Category: News

Saudi Aramco and the Saudi Coffee Company, a subsidiary of the Public Investment Fund, have signed a memorandum of understanding to develop coffee production and the Saudi coffee industry, marking the beginning of a new phase of sustainable development for this vital national sector. This agreement aims to enhance Saudi coffee production and make Saudi coffee a competitive national brand.

The agreement was signed by Khalid Al-Zamel, Acting Vice President of Public Affairs at Saudi Aramco, and Fahad Al-Nahit, Chairman of the Saudi Coffee Company. The agreement includes expanding support for the coffee industry and training farmers in the Jazan and Asir regions, in addition to enhancing the initiatives previously launched by Saudi Aramco.

Under the memorandum, the Saudi Coffee Company will support the entire value chain of the coffee product and provide consultations necessary to operate the Coffee Development Center in Al-Dayer Governorate, which is being established in collaboration with the Authority for the Development and Reconstruction of Mountainous Regions in Jazan. This center will play a vital role in serving the farmers of the region and expanding the marketing of coffee locally and exporting it to international markets.

Khalid Al-Zamel emphasized that the cooperation with the Saudi Coffee Company represents an important step in Saudi Aramco’s citizenship initiatives, which continue to support small industries. He pointed to Saudi Aramco’s program launched in 2016 to train coffee farmers on sustainable farming methods in the Jazan region, focusing on improving production and marketing.

Saudi Aramco also supports small projects and sustainable initiatives that enhance national identity, such as supporting beekeepers, fishermen, date production, textile industries, and other crafts that contribute to preserving cultural heritage and providing a decent living for beneficiaries, thereby contributing to the community’s development.

The Saudi Coffee Company, launched by the Public Investment Fund in May 2022, aims to increase Saudi coffee production and establish Saudi Arabia as a major home for Arabica coffee, the most renowned globally, by enhancing local production technologies and providing necessary training for farmers. The company seeks to develop Saudi coffee production, market it globally, and support young entrepreneurs in the local coffee industry.

Recent Support for Saudi Arabia’s Coffee Sector:

The coffee sector in Saudi Arabia is experiencing significant growth, with sector investments increasing considerably in recent years. According to recent reports, the Saudi coffee market size is expected to reach 3.8 billion Saudi Riyals by 2025, with a compound annual growth rate of 6.2%. These investments include opening numerous specialty coffee shops and cafes, importing the best coffee beans from around the world, and enhancing local production of Saudi coffee.

New Initiatives:

Among the new initiatives, efforts are focused on organizing coffee festivals and exhibitions to raise awareness of the industry’s importance and promote local consumption. Farmers are also encouraged to improve crop quality and adopt sustainable farming practices, which contribute to increased productivity and enhanced quality.

Saudi Arabia’s Position in the Global Coffee Market:

Saudi Arabia aims to strengthen its position in the global coffee market by improving the quality of locally produced coffee and increasing its export to international markets. These steps will help make Saudi coffee a strong competitor in global markets, boosting the national economy and providing new job opportunities for Saudi youth.

Kingdom’s Interest in the Coffee Sector:

In 2023, Saudi Arabia announced the designation of that year as the “Year of Saudi Coffee,” a move aimed at highlighting the importance of this industry and supporting it nationally and globally. Additionally, the Kingdom renamed Arabic coffee to Saudi coffee, in an initiative aimed at enhancing national identity and promoting the Saudi product. These efforts reflect the great interest of the wise leadership in developing the coffee sector and making it a part of the Kingdom’s cultural and economic identity.

Thanks to these initiatives and strategic partnerships, the future of the coffee industry in Saudi Arabia looks bright and full of promising opportunities for sustainable development and growth.

Elena Tikhomirova, a therapist and nutritionist at “SM-Clinic,” provided guidance on consuming coffee without harming one’s health. During an interview with Life.ru, she emphasized that moderation is key, suggesting that up to 400 mg of caffeine per day—equivalent to about four cups of coffee—is generally safe for most people.

