigated by the Americas, especially by South America’s 4.8% increase, which in turn was driven mainly by the biennial production-affected 8.4% increase in Brazil.

The combined output of the Americas was 100.5 million bags. The Americas versus the rest of the world split was also reflected in the production split between the Arabicas and Robustas, with the former’s output increasing by 1.8% to 94.0 million bags as compared with the 2.0% decrease of the latter to 74.2 million bags.

Looking ahead, the output for coffee year 2023/24 is expected to increase by 5.8% to 178.0 million bags, with the Arabicas’ output rising to 102.2 million bags and the Robustas’ increasing to 75.8 million bags.

The biennial production effect will play a large role in the outlook, especially for Brazil and the Arabicas, as the impact of the July 2021 frost continues to be resolved. Coffee year 2023/24 is anticipated to be an exceptional off-biennial year, feeling more like a good on-biennial following an average on-biennial year. Adverse weather conditions, first noted in 2022 and continuing into 2023, will have a negative impact on the outlook for coffee year 2023/24. The anticipated El Niño phenomenon is set to dampen the outlook in Asia, especially for origins like Indonesia. Meanwhile, Vietnam is expected to benefit from the drier/hotter weather as irrigation mitigates the reduced precipitation.

World coffee consumption is continuing to resolve through the issues brought about by the Covid-19 pandemic, with the consumption trend following an established patten in response to an external shock. The expectation for coffee year 2022/23 was for a smaller positive growth rate; however, world coffee consumption actually recorded a decrease of 2.0% to 173.1 million bags.

Consumption in coffee year 2022/23 did not faithfully follow the established pattern due to the impact of the high cost of living, falling disposable incomes and a long stocks drawdown. Despite coffee being relatively inelastic, the challenging global economic environment would have had a negative impact on its consumption. The world inflation rate was at its highest in 2021 at 9.4%, while the benchmark interest rate averaged 4.9% at the end of September 2023 in the European Union, UK and USA, the highest level since an average of 5.8% in 2000. At the same time, there was a large drawdown of stocks, where combined stocks reported by the European Coffee Federation and those held at the Intercontinental Exchange’s warehouses in the USA fell by 4.8 million bags from 14.5 million to 9.8 million. This drawdown would have reduced the need for purchases on the international market, seemingly reflected as lower and anomalous global consumption rates for coffee year 2022/23.

The world coffee consumption outlook for coffee year 2023/24 is broadly framed by the assumption that the global economy will continue to grow at above 3.0%, and that the industry will respond to the large drawdown of stocks, which will be positively reflected in apparent consumption. As a result, world coffee consumption is expected to grow by 2.2% to 177.0 million bags, with non-producing countries making the biggest contribution to the overall increase. Coffee consumption in this group of countries should expand by 2.1%.

Balance. As a result, the world coffee market is expected to run a surplus of 1.0 million bags in coffee year 2023/24.

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

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Last week I visited Indonesia with a group of international journalists, organised by ofi (formerly Olam) to learn about the green coffee supplier’s regenerative practices and decarbonisation strategies in Aceh (12 hours by car from Medan). ofi is one of the top three suppliers of green coffee globally and operates in 18 growing origins across Africa, Asia, Central and South America. ofi has been in Indonesia since 1996, and today buys coffee, cocoa, nutmeg, and black and white pepper from more than 400,000 farmers, collectors and suppliers throughout the archipelago. Presently, ofi exports Arabica and Robusta, and has a combined market share of approximately 15%.

ofi’s Coffee LENS 2022 impact report (published in November) noted that in 2022, the company introduced regenerative land practices to an area equivalent to 47,000 football (soccer) fields, increased the share of renewable energy in its processing facilities to more than 50%, and achieved over 81% traceability to farmer/farmer group/regional level. ofi’s availability of sustainable coffee stands at more than 40% (directly sourced).

On the coffee farms throughout Aceh, we observed farmer training sessions on agroforestry, composting, and other regenerative practices in action (including fertiliser made from fruit that is safe for human consumption). We also participated in a mock polygon mapping, which ofi has been doing as part of its sustainability practices but this also meets EU requirements for traceability and environmental due diligence. We then had the opportunity to learn about post-harvest processing at wet and dry mills, and cup a variety of coffees (some were truly amazing, at least according to my limited palate).

The trip fell amid the peak of the second harvest period, when farm activities, post-harvest practices and processing were in full swing. During this time, ofi hosts its annual Farmers’ Day celebration, which, designed by its Indonesia team, acknowledges and rewards the efforts and engagement of the farmers in ofi’s supply chain in Aceh. Activities will include games, cultural displays, and distribution of premiums to the farmers. One of the more interesting awards was given to farmers in the cooperative who have downloaded – and are using – a banking app, in order to encourage more farmers to do so.

It is always beneficial to be able to interact with the farmers and politely pepper them with questions about being a coffee farmer – the rewards and challenges – what it is like working with new technologies and learning new coffee-growing methods and techniques, and of course, implementing the growing number of sustainability strategies, as well as to see how they operate and often, where and how they live (unlike many coffee-growing regions, in Indonesia, the farmers do not live on their coffee farms). And while speaking with the farmers, their children are most often not far behind, eyes wide open with curiosity. Some of the brave will come up – always in a group, never alone – and ask questions in the English they are learning. Then they giggle and run away, which is adorable.

On the occasion of ofi’s third Farmers’ Day, our group was treated to a special performance by the children, choreographed just for us. It was beautiful, fun and heartwarming.

When we visited Aceh, the prolonged and heavy rains had delayed the bulk of the harvest (some coffee had been picked), and while stressful for the farmers, on this special day celebrating them, the joy on their faces was evident, knowing that they were being appreciated for their efforts.

