24-26 December 2014

MARKET

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Asian coffee trade dull, prices on par with London

Asia’s coffee market slowed this week as Vietnam held back its fresh stocks following global price falls while Indonesian exporters were not keen on nearby shipment, waiting for the next harvest to peak in March, traders said today. London’s March robusta contract closed US$8 lower at $1,903 a tonne yesterday before the futures market closed for the Christmas holiday. Trade will resume next Monday. Source

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Ivory Coast – Slight rise in prices on Wednesday

Ongoing coffee futures sales are slightly up on 24 December 2014, as reported by the Ivory Coast Coffee and Cocoa Board. Coffee for the Dec-Jan period was priced at US$1.9232 per kg, against $1.9177 per kg, yesterday. In addition, for the period from February to March 2015, prices are also rising, to $1.9623 per kg, against $1.9567 per kg before. The guaranteed minimum prices for producers remained fixed at $1.1521 per kg for coffee. Source (FR)

COMMERCE

Russia – Rouble crisis has affected coffee exports

Sharp depreciation of Russian rouble has made coffee exporters view the market with scepticism even as a few of them have postponed their consignments to that country. Thanks to the currency volatility, exporters have suggested to the Coffee Board to route the commodity to Russia under a rupee-rouble trade mechanism. However, it is no panic situation yet as the exporters are watching the developments on a day-to-day basis. Source

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Russia – Starbucks expands as coffee creates a multi-billion dollar buzz

Russia is increasingly turning its back on tea after new data shows the coffee market in Moscow alone is worth US$2b. In addition, according to the USDA estimates, Starbucks and other huge coffee chains in Russia have expanded their outlets by 17% in the 12 months to July. Russian coffee chains have also racked up $620m in sales in 2013. Overall, global coffee demand has grown 3.6% but the raft of sanctions against Russia from the US and Europe could dent 2015 sales. Source

El Salvador to recuperate coffee export numbers

For the 2014/15 harvest in El Salvador, 1.16m (46 kg) bags are expected, or US$200m in exports. This, compared to the 700k registered for the previous harvest, affected by rust. Source (ES)

PRODUCTION

China – Province plans coffee expansion

The coffee industry in Yunnan province intends to double its production by 2020, from its current 120k tons (1.5% of global total) to 250k tons (3% of total global production). Source (ES)

Bolivia – Coffee production area grew 23%

The land used for coffee production in Santa Cruz grew 23%. In 2014, 350 hectares were planted and for 2015 this will increase by 100, with projected export numbers at 540 tons. Source (ES)

INTEREST

US – Other major Hawaiian coffee growers you might not know

As far as name recognition goes, Kona coffee has been tops in Hawai‘i for a long time. But the coffees of Kona, and other regions of the Big Island coming into their own, represent just part of the story of coffee in Hawai‘i today. More than half of the coffee now produced in the Islands is, in fact, produced on Moloka‘i, Maui, O‘ahu and Kaua‘i. These islands collectively produced 4.6m pounds of dried coffee in the 2008–2009 harvest season, compared to the Big Island’s 4.1m pounds. Source

23 December 2014

Notice: Friday’s edition to cover 24-26 December. Happy holidays!

MARKET

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Arabicas firm

March arabica was up 0.60 cent, or 0.4%, at $1.7275 per lb, trading above last week’s 4-1/2-month low of $1.7115 per lb. Source

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Vietnam – Coffee prices range widely, but trading eases

London’s March contract has dropped 9% so far in December and hit a 6-1/2 month low of $1,890 per tonne on Monday. The contract edged up 0.79% at $1,908 a tonne at 0914 GMT on Tuesday. Vietnamese robusta eased to $1.80-$1.83 per kg on Tuesday. Vietnamese robusta grade 2, 5% black and broken was offered at par to discounts of $45 a tonne to the March contract, compared with discounts of $45-$70 a tonne a week ago. Source

Colombia –  Coffee indicators

Colombian coffee price per pound at destination port, on 22 December 2014, at US$1.7215 (March) and $1.7475 (May), according to the ICO. Same day’s internal price per 275.5 lb bag for export in Colombia is max $332.30 in Santa Marta and min $330.60 in Cucuta. Source (ES)

US – Keurig Green Mountain stock falls after recall

Shares of Keurig Green Mountain are down 3.06% to $135.50 in pre-market trade after the specialty coffee and coffeemaker business said it would recall over 6.6 million hot beverage-brewing machines in the U.S. that could overheat liquids and burn users. Source

