Coffee Around the World: July 2024

Hawaii authorities still need help enforcing the new Kona coffee labeling bill. While its passage brought hope to Kona coffee farmers, challenges have arisen. The Hawaii Department of Agriculture (DOA) says enforcement requires transparency, which is problematic, and the law did not include additional inspection staff.

(Source: Daily Coffee News)

Coffee stakeholders, including the International Coffee Organization (ICO), celebrated a key milestone as the G7 recognized coffee as a key strategic sector. As part of the recognition, the G7 acknowledged and committed to endorse efforts by public-private partnerships to create more sustainable solutions to industry challenges, including climate change and economic recovery.

(Source: International Coffee Organization (ICO))

The United Nations Industrial Development Organization (UNIDO) and International Coffee Organization(ICO) have partnered to tackle climate change-related issues. The two organizations have led efforts to strengthen adaptation measures and foster sustainability in the global coffee value chain (C-GVC). With support from the G7, the partnership intends to establish an international funding mechanism to support stakeholders, particularly farmers,  through C-GVC to address climate change and other structural challenges, like income gap, price volatility, and regulatory frameworks.

(Source: UNIDO)

Fairtrade releases its 2023 annual report. The report highlights the organization’s work with over 2 million farmers in 68 countries - focusing on empowering farmers in sustainable livelihoods, navigating climate change, and supporting women and youth leadership, among others.

(Source: Fair Trade International)

A recent report highlights “Glaring Discrepancies in Coffee Value Distribution.” According to the report, the coffee crop is highly profitable, ensuring adequate earnings for the entire supply chain. Yet, the current value distribution significantly favors roasters and direct-to-consumer sellers while ignoring coffee farmers.

(Source: Daily Coffee News)

The International Labor Organization (ILO) visits Yemeni for plans to revive the country’s prized coffee sector. Since the start of the Yemeni conflict in 2005, the country’s renowned coffee sector has suffered significantly. The ILO’s visit saw talks with various stakeholders, including government officials and private companies, laying the groundwork to reinvigorate the industry.

(Source: ILO)

Luckin Coffee continues to enjoy positive news in 2024. China’s largest giant has sprung up to outperform Starbucks as the country’s largest coffee retailer. On the other hand, as Luckin Coffee continues to grow, it has finalized a US$500 million sourcing agreement with the Government of Brazil as the demand among Chinese consumers grows.

(Source: Bloomberg and World Coffee Portal)

Panama’s Hacienda La Esmeralda celebrates its 20th anniversary as the first finca to auction the most expensive Gesha coffee varietal. In 2004, Hacienda La Esmeralda broke the record by selling the world’s most costly Gesha (developed and grown since the early 90s) and winning the Best of Panama competition. At the peak of the anniversary, on 22 August 2024, Hacienda La Esmeralda will host an auction featuring 20 of the farm’s coffee.

(Source: Hacienda La Esmeralda)

Starbucks partners with Grubhub to deliver its products through the service. The coffee chain has started to deliver with Grubhub to three different US states this month and plans to expand to nationwide delivery by August of this year. This means that consumers from over 4,000 cities in which Grubhub operates will have access to the service by the end of the year.

(Source: World Coffee Portal)

Recent NCA (National Coffee Association) and SCA (Specialty Coffee Association) reports show nearly half of US adults consume specialty coffee. The report said about 45% of US adults drank specialty coffee the previous day, with younger consumers (25-39 years old)being the majority. This rate has been the highest since the COVID-19 pandemic and is 4% higher than last year.

(Source: Daily Coffee News)

The Specialty Coffee Association (SCA) is expected to roll out the second phase of the Coffee Value Assessment between late 2024 and early 2025. The SCA Coffee Value Assessment is the tool the global industry uses to discover value in coffee.

(Source: Specialty Coffee Association)

Coffee Sector Performance Reports in the Coffee-Belt Region in June 2024

Global

• USDA has projected a 4.2% increase (around 176 million 60kg bags) in global coffee production in 2024/25. On the other hand, global consumption is also projected to grow by 1.8% (about 170 million 60kg bags).
• Meanwhile, Arabica coffee prices surged in June, while Robusta prices also rose due to concerns about a delayed rain season in Vietnam—although Brazil has not experienced this issue.
• Data also shows a spike in the global specialty coffee shop market, with a projected growth of US$57.41 billion in the next four years. On the other hand, the US market has an even bigger projection of growth of up to 32%. According to the report, issues like consumer focus on sustainability and the convenience of online ordering are among the key drivers for this projected growth.