Tikhomirova also noted that individuals with high sensitivity to caffeine might experience adverse effects such as increased heart rate and insomnia, and these individuals should limit their intake accordingly. They are usually aware of their sensitivity and either consume coffee rarely or not at all.

Recent studies support Tikhomirova’s recommendations, indicating that moderate coffee consumption is associated with various health benefits. A study conducted by researchers at the Semmelweis University found that light to moderate coffee consumption (up to three cups per day) is linked to a 12% lower risk of all-cause mortality and a 17% lower risk of death from cardiovascular diseases compared to non-coffee drinkers. Additionally, consuming coffee was associated with a 21% lower risk of stroke. The beneficial effects were most pronounced with ground coffee as opposed to instant coffee, likely due to differences in their production processes and additives (MedicalXpress, 2024).

Further supporting these findings, another study highlighted that moderate coffee intake could positively affect heart health, potentially reversing some of the adverse effects of aging on the heart. This study used cardiac magnetic resonance imaging to demonstrate healthier heart size and function among regular coffee drinkers compared to non-drinkers (MedicalXpress, 2024).

Moreover, coffee contains numerous bioactive compounds, including chlorogenic acids, polyphenolics, terpenoids, and alkaloids, which contribute to its health benefits. These compounds are involved in reducing oxidative stress and inflammation, enhancing metabolic functions, and potentially lowering the risk of several chronic diseases such as type 2 diabetes and certain cancers (Texas A&M University, 2023).

However, it is crucial to note that excessive coffee consumption can lead to negative health outcomes. For instance, some studies suggest that consuming more than three to four cups of coffee per day may not provide additional health benefits and could potentially increase the risk of adverse effects for some individuals.

Additionally, nutritionist and biochemist Ekaterina Novikova advised caution regarding coffee substitutes. For example, chicory should be avoided by children under three, individuals with varicose veins, asthma, gallbladder diseases, and hemorrhoids. Guarana is not recommended for pregnant or breastfeeding women, people with arthritis, chronic depression, and children under five (Gazeta.ru, 2024).

In summary, moderate coffee consumption—up to four cups per day—can be part of a healthy lifestyle, offering several health benefits, particularly for cardiovascular health. However, individuals should be mindful of their sensitivity to caffeine and avoid excessive intake to prevent potential health issues.

Brazil is set to increase its coffee exports to Russia, as announced by Rodrigo de Lima Baena Soares, the Brazilian ambassador to Russia. He highlighted the fluctuating nature of supply prices, which are influenced by numerous factors, including climate changes.

“We are working on increasing (exports). There is a trend towards growing coffee exports to Russia. We hope it will grow by at least 20%,” said Soares at the St. Petersburg International Economic Forum.

Brazilian Coffee Production

Brazil remains a giant in the coffee production industry, with an annual output that significantly impacts the global market. For the marketing year 2023/24, Brazilian coffee production is projected to reach 66.4 million 60-kg bags, up by 3.8 million bags compared to the previous crop. This increase is largely driven by favorable weather conditions in key coffee-growing regions, which have boosted arabica production by 12% to 44.7 million bags. However, robusta production is expected to see a 5% decrease to 21.7 million bags due to adverse weather conditions in Espírito Santo, a major robusta-producing area​ (USDA Foreign Agricultural Service)​​ (Nasdaq)​.

Coffee Exports and Market Dynamics

In 2023, Brazil’s coffee exports generated approximately $7.35 billion. The revenue from coffee exports to Russia alone was valued at $131 million. The primary importers of Brazilian coffee include the United States, Germany, Italy, Belgium, and Japan. This robust export market underlines Brazil’s pivotal role in the global coffee supply chain​ (Nasdaq)​.

Moreover, the coffee trade between Brazil and Russia is part of a larger economic relationship. In 2023, the trade turnover between the two countries reached a record $11 billion. Besides coffee, Brazil exports soy products, beef, and poultry meat to Russia, while it imports 24% of its fertilizers and diesel fuel from Russia​ (Nasdaq)​.