COMMERCE

Coffee exporters want rupee-rouble route for exports to Russia

Coffee exporters have favoured routing exports to Russia under the rupee-rouble trade arrangement. Several coffee exporters from India have postponed their consignments to Russia due to rouble crisis which has depreciated 50 per cent in the last two quarters. Source

PRODUCTION

Brazil – Conab sees a 18.1% drop in Minas Gerais coffee production

The harvest to likely reach 22.6m bags in 2014, an 18.1% drop y-o-y. Source (PT)

Vietnam – Low water supply to hurt 2015/16 coffee crop

Vietnam’s coffee crop in the year to September 2016 is expected to be hit by an early end to the rainy season and the less number of storms this year, which have most likely reduced the country’s underground water reserves. Source

Guatemala – Only 6% of coffee plants to be renewed

In 2014, only 6% of Guatemala’s coffee plantations (305m hectares) was renewed. The situation worries the Coffee Policy Council, who offered US$1.3m in support of the coffee sector, affected by rust in the recent harvest. In total, an estimated $1b is needed to renew all the country’s plants. Source (ES)

GOVERNMENT / CORPORATE

India – Tata Coffee Ltd appoints V Leeladhar as Director

Mr. V. Leeladhar has been appointed as an Additional Director on the Board of Tata Coffee Ltd with immediate effect.  Source

Kenya – Farmers borrow US$221.3m from special fund

The Commodities Fund, which was established through the Crops Act 2013, has loaned Sh20 billion, mainly to coffee and sugarcane farmers, in just one year since it became operational. Source

Kenya – Farmers petition parliament for investigation

Coffee farmers petitioned the government to have Patrick Musyimi investigated regarding a conflict of interest. Musyimi is the Commissioner for Cooperatives and also sits on the board of the Kenya Coffee Cooperative Exporters, an organisation which actively competes with the KPCU. Source

INTEREST

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Indonesian co-op Klasik Beans brews success

Surrounded by volcanoes that make the soil at Mount Puntang some of Indonesia’s most fertile, members of the Klasik Beans co-operative sniff, sip and swish tiny cups of coffee like a sommelier would a coveted vintage. Source

20-22 December 2014

MARKET

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Arabica coffee futures inched down

March arabica erased earlier gains and was down 1.4 cent, or 0.8 percent, at $1.7330 per lb, consolidating after Wednesday’s tumble, under pressure from an estimate from Volcafe, the Swiss-based coffee division of commodities house ED&F Man, for a larger Brazilian crop in 2015. March robusta coffee was down $12, or 0.6 percent, at $1,917 a tonne. Source

COMMERCE

Colombia wants stronger presence in Korean coffee market

Some coffee experts predict that Korea will be one of the top 10 coffee consuming nations in the near future. Currently Korea is the world’s 30th-largest coffee consuming country. On 12 December 2014, the Colombian Ambassador to Korea attended the opening ceremony for the Juan Valdez second branch. Source

Colombia – Coffee is vital to regional economy

A new report from the Banco de la Republica says the volume of coffee exported from Caldas, Quindio and Risaralda showed an increase of 14.5%, versus Q3 2013. It was higher than the country total which was 8.1% per year. But the continued slowdown began in Q2, because despite presenting a higher exported volume to the USA, Germany, Canada and Belgium, shipments to Japan were down 19.8%. Source (ES)

PRODUCTION

USDA lifts world coffee supply hopes, despite losses in Peru

US officials flagged the setback to Peru’s coffee industry from the spread of rust, even as they raised the estimate for world production, and slashed their forecast for a fall in world inventories. The USDA cut by 1.1m bags to a seven-year low of 3.4m bags its estimate for Peru’s 2014-15 coffee output. For Brazil, the USDA lifted its forecast for both the robusta crop, by 600k bags to a record 17m bags, and the arabica harvest pegged at 34.2m bags. World production was estimated at 149.8m bags, 1.1m bags above the previous estimate, but down 2.7m bags y-o-y. The USDA pegged world inventories at the close of 2014-15 at 36.4k, implying a fall of 3.6m bags y-o-y. The department had previously forecast an 8m-bag decline. Source

Brazil upgrades coffee harvest, after finding extra trees

Brazilian officials became the latest to raise their estimate for the country’s coffee harvest – although by a modest 200,000 bags, and an upgrade down not to bigger yields, but finding an extra 50,000 hectares of plantations in Sao Paulo. Conab, the official Brazilian crop bureau, in its final estimate for the country’s coffee harvest this year, pegged it at 45.35m bags. Source