(Source: Tridge, Bloomberg, The Globe and Mail, and Yahoo Finance)

Brazil

• Brazil’s pleasant weather this year and growing demand for Brazilian coffee are reported to propel the increased production and exports in the 2024/25 financial year. Unfriendly weather, poor harvests in Vietnam, and transportation disruptions in the Mediterranean have shifted stakeholders towards Brazilian robusta. With increased global coffee prices, Brazil is expected to see a 5.4% production increase and a revenue of US$10.7 billion. Domestic coffee consumption in Brazil is also growing, with a 2024/25 projection of 22.67 million 60kg bags, accounting for 40% of total production.

(Source: Daily Coffee News)

Peru 

• The Peru coffee production is expected to grow in the 2024/24 financial year by up to 7% (4.22 million 60 kg bags) - fueled by improved prices and fertilizer use.  Peru remains a global leader in organic coffee production, but small-scale farmers face unequal profits and high costs despite rising prices. Diseases like leaf rust and coffee borer beetles impact production, mainly Arabica beans. However, exports are projected to grow by 6.4% to 4.07 million 60kg bags, with the US as the top market at 28%.

(Source: Daily Coffee News)

Uganda

• Uganda's coffee production is projected to rise in the 2024/25 financial year by 1.44% (6.9 million kg bags). Robusta now makes up 63% of output, with Arabica at 37%, a shift from the traditional 80:20 split. This is due to young plant maturation, favorable conditions, and better pest management. Domestic consumption is growing but is projected to be only 1.52% (330,000 60kg bags). Small farmers face high fertilizer costs despite the positive trends. The market enjoys relative freedom, allowing direct trade and easy access to certifications like Fairtrade and Rainforest Alliance. The government, through UCDA, effectively promotes coffee.

(Source: Daily Coffee News)

Kenya

• Unfortunately for the Kenyan coffee sector, production is projected to decline by 6.3% (about 750,000 60kg bags)  in the 2024/25 financial year, with factors like loss of harvested area and yield declines contributing to this decline. The Kenyan government also overhauled reforms to cultivate more value for their farmers, only to affect marketing and licensing. Exports have also been projected to decrease by 30,000 60kg bags (720,000 60 g=kg bags expected to be exported) compared to the previous year due to limited local supply and harvest.

(Source: Daily Coffee News)

Tanzania

• Coffee production in Tanzania is expected to grow by 7% (1.5 million 60 kg bags)in the 2024/25 financial year. This increase is associated with the successful rehabilitation of older plants, favorable weather, and a growing demand in the EU. The EU represents the largest market - accounting for 59% (752,000 bags). The Tanzania Coffee Board (TCB) has supported farmers further by distributing over 13 million improved seedlings and plans to reach 25 million by 2025.

(Source: Daily Coffee News)

Vietnam

• Despite weather challenges, Vietnam’s coffee production is expected to remain steady in the 2024/24 financial year - with approximately 29 million 60kg bags. Robusta production is projected at 27.85 million 60 kg bags, while Arabica production is forecasted at 1.15 million 60kg.  However, prices may continue to rise. Further, there may be a few differences based on the regions. For instance, the Mercantile Exchange of Vietnam predicts a 10% to 16% drop in production around the Central Highlands region.

(Source: Reuters and Daily Coffee News)

The EUDR Updates

The EU Deforestation Rules (EUDR) continue to receive calls for reconsideration by coffee stakeholders in Europe and North America regarding the planned implementation, which is scheduled to take effect on 30 December 2024. 

• A consortium of large European green coffee companies dealing in import and roasting,  International Coffee Partners (ICP), have called on EU lawmakers to delay the implementation of the new anti-deforestation law. According to a public call by ICP, the scheduled implementation of the law could impact poverty alleviation and sustainability efforts as it would exclude small coffee farmers from the EU market. This is because the smaller-scale farmers cannot comply with the law within the given timeline. ICP reiterated that while it supported the objectives of the laws, it warned that the short timeframe given to stakeholders to adjust is not enough. The ICP joins calls from other stakeholders impacted by the law, including the soy, beef, palm oil, timber, cocoa, and rubber sectors.
• The European Coffee Federation (ECF), made up of coffee giants such as Lavazza, JDE Peet’s, and Nestle, has also called for the EUDR delay to allow small coffee farmers to adapt to the changes and comply with the law. Senior trade and agriculture officials in the US have also joined in on calls for the EUDR implementation delays. According to the officials, the planned implementation poses critical challenges to its timber, paper, and pulp industries.
• Not everyone in the industry is against the suggested timeline. Environmental organizations continue to push for the law to be enforced within the prescribed timeline. According to these organizations, deforestation has already had a massive impact on local ecosystems and the planet; thus, more immediate action is required.
• In Uganda, the coffee authority, Uganda Coffee Development Authority (UCDA), has committed to investing US$9 million in registering coffee farmers for EUDR compliance. According to the organization, this effort will aid in traceability and ensure total compliance with the law.
• In Peru, coffee producers have voiced concerns about the hastened EUDR implementation. According to the producers, challenges such as obtaining land certifications and titles due to bureaucracy and near non-existent support from the government will make it difficult to comply with the law soon.

