What we know about Innovea Global Coffee Breeding Network?

In the realm of coffee agriculture, a groundbreaking initiative is set to revolutionize the global coffee breeding landscape—the Innovea Global Coffee Breeding Network,The network of the World Coffee Research (WCR). This collaborative effort seeks to address the challenges posed by climate change and propel coffee genetic improvement to new heights through international cooperation.

Challenges in Traditional Approaches

Traditional coffee breeding programs face a dilemma in the wake of climate change. These programs, conducted by individual national coffee institutes, often work in isolation due to the competitive nature of breeding activities. Aging scientists, outdated approaches, and limited funding have hindered progress over the past 50 years, leading to a crisis in innovation that jeopardizes the sustainability, quality, and supply assurance goals of the coffee industry.

Innovative Solutions

The Innovea Global Coffee Breeding Network stands as a beacon of hope, bringing together countries in a unified effort to transform global coffee breeding. This unique collaboration aims to accelerate genetic improvement, ensuring the development of superior coffee varieties tailored to the specific needs of farmers and markets.

The network’s design allows participating countries to pool resources, share knowledge, and collectively face the challenges posed by climate change. Utilizing modern breeding tools becomes imperative in the face of climate realities, and the Innovea network provides the necessary platform for countries to address these challenges collectively. This collaborative approach harnesses a diverse range of genetic material, enabling extensive evaluations across various environments and achieving results beyond the reach of traditional, single-country programs.

Driving Genetic Gains

The key strategy of the Innovea network is to harness the collective capacities of participating countries to accelerate the pace of coffee genetic improvement. By fostering collaboration, the network enhances competitiveness among coffee-producing partners, ensuring that breeding efforts align with the needs of both farmers and consumers.

Modern coffee breeding, facilitated by the Innovea network, holds the potential to address multiple challenges simultaneously. From developing varieties resistant to pests and diseases, to enhancing coffee quality at lower elevations and increasing yield stability across diverse environments, the network aims to usher in a new era of sustainable coffee agriculture.

Anticipated Impact

Powered by the latest technologies for crop improvement, the Innovea Global Coffee Breeding Network anticipates transforming the global coffee supply. Adopting a demand-led breeding approach, the industry and farmers will collaboratively design the coffee of the future. Over the next two decades, countries involved in the network are expected to boast a portfolio of improved varieties that are more productive, climate-resilient, and diverse than today’s offerings.

Key Features of the Innovea Network

The Innovea Global Coffee Breeding Network involves nine global partners, including Costa Rica, USA, India, Indonesia, Kenya, Mexico, Peru, Rwanda, and Uganda, collectively responsible for approximately 23% of the world’s arabica coffee exports. The network focuses on developing genetically diverse breeding populations, with finished varieties tailored to local conditions and market demand. Through a coopetition model—combining collaboration and competition—the network aims to lower costs for individual countries while allowing them control over finished variety selection and release.

Coopetition Model: A New Paradigm

The Innovea model proposes a “coopetition” framework, recognizing that collaboration on a global scale is essential for addressing challenges posed by climate change. While fostering collaboration, the model also acknowledges the competitive nature of national breeding efforts, offering a unique approach where deeper collaboration enhances competitiveness among participating national programs.

In conclusion, the Innovea Global Coffee Breeding Network emerges as a beacon of hope for the future of coffee agriculture. Through collaboration, innovation, and a commitment to addressing the challenges of our time, this initiative paves the way for a more sustainable, resilient, and diverse coffee industry.

World Coffee Research CEO, Vern Long, provides an overview of the global robusta breeding program

Vern Long, the CEO of the World Coffee Research organization (WCR), has presented a brief overview of the global robusta breeding program led by the organization, along with her expectations for the coffee industry in the year 2024.

In a conversation with the “Global Coffee Report” about what can be anticipated for the coffee industry in 2024, Vern Long stated, “At the World Coffee Research organization (WCR), we believe that innovation in variety diversity – better plants reaching more farmers – will shape the future of coffee.” She emphasized that improved coffee varieties contribute to increased productivity for farmers, forest protection, and the creation of new experiences for consumers.