Mexico – Harvest to take a hit due to rust

For the 2014/15 harvest, which started at the beginning of October, Mexico’s coffee output should total 3m bags. The USDA predicted 3.9m bags in June 2014. If it does take a hit, it will be the smallest harvest since 1968/69. Source (PT)

Brazil – Coffee production in Rondonia state increased 30% in 2014

Rondônia produced 1.74m (60 kg) bags of coffee in 2014, up 28.5% y-o-y. With the use of new technologies, the state’s potential can be much higher. The government plans to increase production to 4m bags by 2018. Source (PT)

Colombia – Harvest roundup

Most of the country is done with the harvest and, once complete, the output should come to no less than 12m bags of coffee in 2014. Gone are the dire figures from 2012 when it was 7.7m bags. Source (ES)

GOVERNMENT / CORPORATE

Fairtrade USA campaigns to make US$25m investment, $1b impact

Fair Trade USA has identified four areas of development for the $25m grant, each with estimated dollar allocations: $8m to expand the entrepreneurial capacities of farmers and farmworkers; $8m in launching an impact management and reporting system; $7m for marketing and consumer engagement; and the last $6m to work with retailers to procure and promote fair trade products. Source

UK – Perth coffee shop users ‘violating’ Cuba trade law

PayPal has reported hundreds of Scottish customers to the US authorities for allegedly violating US embargoes on trade with Cuba after they bought small amounts of Cuban coffee from a Perth-based bean roaster. Source

Update: PayPal apologised to customers of a Scottish coffee shop with a taste for Cuban roast after reporting them to the US authorities and accusing them of violating the long-standing trade embargo. Source

Brazil – Cooxupé to invest in new coffee roasting plant

Cooxupe, Brazil’s biggest coffee co-op, to invest US$5.95m in a new roasting plant at its HQ in the South of Minas Gerais, financed by the BDMG. Source (PT)

Nicaragua receives sustainability award for expanding the coffee industry

Mercon Nicaragua won Rabobank’s “2014 Sustainability Award”, for expanding the coffee industry through the planting of a new anti-fungus robusta species. Source (ES)

UK – Costa named Nation’s Favourite Coffee Shop brand for 5th year

Costa has been named the Nation’s Favourite Coffee Shop brand for its fifth consecutive year after industry experts Allegra published their annual Project Cafe15 UK report for 2014. Fifty-percent of an independent consumer panel named Costa as their favourite coffee shop, a figure increasing by 2% on last year’s result. Source

INTEREST

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UK – Inside Costa Coffee’s billion-pound brewing empire

On the train between Waterloo and Vauxhall, commuters often claim they can detect a strong toasting smell. The aroma is probably roasting coffee beans. On Old Paradise Street, a backstreet tucked away between the two stations in South London, lies the unlikely heart of Costa Coffee’s brewing empire. Source

New Smart Coffee app helps customers find perfect blend

Paul Katzeff’s Smart Coffee feature allows coffee drinkers to choose their preferred mouth feel, acidity and flavors, and then the program gives recommendations for how to create their own blend at any grocery store that sells bulk coffee. The goal is for customers to take the designed blend to the grocery store and make it there. Source

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Taste for Specialty Coffee Brewing in Indonesia

“Sweet and tangy”; “caramel flavored”; “notes of dried apricot and honey”; these are just a few descriptions of the dynamic, high-quality coffee flavors that a growing number of Indonesians are seeking out. Source

19 December 2014

Notice: Due to travel, the 22 December edition may come slightly later in the day.

MARKET

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Arabica consolidates after tumble

March arabica traded up 0.55 cents, or 0.3 percent, at $1.7490 per lb, consolidating after Wednesday’s tumble, under pressure from an estimate from Volcafe, the Swiss-based coffee division of commodities house ED&F Man, for a larger Brazilian crop in 2015. March robusta coffee was down $3, or 0.2 percent, at $1,939 a tonne. Source

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Brazil – Price uncertainty practically paralyses market

The average of the CEPEA/ESALQ Index for arabica coffee in December (until 15 December 2014) was US$171.92 per 60-kilo bag, 1.2% smaller than the average of the entire month of November ($174.01 per bag). In dollar, quotes dropped 3.25%. However, comparing December 08-15, the CEPEA/ESALQ Index for arabica coffee, type 6, the increase was 1.6%, at $171.54 per 60-kilo bag on 15 December. Domestic robusta coffee values are moving down. The average in December (until December 15), the CEPEA/ESALQ Index was $103.97 per bag, only 0.58% lower than in November. Source

