Education | Kilimanjaro Specialty Coffees

The Impact of the EU Deforestation Regulation on the Global Coffee Trade

6/6/2025

The European Union Deforestation Regulation (EUDR) is reshaping the global coffee trade. Enacted to reduce the EU's contribution to global deforestation, this regulation requires that raw materials entering or leaving the EU market be deforestation-free, meaning they cannot come from lands that were deforested after December 31, 2020. However, the regulation's stringent requirements, including detailed traceability and geolocation, are posing significant technological challenges for developing countries, where smallholder farmers dominate production.

Many smallholder farmers lack the necessary technological infrastructure and resources to comply with the EU's traceability requirements. In some coffee-producing areas in Ethiopia and Burundi, for example, there is little to no internet access, putting them at risk of exclusion from one of the world's largest markets. Additionally, importers are stockpiling coffee to avoid disruptions, which could drive up prices and overwhelm global supply chains as the regulation approaches full implementation in December 2025.

Update on the New Ethiopian Harvest

5/16/2025

The new Ethiopian harvest is now complete and ready for shipment. We are excited to see our Pre-Shipment Samples (PSS) on their way. Our Quality Control team in Budapest will begin testing shortly, and once the coffees have been cupped and recorded, we will begin sending samples to European roasters upon request. As always, we are committed to transparency and quality, ensuring early access to the season's most promising lots.

Some interesting topics from this harvest:

Why have we been disappointed again with anaerobic coffees in Ethiopia?

In recent harvests, we have cupped a growing number of experimental Ethiopian coffees. While these efforts are ambitious, we have often found inconsistent results, sometimes overshadowing the character of the origin with overwhelming lactic notes or an excess of quakers. For us, these experimental lots have not lived up to expectations, not to mention the prohibitive prices set by the government.

New Ethiopian Harvest: A perfect balance between tradition and innovation.

4/24/2025

Cupping and selecting Ethiopian coffees is a challenging but essential process to ensure we choose the best lots available for each harvest. This season, we have placed a strong emphasis on natural processed coffees, all carefully selected through a rigorous cupping process, green coffee analysis and quality control.

The 2024-2025 harvest has yielded mixed results across different regions. Areas such as Yirgacheffe, Sidamo and Guji have thrived due to an ideal climate and a favourable production cycle, resulting in increased production and excellent cup quality. In contrast, western regions like Jimma, Kaffa, and Lekempti have faced challenges, including drought, unfavourable cycles, and logistical issues. Given that Ethiopia has only one harvest per year, the biennial nature of coffee production is particularly significant.

How is coffee market volatility affecting prices in Ethiopia?

2/28/2025

The global coffee market is currently experiencing unprecedented volatility, with New York Arabica coffee prices reaching all-time highs. On February 10, 2025, Arabica futures rose to $4.30 per pound, marking the 13th consecutive session of record prices. However, just yesterday, prices fell to $3.86 per pound, breaking the $4 barrier in a single day. This volatility is primarily attributed to adverse weather conditions in Brazil, the world’s leading coffee producer, where dry and hot weather has significantly impacted coffee-growing regions. As a result, Brazilian farmers are hesitant to sell their limited supplies, further exacerbating the global shortage.

In response to these global market dynamics, the Ethiopian government has implemented a minimum coffee price directive aimed at protecting local producers and ensuring that as many dollars as possible flow into the economy. This policy requires Ethiopian coffee exporters to sell at or above a predetermined minimum price, which is adjusted weekly based on international market trends and the prevailing exchange rate.

What is the minimum export price for Ethiopian coffee?

12/12/2024

Ethiopia consumes about half of the coffee it produces on the domestic market, usually lower-quality lots, as high-quality coffee is usually reserved for international sales. The government prohibits the sale of export-quality coffee on the local market, even when local prices are more favourable. However, there is a domestic demand for high-quality coffee, which can be illegally supplied with higher-quality coffee when local prices exceed those offered by exports.

