Education | Kilimanjaro Specialty Coffees

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.

BURUNDI: INTERVIEW WITH A COFFEE FARMER

8/10/2023

Burundi is an ideal country for the production of high-quality Arabica coffee, which could generate a solid and recurring income for thousands of farming families. An average altitude of between 1,500 and 2,000 metres, abundant rainfall and a tropical savannah biome combine to create exceptional growing conditions, with coffee accounting for 80 per cent of the country's exports.

Despite this, the Burundian coffee sector faces many challenges. Poor soil health and inadequate maintenance of coffee trees result in low and irregular yields. Production is also threatened by climate change, which increases the frequency of both droughts and heavy rains, resulting in increased soil erosion. Meanwhile, poor processing practices reduce the quality and price of much of Burundi's coffee, and the country's cumbersome business and political environment makes it less attractive to global exporters.

WHAT'S GOING ON IN ETHIOPIA?

1/26/2023

We are not going to tell you that everything is hunky-dory in Ethiopia, that everything is perfect, that the coffee farmers are happy, or that the future is bright, because that is certainly not true. While there have been improvements in the humanitarian situation caused by the war, the economic and climatic situation is only getting worse. Temperatures are rising and rainfall is falling in a pattern that could lead to a 25% drop in production by 2030, and inflation is hitting hard, reaching 34% per annum last December.

For a coffee importer, (I think we all share the same opinion) Ethiopia is the most challenging origin, but at the same time the most rewarding in terms of travel experience and coffee quality. Quality is part of the establishment, from a genetic and terroir perspective Ethiopia is always expected to have unique, complex and intense cup profiles, but there are problems related to human intervention that do not allow these high expectations to be realised.

AN INDUSTRY WITHOUT SMALL COFFEE FARMERS

7/14/2022

Our industry often forgets how important small farmers are to the work we all do every day. We can verify this every time we meet at events like the last World of Coffee in Milan, where the focus is mostly on competitions, machinery, influencers, but apparently no one realizes that without small coffee growers none of this would be possible, and they keep being ignored as they have been for 400 years.

The current times are stormy, for no one in the world it should be a mystery that climate change is affecting our lives in a radical way. To no one either, it should be a mystery that inflation is hitting the pockets of the world's poorest people, and this particularly impacts coffee farmers who, despite record coffee prices, have not seen their income levels improve. Finally, due to the war in Ukraine, the shortage of fertilizers could cause a deficit of almost 20% in coffee production in 2022, in addition to the food crisis that it is already affecting various parts of Africa.

ETHIOPIA: Origin update 2022

6/17/2022

Coffee is a biennial cycle crop, which means that coffee trees have high productivity in one harvest and low production in the next, due to the plant's need for recomposition. This phenomenon has a greater influence on coffee of the Arabica species, and a greater economic impact on those origins that have only one harvest a year, as is the case in Ethiopia.

During the 2022 harvest in Ethiopia, production was affected by a negative biennial cycle, where flowering decreased due to the need of the plant to recompose itself after a very productive period last harvest 2021.

KENYA 2022: IS 1 USD PER 1 Kg OF CHERRY POSSIBLE?

5/26/2022

Things are changing for the better in Kenya, the average price of coffee cherries has increased from USD 0.45 per kg of cherry in 2016/2017 to USD 0.80 per kg of cherry in the year 2020/2021, a 78% grow! But what has happened in the year 2021/2022?

According to information from the Nairobi Coffee Exchange (NCI), coffee production increased by 64% in the 2021/2022 harvest, compared to the previous year, and income increased by 90% in the same period. This is the result of a lower supply to the global market, because in Brazil, the harsh weather conditions caused up to 20% of the entire harvest to be lost in the last season. And in Ethiopia, the world's fifth largest producer, agricultural activities have been interrupted by the conflict between the government and the militia in the Tigray region.

HOW IS THIS 2022 COMING?

1/6/2022

Uncertain! It would probably be the answer that most of us would have as a first option, but fortunately, we are seeing the light at the end of the tunnel in various aspects that disturbed us in 2021. We have divided them into three main themes and we relate them to what unite us, which is specialty coffee.

THE LOGISTIC DILEMMA

12/16/2021

This month we have received many messages from roasters asking when the new coffees we have selected in Peru and Indonesia will be arriving to our Barcelona warehouse. And the answer is not easy to articulate.

We have recently read that due to the logistical problems that conflict the world these days, the American multinational Amazon is innovating in its logistics supply chain by reforming twin-engine aircraft to adapt them for cargo and leasing container ships to be able to fulfil their orders and avoid the traffic jams that we are seeing in all the ports of the five continents since last year.

Coffee supply shock: The perfect storm?

10/7/2021

A supply shock is an unexpected event that suddenly changes the supply of a product or raw material, resulting in an unforeseen change in price. Supply shocks can be negative, resulting in a decrease in supply; or positive, which produces an increase in supply; however, they are often negative. Assuming that aggregate demand does not change, a negative supply shock causes the price of a product to rise, while a positive supply shock reduces it.

What does it mean a "C" coffee price above 200 cts/lb?

7/28/2021

Coffee has reached record prices since 2014 this week. But how does this price increase affect coffee farmers and roasters?

What is the "C" price of coffee?

The coffee commodities market, also known as the "C" Market, is where brokers at the New York Stock Exchange determine the future price of coffee contracts globally every day. By buying or selling these futures contracts, brokers place bets on the expected future value of a certain commodity. Therefore, projections about the future supply and demand of coffee will make possible multiple variations in its price in the present.