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Israel – Strauss declines on bets Russia turmoil to hurt coffee sales

Strauss Group dropped the most in more than a week on investor concern Russia’s economic travails will hurt the foodmaker’s coffee sales. The shares slipped 2.7%, the most since 20 August 2014, to US$15.62 at the close in Tel Aviv. The stock has declined 7.7 percent this year compared with an 11% advance for the benchmark TA-25 Index. Source

Brazil – Coffee market prices vary in Espírito Santo

Arabica type 6 (-US$2.26), going from $168.45 to $166.19. Arabica 7 (-$0.37), from $105.75 to $105.38. Robusta 7 was stable for the third day, at $100.81. Robusta 8 was up from $107.22 to $110.24. Arabica 8 wasn’t priced for the fourth time this week, owed to insufficient data. Source (PT)

Colombia –  Coffee indicators

Colombian coffee price per pound at destination port, on 18 December 2014, at US$1.7435, according to the ICO. Same day’s internal price per 275.5 lb bag for export in Colombia is max $328.30 in Santa Marta and min $326.70 in Cucuta. Source (ES)

COMMERCE

Vietnam to rank 2nd worldwide in coffee exports in 2014

Vietnam’s coffee exports were estimated to reach US$3.6b in 2014, up 32% y-o-y in value, making the country as the world’s second largest coffee producer and exporter, after Brazil, according to Vicofa. For 2014, the country exported more than 1.7m tons of coffee, an increase of 33% in volume, with an average price of $2.086 per ton, 2.46% lower than 2013. Source

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China – Haagen-Dazs eyes untapped coffee market

Haagen Dazs to exploit China’s untapped coffee market, with complimentary cappuccinos and a new latte line, made from Illy coffee and ice cream. The company said that its entry into China’s coffee market is a result of several years of preparation and outlined plans to establish many new Haagen-Dazs coffee shops to expand beyond the ice cream market. Source

PRODUCTION

Brazil – Seasonal summer rains may be below average

The Minas Gerais Agricultural Research Corp published a study yesterday in which it says the summer season (starting in 2 days) will likely show temperatures above the seasonal historic average. This goes for all of Brazil except Rio Grande do Sul and the western regions of Santa Catarina and Paraná. In relation to rain, in January 2015 there’s a chance the volume of rain is below average for the Sertão regions, Bahia, Minas, São Paulo, Rio and Espírito Santo. In February, the probability that rain will be below average increases in these same regions. In March, there’s a chance the volume of rain is above average in said regions, except in the Sertão, São Paulo and the South. Source (PT)

Kenya to introduce new coffee varieties to boost output

The Kenyan government is banking on the introduction of new coffee varieties, reduction in production costs and luring more Kenyans into coffee farming to boost production from the current 49k metric tonnes per year to 60k tonnes (22%) within two years. Many farmers prefer dairy farming or real estate which reduced coffee production from 130k tonnes annually in the 1980’s to the current 49k tonnes. The introduction of new coffee varieties was being undertaken and luring at least 20k additional coffee farmers. Source

Kenya – Sasini hurt by lower coffee production fall

Kenyan tea and coffee producer Sasini said on Friday its pretax profit fell 61% to US$683.250 in the year ended 30 September 2014, hurt by falling tea prices and lower coffee production. The company said its total revenue fell slightly to $30.5m from $31.1m. Source

Coffee berry borers reproduce in the bean

A study from the University of Sao Paulo published in the Journal of Insect Behavior describes the shocking behavior of coffee berry borers. These insects, which Discovery News calls “the most serious pests of coffee plants worldwide,” have sex in coffee beans before they’re roasted into the delicious drink. Source

Vietnam – June 2014 video on rational water use in coffee sector. Source

GOVERNMENT / CORPORATE

Brazil – Green coffee imports discussion resurfaces

Discussions resurfaced on the Brazilian importation of green coffee for use in blends from roasted and ground coffee and Brazil-produced capsules. Nestlé has been negotiating with the Brazilian government to obtain a license to purchase the raw materials from abroad. The import is essential for the installation of the Nestle factory in the country, announced last week and whose cornerstone was laid yesterday in Montes Claros. The installation of the capsules factory, following the world standard of using grains from various origins, was subject to authorization to import green coffee. According to a source, Nestlé already obtained such license, although the company won’t confirm. Brazil’s National Coffee Council was against the idea due to tax breaks related to the importation but now says it’s okay as long as it’s in small quantities. Source (PT)