• Vanessa L Facenda, editor, Tea & Coffee Trade Journal.
  Keep in touch via email: vanessa@bellpublishing.com Twitter: @TCTradeJournal or LinkedIn: Tea & Coffee Trade Journal

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AtSourceV and AtSource+ were one of the first private schemes recognised by the Global Coffee Platform in 2021. It offers ofi’s customers – global roasters and retailers – granular data on key sustainability metrics that allows customers to build their brand by demonstrating impact to consumers, building in 3^rd party verification on sustainability performance, end-to-end traceability, carbon footprint calculations, and risk assessments that customers can address through interventions with ofi’s teams to drive change for people and planet.

Juan Antonio Rivas, global head – sustainable business development, ofi, said, “This recognition marks ofi’s ongoing efforts to drive greater transparency in the sector and accelerate sustainability impact in coffee farming communities and landscapes in line with key sector concerns such as farmer prosperity and climate change.

“For our coffee customers, it allows them to report AtSource purchases as “sustainable” in line with the GCP Collective Reporting on Sustainable Coffee Purchases, thereby supporting their commitments and targets.”

As part of the equivalence process, GCP partner, the International Trade Centre, assessed AtSourceV and AtSource+ against the GCP Coffee SR Code for alignment with its principles of sustainable coffee production and the needs of the sector.

Annette Pensel, GCP Executive Director, added, “We’re thrilled to have had ofi continue their coffee sustainability advancement with GCP. With the GCP recognition of AtSourceV and AtSource+ as equivalent to the Coffee SR Code, 2^nd party assurance, ofi is highlighting the importance of and dedication to sustainability in their work for their customers and for coffee farming communities around the world.”

Discover much more about what ofi and AtSource has to offer at atsource.io

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“I firmly believe that we need to play our part in reshaping the coffee industry for the better,” said Nicolas A Tamari, CEO of Sucafina. “To encourage society as a whole to make more responsible choices, companies must take the lead. Sucafina welcomes this responsibility and will continue to act on it, as we’ve shown through the farmer connect traceability venture and our IMPACT responsible sourcing programme. Together, we can create opportunities to improve lives and drive significant change towards making coffee the first net positive commodity.”

Coffee roasting with zero emissions and superior energy efficiency

At the heart of this project lies CEE’s innovative technology. This utilises electricity powered by green energy to eliminate the need for fossil fuels. As a result, it produces zero CO₂ emissions from fuel combustion. Moreover, this technology boasts an impressive energy efficiency rate, using approximately 2.5 times less energy than the current industry standard and also outperforming hydrogen alternatives.

“We are on the brink of a clean industry revolution,” remarked Koen Bosmans, CEO of CEE. “Our collective goal is to implement this game-changing technology across the entire coffee sector at an industrial scale. Additionally, we are already applying this technology to many large bulk food categories, from coffee to cocoa, malt, and nut manufacturing. Replacing fossil-fuel-based technology in these sectors is our primary objective, and our technology makes it already achievable.”

A new era of coffee roasting

The new technology not only contributes to environmental sustainability but also enhances coffee quality and safety. The high-precision continuous roasting process gently roasts coffee beans at lower temperatures. This marks a departure from traditional roasting methods.

“At Beyers Koffie, our vision is to be the leading sustainable private-label coffee roaster,” said Cory Bush, CEO of Beyers Koffie. “We want to go further and inspire our entire industry to do more. That’s why we’ve partnered with CEE to scale up this zero-emissions roasting line. They are a partner who not only shares our ambition but also our values.”

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We were given a tour of the facility, with its state-of-the-art materials and component testing laboratory, dedicated processing area and pilot manufacturing facility, which allows the company to simulate its customers’ factory conditions as well as test shelf life in temperature controlled stores. Eviosys was also proud to show off the manufacturing process for its Ecopeel innovation, which offers customers a lighter, easy-to-open packaging format. Eviosys also had on display its Orbit and Horizon technology, the former which allows for easier-to-open screw top jars, and the latter an impressively thin and unobtrusive resealable metal lid, allowing for a 100% metal packaging format and therefore improved recyclability.

The latter piqued my interest especially, in regards to tea and coffee applications. I have seen a fair amount of coffee, particularly instant coffee, sold in tins on the shelves, but with plastic lids. While this is better than a completely plastic tub, and certainly a step in the right direction, I can’t help but think they are so close to a truly sustainable option. The metal lid could be recycled alongside the tin, and made into something new again and again, with no degradation of quality. Meanwhile, plastic, while certain types are recyclable, the quality and application opportunities decrease the more it is done so. The visual appeal of an all metal can is also something that offers further benefit. Companies such as Eviosys can offer myriad ways to finish and decorate metal packaging, from contrasting gloss and matte areas, embossing, debossing, and holographic foils, as the company demonstrated yesterday. The image attached to this blog is one of the promotional examples Eviosys gave of its capabilities.

Specialty tea and coffee in particular, already utilises metal packaging to some extent, as it offers valuable resealable capabilities, as well as a quality feel. Tins have the fabulous quality of not just being infinitely recyclable, but infinitely reusable in their original format. I can’t be the only one who has an extensive collection of various tins alongside my hoard of jars, for storing biscuits, grains, nuts, lentils, anything from a packet that I have opened and want to keep stored fresh, tidy and stackable.

Chatting to Isabelle Le Graët, Eviosys marketing, communication and sustainability manager, yesterday, she touched on a report that Eviosys is due to publish soon about how consumers use their metal packaging and the role they play within the home. The report showed that 80% of consumers keep tins after purchase. This presents a phenomenal opportunity for brands to not only enter consumers’ homes, but to remain in them for potentially years to come, their packaging being got out of the cupboard and reused time and time again. Every time a consumer uses a brand’s tin, they are being reminded of the brand, the product, hopefully the enjoyment they got out of drinking the tea or coffee that the tin contained, and perhaps even the fond memory of the receipt of the tin if it was a gift. Highly decorative tins are much more likely to be kept and reused, and where the specialty tea and coffee industry is striving to offer quality and a memorable experience to consumers’ interaction with their products, a beautiful and repeatedly functional tin is an exciting as well as sustainable opportunity to expand this objective.