In February 2020, the Ethiopian Coffee and Tea Authority established a minimum export price for coffee, as well as a semi-official minimum price for coffee at local sales centres. The minimum export price is calculated daily, based on the global weighted average of the price given to different grades of coffee from different regions. At the time, the measure increased the price of green coffee by a range of approximately 0.5 to 1 USD/lb for grade 1 (best quality) coffee. And exporters selling coffee below the minimum price were made subject to legal action by the Ministry of Trade.

Coffee prices, EUDR, Trump and other calamities.

11/28/2024

How these chaotic times affect roasters?

Coffee has been traded in the world for 400 years, and the harsh reality is that during each of these years, without exception, coffee growers have remained poor and exporters rich. This is, of course, a basic, simple and shallow analysis, but it only has one thing in its favor, and that is that it stands the test of time.

The test of time must be framed in a period long enough to understand a long-range phenomena, with the slow movement and measurement of its parameters. As it is in this case, about money, coffee and 400 years, a basic but fundamental tool to identify the errors of a system and to be able to establish its potential solutions. This is why the impact of specialty coffee on the coffee industry CANNOT be assessed on the basis of a very specific set of situations that generated an exponential rise in coffee prices to a 50-year high on the New York Stock Exchange.

A LOGISTICAL NIGHTMARE: Why did it take Kenya so long to get to Barcelona?

7/19/2024

The situation in the Red Sea has become more complex in recent months. To protect their crews, ships and cargo, shipping companies are changing their routes to avoid the Red Sea and go around the Cape of Good Hope at the southern tip of the African continent. However, the risk zone in the Red Sea has expanded and attacks are occurring in areas further from the coast. As a result, ships have to take longer routes, which increases the time and cost of bringing the coffee to Barcelona.

Due to the above, the transit time of our shipment from Kenya was extended to 60 days, which is double the usual transit time. Furthermore, upon reaching the Mediterranean, ships are being diverted to ports in Morocco and Spain, which causes serious overcrowding and congestion in container unloading. All major shipping companies are using these ports for transhipments, putting immense pressure on port capacities in the Mediterranean region and pushing them to the limit.

Burundi: Corruption at the top, hits hard at the low.

6/5/2024

Before privatizing the coffee industry in Burundi in 2008, all coffee production was under the control of the state-owned company Sogestal, which is now virtually bankrupt. As a result of this privatization, the situation of small coffee producers has deteriorated. The government, under pressure from the World Bank, transferred most of the washing stations it used to control to foreign or multinational companies, leaving small coffee producers with very little to support themselves.

Coffee is very important to Burundi, accounting for 80% of the country's export earnings and supporting the livelihoods of 55% of the population, approximately 750,000 families, the majority of whom are smallholder farmers. In 2007, the president of Burundi at the time declared that coffee belonged to the producers until it was exported. This agreement allowed them to oversee the supply chain and gave them the right to receive 72% of the revenue from international coffee sales. But in reality, little or none of that has happened.

HOW DO WE SOURCE OUR KENYAN COFFEES?

5/9/2024

We have lost count of the number of cupping sessions involved in the coffee selection process in Kenya. This process lasts several months and includes a series of quality control measures. In simple terms, the coffees we select undergo five main selection procedures before reaching your roastery.

Journey to Origin: This process begins with a visit to cooperatives and a meeting with coffee producers and exporters at origin. Two trips are made; one during the harvest, where no cupping takes place, and another approximately a month when the harvest ends. During this last trip, we cupped around 500 samples per week, which is a pretty intense process. Here the pre-selection is carried out.

Kenya's coffee farmers' revolution

3/15/2024

We are in the presence of a revolution, a revolution of farmers! In case you hadn't noticed, revolutions are no longer about warfare. Today revolutions are spiritual, technological or ideological. Furthermore, the leaders no longer die for their cause, but instead, seek refuge in a neighbouring country until the danger passes or they simply change their beliefs. This is precisely what has happened in Kenya, a revolution. The coffee farmer's revolution!

Although, according to our records collected over the years, we had established that Kenya was the African country where the best price per kg of cherry was paid (about 1 USD per kg). But the coffee farmers were not happy with that, and who is? We all want more, it's part of our human nature. The problem here was not greed, but rather that many of them did not generate enough income to cover their production costs. This resulted in many of them giving up coffee, in favour of more profitable crops such as avocado or macadamia.