Vern Long explained that during the past year of 2023, the Innovea Global Coffee Breeding Network, a part of the World Coffee Research organization (WCR), successfully distributed 5000 genetically distinct Arabica coffee seeds to national coffee institutes worldwide. This marks the beginning of the next generation of coffee varieties aimed at supporting farmers, satisfying coffee enthusiasts, and ensuring future supply.

Revealing some plans for the current year 2024, Vern Long stated that WCR will initiate the first crosses in the newly established global robusta breeding program to guarantee a bright and secure future for robusta coffee.

She further explained that in 2024, the organization will conduct the initial crosses in a new global robusta breeding program to ensure that the future of robusta is bright and secure.

Vern Long highlighted that economists from Michigan State University measured the extent of the innovation crisis in the coffee industry during the past year of 2023. They revealed an investment gap in agricultural research and development for coffee amounting to approximately $452 million annually. She emphasized that this investment gap significantly contributes to the uncertainty faced by the industry regarding when and where future supply disruptions may occur.

To strengthen the industry in the coming years, Vern Long mentioned that WCR’s member companies, in collaboration with trade association partners, will continue to promote increased investment in agricultural innovation for coffee with the governments of coffee-consuming countries. This investment aims to provide the necessary support to enhance technical capabilities within research institutions in key coffee-producing countries, improving agricultural innovation systems to enhance productivity for farmers and reduce risks for the industry.

In conclusion, she expressed her hope and expectation that more companies will join the industry’s global efforts during the year 2024 to protect our favorite crop and our ability to enjoy our favorite beverage.

Ludlow Coffee CEO, Jamie Brown, Maps Out Visionary Growth Strategies for 2024

Ludlow Coffee’s CEO, Jamie Brown, reflects on the triumphs of 2023 and outlines ambitious plans for the year ahead in a conversation with Global Coffee Report.

In the wake of a stellar year, Ludlow Coffee has solidified its standing through strategic restructuring, introducing Coffee Planet as a leading 360 coffee solution business and unveiling the global roasting brand, Jigsaw Coffee Company. Brown emphasizes the importance of prioritizing and executing unique business goals for each brand within the Ludlow Coffee Group.

Celebrating achievements at Coffee Planet, the company takes pride in innovative offerings such as the SCA-accredited educational institute, Campus by Coffee Planet, Cold Brew products, and more under its new brand positioning.

Building on the success of the previous year, Ludlow Coffee is set to expand the Coffee Planet and Jigsaw brands, with a keen focus on the thriving Cold Brew and ready-to-drink market. Ongoing innovation, particularly in Cold Brew, is seen as instrumental in achieving commercial and international goals across various channels – HORECA, food services, retail, workplace, on-the-go, and private label.

Brown anticipates that sustainability will take center stage in 2024, fueled by Ludlow Coffee’s commitment after participating in COP28 in Dubai. The company aims to further its dedication to the planet, its people, and the entire value chain. This includes achieving 100% traceable beans, responsible waste management, and ongoing development of sustainable products, such as fully home compostable capsules.

Ludlow Coffee Group remains dedicated to elevating coffee experiences and inspiring generations to strive for excellence from crop to cup. The new brand identity for Coffee Planet reflects the aspiration to be “everyone’s cup of specialty.” The overarching goal is to collaborate across the industry, fostering support for every company, partner, consumer, and country.

Director of the World Coffee Organization expects a shift in the market and emphasizes sustainability goals for 2024

Vanusia Nogueira, the Executive Director of the International Coffee Organization (ICO), anticipates a shift in the coffee market in the coming months. Nogueira recently discussed her insights on the industry’s outlook for 2024 with GCR.

Over the past year, the ICO has encountered significant challenges, presenting opportunities to strengthen collaborations with member countries’ national governments and the private sector. Their focus has been on fulfilling the objectives outlined in the Agreement, emphasizing improved statistical accuracy and the generation of new reports. Simultaneously, the ICO has actively pursued the goals outlined in the Coffee Public Private Task Force roadmap. A notable achievement was the successful hosting of the largest World Coffee Conference, attended by 18,000 participants from 80 countries. This conference played a crucial role in facilitating discussions on the Coffee Circular Economy and Regenerative Agriculture, underscoring the ICO’s commitment to sustainability and innovation in the coffee industry.