The concept has already been utilised in some categories for refillable solutions, where consumers buy a tin, and then going forward only need to buy bags or packets of their products to refill their tins, or some places even have opportunities for customers to bring their tin to be refilled. This is already beginning to have applications in the tea and coffee industry.

It will be interesting to see how metal packaging applications evolve within the tea and coffee segment, particularly for specialty, and how brands will utilise what is a great opportunity for memorable branding, consumer experiences, and unparalleled sustainability.

• Kathryn Brand, associate editor, Tea & Coffee Trade Journal.
  Keep in touch via email: kathryn@bellpublishing.com Twitter: @TCTradeJournal or LinkedIn: Tea & Coffee Trade Journal

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Upon assuming the role of chief executive officer in March 2023, Laxman Narasimhan and the executive leadership team worked together with partners (employees) to refound Starbucks with an evolved mission and a set of six promises to the company’s most important stakeholders: “at our best, for our partners, to offer a bridge to a better future; for our customers, to Uplift the Everyday; for our farmers, to ensure the future of coffee for all; for our communities, to contribute positively; for our environment, to give more than we take; and for our shareholders, to generate enduring returns.”

“Over the past year, we have been singularly focused on ensuring that we are well positioned for mutual success with all of our stakeholders,” said Narasimhan, chief executive officer of Starbucks. “Living our new mission and upholding our new set of promises and values every day is paramount to achieving this mutual success. This committee will keep us accountable and push us forward.”

In recognition of the changing operating environment for the company, at its meeting last week, the Board of Directors aligned to the establishment of the EPCI Board Committee.  The new committee will assist the Starbucks Board of Directors in fulfilling its oversight responsibilities required to respond to shifting regulations and standards, and drive accountability across Starbucks promises on environment, partners, and community impact. The committee will also have oversight of internal and external reporting tools and assessments, including the annual Global Environment and Social Impact Report (GESI) and initiatives to strengthen partner engagement and revitalise partner culture.

“Starbucks has always set ambitious goals to deliver performance through the lens of humanity,” said Mellody Hobson, independent Starbucks Board of Directors chair.  “Our new mission reflects the changing global environment and builds on our brand’s legacy of driving human connection and purpose. This new board committee is another step forward to help us deliver on our promises to our partners, community, and the environment.”

Beth Ford, currently a Starbucks director and president and CEO of Land O’Lakes, will serve as the independent chair of the EPCI Board Committee.

Jørgen Knudstorp, independent chair of the Nomination and Governance Committee of the Board of Directors, said, “We are contemporising our approach to governance at Starbucks to reflect the future changes we see in the environment. This new committee will unify important work already taking place across other areas of the board to help ensure we are listening to our constituents and delivering on our promises consistently and transparently. The committee looks forward to updating our stakeholders on our work through the annual GESI Report and our other ongoing assessments. I am excited that Beth Ford has agreed to chair this committee and to work alongside my fellow directors to continue to drive positive outcomes for all Starbucks stakeholders.”

Starbucks will disclose its Fiscal 2023 Human Rights Impact Assessment and the independent assessment of its adherence to the principles of freedom of association and the right to collective bargaining in fiscal Q1 2024 and its GESI Report in fiscal Q2 2024.

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This transformation, designed to increase stakeholder transparency and trust, will improve the company’s ability to source more and better coffees from fewer producer suppliers, while providing roaster customers with a comprehensive yet curated selection of the finest coffees from Latin America.

“Climate change, migration, price volatility, rising costs, inflation, and uncertain market demand are just some of the challenges that require Caravela to better meet the needs of our producer suppliers and roaster customers,” said Alejandro Cadena, co-founder and CEO, “In the ever-evolving landscape of the specialty coffee industry, each harvest brings forth new challenges, introducing constant uncertainty, and growing threats to daily operations. To navigate this dynamic environment, we must embrace agility and autonomy to unlock creativity and innovation at every level of the organisation.”

“Faced with uncertainty, many businesses retreat into themselves and slow down any dramatic changes in priority. However, history shows us that it is exactly in these conditions where brave new thinking, bold empowerment and agility thrive,” offered Jacqui Green, Caravela’s board chairperson, “The capability of Caravela’s leadership team to embark on the transition to self-management is a testimony to the trust, passion and joint focus on value creation for all stakeholders. I am excited to support Alejandro, Giancarlo and Team One Caravela at this step-off point into a wonderful new self-governing world.”

Self-management relocates leadership from individual senior-level roles to networked teams, enabling every Caravela team member to make well-informed and self-regulated decisions capable of positively impacting their respective spheres of influence. This transformative approach delivers five distinct benefits to our team members:

1. Individual Empowerment: Self-management provides each employee with greater autonomy, allowing freedom in decision-making that impacts both their work and the broader scope of the company.
2. Professional Development: Opportunities for growth that were previously inaccessible are now available through self-directed learning. Employees can identify and engage in challenging and fulfilling projects to advance their professional journeys.
3. Enhanced Collaboration: Effective self-management enhances team collaboration, fostering trust among colleagues and facilitating more efficient and effective interdependence.
4. Increased Adaptability: In a world of constant change, self-management enhances the company’s agility, enabling rapid responses to shifting needs in producer relations, customer requirements, and market dynamics.
5. Accelerated Innovation: Autonomy fuels exploration of novel ideas and approaches, encouraging creative thinking and improvement of processes, practices, and products.

