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Recap: Recent Developments in Coffee - #12 | July 2, 2020

#12 | July 2, 2020

07/02/20 • 4 min

Recap: Recent Developments in Coffee

Welcome to Recap, a brief overview of recent coffee developments every two weeks from the Specialty Coffee Association, made possible with the support of DaVinci.

Special Thanks to Our Sponsor, DaVinci

This episode of Recap is made possible with support from DaVinci. With its heritage in specialty coffee and expertise in trends and menu innovation, DaVinci is the beverage brand of choice for the foodservice professional. Their product range is designed to provide end-to-end solutions and support specialty coffee professionals in their mission to create inspirational beverages. Follow us at DaVinci Europe, DaVinci North America, or using #WeAreDaVinciGourmet.

Back in Episode 10, we noted that the inaugural Ethiopian Cup of Excellence competition was undeterred by the global pandemic, achieving a record number of both entries to the competition and buyers to the auction. The auction, which took place on June 25, also broke the record for total auction sales, raising US$1,248,690 across 28 lots. The previous record, US$830,245, was achieved during a 2011 El Salvador auction of 42 lots. The top-scoring coffee, a naturally processed coffee variety released by the Jimma Research Center in 1978, was grown by Niguse Gemeda Mude from Hayisa in Sidama. It achieved the highest price ever recorded for Ethiopian coffee, US$185.10 per pound or US$407 per kilo. While these prices appear to validate the investments and associated risks of quality, the ongoing climate crisis and global pandemic are a dual-threat to Ethiopia’s coffee production. For example, Central and South American farmers are experiencing disruption directly to this year’s harvest, particularly due to COVID-19 restrictions on the movement of skilled farm labor, but the Ethiopian harvest typically peaks in November-December. The Ethiopian Coffee & Tea Authority reports that COVID-19 is currently disrupting farmers’ ability to apply inputs like fertilizers to their farms, the impact of which will probably be felt in future production across both quantity and quality.

Meanwhile in Kenya, The Standard reports that coffee farmers in Kiambu, Githunguru, and Komothai have uprooted their coffee trees in protest of poor earnings. According to those interviewed, the farmers recently received US$0.13 per kilo for coffee that cost US$0.33 per kilo to produce. Citing a lack of support from cooperatives and county officials, the farmers highlighted that where they would have once received support in the form of fertilizers and tools, they now must look for access to loans to improve their farms--but even these, too, are now unavailable. They also pointed to significant delays in payments both to farmers and to mill workers as a source of concern. Those who have uprooted their trees have planted vegetables and avocados instead, while others are simply burning their trees for charcoal or leaving them unattended.

A new study published in Global Change Biology suggests that Robusta is far more sensitive to temperature than previously thought. Built on 10 years of yield observations on almost 800 farms across Southeast Asia, the study suggests that the optimal temperature for Robusta is 20.5C, considerably lower than previously suggested optimal temperatures. The current estimates, which indicate a higher temperature tolerance, are based on historical botanical explorations in Central Africa. Worryingly, the study also reported that for every one-degree increase over this optimal temperature, yields decrease by 14 percent. One of the study’s lead authors, Jarrod Kath, says the results call for a reassessment of how we can adapt coffee production to climate change.

World Coffee Research has conducted a global consultation, encompassing nearly 140 interviews and 896 survey responses, to direct a five-year strategy for the organization. The summary of the consultation identifies four common global priorities: farmer profitability, origin diversity, quality, and climate adaptation. It also identifies research and development interests of coffee stakeholders by region, which include better access to improved varieties in Latin America, improved pest and disease control in Africa, and Robusta production in Asia. “Climate change is the defining issue of our time,” wrote World Coffee Research CEO Vern Long in a press release announcing the results of the consultation. “Everything agricultural R&D does must be oriented to address it and build resilience and diversity into coffee production systems.”

This episode of Recap was made possible with the support of DaVinci. If you want to dive deeper into anything you heard today, check out the links in the description of this episode. Recap will be back in two weeks’ time. Thanks for listening.

Further Reading:

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    Welcome to Recap, a brief overview of recent coffee developments every two weeks from the Specialty Coffee Association, made possible with the support of DaVinci.

    Special Thanks to Our Sponsor, DaVinci

    This episode of Recap is made possible with support from DaVinci. With its heritage in specialty coffee and expertise in trends and menu innovation, DaVinci is the beverage brand of choice for the foodservice professional. Their product range is designed to provide end-to-end solutions and support specialty coffee professionals in their mission to create inspirational beverages. Follow us at DaVinci Europe, DaVinci North America, or using #WeAreDaVinciGourmet.