Russian Coffee Consumption

Russia has been increasingly consuming coffee, with consumption patterns shifting significantly over the past decade. In recent years, the country’s coffee market has expanded, reflecting a growing demand among Russian consumers. This rise in coffee consumption is a key driver behind Brazil’s strategy to boost its coffee exports to Russia. As of 2023, Russia’s coffee market size is substantial, though specific figures for 2024 are still being compiled. The growing appetite for coffee in Russia aligns with global trends of increasing coffee consumption​ (Nasdaq)​.

Factors Influencing Coffee Prices

The price of coffee exports is highly volatile, affected by various factors including climatic changes and logistical challenges. For instance, Brazil has faced logistical bottlenecks at the Santos port, yet it managed to export a record 3.9 million bags of coffee in January 2024, marking a 39% year-on-year increase. Additionally, the demand for Brazilian conilon and robusta coffee surged by 504% year-on-year in January due to trade disruptions in the Red Sea and limited global supply​ (Rabobank)​.

The planned increase in Brazilian coffee exports to Russia is a strategic move aimed at capitalizing on the growing coffee consumption in Russia. This growth is expected to further solidify Brazil’s position as a leading coffee exporter while supporting Russia’s expanding coffee market. The dynamic nature of coffee prices, influenced by global logistical and climatic factors, underscores the complexity and interconnectivity of the global coffee trade. As Brazil continues to navigate these challenges, its robust coffee production and strategic export initiatives are set to enhance its economic ties with Russia and other major coffee-importing countries.

Ethiopia has reached a remarkable milestone in its coffee export sector, achieving a revenue of US$1 billion in just ten months. The Director General of the Ethiopian Coffee and Tea Authority (ECTA), Adugna Debela, shared this significant achievement with the Ethiopian News Agency (ENA). Adugna highlighted that this success reflects a consistent upward trend in Ethiopia’s coffee exports, underscoring the country’s growing influence in the global coffee market.

Over the past ten months, Ethiopia has exported approximately 210,000 tonnes of coffee, marking a substantial increase compared to the same period last year. This surge in coffee exports not only highlights the increasing demand for Ethiopian coffee worldwide but also demonstrates the effectiveness of the strategies implemented by the Ethiopian Coffee and Tea Authority to enhance production and export capacities.

Ethiopian coffee, renowned for its rich flavor and diverse profiles, is exported to over 50 countries. Adugna emphasized the authority’s ongoing efforts to further expand the geographical reach of Ethiopian coffee exports. These efforts include targeted marketing campaigns, participation in international coffee exhibitions, and forging strategic partnerships with new markets. Notably, China, Sudan, and the United Arab Emirates have emerged as active buyers of Ethiopian coffee, contributing significantly to the export growth.

One of the critical factors contributing to this success is Ethiopia’s commitment to promoting its coffee through various channels. The ECTA has been actively organizing exhibitions and events in different countries to showcase the unique qualities of Ethiopian coffee. These promotional activities aim to enhance the global recognition of Ethiopian coffee and attract new buyers from diverse markets.

In addition to promotional efforts, the ECTA has implemented a modern system to prevent illegal transactions in the coffee trade. This system is designed to improve the efficiency and transparency of foreign trade in the sector, ensuring that Ethiopian coffee reaches international markets through legal and regulated channels. By curbing illegal trade practices, the ECTA aims to protect the interests of Ethiopian coffee farmers and exporters, thereby fostering a sustainable and fair trade environment.

The success of Ethiopia’s coffee export sector is not only a testament to the quality of Ethiopian coffee but also to the resilience and dedication of the country’s coffee farmers. Coffee farming in Ethiopia is deeply rooted in tradition, with many farmers employing age-old cultivation methods passed down through generations. These traditional practices, combined with modern techniques and innovations, have enabled Ethiopian coffee to maintain its distinctive characteristics and appeal to coffee enthusiasts worldwide.

The Ethiopian government has also played a pivotal role in supporting the coffee industry. Through various initiatives and policies, the government has provided farmers with access to essential resources, such as high-quality seeds, training programs, and financial assistance. These measures have empowered farmers to increase their productivity and improve the quality of their coffee beans, contributing to the overall growth of the sector.