“It’s brilliant to see Caravela’s bold leaders recognise the gains to be made from shaping their culture towards greater self-management in service of their purpose-driven mission,” offered author, conflict diplomat, and trusted advisor, Cath Bishop, providing an outside-in perspective. “Empowering and trusting their colleagues further will allow Caravela to develop the agility, autonomy and decision-making required to optimise performance in these challenging times.”

At the core of the One Caravela strategy is our recognition of the need to generate, sustain, and responsibly distribute real value across the specialty coffee chain. “For the past 23 years, Caravela has worked to link highly-skilled coffee farmers with high-quality coffee roasters, aiming to develop long lasting, mutually beneficial relationships,” reflected Giancarlo Ghiretti, co-founder and CFO, “One Caravela doubles down on this effort by focusing on added value and empowering all team members to become relationship builders.

As we approach our 25th anniversary, this commitment to transformation is a declaration of our desire to establish a more dynamic and efficient industry, furthering our commitment to make coffee better for all.”

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The award, named after the visionary leader of illycaffè and the son of the company’s founder, celebrates the work that the Trieste, Italy-based company has been doing every day for the last 30 years, side-by-side with coffee farmers, to offer the best possible sustainable coffee. The award was presented to the winner by illycaffè chairman Andrea Illy during an event held at the New York Public Library in New York.

EIICA celebrates the finest Arabica coffees sourced from all over the world. This event aims to recognize growers for the quality coffee they tirelessly work to produce. The award was assigned by an independent panel of nine experts who examined the best batches from the 2022-2023 harvest through a blind tasting of nine coffees from the nine finalist countries: Brazil, Costa Rica, El Salvador, Ethiopia, Guatemala, Honduras, India, Nicaragua, and Rwanda. Prior to being evaluated by the panel, each batch of coffee was analysed by illycaffè’s quality control labs and rated in terms of richness and aromatic complexity, the elegance and balance of its flavour and intensity of its aroma.

Guatemala’s Finca Danilandia di Luis Arimany Mondonico won the Coffee Lovers’ Choice Award, assigned by a panel of consumers who, in the weeks prior to the event, carried out blind taste tests of the coffee samples in illy cafés in Trieste, Milan, Paris, London, Sao Paolo and New York and ranked their preferences.

“The absolute victory of the Brazilian coffee coming from regenerative agriculture – chosen blindly among the nine best coffees in the world – fills me with joy. Indeed, the history of the Ernesto Illy Award began in Brazil in 1991 and this confirms that the rewards received, by illycaffè for having transformed Brazil from a leader in quantity to a leader in quality are well-deserved,” said Andrea Illy. “After more than 25 years of neverending and tireless work by our team of agronomists and the University of Coffee, the leap has finally happened thanks to regenerative agriculture, which we decided to develop in 2018 for the benefits it brings to the environment and everyone’s health.”

The panel that voted for the Best of the Best award included Guatemala’s professional taster Silvia Escobar; the President of Federação dos Cafeicultores do Cerrado, Brasilian Glaucio De Castro; the director of the CoffeeLab quality laboratory, Indian Sunalini Narayan Menon; chef Ricard Camarena, who has been awarded two Michelin stars and a green star for his dedication to sustainability at his Ricard Camarena Restaurant in Valencia; American chefs Carrie and Rupert Blease, who manage the Michelin-starred Lord Stanley restaurant in San Francisco; Andrea Aprea, a Michelin-starred chef with a restaurant bearing his name in Milan; French writer and journalist Adelaide de Clermont-Tonnere, editor-in-chief of Point de Vue magazine; Inga Griese, founder and editor-in-chief of ICON, the style supplement of the German newspaper Welt Am Sonntag; Angelina Villa Clarke, a journalist contributing to prestigious English-language publications including Forbes.

Commenting on the winning coffee, the jury said, “This year’s Ernesto Illy International Coffee Award winner is a rounded, wholesome, and fully bodied cup, with rich yet mellow flavors of a balance of chocolate, caramel, brown sugar, and toasted almonds on a bed of refined brightness, with a lingering finish of mild, gentle, yet harmonious sweetness. It truly represents the finest taste characteristics of its origin.”

Martha Stewart, Matilda De Angelis, Pat Cleveland, Coco Rocha, Candela Pelizza, Tamu Mc Pherson, Carlo Sestini, Simon and Marina Ksandr, Nick Lowry, Tesa Pesic are some of the celebrities who attended the gala event at the New York Public Library, hosted by chef and TV star Marcus Samuelsson, to celebrate the best coffee producers who work behind the unique illy blend.

The Ernesto Illy International Coffee Award is also an unmissable networking opportunity for all those involved in the coffee industry, from producers to exporters, from traders to institutional representatives. In the morning they all met at the United Nations Headquarters to attend a panel discussion on protecting the future of coffee. Alongside illycaffè chairman Andrea Illy, speakers included Vanusia Nogueira, executive director, International Coffee Organization; Jeffrey Sachs, professor of economy at Columbia University and co-chair at the Regenerative Society Foundation; Oscar Schaps, president of the Latin American division of Stone X Financial Inc; and Glaucio de Castro, president of the Federação dos Cafeicultores do Cerrado Mineiro. (For a full recap of the event at the UN, see the Editor’s Blog: “The time is now” to invest in regenerative agriculture (teaandcoffee.net).