Brazil – Senator wants Minas Gerais city to be “National Coffee Capital”

Senator Antonio Aureliano asked for support for his proposal to give Três Pontas, in Minas Gerais, the title of “National Coffee Capital”. The city, birthplace to singer Milton Nascimento and ex-VP Aureliano Chaves, hosts the largest domestic coffee expo, Expocafé. According to the senator, around US$83m in sales are done at the event each year. Source (PT)

US – Pacorini to locate in Suffolk, Virginia

Pacorini, a leading provider of logistics services for the global coffee market, has selected a 150,000 square foot warehouse facility in Suffolk’s Northgate Industrial Park for its newest location. The Italian company will invest over half a million dollars in the newly leased facility. Source

INTEREST

Will Americans be able to taste Cuban-grown coffee?

Cuba’s coffee industry has experienced deep setbacks in recent years — 2009 was its worst harvest on record — but if the American market is opened up to Cuba it could reignite an industry that has deep roots in the country. Source

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Nicaragua – Coffee co-operatives championing grassroots sustainability

On the slopes of Nicaragua’s mountainous Matagalpa region, two small coffee-producing co-operatives put grassroots sustainability into practice. Source

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US – Woman who drinks 100 coffees a day says it’s good for you

You might think you need a lot of coffee to get you through the day – but it’s probably nothing compared to Helene Marsot, who drinks up to 100 cups a day. A taste tester for Dunkin’ Brands’ coffee, Helene is responsible for overseeing the quality of the drinks the company produces and sells. Source

18 December 2014

MARKET

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Arabicas recover, edge off multi-month lows

Arabica coffee and cocoa futures on ICE rose on Thursday. March arabica traded up 0.5 cents, or 0.3 percent, to $1.7235 per lb, after falling on Wednesday to the lowest since July 23 at $1.7115. March robusta coffee was flat at $1,946 a tonne. Source

Colombia –  Coffee indicators

Colombian coffee price per pound at destination port, on 17 December 2014, at US$1.7185, according to the ICO. Same day’s internal price per 275.5 lb bag for export in Colombia is max $320.50 in Santa Marta and min $318.90 in Cucuta. Source (ES)

Correction: Yesterday’s indicator reflected 16 December, not 15 December 2014

Tanzania – Top grade arabica coffee prices ease despite tight supply

The average prices of Tanzania’s top grade arabica coffee fell at auction despite tight supply, taking a cue from lower prices at the New York market, said regulator Tanzania Coffee Board. The average price for top grade arabica coffee was US$189.84 per bag at the auction held last week, down from $191 previously. Overall average prices at the Moshi exchange were down by $2.2 per 50 kg for mild arabica compared to the last auction. The TCB said 14,7k bags were offered at the latest sale compared with 17.6k bags offered last week. Source

Ivory Coast – Slight rise in prices on Wednesday

Ongoing coffee futures sales are slightly up on 17 December 2014, as reported by the Ivory Coast Coffee and Cocoa Board. Coffee for the Dec-Jan period was priced at US$1.9694 per kg, against $1.9668 on Tuesday. For the Feb-Mar 2015 period, prices were at $1.9925, against $1.9888 previously. Source (FR)

COMMERCE

Nicaragua – Coffee exports fall 6.4% in November

Coffee exports from Nicaragua dipped 6.4% y-o-y in November 2014, to total 31.6k (60-kg) bags. Shipments during the first two months of the current 2014-15 harvesting season totaled 130.4k bags, a rise of 77.3% y-o-y. Source

Australia’s Gloria Jean’s Coffee ends India franchise with Landmark group

Australian coffee cafe brand Gloria Jean’s Coffees has ended its master franchise agreement in India with Citymax Hospitality, the hospitality division of the retail giant Landmark Group. Gloria Jean’s franchise has been discontinued and existing outlets are now being operated under the Krispy Kreme brand. Source

PRODUCTION

Brazil – Volcafe, USDA see increase for next year’s crop

Volcafe pegs Brazil’s 2015/16 output at 49.5m bags, up 2.5m bags on year. Following an “extensive” crop tour, the Swiss-based trader, said it expected a decent recovery in Arabica volumes from this year’s drought-hit levels. Arabica production is seen at 33m bags, or a 12% surge on year, while conillon crop is forecast to fall by 6% to 16.5m bags. Volcafe’s estimate is based on an extensive survey of more than 2,500 farms led over a month period, from early November to early December 2014. Volcafe’s numbers follow an upward revision in 2015 Brazilian output by the US Department of Agriculture. The USDA said its latest estimates totalled 51.2m bags, an 1.7m bag increase compared with previous forecasts. Source, S2