Looking ahead to the 2023/24 coffee year, the global market is expected to transition from a deficit to a modest surplus. This shift is attributed to a 5.8% increase in production, reaching 178.0 million bags, primarily influenced by biennial production in Brazil. The projected 3.0% world economic growth in 2024 is anticipated to contribute to a 2.2% rise in consumption, resulting in a surplus of 1.0 million bags for the period. The ICO expresses optimism that the new International Coffee Agreement will come into effect during the year, fostering private sector involvement and potentially positively impacting the market.

Addressing sustainability regulations, particularly meeting the deadlines of the EU Regulation on Deforestation-free products, will be a primary focus in the upcoming year. Clarifications are needed to ensure that all stakeholders can effectively fulfill their roles in compliance. Additionally, uncertainties surrounding the impact of climate change on the upcoming harvest remain a significant concern. Effectively addressing these issues will necessitate strategic planning and collaboration within the coffee industry.

Nogueira’s hope for 2024 is for the industry to operate with responsibility and unity, collectively working towards improving the lives of producers and actively contributing to addressing climate challenges.

“Thermoplan Black&White4 CTS First Fully-Automatic Espresso Machine Qualified for 2024-2027 World Latte Art Championship”

The Specialty Coffee Association (SCA) is thrilled to declare that the Thermoplan Black&White4 CTS has been designated as the Qualified Espresso Machine for the 2024-2027 World Latte Art Championship. This groundbreaking achievement represents the inaugural inclusion of a fully automatic espresso machine in the esteemed World Coffee Championships.

The World Coffee Championships (WCC) owe their success to the unwavering support and commitment of various organizations and individuals. Essential to this support are qualified sponsors, the manufacturers responsible for supplying the equipment and products utilized by competitors on the global stage. In addition to contributing to broader SCA initiatives, qualified sponsors enter into multi-year agreements to facilitate the strategic expansion of competitions, investing time and resources to ensure a uniform deployment of high-quality equipment for every world championship contender.

A prerequisite for securing a qualified sponsorship involves successfully passing the rigorous qualified testing program. This program originated in 2004 through the efforts of World Barista Championship volunteers, establishing standards for espresso machines capable of withstanding the fast-paced demands of competition. Since 2011, this testing protocol has become the standard for all WCCs. Over the years, as the specialty coffee industry has evolved, manufacturers have continuously pushed the boundaries of equipment functionality and quality.

Yannis Apostolopoulos, SCA Chief Executive Officer, expressed delight at acknowledging the exceptional quality of the Thermoplan Black&White4 CTS, marking a momentous milestone by introducing the first fully-automatic qualified espresso machine to the World Coffee Championships. Apostolopoulos conveyed the SCA’s honor in collaborating with Thermoplan over the next four years, jointly pursuing the shared objective of promoting global coffee excellence.

Sven Schilliger, Thermoplan Head of Sales, shared the company’s joy upon learning of the Black&White4 CTS’s inclusion as the first fully-automatic coffee machine in the WCCs. Schilliger expressed hope that the Black&White4 CTS would serve as inspiration for both seasoned baristas and aspiring candidates in future World Latte Art Championships. Thermoplan looks forward to the privilege of being part of the team for the next four years, anticipating the exciting journey ahead.

The anticipation builds as Thermoplan prepares to make its debut at the 2024 World Latte Art Championship at World of Coffee Copenhagen in Denmark next June. The company looks forward to gracing the stage at world championships in the years to come, contributing to the evolution of coffee excellence on the global stage.

Victoria Arduino Announces Participation in World of Coffee Dubai 2024

Victoria Arduino is excited to announce its presence at the World of Coffee Dubai 2024 exhibition, scheduled to take place from January 21 to 23 at the Dubai International Financial Centre.

Coffee enthusiasts and industry specialists are cordially invited to visit Victoria Arduino’s booth (No. Z6-F40) to explore the company’s latest products and technologies on display. Additionally, attendees can benefit from engaging lessons on coffee preparation.

The company expresses enthusiasm for the event, stating, “Join us at the World of Coffee Dubai! Immerse yourself in the allure of the Middle East at this year’s ‘World of Coffee’ event in Dubai. We extend an exclusive invitation to experience our latest products and technologies showcased at our booth, along with unique masterclasses on Pure Brew coffee, tea, latte art, and more. Are you ready to be amazed? We look forward to seeing you there!”