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I was honoured to moderate yesterday’s morning events at the UN headquarters, which, this year, featured a panel of leading experts in the coffee sector discussing the urgency of preserving and protecting the future of coffee through regenerative agriculture. The panelists also appealed to the international financial community (some of whom were in the audience) to invest in the transition to regenerative agriculture through public and private partnerships. Panelists included: Vanusia Nogueira, executive director, International Coffee Organization (ICO); Jeffrey Sachs, economy professor at Columbia University (NYC) and co-chair Regenerative Society Foundation; Oscar Schaps, president of the Latin America division of StoneX Financial Inc. and commodity trader; and Glaucio De Castro, president of Federação dos Cafeicultores do Cerrado Mineiro.

Andrea Illy, chairman of illycaffè and co-chair of Regenerative Society Foundation, kicked off the panel discussion reminding the audience of the impact the low and volatile coffee prices have had on farming communities. He explained that improvements the ‘caffeculture’ has achieved in recent decades through the process of de-commoditization – improvements that still have a long way to go before achieving economic, social and environmental sustainability – are at risk of being reversed due to climate change. Regenerative agriculture, Illy said, has proven to be more resilient and to produce both environmental and health benefits. “Today we have proof that this model works, it is essential to implement it.”

Glaucio De Castro, president of Federação dos Cafeicultores do Cerrado Mineiro (Brazil) is a pioneer of regenerative agriculture. He began transitioning to regenerative agriculture several ago, and although he admits it is challenging and changes and tweaks were – and still are – De Castro sees the benefits and believes regenerative agriculture is the “[way to go].”

While regenerative agriculture is the agreed upon model by the panelists, it is costly — it requires investments of approximately US $10 billion over the next ten years. Of course, producing countries do not have sufficient economic-financial capacity, so it is necessary to create private and public partnerships that can generate international supply chain funds (this challenge is nothing new as governmental, intergovernmental, non-governmental and private stakeholders have been involved or approached for many years).

“To have a future in coffee we need to think about the planet and the people involved,” said Vanusia Nogueira, executive director, ICO. “It’s part of our responsibility as leaders of this sector to look for alternatives to provide good life to the producers and their families and also to take care of our planet. It’s clear that the challenges are big enough to not be addressed individually but in a collective and pre-competitive effort. Together I believe we can find impactful solutions.”

Economist Jeffrey Sachs, who is an internationally recognized leader in the field of sustainable development, said that true economic development aims to transform our society by creating sustainable increases in wellbeing through investments in human capital, physical infrastructure, and business enterprise, all with attention to the preserve natural capital on which our economy and survival depend.

“My morning coffee will never be grown in Central Park but will continue to be grown in Kenya, Rwanda, Uganda, Ethiopia, Guatemala, Colombia, Vietnam, and elsewhere. A well-managed developing country with access to major markets and international finance can grow very quickly,” Sachs continued, noting, “after decades of severe human-induced environmental degradation, we need to transform our economies to the core principles of sustainable development and the regeneration of natural capital. The most basic principle of all is to act for the common good. This means that we must start from cooperation within our communities, our nations, and globally.”

Andrea Illy concluded the panel discussion explaining that two things are needed for adaptation to climate change: improved agronomic practices and the renewal of plantations with more resistant varieties. “Regenerative agriculture seems to provide an answer to the first need, and I hope that this will become a model for the whole ‘caffeculture’. As far as renewal is concerned, we need to speed up considerably. All this requires supply chain investments that cannot be delayed any longer.”

The 8^th Ernesto Illy International Award ‘Best of the Best’ and ‘Coffee Lovers Choice’ winners were announced at an evening gala at the New York Public Library. The 2023 ‘Best of the Best’ winner is São Mateus Agropecuária from Brazil and the 2023 ‘Coffee Lover’s Choice’ winner is Finca Danilandia from Guatemala.

• Vanessa L Facenda, editor, Tea & Coffee Trade Journal.
  Keep in touch via email: vanessa@bellpublishing.com Twitter: @TCTradeJournal or LinkedIn: Tea & Coffee Trade Journal

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With corporations beginning to grasp that sustainability and corporate social responsibility (CSR) are important to customers and for the long term future of businesses, company claims of achievements and action plans are everywhere, alongside, of course, accusations of greenwashing. Which is why it is increasingly important for businesses to have certifications against their claims, to enlist consumer and stakeholder trust. Whether it be Fairtrade, Rainforest Alliance, organic, B Corp, non-GMO or vegan, consumers and company partners are looking for the certification labels, especially within the tea and coffee industry.

Certifications are notably prolific in the tea and coffee value chains. With 17 percent of tea, globally, certified Fairtrade, organic or Rainforest Alliance, and 25 percent of global coffee certified by these or similar schemes, according to Ethical Consumer (ethicalconsumer.org). This may be due to the fact that many tea- and coffee-producing areas are in developing countries, as well as the way in which both products are marketed to consumers; the origin of the tea and coffee is often one of its main selling points and helps the consumers build a narrative of the product before deciding to make the purchase. By instilling this focus and painting a picture of where the tea or coffee grew and was farmed, it is natural for consumers to want to imagine it with fair working conditions, nature friendly processes and beneficial to its local area, socially and environmentally. Amanda Archila, executive director, Fairtrade America, explained, “Coffee and tea are two critical commodities for Fairtrade. Globally in 2021, Fairtrade worked with 872,916 coffee farmers, and 400,402 tea farmers and workers. Premiums earned across coffee and tea amounted to over USD $102 million. We partner with traders, roasters, brands, and retailers around the world to ensure Fairtrade is easily accessible to consumers.”

As one of the biggest players in the tea and coffee certification field, Fairtrade as an organisation facilitates equitable and sustainable trading for producers in developing countries, working with co-operatives, businesses and governments. It does this by enforcing a Fairtrade Minimum Price for when the market price drops, as a safety net for producers, as well as an additional fixed Premium payment to be paid on top of the market price, to be invested in producers’ local communities.