(Source: Perfect Daily Grind, Euracity, World Coffee Portal, Coffee Geography)

The Green Approach Commitment

More stakeholders in the coffee industry continue to adopt a more green approach to coffee cultivation and production. 

• Bellwether Coffee has reported a 5.8 million lb reduction in its roasting carbon emissions. According to its 2023 Impact Report, the company’s roasters produced 1.8 million lbs of carbon emissions last year, helping reduce emissions by up to 87% compared to traditional gas roasters. 

(Source: PR Web)

Product Launches, Mergers, and Acquisitions in June 2024

SCA and ACE/CoE are entering a strategic partnership for coffee value assessment.  The Specialty Coffee Association and Alliance for Coffee Excellence/Cup of Excellence have signed an MOU to signify their partnership to unify the approach for defining and appreciating top-quality specialty coffee - bringing together the two biggest coffee trade organizations in the US and Europe.

(Source: Specialty Coffee Association)

Swiss start-up No Normal Coffee launched the first instant coffee in a tube. While a Swiss practice with everything from condiments, spreads, and meat concoctions found in grocery store shelves, a shelf-stable tube format is the first for coffee. This design aims to prolong its shelf stability and make it more shareable. Tubed instant coffee also targets outdoor enthusiasts, making it easy to enjoy it by mixing it with hot or cold water, milk, or other liquids. Alternatively, you can eat straight from the tube or use it as a spread. Each tube contains 100g of lightly sweetened 100% arabica-based instant coffee paste, enough to make 20 cups.

(Source: Daily Coffee News)

La Marzocco partners with premium bike manufacturer Specialized to launch a mobile coffee system. The coffee system features a unique and environmentally friendly solution: two bespoke Turbo Porto model specialized bikes equipped with La Marzocco Linea Micra and a Pico Ginder. This partnership aims to create a more sustainable and mobile coffee experience.

(Source: La Marzocco)

Taiwan's coffee equipment maker, Avercasso, launched the world’s first AI green coffee sorter at the World of Coffee Copenhagen exhibition. The machine can process up to 6kg of green coffee per hour with a 90% accuracy. It uses a 4K dual camera to identify and sort coffee beans easily.

(Source: Avercasso)

Bellwether launches a mini all-electric ventless shop roaster at the World of Coffee Copenhagen. The electric roaster features an automated design and fits any retail setting. But, its most prized feature is its efficiency, reducing up to 90% carbon emissions per pound of coffee and saving up to 50% operating costs.

(Source: Bellwether Coffee)

Atomo Coffee has added another product to its beanless coffee lineup. The newly launched 50:50 arabica beanless remix blend features upcycled ingredients, including date seeds, sunflower, guava, and lemon. 

(Source: Globe News Wire)

Aeropress has launched a GoPlus Coffee Travel System. The system features a 3-in-1 brewing technology with an Aeropress Cleat that fits into the stainless steel tumbler, secured by a leakproof lid. The set also includes a filter holder, stirrer, and custom scoop.

(Source: PR News Wire)

Hollywood actress Sophia Vergara joins many celebrities to launch her ¡Díos Mío! coffee brand. According to the actress, the brand is inspired by her native country, Colombia's coffee culture. The company has partnered with Colombia's National Federation of Coffee Growers to source coffee locally, particularly from female coffee farmers.

(Source: PR News Wire)

Sovda has launched a new blender that can help roasters boost efficiency. According to the company, the blender can handle up to 85 kg of coffee in under 10 minutes, helping improve the efficiency of roasters who want to create their blends. 

(Source: Sovda)

Kamana has launched a more delicious alternative for decaffeinated coffee drinkers. The 100% caffeine-free alternative is made with roasted mesquite pods from Peru, which contain cacao, nutmeg, and cinnamon notes.

(Souce: Kamana)

Unusually Interesting June Coffee News

An interesting study has revealed how milk proteins interact with caffeine in espresso - typically in specialty espresso-based beverages. According to the study, milk proteins retain their structure and flavor when mixed with coffee, impacting its mouthfeel. As part of the study, researchers used 2D IR spectroscopy to discover how mixing milk with espresso impacts caffeine absorption and protein digestion.

(Source: ACS Food and Science Technology)

A recent study by ENEA found that using coffee roasting waste as an ingredient in baking can reduce environmental processing and impact by 73%. This alternative can also save companies massive costs on waste management. The study focuses on silverskin, the leading organic waste in coffee, as a potential high-value ingredient. Silverskin is commonly converted into compost.

(Source: ENEA)

Important Coffee Dates and Events for July 2024

Hawai’i Coffee Association 29th Annual Conference

The Hawai’i Coffee Association 29th Annual Conference will be held in Oahu from July 18 to 20. It will feature a tradeshow and a cupping competition. You can learn more HERE.

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