Climate change could slash coffee production

Half of the land needed for coffee production could disappear by 2050. That’s the takeaway of a new modeling study, which estimates how climate change will alter conditions such as temperature and precipitation that coffee beans grow in. Source

Vietnam – Coffee production to decline in 2015

Global coffee demand is expected to increase over the next year, however production in Vietnam is forecast to decline due to factors such as inclement weather, aging trees, lack of moisture, and disease. Additionally, many Vietnamese farmers have been holding back their crops from the market as a way to further increase prices. In its latest quarterly report, Volcafe stated that robusta production for the 2014-15 crop year will fall 4.5% to 66.3m (60 kg) bags. Demand, however, is expected to increase 2.8% to 69.3m bags. This means there should be a deficit of about 3m bags that won’t be met by the market. Source

Kenya – Coffee output rising 22% in next two crop years

Kenya’s coffee output will rise 22% to about 60k tonnes in the next two crop years (Oct-Sept), thanks to new varieties and increasing area under cultivation. The aim is to raise production from about 49k tonnes in 2013/14, by introducing higher yielding coffee varieties and encouraging more farmers to take up the crop. Source

GOVERNMENT / CORPORATE

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Mexico – Coffee producers vulnerable to increased commodity market turbulence

In early 2014, Mexico announced the New National Coffee Policy, to include phytosanitary activities, a centre for research, innovation and technological development, a more extensive hedging program, and other incentives. Resources for this initiative are estimated at US$52m. Mexico also poses some challenges to players operating across multiple markets. For example, the government imposes import high duty rates, which apply to certain imports. These rates can range from 30% to 260%, while compensatory quotas can raise duties up to 500%. On the other hand, many importers are eligible for advantageous treatment and special rates due to customs associations. Source

Sweden – Nordic World of Coffee event announced

The Speciality Coffee Association of Europe will bring representatives from the world’s top coffee producing countries to the heart of the Nordic region, the world’s largest coffee consuming market, on 16-18 June 2015 when the Nordic World of Coffee is held at the Swedish Exhibition & Congress Centre in Gothenburg. Source

Australia – High Court rules on registrability of foreign language trademarks

By a 4-1 majority, the High Court held that the Italian words ORO and CINQUE STELLE were distinctive of coffee and related goods, and therefore Cantarella’s trade mark registrations should be reinstated. This decision clarifies the test for assessing inherent distinctiveness of foreign language marks. Source

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China – Starbucks opens new flagship store

Starbucks China has opened the Chengdu Taikoo Li store. The company also announced an enhanced partner experience through new opportunities with the launch of the new Starbucks Talent Exchange Program. Source

Guatemala – Juan Valdez to open first cafe in the coffee country

Juan Valdez is getting ready to inaugurate the first of a chain of stores in Guatemala. A country where coffee isn’t just a very important prodcut for the economy but also a matter of national pride for Guatemalans. The Guatemalan cafe sector, which has grown in the last 15 years, is a victim of its own success, now having attracted foreign competition. Source (ES)

INTEREST

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US – Hawaii coffee geeks are jolting the world’s coffee scene

“I have a particular interest in developing coffee in regions that are not known,” Meza says. “It’s the places people have never heard of that have the specs or potential to grow great coffee. Those are the places that excite me.” Source

UK – Thirsty? Go to a library, not a coffee shop

Libraries should be re-branded as vibrant community hubs offering free wifi, comfy sofas and coffee, according to government-commissioned report. Source

Uganda – How a small company built a global coffee brand

Living in Uganda, Africa’s second largest coffee producing nation after Ethiopia, Andrew Rugasira was surprised with the way middlemen and large foreign corporations in the sector made huge profits from the commodity while hard working farmers across the country continued to live in poverty. So he decided to do something about it. Source

World’s biggest coffee-drinking countries analyzed

Atlanta-based gourmet coffee supplier J. Martinez & Company notes that although the United States consumes the most coffee in the world in terms of volume, it is not the top coffee-drinking country in the world in terms of per capita consumption. That distinction goes to the Netherlands. Source