The “World of Coffee Dubai 2024” exhibition boasts a comprehensive schedule of events, including the “Coffee Village,” lectures, the evaluation room, the UAE National Championship, the preparation hall, the Specialty Coffee Association (SCA) hall, and a bustling commercial market.

This exhibition, held in Dubai, United Arab Emirates, serves as a focal point for the global specialty coffee community. The 2024 edition is anticipated to be 50% larger than the previous one, featuring new elements and an enhanced program of workshops and lectures.

Managed by DXB Live, the agency of Dubai World Trade Centre, the exhibition provides support to coffee companies in the Middle East and beyond, fostering connections and contributing to the growth of the emerging coffee industry in the region.

First Eco-Friendly Coffee Cargo Sailboat Embarks on Historic Journey to North America

Canadian coffee roaster Café William marked a groundbreaking moment in the industry as its inaugural eco-friendly cargo sailboat set sail from the port of Santa Marta in Colombia on December 18, headed for North America.

The 20-day voyage, powered solely by wind, carried 72,000 kilos of coffee beans, symbolizing a significant stride towards sustainable and clean energy practices in maritime transport.

This eco-conscious decision aligns with Café William’s commitment to reduce its carbon footprint and champion environmentally friendly shipping throughout its supply chain.

Serge Picard, the owner of Café William, emphasized, “It’s a commitment to sustainable transport but also to setting a precedent for other players in the sector.”

For the Sherbrooke roaster, this venture represents a historic moment, steering away from traditional fossil-fuel cargo ships that dominate coffee transportation.

Picard stated, “It was vital for us to find an alternative method of transporting coffee.”

With this first voyage serving as a proof of concept for the cargo sailboat, Café William envisions a future of zero-emission coffee supply.

According to their projections, the company anticipates a reduction of approximately one tonne of shipping-related CO2 per container, underscoring the environmental benefits of this initiative.

Looking ahead, Café William aspires to scale up its cargo sailboat shipping capacity to cover 100% of the volume imported for the roastery in the long term.

This initiative had its roots in 2021 when Café William announced its investment in the first zero-emission sailing cargo ship, named Ceiba, designed to transport coffee beans from South America to Sherbrooke. Ceiba, a three-masted traditional topsail schooner built in Costa Rica, features an auxiliary electric engine for enhanced reliability and efficiency. The electric engines can utilize a combination of green hydrogen fuel cells and batteries regenerated by variable pitch propellers.

As the Ceiba sails into uncharted waters, Café William’s eco-friendly journey heralds a new era of sustainable practices in the global coffee trade.

Russia’s Green House Aims for 100 Stores After Successful 2023

The franchised coffee chain concluded 2023 with a total of 69 stores spread across 12 cities, and it currently has 15 additional sites in the development pipeline.

Green House, headquartered in Krasnoyarsk, is targeting the establishment of 100 stores nationwide within the next six months, building on its remarkable growth and sales achievements in 2023.

Over the 12 months ending December 31, 2023, the franchised coffee chain added 18 net new stores, bringing its total to 69, and an additional 15 are currently in various stages of development. A significant portion of these stores, more than 50, is concentrated in the Siberian city of Krasnoyarsk.

In 2023, Green House reported record annual sales of RUB 584.3 million ($6.5 million), describing the year as one of ‘restructuring’ due to economic disruptions in Russia .

According to a statement from Green House, “2023 became the most successful year for the chain both in terms of revenue and growth of coffee shops. Opening 18 coffee shops in a year is our new record. Revenue exceeding RUB 500 million ($5.6 million) is also a new record. The immediate goal is to have 100 coffee shops in the network.”

Looking ahead, Green House has set a longer-term goal of operating 1,000 franchised stores by 2030, citing the current demand from prospective franchisees as a key factor making this target achievable.

Established in 2012 by entrepreneurs Egor Tokhtobin, Alexey Shu, and Artem Kalchenko, Green House inaugurated its first store in the Kvant shopping center in Krasnoyarsk. The business operates three franchised store formats – a 10sq m coffee bar, a 20-50sq m small format coffee shop, and a larger 50-80sq m outlet.

Despite facing international sanctions over the war in Ukraine, the Russian branded coffee shop market witnessed a 2.2% growth, reaching a total of 4,479 outlets in the 12 months ending March 2023, as per data from the World Coffee Portal.