    Back in Episode 10, we noted that the inaugural Ethiopian Cup of Excellence competition was undeterred by the global pandemic, achieving a record number of both entries to the competition and buyers to the auction. The auction, which took place on June 25, also broke the record for total auction sales, raising US$1,248,690 across 28 lots. The previous record, US$830,245, was achieved during a 2011 El Salvador auction of 42 lots. The top-scoring coffee, a naturally processed coffee variety released by the Jimma Research Center in 1978, was grown by Niguse Gemeda Mude from Hayisa in Sidama. It achieved the highest price ever recorded for Ethiopian coffee, US$185.10 per pound or US$407 per kilo. While these prices appear to validate the investments and associated risks of quality, the ongoing climate crisis and global pandemic are a dual-threat to Ethiopia’s coffee production. For example, Central and South American farmers are experiencing disruption directly to this year’s harvest, particularly due to COVID-19 restrictions on the movement of skilled farm labor, but the Ethiopian harvest typically peaks in November-December. The Ethiopian Coffee & Tea Authority reports that COVID-19 is currently disrupting farmers’ ability to apply inputs like fertilizers to their farms, the impact of which will probably be felt in future production across both quantity and quality.

    Meanwhile in Kenya, The Standard reports that coffee farmers in Kiambu, Githunguru, and Komothai have uprooted their coffee trees in protest of poor earnings. According to those interviewed, the farmers recently received US$0.13 per kilo for coffee that cost US$0.33 per kilo to produce. Citing a lack of support from cooperatives and county officials, the farmers highlighted that where they would have once received support in the form of fertilizers and tools, they now must look for access to loans to improve their farms--but even these, too, are now unavailable. They also pointed to significant delays in payments both to farmers and to mill workers as a source of concern. Those who have uprooted their trees have planted vegetables and avocados instead, while others are simply burning their trees for charcoal or leaving them unattended.

    A new study published in Global Change Biology suggests that Robusta is far more sensitive to temperature than previously thought. Built on 10 years of yield observations on almost 800 farms across Southeast Asia, the study suggests that the optimal temperature for Robusta is 20.5C, considerably lower than previously suggested optimal temperatures. The current estimates, which indicate a higher temperature tolerance, are based on historical botanical explorations in Central Africa. Worryingly, the study also reported that for every one-degree increase over this optimal temperature, yields decrease by 14 percent. One of the study’s lead authors, Jarrod Kath, says the results call for a reassessment of how we can adapt coffee production to climate change.

    World Coffee Research has conducted a global consultation, encompassing nearly 140 interviews and 896 survey responses, to direct a five-year strategy for the organization. The summary of the consultation identifies four common global priorities: farmer profitability, origin diversity, quality, and climate adaptation. It also identifies research and development interests of coffee stakeholders by region, which include better access to improved varieties in Latin America, improved pest and disease control in Africa, and Robusta production in Asia. “Climate change is the defining issue of our time,” wrote World Coffee Research CEO Vern Long in a press release announcing the results of the consultation. “Everything agricultural R&D does must be oriented to address it and build resilience and diversity into coffee production systems.”

    This episode of Recap was made possible with the support of DaVinci. If you want to dive deeper into anything you heard today, check out the links in the description of this episode. Recap will be back in two weeks’ time. Thanks for listening.

    Further Reading:

      Previous Episode

      undefined - #11 | June 18, 2020

      #11 | June 18, 2020

      Welcome to Recap, a brief overview of recent coffee developments every two weeks from the Specialty Coffee Association, made possible with the support of DaVinci.

      Special Thanks to Our Sponsor, DaVinci
      This episode of Recap is made possible with support from DaVinci. With its heritage in specialty coffee and expertise in trends and menu innovation, DaVinci is the beverage brand of choice for the foodservice professional. Their product range is designed to provide end-to-end solutions and support specialty coffee professionals in their mission to create inspirational beverages. Follow us at DaVinci Europe, DaVinci North America, or using #WeAreDaVinciGourmet.

      Over the past few weeks, amid a historic, global Black civil rights movement, publicly-shared personal experiences of systemic racism have opened an industry-wide conversation about structural inequity in specialty coffee. As current and former employees of various companies have come forward to share painful experiences, calls for meaningful and actionable apologies have intensified alongside calls to build a more equitable specialty coffee industry for Black coffee professionals. Phyllis Johnson, founder and president of BD Imports, published an open letter to US coffee professionals, calling for industry leaders to come together to provide resources, tools, and funding to fight systemic racism in the specialty coffee industry. “Our credibility is at stake,” writes Phyllis, “when asking coffee producers to create greater social and equitable programs when we in the US are silent on blatant injustices at home.”