It is an organisation and certification that is seeing a lot of growth; “The number of certified tea farmers in the Fairtrade system has been gradually increasing over the past few years: up to 347,000 in 2021 compared with 319,500 in 2019, in diverse origins,” commented Amy Collis, senior sustainable sourcing manager, Fairtrade Foundation.

Archila added that recognition among consumers has also increased: “Since 2019, recognition of the Fairtrade label has jumped by 118 percent among US shoppers,” demonstrating the building consumer interest in certified products. Archila continued, “Gen-Z shoppers showed the highest increase in recognition of the Fairtrade label among all age groups: 18-24 year olds who recognised the mark jumped by 121 percent, from 33 percent in 2021 to 73 percent in 2023. And millennial shoppers (25-34) are the most frequent purchasers of Fairtrade products.”

Archila agreed that “in the broader world of sustainability products, consumer awareness is definitely in the mainstream. Eighty-six percent of shoppers recalled seeing a sustainability or ethical label on a product while shopping. We also see this consumer connection to sustainable and ethical products growing stronger in the future.”

While the Fairtrade certification is seeing growth worldwide, Collis explained that the UK is currently the biggest market for Fairtrade tea, holding a share of 62 percent of Fairtrade tea sold globally. Collis said this was due to strong commitments from retail partners, “with Marks & Spencer, Waitrose and Co-op all having a 100 percent Fairtrade commitment on tea and coffee.”

Image: Kloth & Köhnken

Duncan Gray, head roaster and managing director, Bay Coffee Roasters, a west Wales, UK -based roastery, explained why the Fairtrade certification is important to his company: “Fairtrade is often far more than paying a good price to the farmer and also their workers, many of the Fairtrade cooperatives that we have worked with have community initiatives providing training and education for the families, health care and often other improvements to the local area.”

Consumers embrace organic

Bay Coffee Roasters’ other major certification that it champions, is organic, which often goes hand in hand with Fairtrade, with “over 50 percent of Fairtrade farmers [choosing] to go organic: tea, coffee, chocolate, bananas and cotton are among the products carrying dual Fairtrade and organic certification,” said Collis, as they both call for sustainable farming practices. “The nature of organic farming where farmers cannot rely on chemicals means that they generally have to care for their land, respecting its bio diversity and farming in a more sustainable way. Organic certification means that the farmers have to keep to their word,” said Gray. With organic farming, the emphasis is on techniques such as crop rotation, biological crop protection, green manuring and composting, and different regions have their own organic certifications, such as the EU and USDA Organic.

As discussed in ‘The Balance of Organic’ feature in the Tea & Coffee Trade Journal October 2023 issue, the organic market is seeing growth, with the tea market holding a value of USD $1.24 billion as of 2023, with a CAGR of 8 percent through 2033, while the organic coffee market estimates are even higher with a CAGR of 12.5 percent until 2028, according to market research companies FMI and Mordor Intelligence. Organic products are not only perceived as better for the environment and for the producers by the consumer, but they are also believed to be healthier, with less chemicals needed to grow and process them.

Gray added that they even have some customers who will buy only organic coffee, and whether that be for sustainability, ethical or health reasons, it is clear it is something that is important to many customers, or at a minimum regarded highly and as a bonus to their purchases.

Organic tea is something that it is ingrained in Kloth & Köhnken’s (K&K) identity, explained Sandra Nikolei, tea department/corporate social responsibility at K&K; “Organic farming can result in a better taste of a product as the plant grows slowly compared to most conventional products.”

Nikolei added that they are seeing much interest from their customers for organic products, but also for Rainforest Alliance-certified products. Rainforest Alliance, an even bigger scheme than Fairtrade and which now includes the UTZ label, is another non-profit organisation that promotes responsible business practices and strives to improve producer livelihoods and communities, especially in the face of the climate crisis. It does not do this with fixed pricing structures, but rather through policing production.

Image: Rainforest Alliance

“As we approach 2030 – a year experts mark as the potential point of no return – we must respond with unparalleled speed and scale to shift the course of sustainability transformation,” said Rainforest Alliance CEO, Santiago Gowland, “The hard truth is that the old sustainability models are good but not good enough.” The Rainforest Alliance certification has been going for 35 years, and, as of December 2022, has since achieved sustainability projects and certified farmers in 58 countries, worked with over 6,000 companies, and made Rainforest Alliance certified products available in 190 countries.

B Corp on the rise

Another major certification that is rising to the forefront of the tea and coffee industry, indeed most consumer industries as a whole, is B Corp. For a company to achieve B Corp certification, it must be verified by the ‘B Lab’ organisation, to “meet high standards of social and environmental performance, transparency and accountability,” B Lab explained. There are B Labs across the world, including UK Australia, East Africa, Europe, and North and South America, with 6,800 B Corp certified companies across 89 countries and 161 industries.

Duncan Gray that becoming a B-Corp is next on Bay Coffee’s agenda to achieve, joining the many tea and coffee companies certified as B Corps, such as Nespresso, Pact Coffee, English Tea Shop, Bigelow, and Pukka Herbs to name a few.

The cost of certifications

Many companies, including Bay Coffee and K&K, hold multiple certifications, particularly if they have a strong international presence as different certifications are more popular in different regions. K&K for one, lists Fairtrade, Fair Trade USA, Bio EU (organic), Bio Suisse organic, USDA Organic, Rainforest Alliance, FairBioTea, and kosher, among theirs.

Different certifications cover different areas and demand different requirements from companies, so perhaps the more the better, it could be argued. There is such a variety of certifications available, many much smaller than the ones listed here, and it comes down to a company’s specific operational practices, locations, and community needs as to what certifications will have the largest impact on its environmental and social undertakings. However, it is the big names such as Fairtrade, Rainforest Alliance, organic, and B Corp that seem to be major drivers of consumer and customer interest and purchases.

