April 8, 2022

Coffee News Recap, 8 Apr: Coffee prices fall after increasing in 17 consecutive months, ICO drafts new International Coffee Agreement & other stories

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Every Friday, Perfect Daily Grind rounds up the top coffee industry news from the previous week. Here are this week’s stories.

Mon, 4 Apr

  • Yonder Coffee features Ukrainian roaster on its subscription service. April’s roaster of the month is Lviv’s Svit Kavy, which has been affected by the conflict in Ukraine. Yonder is hoping to purchase a week’s volume of wholesale coffee so that Svit Kavy can continue operations. Yonder is also accepting one-off purchases of the Ukrainian roaster’s coffee, as well as donations to the Coffee for Displaced People project. The project enables Svit Kavy to donate coffee and food to Ukrainian soldiers fighting on the front line.
  • Westrock Coffee to launch IPO. The roaster and distributor is valued at around US $1.09 billion. The company plans to combine with Riverview Acquisition Corp, which raised US $250 million through an IPO in August 2021.
  • Scotland to reintroduce single-use cup charge. Scottish Circular Economy Minister Lorna Slater announced the formation of an advisory group which will establish mandatory single-use cup charges – including for coffee cups. The group will include supply chain representatives, as well as academics and environmental organisations.

Tue, 5 Apr

  • World Coffee Research publishes 2021 annual report. In 2021, WCR partnered with 241 companies and individuals to establish sustainable coffee programmes in 9 origin countries. The organisation also implemented the Coffee-Breeding Programme Assessment Tool in Ethiopia and Uganda, as well as initiating its genotyping programme in 8 coffee-producing countries.
  • Philippine Coffee Quality Competition announces 2022 winners. The annual competition honours arabica and fine robusta producers in the Philippines. The top-scoring arabica coffee was a natural Catimor from Marfil Dela Cerna, which received 84.79 points. The fine robusta winner, from Mabini Ubuan, scored 84.41 points. The 2022 auction will take place on 23 April.

Wed, 6 Apr

  • Coffee prices drop for first time in 17 consecutive months. The ICO Composite Price Indicator for March averaged US 194.78 cents/lb – a 7.6% decrease on the average price in February 2022. Global green coffee exports totalled 9.88 million bags in February 2022, compared to 10.24 million bags in February 2021.
  • International Coffee Organisation drafts new International Coffee Agreement. The ICA has been revised to improve international co-operation across the supply chain, with a focus on sustainability and the livelihoods of producers. The new structure of the agreement will oversee the transition of the Coffee Public-Private Task Force into a permanent programme, which aims to address challenges such as climate change and Covid-19.

Thu, 7 Apr

  • Brazil’s domestic coffee prices fall by over 13%. According to the CEPEA Index, arabica prices closed at BRL 1,243.64/bag (US 261.21 cents/bag) on 31 March. Reasons for the price decrease include the US dollar’s depreciation against the Brazilian Real and fewer futures contracts. However, Brazil’s robusta prices remain stable.
  • Cecafé’s Carbon Project helps Minas Gerais coffee farms become carbon negative. The Brazilian Coffee Exporters Council partnered with the Institute of Forest and Agricultural Management & Certification and the University of São Paulo to measure the carbon sequestration on 40 farms in the 3 main regions of Minas Gerais. Annually, the farms sequestered an average of 10.5 tons of carbon emissions per hectare.
  • Partnership to Advance Coffee Equity welcomes three new members. The programme was created in June 2021 by Neumann Kaffee Gruppe and the Coffee Coalition for Racial Equity. Through the one-year programme, 3 coffee professionals will join NKG subsidiaries in the US, as well as each individual partnering with their own mentor.
  • Mobile ordering app Orda partners with DoorDash. The app allows customers to order and pay at coffee shops, as well as receiving rewards from their purchases. Coffee shops can integrate DoorDash deliveries into their businesses through the Orda platform.
  • Colombia’s coffee production drops 13% in March. The country produced 914,000 bags of green coffee in March, compared to the 1.1 million from March 2021. The fall in production is attributed to heavy rainfall and March being a historically low harvest month. So far in 2022, production exceeds 2.7 million bags – down 16% on the same period in 2021.

Fri, 8 Apr

  • Fiorenzato launches US branch. The Italian espresso grinder manufacturer partnered with coffee equipment supplier Espresso Parts to launch Fiorenzato USA. Espresso Parts will sell and distribute Fiorenzato’s grinders. The initial US product line includes the Allground prosumer grinder and the XGi commercial grinder.
  • Pact Coffee releases recyclable coffee pods. The Fruit & Nut capsules include coffee sourced from Epiphanie Mukashyaka, who is the first female farmer in Rwanda to grow specialty coffee. The Bourbon Cream pods include coffee from Brazilian farmer Gilberto Basilio, who is also managing reforestation projects in Brazil.
  • Minor Figures becomes certified B Corp. The oat milk company is also verified as carbon neutral through a number of offsetting projects producing shade-grown coffee in Nicaragua and Colombia.

Here are a few news stories from previous weeks that you might find interesting. Take a look.

  • Wed, 30 Mar – SCA Ireland announces new committee members. The 2022-2024 Chapter Committee includes Lucas Sampaio as National Coordinator, Dominik Roman as Events Coordinator, and Stephen Houston as Community Coordinator.
  • Wed, 30 Mar – Ireland to implement single-use cup tax. The €0.20 fee (US $0.22) will come into effect in late 2022. The tax is part of the Irish government’s long-term plan to eradicate all single-use cups in the country – including coffee cups.
  • Thu, 31 Mar – ICO hosts 132nd International Coffee Council session. Topics discussed on the agenda included the new International Coffee Agreement and the fifth World Coffee Conference, which will be held in India. The next International Coffee Council will take place in Bogotá, Colombia from 3 to 7 October 2022.

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Want to keep up with current affairs in the coffee industry? Check out last week’s stories.

Photo credits: Ana Valencia

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