17 December 2014

MARKET

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Arabicas dip on weather

Arabica coffee fell as rainfall in top grower Brazil and a weak real currency stimulated investor and producer selling. March arabica fell 1.65 cent, or 0.9 percent, to $1.7605 per lb. March robusta coffee eased $1, or 0.1 percent, to close at $1,964 a tonne. Source

Brazil – Espírito Santo coffee market up on Tuesday

Arabica type 6 (+US$1.83), from $164.96 to $166.79. Arabica type 7 (+$1.46), from $102.61 to $104.08. Robusta type 7 (+$1.09), from $96.75 to $97.69. Robusta type 8 was quoted as stable at $105.01. Once more, arabica type 8 wasn’t priced due to insufficient data. Source (PT)

Colombia –  Coffee indicators

Colombian coffee price per pound at destination port, on 16 December 2014, at US$1.7770, according to the ICO. Same day’s internal price per 275.5 lb bag for export in Colombia is max $341.08 in Santa Marta and min $339.50 in Cucuta. Source (ES)

COMMERCE

Brazil – Coffee exports total $5.98 billion in 2014

Between January and November, coffee export revenue totaled US$5.98b, representing an increase of 22.81% y-o-y (against $4.86b in 2013). The volume exported was 33.36m bags, an increase of 14.43% y-o-y. (against 29.15m bags in 2013). Source (PT)

Brazil – Large deficits of roasted coffee

Brazil will end 2014 with the largest deficits in its recent trade history of roasted coffee, a higher added value product. Not only imports will set a record, both in volume and value, but in both cases purchases abroad will surpass shipments, an unprecedented combination. Experts said the growth in imports is directly caused by the expansion of the domestic capsules market, still highly dependent on imports. Thanks largely to the additional demand generated by such expansion, from January to November, Brazil imported 2,254 tonnes of roasted coffee, up 46%. In the same period, Brazilian exports were of 1,524 tonnes, down 15%. Source (PT), S2

Brazil – 3corações aims to consolidate leadership with specialty coffees

Following the expansion that gave it the leadership in the Brazilian roasted and ground coffee market, 3corações group advances its strategies to further increase its market share. After starting to sell coffee capsules this year, the company plans to launch a new line of specialty coffees in 2015, which currently represent a small portion of its revenue. Total sales in 2014 are expected to reach R$2.7 billion, up 12.5% over 2013. Source

US – Cott acquires coffee producer DSS in $1.25b deal

Private label beverage producer Cott Corporation has acquired US-based water and coffee producer DSS Group, in a previously announced deal worth US$1.25b. The Group is the parent company of DS Services of America and produces water and coffee direct-to-consumers in the US. Source

PRODUCTION

Mexico – Low production makes coffee prices climb

In Veracruz, production fell 30% due to land abandonment, old plants and plummeting revenues. The drop in production is making prices soar to $0.64 per kilo of coffee cherry in producing states. Source (ES)

‘Creeping humanitarian crisis’ in Central America?

A full 80% of farmers in the worst-hit areas of El Salvador have reported losing all of their crops, while those in Honduras and Guatemala are fairing simularly. Source

GOVERNMENT / CORPORATE

Brazil – BSCA lab is the largest in Brazil with SCAA certification

The Brazilian Association of Specialty Coffee has the largest laboratory in Brazil offering a SCAA certificate. The acknowledgement came this December, when the US entity handed out the “Certified Training Laboratory” diploma to the BSCA. The document also allows for Q-Grader courses from the Coffee Quality Institute. Source (PT)

China – Cafe Show China 2015 announced

The third edition of Cafe Show China will be held on 2-4 July 2015 at China International Exhibition Center (Old Venue), in Beijing. Source

INTEREST

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Caffeinating with Craft Coffee, the Internet coffee company

No longer a mere purveyor of coffee, Craft Coffee is now “Pandora for Coffee.” Like the Internet radio company, Craft Coffee now uses an algorithm to determine which kinds of artisan coffee its customers might like. Source

Spain – Youth with Down syndrome become coffee specialists

Six young Spaniards with Down syndrome to receive intense barista training before the 3rd Galician Barista Championship to be held on 21 December. The Barista Champions with Down syndrome (Los Campeonatos Baristas Down) is a new initiative, started in Galicia in 2012, which looks to provide specialized training and job placement within the hospitality industry. Source (ES)

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Chemex’s automatic brewer changes the meaning of pour over

