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Recap: Recent Developments in Coffee - #13 | July 16, 2020

#13 | July 16, 2020

07/16/20 • 3 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.

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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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:

Previous Episode

undefined - #12 | July 2, 2020

#12 | July 2, 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.

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:

    Next Episode

    undefined - #14 | July 30, 2020

    #14 | July 30, 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.

    World Coffee Events and the Specialty Coffee Association have announced the cancellation of the 2020 World Coffee Championship events due to the impact of pandemic-related international visa and travel restrictions. The 2020 World Barista Championships and World Brewers Cup were scheduled to take place November 3-6 at the Melbourne International Coffee Expo (MICE) trade show, which has now been canceled. The World Coffee In Good Spirits, World Latte Art, World Cup Tasters, World Coffee Roasting, and Cezve/Ibrik Championships were scheduled to take place during World of Coffee Warsaw October 15-17. The SCA is currently working with partners at the Warsaw PTAK venue to cancel the 2020 World of Coffee trade show and postpone the contract to a future year; more information on this will be available in the coming weeks. The World Barista Championship, World Cup Tasters Championship, and Cezve/Ibrik Championship will next be held at the World of Coffee Athens trade show in June of 2021.

    More than 100 scientists published a signed statement to reassure the public that reusable containers are still safe to use amid the ongoing pandemic. Some cafés have stopped accepting reusable containers over fears of virus contamination. While studies show that the virus can remain infectious on surfaces, the scientists’ statement advises that reusable containers can be used safely once thoroughly washed with hot water and detergent or soap. Some coverage of the statement suggests that reusable containers could actually be safer if regularly and properly washed rather than single-use items that have been exposed to the environment before use. Others note that a washed reusable container could still become contaminated with and transmit the virus as it’s passed between a customer and server. As the environmental battle to reduce single-use plastic waste clashes with the measures taken to mitigate risk during the pandemic, there are fears that the push for sustainable and reusable packaging is being set back. While some packaging companies are attempting to leverage the pandemic against government initiatives to reduce waste, a ban on single-use plastics is still scheduled to come into force in Europe next year.

    Xinhua reports that a Ugandan start-up, Volcano Coffee, is using coffee kiosks to drive domestic consumption. Focused on specialty Arabica grown on the volcanic Mount Elgon ranges in eastern Uganda, Volcano Coffee is hoping to shift the perception that coffee is only for export. Uganda’s population only consumes 4-5% of the coffee produced in the country, despite it being the second-largest producer of coffee in Africa after Ethiopia. In addition to growing domestic consumption, Volcano Coffee also aims to tackle Uganda’s significant youth unemployment by reintroducing them to agriculture through its youth academy, which focuses on the coffee value chain. According to Volcano Coffee’s founder, Gerald Katabazi, a developed domestic market is less likely to suffer global upsets like the COVID-19 pandemic. The company’s efforts come at a time when Uganda is also looking to expand exports beyond the traditional market in Europe: last year, the country had signed an agreement with China’s Yunnan Coffee Exchange and was due to feature as the China International Specialty Coffee Expo’s portrait country this year.

    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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