While major players like Starbucks, McCafé, and Krispy Kreme exited Russia , local businesses later acquired many outlets, loosely rebranding them as Stars Coffee, Vkusno i Tochka (Tasty, and That’s It), and Krunchy Dream, respectively.

Nestlé Pours $100 Million into Expanding Packaged Coffee Output in Vietnam

Nestlé Vietnam is set to invest $100 million to enhance the processing capabilities of its Tri An coffee facility in Dong Nai, effectively doubling its production capacity. This move brings Nestlé’s total investment in the location to over $500 million. The augmentation of the Tri An production site aims to meet the rising local demand for premium coffee brands such as Nescafé, Nespresso, Starbucks, and Blue Bottle. Simultaneously, it reinforces Vietnam’s position as a high-value coffee production and supply hub on the global stage.

According to a Nestlé press release, the investment underscores the company’s commitment to long-term engagement in Vietnam. The expansion is expected to enable the factory to cater to domestic consumer needs while tapping into export potential, transforming Vietnam into a prominent supplier of high-value coffee worldwide. The Tri An production site currently ships packaged coffee products to more than 29 countries, emphasizing its global reach.

Jacob Binu, General Director of Nestlé Vietnam, expressed confidence that the project, once operational, would double the factory’s capacity, satisfying local market demands and effectively leveraging export opportunities. Nestlé, which initiated operations in Vietnam in 1993 with a representative office in Ho Chi Minh City, launched the Tri An site in 2013, including a Nescafé Dolce Gusto capsule production line in 2018.

Nestlé, headquartered in Vevey, has invested nearly $830 million in its Vietnamese ventures to date. The company operates four production sites, with three located in Dong Nai, and manages two distribution centers.

Initiative for coffee&climate Set to Illuminate Coffee Farming Realities in Climate Symposium

Mark your calendars for the upcoming online symposium hosted by the initiative for coffee&climate, titled ‘It’s Bean Too Hot: The Reality of Coffee Farming in the Era of Climate Change.’ This enlightening event is scheduled to unfold on February 21-22.

Joining forces at the symposium will be coffee farming communities, farmer organizations, local experts, scientists, and coffee companies, all converging to navigate the intricate challenges faced by coffee farming amidst the ever-changing climate.

Conversations during the symposium will dissect the profound impacts on production, landscapes, and livelihoods as a result of rising temperatures. The focus will be on unveiling practical solutions for enhancing resilience, facilitating adaptation, and implementing effective mitigation strategies.

The agenda includes specialized sessions addressing crucial topics like access to finance for smallholder farmers and the indispensable role of gender inclusivity in climate action.

Driven by a collective commitment, the initiative for coffee&climate seeks to effectively address climate change and cultivate sustainable solutions for smallholder coffee farming.

For those eager to engage in these pivotal discussions, registration for the symposium is now open. Dive deeper into the realities of coffee farming and secure your spot by clicking here.

A Brief Overview of Sucden Financial’s Report: Coffee Crop Update – Navigating the Challenges in Coffee Markets

Sucden Financial is a leading multi-asset execution, clearing and liquidity provider across FX, fixed income and commodities. A report entitled “Modernizing the Coffee Crop: A Bumpy Journey for Coffee Markets.”

According to the report, the coffee industry experienced a rollercoaster ride in 2023, with turbulent prices impacting both Arabica and Robusta contracts. Brazil and Vietnam continue to play a pivotal role, comprising 58% of the total blend. Concerns linger about weather conditions, but it is believed that the majority of the damage has occurred, leading to expectations of a fading super crop. While there is no overall shortage of coffee, uncertainties in certain regions create doubts about accessibility.

Executive Summary: Global Economic Variances

The US economy remains robust, driven by strong consumer spending and a tight labor market. Inflation is on the decline, with expectations of a gradual easing of monetary policy, starting with a 25bps Fed interest rate cut in March. In contrast, the eurozone teeters on the brink of recession, facing contraction in manufacturing and services sectors. China grapples with low consumer confidence, weaker global demand, and a deepening property crisis. Brazil, despite a 3% growth in 2023, faces challenges in 2024 due to reduced agricultural output caused by adverse weather conditions.

