Category: News

The United States Food and Drug Administration (FDA) has announced updates to its guidelines on the use of the term “healthy” in food product labeling and marketing claims. According to the FDA, coffee beverages — including those mixed with certain other ingredients — can now be labeled as “healthy” if they contain fewer than five calories per serving.

This change, effective February 25, 2025, reflects the FDA’s effort to align food labeling with the latest Dietary Guidelines for Americans. The revised rules are aimed at helping consumers make informed decisions about foods and beverages that promote a nutritious diet.

Coffee’s Role in the New Definition of ‘Healthy’

The FDA’s five-calorie threshold is particularly significant for the coffee industry, as coffee drinks are among the top contributors to added sugars in the average American diet. Beverages exceeding this calorie limit, especially those with added sugars, fats, or high sodium, will not qualify for the “healthy” label under the updated guidelines.

The Associated Press mentioned that the new FDA regulations also broaden the “healthy” label criteria to include certain foods that were previously excluded, such as nuts, seeds, higher-fat fish like salmon, and certain oils. This marks a significant shift towards modern nutrition science.

Industry Response

U.S. National Coffee Association President Bill Murray applauded the FDA’s decision, stating:
“Decades of robust, independent scientific evidence show that coffee drinkers live longer, healthier, happier lives. The FDA is absolutely right that including coffee in the definition of ‘healthy’ can help consumers choose beverages that support a nutritious diet.”

Broader Implications

The FDA’s updated guidelines are part of a larger initiative to combat diet-related chronic diseases, which remain leading causes of death and disability in the United States. The Associated Press further highlighted that manufacturers will have until February 2028 to fully comply with the new labeling rules, though they may begin implementing the updated “healthy” criteria sooner.

The Saudi Coffee Company, owned by the Public Investment Fund, announced the launch of the second edition of the “Saudi Excellence Crop“ competition in partnership with the Alliance for Coffee Excellence. This competition aims to educate and empower coffee farmers in the southern region of the Kingdom and celebrate their exceptional crops.

Goals of the Competition

The competition seeks to support coffee farmers in Jazan, Al-Baha, Muhayil Asir, and Rijal Alma, by providing them with a platform to showcase their crops to a specialized judging panel that includes experts from leading coffee-producing markets such as Brazil, Nicaragua, the United Kingdom, Canada, Belgium, the United States, Australia, and Japan.

It also aims to enhance the quality of Saudi coffee by offering farmers guidance on improving crop quality through better soil and water management, using appropriate fertilizers, and adopting modern harvesting and pruning practices.

Participation and Evaluation Process

The competition will span a full month, during which farmers are required to submit coffee samples weighing 25 kilograms each. The evaluation process will consist of three main rounds:

1. First Round: Evaluation of participants’ samples on January 25, 2025, with 40 participants advancing to the next round.
2. Second Round: Assessment of 20 samples on January 29, 2025.
3. Final Round: Evaluation of 12 samples on January 30, 2025.

The winners will be announced during the Saudi Coffee International Exhibition.

Prizes and Rewards

The judging panel will select 12 winners from the participating cities, with total cash prizes amounting to SAR 240,000. Additionally, the competition will provide winners with the opportunity to access new markets by connecting them to a network of importers, exporters, auctions, and trade exhibitions, thereby promoting the global reputation of Saudi coffee.

Advancing the Saudi Coffee Industry

Engineer Khalid Abu Dhaib, CEO of the Saudi Coffee Company, stated that this year’s competition will see broader participation in terms of the number of farmers and cities involved, with a stronger focus on improving every stage of coffee production. He highlighted the importance of enhancing the global standing of Saudi coffee and developing the coffee industry in the Kingdom by enabling Saudi farmers to meet global standards for high-quality coffee.

He added that the competition will also offer professional guidance, including how to obtain commercial records and licenses, promote products through packaging, and utilize online platforms to highlight their brands.

Registration and Sample Submission Dates

The company invited farmers interested in participating to submit entry forms and coffee samples weighing 1 kilogram between January 5–9, 2025. Participants qualifying for the first round will be required to submit samples weighing 25 kilograms by January 18, 2025.

This initiative is part of broader efforts to strengthen Saudi coffee production and support local farmers, contributing to positioning the Kingdom as a leading producer of high-quality coffee on the global stage.

In Ukraine, the average cost of a cup of coffee in 2024 reached 31 UAH, which is 11% higher compared to the previous year. Research conducted by Poster POS and published by Opendatabot reveals that coffee prices continue to rise, with noticeable regional differences.

The most expensive espresso remains in the Odesa region, where a cup costs 40 UAH, reflecting a 20% increase over the year. Following closely are the Lviv region, where a cup costs 39 UAH, and the Volyn region at 37 UAH.

However, not all regions show such high prices. The most affordable coffee can be found in the Khmelnytskyi and Sumy regions, where a cup costs just 28 UAH.

Price Increases and Regional Differences

Since 2021, the price of espresso in Ukraine has nearly doubled, rising from 19 UAH to 33 UAH by the end of 2024. The highest price growth in 2024 was recorded in the Vinnytsia region, where the cost increased by 29%, reaching 31 UAH. The only region where espresso prices remained unchanged was the Kharkiv region, at 34 UAH per cup.

Reasons for Price Hikes

Experts attribute the rise in coffee prices in Ukraine to several factors. Firstly, the increase in raw material costs on the global market. In December 2024, arabica coffee futures on the New York Stock Exchange rose by 4.9%, reaching a record $3434 per pound. The causes included poor harvests and supply chain disruptions. Overall, arabica prices rose by 80% in 2024.

Secondly, domestic inflation, rising logistics costs, and energy prices also play a significant role in price formation.