      But this is not just an American problem: There is a direct relationship between the current civil rights movement and the structural inequity of today’s coffee industry. Today’s models of coffee production and consumption were shaped by government-backed merchants like the British and Dutch East India Companies in the mid-1600s. As the consumption of coffee became more popular in Europe, other colonial powers, particularly France, followed suit. In all cases, forced labor or slavery was critical to the success of this export-driven production model. This particular market structure—where the Global North exerts power over the trade of coffee that is produced in the Global South by artificially low-cost labor—is still reflected in today’s market.

      As the specialty coffee industry continues to reflect on systemic racism, inequality, and discrimination, social media feeds have filled with resources for those who wish to support the Black Lives Matter movement, including lists of Black-owned coffee businesses across the value chain.

      Coffee communities in Africa are facing unprecedented hardship as they attempt to manage the effects of torrential rain and swarms of locusts amid the ongoing global pandemic. Countries across East Africa, particularly Rwanda, Kenya, and Uganda, have been especially affected by the heaviest rains in months. Critical infrastructure, including bridges and schools, as well as farms and homes have been swept away by landslides. At least 70 people have lost their lives in Rwanda, neighboring Kenya has reported nearly 200 lives lost in the past month, and thousands have been displaced in Uganda after two rivers burst their banks. While it’s impossible to ascertain the full scope of the damage to the East African coffee sector, relief efforts are mounting. Raw Materials, a nonprofit coffee trading company, has reported at least 28 members of coffee-growing communities in the Nyabihu District of Northern Rwanda lost their lives in early May flooding. Raw Materials has joined efforts with Muraho Trading Company, an owner/operator of mills in North Rwanda, to fundraise for a three-phase relief effort for the affected communities.

      This episode of Recap was made possible with the support of DaVinci. If you want to dive deeper into anything you heard today, check out the links in the description of this episode. Recap will be back in two weeks’ time. Thanks for listening.

      Further Reading:

      Next Episode

      undefined - #13 | July 16, 2020

      #13 | July 16, 2020

      Welcome to Recap, a brief overview of recent coffee developments every two weeks from the Specialty Coffee Association, made possible with the support of DaVinci.

      Special Thanks to Our Sponsor, DaVinci
      This episode of Recap is made possible with support from DaVinci. With its heritage in specialty coffee and expertise in trends and menu innovation, DaVinci is the beverage brand of choice for the foodservice professional. Their product range is designed to provide end-to-end solutions and support specialty coffee professionals in their mission to create inspirational beverages. Follow us at DaVinci Europe, DaVinci North America, or using #WeAreDaVinciGourmet.

      Three years after they announced plans to merge under the Rainforest Alliance name, Rainforest Alliance and UTZ have announced a new Sustainable Agriculture Standard that will replace both programs in July 2021. Over 1,000 people across more than 50 countries have contributed to the new standard’s development over the past two years. Expected to be adopted by an existing network of at least two million farmers around the world, the new certification program has separate requirements for farms and supply chains, as well as new compliance procedures and documents. According to Rainforest Alliance, the new seal that accompanies the program promises more “shared responsibility,” including a mandatory sustainability differential above the market price, a required sustainability investment component, and greater support for climate-adaptive agriculture. A training program for current certificate holders, Rainforest Alliance staff, and Certification Bodies will be available from September 2020.

      The International Coffee Organization has released the third report in its series on the impact of the COVID-19 crisis on the global coffee sector. Focused on exporting country members that represent more than 80% of global coffee production, the survey results provide a snapshot of current perceptions of trends, including expectations that employment, revenues, domestic consumption, and export will all be negatively affected by the pandemic over the next year. The report highlights a concern expressed by over half the respondents that sales contracts were canceled or changed, mirroring a recent prediction by the US Department of Agriculture that global coffee consumption is set to fall this year for the first time since 2011.

      Guatemala has officially begun its exit from the International Coffee Agreement of 2007, the driver of all the ICO’s activities. Following its departure on September 30, Guatemala will be the only major coffee-producing country that is not a part of the agreement. The 2007 agreement made headlines in 2018 when the US, a founding member of the original 1963 agreement, unexpectedly withdrew. These departures have a significant impact on the organization's budget, which is funded through contributions from its importing and exporting partners based on annual coffee trade volumes. Ricardo Arenas, head of Anacafe’s Board of Directors, said the Guatemalan coffee association had urged the government to cut ties with the organization as it did not do enough to protect producers’ interests.

      This episode of Recap was made possible with the support of DaVinci. If you want to dive deeper into anything you heard today, check out the links in the description of this episode. Recap will be back in two weeks’ time. Thanks for listening.

      Further Reading:

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