Starbucks concluded Q4 2023 on a positive note, reporting an 8% increase in global comparable store sales and record consolidated net revenues of $9.4 billion. Nestle thrived with strong organic growth, while JDE Peet’s faced challenges with lower sales growth and decreased profit.

Market Outlook: A Cautionary Tale

The coffee market faces uncertainties, primarily influenced by Brazil and Vietnam. Despite concerns about the weather, expectations of a super crop fading, and potential shifts in farmer behavior, optimism prevails. However, the recent rally in prices is deemed overdone, and a marginal retracement is anticipated in the near term. Changes are noted in other coffee origins, with expectations for production in India, Indonesia, and Central America.

Macro Overview: US Economy Resilient, Global Variances Persist

The US economy defies recession concerns, showing positive Q1’24 outlook with resilient output growth. Consumer spending remains strong, supported by a robust labor market. Inflation decline and expectations of a 25bps interest rate cut in March contribute to an optimistic economic forecast. The global scenario, however, presents challenges, with the eurozone on the brink of recession and China facing economic hurdles.

Corporate Results: Starbucks Shines, Nestle Excels, JDE Peet’s Faces Challenges

Starbucks celebrates a successful Q4 2023, recording an 8% increase in global comparable store sales and reaching record consolidated net revenues. Nestle experiences strong organic growth, especially in emerging markets and e-commerce. In contrast, JDE Peet’s confronts challenges with lower organic sales growth and decreased underlying profit.

Arabica and Robusta Dynamics: Price Swings and Crop Insights

The market witnesses shifts in demand between Arabica and Robusta, leading to multi-decade highs and lows in contract prices. Weather concerns and the threat of El Nino impact the market sentiment. Despite uncertainties, the outlook for Brazil and Vietnam remains positive, with expectations for a retracement in recent price rallies.

Conillon Challenges: Weather Woes and Crop Impact

Dry weather in northern Espirito Santo raises concerns about conillon cultivation, with potential damage estimates ranging from 15% to 35%. Limited irrigation options and government restrictions exacerbate worries about conillon production.

Inventories and Commitment of Traders: Balancing Supply and Demand

Certified stocks witness drawdowns, supporting upward momentum in prices. Attention shifts to supply stories, with Central American shipments slow but expected to pick up. Commitment of Traders positions indicate high net lengths for Arabica and Robusta, with a cautious outlook for potential price vulnerabilities.

In conclusion, the coffee market faces a complex landscape influenced by global economic trends, corporate performances, and crop dynamics. Navigating through uncertainties, industry players remain cautiously optimistic while anticipating potential retracements in recent price rallies.

Coffee Planet Announces Participation in World of Coffee Dubai 2024 Exhibition

Dubai, January 10, 2024 – Coffee Planet, a leading player in the world of coffee, has announced its participation in the World of Coffee Dubai 2024 exhibition, taking place at the Dubai World Trade Centre from January 21 to 23.

Coffee Planet will showcase its latest innovations, products, and specialized tools during the event, inviting attendees to participate in interactive coffee brewing sessions and explore advanced coffee craftsmanship, with the chance to win exciting prizes.

The company confirmed the presence of Dale Harris, the World Barista Champion, alongside the Coffee Planet team from “Campus by Coffee Planet,” adding more expertise and excitement to the event.

A highlight of the exhibition will be Coffee Planet’s participation in the dedicated Brew Bar throughout the event. Attendees will have the opportunity to interact with the team, experience unique flavors, and explore the exceptional world of coffee.

Noteworthy is the comprehensive schedule of events within the World of Coffee Dubai 2024 exhibition, including the Coffee Village, lectures, cupping sessions, the UAE National Championships, the Brew Bar, and the Specialty Coffee Association (SCA) Lounge, all hosted in a bustling trade show floor.

The event is designed to support coffee businesses in the Middle East and beyond, fostering connections and facilitating the growth of the emerging coffee industry in the region.

World of Coffee Dubai 2024 has become a focal point for the global specialty coffee community and is expected to be 50% larger than the previous edition, featuring new highlights and a refreshed program of workshops and lectures.

Managed by DXB Live, the experiential agency of the Dubai World Trade Centre, the event offers a comprehensive range of services, including event management, production, exhibition experiences, professional conference organization, and more.

Don’t miss the opportunity to be part of this exciting event that has captured the attention of the global coffee community. See you at the World of Coffee Dubai 2024!