Why It Matters

Espresso is a key ingredient in most coffee beverages, and its cost directly impacts the prices of drinks in cafes and restaurants. The Espresso Index, which tracks changes in the price of this beverage, is also used to evaluate living standards and consumer spending in various regions.

As coffee prices continue to rise, Ukrainian coffee lovers should prepare for the possibility of further increases in the cost of their favorite beverage.

Global coffee prices experienced notable declines as favorable weather conditions eased supply concerns. On Friday, March arabica coffee contracts closed down 2.51%, while robusta coffee contracts dropped 1.74%.

Rainfall Brings Relief in Brazil

Brazil’s key arabica coffee-growing region, Minas Gerais, recently received 102.8 mm of rain, amounting to 182% of the historical average, according to Somar Meteorologia. This above-average rainfall alleviated fears of prolonged drought, which had previously driven coffee prices higher.

Earlier in December, the consultancy Volcafe projected a significant reduction in Brazil’s arabica output for the 2025/26 season, forecasting a 34.4 million bag harvest, 11 million bags lower than its earlier estimate due to drought. However, the recent rainfall provides much-needed hope for improved crop conditions.

Vietnam’s Robusta Harvest Faces Delays

In contrast, Vietnam, the world’s largest robusta producer, is grappling with heavy rains that have disrupted its coffee harvest. Flooded fields and ongoing downpours have delayed the process, following a 47% year-over-year plunge in November exports. The Vietnam General Department of Customs reported year-to-date exports down 14% at 1.22 million metric tons. Despite these challenges, robusta prices had risen earlier in the week, reflecting concerns over supply constraints.

Rising Coffee Inventories Add Pressure

Increased global coffee inventories have added downward pressure on prices. ICE-monitored arabica stocks rose to a 2.5-year high of 991,080 bags, while robusta inventories hit a 2.5-month high. Additionally, a weaker Brazilian real incentivized export activity, further contributing to bearish market sentiment.

Mixed Global Coffee Production Outlook

The USDA’s December report projected a 4% increase in global coffee production for 2024/25, reaching 174.855 million bags. This includes a 1.5% rise in arabica production and a 7.5% uptick in robusta output. Despite these gains, ending stocks are expected to fall by 6.6% to a 24-year low of 20.867 million bags, reflecting robust consumption growth. The International Coffee Organization (ICO) also noted a 2023/24 coffee production increase of 5.8%, creating a modest surplus of 1 million bags.

Long-Term Concerns Persist

While recent rains have alleviated immediate drought concerns, the long-term impact of El Niño weather patterns remains a concern. Brazil, experiencing its driest conditions since 1981, has seen coffee trees damaged during the flowering stage. Similarly, Colombia is recovering from earlier drought impacts on its arabica production.

In Vietnam, robusta production for the 2023/24 season declined 20%, marking the smallest crop in four years. Projections for the upcoming season remain mixed, with estimates ranging from 27.9 to 28 million bags.

Export Trends Highlight Bearish Signals

Global coffee exports surged by 15.1% in October, the ICO reported, with Brazil’s exports alone climbing 33% year-over-year to a record 47.3 million bags. This increase in supply has contributed to bearish sentiment in the market, despite localized weather challenges in major coffee-producing regions.

The interplay of improved weather conditions in Brazil, disruptions in Vietnam, and growing inventories continues to shape the global coffee market. Traders and stakeholders will closely monitor developments in the coming months as supply-demand dynamics evolve.

India’s coffee industry has achieved a groundbreaking milestone, with exports soaring past the $1 billion mark for the first time in history. Between April and November of FY24, coffee exports reached a record $1.15 billion, a 29% increase compared to $803.8 million during the same period last year. This remarkable growth underscores India’s growing prominence in the global coffee market, traditionally overshadowed by its tea exports.

The sharp increase in India’s coffee exports is attributed to a dramatic surge in Robusta coffee prices. Robusta beans, which account for over 40% of global coffee production, saw prices spike by 63% this year, driven by supply constraints in major coffee-producing nations like Brazil and Vietnam. In June, Robusta prices reached $4,667 per metric ton on the London-based ICE Futures Europe market.

India’s premium-quality coffee has successfully captured a significant segment of the global market. While Indian tea struggles to gain similar traction, coffee exports have thrived, driven by the demand for high-grade beans and favorable market dynamics.

Production setbacks in Brazil and Vietnam have further amplified India’s coffee export success. Brazil, the world’s largest coffee producer, has faced reduced yields due to drought and high temperatures, causing its coffee exports to drop significantly. Vietnam, the second-largest producer, also reported lower forecasts, though output is expected to recover partially. In contrast, Indian coffee producers in Karnataka, Kerala, and Tamil Nadu have maintained stable production levels, despite global challenges. Karnataka alone, home to major coffee-producing districts like Chikkamagaluru and Kodagu, contributed over 248,000 metric tons of coffee in 2022-23.

India’s coffee exports have benefited from strategic stockpiling by European buyers preparing for the European Union’s Deforestation Regulation (EUDR), set to take effect in December. This regulation aims to prevent the import of products linked to deforestation, creating market uncertainties for agricultural exports, including coffee. While the EUDR presents compliance challenges for Indian exporters, it has also spurred demand as European buyers secure supplies ahead of potential disruptions. India, with its higher deforestation rates, faces heightened scrutiny, but exporters are adapting to navigate these new regulatory landscapes.

India’s coffee export growth reflects its resilience and ability to capitalize on global market opportunities. With rising prices, strategic positioning, and increasing demand in Europe, India is solidifying its reputation as a key player in the global coffee industry. This historic achievement marks not only a financial milestone but also highlights India’s potential to become a powerhouse in coffee exports, standing tall among the world’s leading producers.