Image: Bay Coffee Roasters

But there are also a lot of conversations around certifications in relation to pricing and verification. Consumers realise that they will likely pay more for certified products than they do for those without certifications. “For a pound bag of coffee, shoppers said they were willing to pay a price premium of up to 35 percent more for certified coffee over uncertified. Nearly four in five consumers said they were willing to pay more for a product to ensure that producers received a fair price,” explained Archila.

While it is understandable that there must be additional costs to ensure the producer is receiving a fair price, it does mean the more price sensitive consumer may struggle to choose the ethical option when making their purchasing decisions. This allows the mass produced and possibly unethically sourced tea and coffee companies to keep a sizeable share of the market. Collis detailed that “Fairtrade-certified organisations sell only around 4 percent of their tea on Fairtrade terms – this means they don’t benefit from being certified to the extent that they could. When shoppers choose Fairtrade tea, tea producers can sell more of their product on Fairtrade terms.”

So, while there is growing demand for certified products, and a certain amount of consumer willingness to pay extra for them, there may not be enough for producers to justify the additional expense if it is not being bought from them at the certified price.

Certifications are costly for the producer as well as sometimes for the consumer. “Significant commitment is needed from producers to achieve and maintain compliance with the Fairtrade Standards: but it isn’t always feasible for producers who are facing other challenges, such as rising costs of inputs, low market prices and the effects of climate change,” said Collis. Likewise with organic, there is a conversion phase where anything grown cannot be sold under the organic title with the benefits that come with it, until the transition is complete, and no compensation is offered for the expense or yield loss.

K&K is proud of its certifications and recognises their value, but also their limitations; “Certifications are necessary to help to make the world a better place. But often they are too cost intensive and too difficult to implement, for farmers, small businesses and for start-ups. They should be less complicated and should focus on an easy way to make changes. Imposing the same requirements on everyone in this world and origin is, from our point of view, unfortunately very European and unidimensional. It should be more individually adaptable. Many certificates are too bureaucratic and rigid,” explained Nikolei.

Therefore, while they are an important mark of credibility and of good intentions to inform consumers, having certifications is not the only nor final step to sustainability and ethical business practices. “Certification can only ever form part of a company’s sustainability efforts,” articulated Collis, they do not “replace the duties of state or business actors with respect to human rights or sustainability.”

• Kathryn Brand is an associate editor on T&CTJ, while still writing for several of Bell’s other magazines. She joined Bell Publishing as an editorial assistant at the beginning of 2022 after graduating from the University of East Anglia with a degree in English Literature and Creative Writing. She may be reached at: kathryn@bellpublishing.com.

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The Fairtrade-Satelligence partnership and expansion plan will also support producer organisations – representing more than one million coffee and cocoa farmers cultivating 2.5 million hectares – to meet the European Union Deforestation Regulation requirements so they can maintain access to important markets in Europe and beyond.

“This partnership focuses on an increasingly important area of trade: access to risk management data, which defines what cocoa and coffee can enter the EU market,” said Jon Walker, senior advisor for Cocoa at Fairtrade International. “Whoever has the data has the key to market access. Many large buyers have their own monitoring systems that cover the cooperatives they buy from, but they don’t necessarily share what they see with the cooperatives themselves. Inequalities in trading relationships will only widen if producer organisations are reliant on their trade partners for access to this important data. This partnership enables producer organisations and their smallholder members to have access to the data and act on risks identified.”

Producer organisations are key partners in gathering this information, and contributing to risk assessments and mitigation and prevention efforts. By equipping cooperatives with data about the farms where their cocoa and coffee is produced, they can make informed business decisions as well as offer this value to their trade partners.

Building on a set of cocoa cooperatives that tested geolocation and monitoring functionality in Côte d’Ivoire and Ghana last year, the new three-year partnership aims to include all Fairtrade certified cocoa and coffee producer organisations by 2025.

“Our collective goal is that farmers have the data they need to move forward in a changing regulatory environment, which ultimately contributes to their sustainability as businesses and communities,” said Arisbe Mendoza, director of global impact for Fairtrade International. “The partnership provides a proven satellite monitoring system combined with technical support from Fairtrade to interpret and manage the data on an ongoing basis. This is an important step in our journey to bring more transparency to supply chains.”

Producer organisations provide geolocation data for each of their members’ farm plots. Satelligence’s platform verifies this geolocation data to ensure data quality. Second, the system detects any deforestation activity within members’ boundaries, and whether or not farms are located in protected areas. It also flags deforestation near the farm, an important piece of information that contributes to cooperatives’ risk assessments. Finally, the system generates reports that cooperatives can use themselves, and provide to their customers or potential customers.

“We strive for a more inclusive and sustainable future by giving smallholders the most advanced tools to empower and encourage them,” said Niels Wielaard, CEO at Satelligence. “We are proud to partner with Fairtrade, making sure we help prevent further marginalisation of farmers by unlocking access to markets with proof that their goods are deforestation-free. Many companies are still unprepared for EU Deforestation Regulation, but Fairtrade cooperatives will be ahead of the curve. It is a big task but it can be done. We hope the world will invest more in smallholders, in particular in supporting those doing the right thing in vulnerable, high deforestation-risk regions.”

The Fairtrade Cocoa Standard aligns with the EU Deforestation Regulation requirements, including that farms above four hectares in size or in high-risk areas must use polygon mapping, while smaller farms and farms in low-risk areas can use single geolocation points. Importantly, Fairtrade also requires traders to support producer organisations from which they buy in their deforestation monitoring and prevention efforts, whether through material or financial support. The Fairtrade Coffee Standard is being reviewed to include similar requirements, scheduled to be decided on by the Fairtrade Standards Committee in late 2023.