The Ottomatic is for those of you who want the great brew of a Chemex but are in no way able to operate at that level of functionality before drinking a cup of coffee — the great paradox of pour overs everywhere. Source

Stream ambient noise from different kinds of coffee shops. Source

16 December 2014

MARKET

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Coffee futures slip on weaker Brazilian currency

Arabica coffee futures slid Tuesday as the Brazilian currency retreated against the U.S. dollar. Its currency fell to R$2.74 per U.S. dollar on Tuesday, the weakest it has been since March 2005. Arabica coffee for March delivery was 1.8% lower at $1.7540 a pound. Source

Why Starbucks has GMCR stock creamed

Starbucks, with a market capitalization of US$60b, is about three times the size of GMCR (Keurig). All else being equal, you’d expect GMCR stock to offer better growth prospects than the far more mature SBUX. The performances of the two stocks in 2014 might serve to reinforce that bias, with GMCR stock up more than 75% year-to-date and SBUX stock logging some lousy, market-trailing 3.5% gains. Source

Brazil – Week starts on a high in Espírito Santo

Arabica type 6 (+US$7.37), from $158.52 to $165.89. Arabica type 7 (+$3.31), from $99.84 to $103.15. Robusta type 7 & 8 quoted at $97.26 and $105.73, respectively. Arabica type 8 wasn’t priced due to insufficient data. Source (PT)

Colombia –  Coffee indicators

Colombian coffee price per pound at destination port, on 15 December 2014, at US$1.7865, according to the ICO. Same day’s internal price per 275.5 lb bag for export in Colombia is max $344.10 in Santa Marta and min $342.50 in Cucuta. Source (ES)

Ivory Coast – Coffee prices slightly up

Ongoing coffee futures sales for the Dec 2014 – Jan 2015 period saw a slight rise, and are trading at US$2.00 per kg against $1.99 per kg on Friday. In addition, for the period from February to March 2015, prices are going back towards $2.0298 per kg against $2.0203 per kg, previously. Source (FR)

COMMERCE

Brazil – Commercialization of 2014/15 harvest at 65%

The commercialization of Brazil’s 2014/15 coffee harvest (July/June) is at 65% of the total estimated production, relative to the end of November. The data is part of a SAFRAS & Mercado study. The percentage equals 31.97m (60 kg) bags, of a total harvest of 48.9m bags. Source (PT)

Vietnam – Coffee export dip sparks talk of hoarding

Vietnamese robusta coffee exports saw a surprise fall last month, stoking ideas of a squeeze on the country’s supplies of the bean, whose price has narrowed the gap with that of rival arabica. Vietnam shipped 84,059 tonnes (1.4m bags) of coffee last month, down 12.3% from the 95,800 tonnes shipped in October, customs data showed. Source

El Salvador – Coffee exports plummet in November

Coffee exports fell 78.5% in November 2014, with 4k (60 kg) bags shipped against 18.8k bags during same month last year. Source (ES)

GOVERNMENT / CORPORATE

EU opens probe into Mondelez, DE Master Blenders coffee merger

European Union antitrust regulators opened an extensive investigation into a proposal by Mondelez International Inc and competitor D.E Master Blenders to combine their coffee businesses, concerned this may reduce competition. Source

El Salvador – The National Coffee Pact was relaunched amid doubts

The National Coffee Pact was relaunched with the aim to revive cultivation of the grain, hit by drought and the rust plague, amid distrust of some coffee producers who say the government has a long history of enacting bad policies. Source (ES)

Coffee Kids to suspend programming In 2015

Coffee Kids–a coffee-specifc NGO supporting projects at origin–will suspend programming, after 26 years in operation, on 31 December 2014, at which point the organization will “search for an appropriate organization with which to merge.” Source

CerUtz

Brazil – 59 coffee farms in Minas Gerais are certified by UTZ

There are now 59 coffee producing properties in Minas Gerais that have benefitted by the partnership between Certifica Minas Café and UTZ Certified. Those who qualify under the Brazilian program can request UTZ certification at no cost. Source (PT)

INTEREST

A talk with the director of A Small Section of the World

Director Lesley Chilcott (“An Inconvinient Truth,” “Waiting for Superman”) talks about what inspired her to tell this story and why the multi-billion dollar coffee industry should invest in women.  Source (video)

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New coffee cup container Goat mug is big success on Kickstarter

Seeking to introduce a new type of cup container to the market, entrepreneur Ane Miklavec launched a Kickstarter campaign to raise US$25k for the Goat mug. Within a few days, the project $194,000. Source