The scale-up of deforestation monitoring capacity is part of Fairtrade’s efforts to raise awareness about the importance of farmers and workers having more power as trade partners and in negotiations about regulations that affect their livelihoods.

Losing access to core markets, such as the European Union, would be devastating to smallholder coffee and cocoa farmers who mostly rely on these products for their livelihoods. If the economic realities of smallholder farmers are not taken into account, the legislation could lead to unintended consequences, such as a rise in illegal land use by farmers forced to find other sources of income. This would ultimately undermine sustainability, forest preservation, and the very intention of deforestation regulations.

“Deforestation legislation is an essential step, but the effects on smallholders are still unknown,” explained Walker. “The European Commission urgently needs to step up coordinated efforts to assess country-by-country readiness and impacts on covered sectors, in close collaboration with local stakeholders. It is worth noting that while technology such as satellite imaging continues to improve monitoring, the causes of deforestation are multi-dimensional, including poor legislation and governance, limited available economic opportunities, and poverty. Improving farmers’ livelihoods on the way to living incomes must be part of the approach to ensuring healthy forests and sustainable communities.”

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This label verifies the origin and quality of coffee produced using regenerative practices that are received in the warehouses. To acquire the certification, Expocacer’s environmental, social, and governance responsibility was evaluated, and it received 100% approval in these criteria.

“Projects and initiatives such as ‘Elas no Café,’ ‘Jornada da Qualidade,’ ‘Expocacer Teens,’ and others that work to promote sustainable actions within the coffee community were essential for this achievement, along with our exclusive department dedicated to sustainability-related matters, where we provide guidance to our members,” said Simão Pedro de Lima, executive director of Expocacer.

Regenerative coffee farming adopts practices aimed at preserving soil health, increasing biodiversity, protecting water resources, and enhancing the resilience of agricultural systems. Among the advantages of regenerative practices are the preservation of flora and fauna, cost reduction, decreased pollution, improved coffee quality, increased resilience to climate change, and reduced deforestation. This year, with support from Brazilian Support Service for Micro and Small Businesses (Sebrae), Expocacer has already managed to certify 14 cooperative members, a number that is expected to grow to 24 by the end of 2023.

“We are very proud because this achievement confirms the work that has been carried out for years by Expocacer. This certification strengthens our commitment to ensuring sustainable and high-quality coffee production for our cooperative members, customers, employees, and commercial and institutional partners,” commented Farlla Gomes, sustainability manager of Expocacer.

For the cooperative, the automated traceability that utilises RFID technology (radio-frequency identification) and allows producers to know the exact location of their coffee in the cooperative’s warehouses was also a differentiating factor in obtaining the certification, recognising the care that Expocacer takes with the coffee from its members.

Recently, the world’s first regenerative agriculture-certified coffee has also begun to be distributed globally in retail by the Italian brand Illy Caffè, in partnership with the Cerrado Coffee Growers Federation and Expocacer. With notes of intense caramel, the product is already available in 50 countries, with plans to expand to 140 by 2024.

“Obtaining the regenerative certification for Expocacer represents reaching a higher level of value expansion because this achievement directly influences the core of our business. It’s the conjunction of a set of ideas, strategies, and attitudes that are ecologically correct, economically viable and socially fair, ensuring a supply without compromising the one future generations,” concluded Flávia Nunes, director of operations and logistics at Expocacer.

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Nespresso customers now have two new options for recycling their coffee capsules with Royal Mail. They can arrange a free doorstep collection from their local postie using Royal Mail’s returns service. Alternatively, they can drop them off at any of the 14,000+ Royal Mail drop-off locations, including Royal Mail Customer Service Points and Post Offices.

Research commissioned by Nespresso to mark Recycle Week demonstrates just how important it is for recycling to be simple and convenient: despite 91% of Brits claiming they often recycle, many said they find recycling confusing (42%), and difficult (32%)*.

This partnership will increase nationwide access to easy and effective recycling methods for Nespresso capsules. Just over half of Royal Mails’ routes are wholly or partly on foot which helps to keep emissions low when compared to other carriers**.

Anna Lundstrom, CEO, Nespresso UK & ROI said, “Nespresso’s official partnership with Royal Mail brings recycling to the heart of the community, no matter where you live in the UK. Royal Mail is not only an iconic British institution, it also is recognised as having the lowest emissions per parcel** as their ‘feet on the street’ posties walk up to a billion steps a day. Recycling needs to be convenient, simple, and sustainable – and our partnership with Royal Mail is central to achieving that vision.”

Nick Landon, chief commercial officer at Royal Mail said, “We’re really pleased to be working with Nespresso to support their coffee capsule recycling. Everyone knows when their postie delivers so it’s really convenient to arrange for them to collect at the same time. If customers aren’t going to be in, Royal Mail can also collect from a safe place. To make it even more convenient, if customers don’t have a printer our posties can print and bring the label to the doorstep.

“And if Nespresso customers don’t want to arrange a collection, they can drop their capsules off at one of our 14,000+ Royal Mail locations. This is part of our commitment to continuously make our services more convenient as we re-invent the way we deliver to and collect from our customers.”

A pioneer of coffee capsule recycling, Nespresso also co-founded not-for-profit coffee pod recycling service, Podback. Nespresso UK customers can still use this service and can still drop their used capsules at any Nespresso Boutique.

Nespresso’s capsules are made with 80% recycled aluminium which is infinitely recyclable. Recycled aluminium is turned into new products such as beverage cans and car components. Used coffee grounds are also used to create soil improver, used on cereal farms in East Yorkshire, and renewable energy to power UK homes.

* Research was carried out by One Poll between 4th and 6th October 2023 with 2,000 adult respondents.
** When measured in terms of the CO2e emissions per parcel reported by the UK parcel delivery companies who currently publicly report these.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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