Furthermore, the Ethiopian coffee industry has benefited from collaborations with international organizations and stakeholders. Partnerships with entities such as the Specialty Coffee Association (SCA) and other global coffee organizations have facilitated knowledge exchange, capacity-building, and market access for Ethiopian coffee producers. These collaborations have helped Ethiopian coffee gain recognition and credibility in the global market, attracting premium prices and driving export growth.

As Ethiopia continues to build on its successes in the coffee export sector, the future looks promising. The ECTA is committed to sustaining the momentum by exploring new markets, enhancing promotional activities, and implementing innovative strategies to further boost exports. With the support of the government, international partners, and the dedication of coffee farmers, Ethiopia is poised to solidify its position as a leading coffee exporter on the global stage.

In conclusion, Ethiopia’s achievement of US$1 billion in coffee exports over ten months is a significant milestone that reflects the country’s growing prominence in the global coffee industry. The combined efforts of the Ethiopian Coffee and Tea Authority, the government, and the coffee farmers have contributed to this success, paving the way for a bright future for Ethiopian coffee in the international market.

The World Coffee Championships (WCC) are set to make a grand return, with this year’s final showdown taking place in Copenhagen from June 27-29, 2024. Hosted at the World of Coffee Copenhagen, this prestigious event will see over 80 of the world’s top coffee professionals compete in four highly anticipated categories: World Latte Art, World Coffee in Good Spirits, World Coffee Roasting, and Cezve/Ibrik Championships. As a key event in the global coffee calendar, the WCC promises to deliver an exciting blend of artistry, innovation, and community spirit.

The Competitions

1. World Latte Art Championship
   • This competition celebrates the creativity and technical skills of baristas who pour intricate designs into lattes. Competitors will demonstrate their ability to produce stunning patterns, pushing the boundaries of what is possible with milk and espresso. The World Latte Art Championship is known for its visually captivating performances that highlight the aesthetic side of coffee culture.
2. World Coffee in Good Spirits Championship
   • Combining the worlds of coffee and mixology, this competition challenges participants to create beverages that expertly blend coffee with spirits. Competitors will showcase their innovative drink recipes, blending flavors in ways that highlight the versatility of coffee as an ingredient. This event underscores the creativity and craftsmanship required to excel in both coffee and cocktail preparation.
3. World Coffee Roasting Championship
   • This championship focuses on the critical process of roasting coffee beans to perfection. Competitors will be judged on their ability to bring out the best flavors in different coffee origins through precise and skillful roasting techniques. The World Coffee Roasting Championship emphasizes the importance of roasting in the coffee supply chain and celebrates the expertise required to master this craft.
4. Cezve/Ibrik Championship
   • Named after the traditional Turkish coffee brewing methods, this competition highlights the rich history and cultural significance of Cezve/Ibrik coffee. Competitors will use these traditional brewing techniques to produce coffee that showcases the depth and complexity of flavor unique to this method. The Cezve/Ibrik Championship is a nod to the enduring legacy of coffee traditions around the world.

The Venue

World of Coffee Copenhagen, the chosen venue for the 2024 WCC, is a fitting location for such a prestigious event. Known for its vibrant coffee culture, Copenhagen is home to numerous specialty coffee shops and roasters, making it a hub for coffee enthusiasts. The venue will offer a dynamic space for competitors and spectators to experience the full spectrum of coffee excellence.

What to Expect

Attendees and viewers can expect a series of thrilling performances, each showcasing the competitors’ passion and dedication to their craft. The WCC is not just a competition; it is a celebration of coffee culture, bringing together professionals and aficionados from around the globe. In addition to the competitions, the event will feature a variety of activities, including workshops, tastings, and networking opportunities, all designed to enhance the coffee experience for participants and attendees alike.

Global Participation

With competitors hailing from diverse backgrounds and regions, the WCC highlights the universal appeal and cultural significance of coffee. This global participation underscores the event’s role in fostering a sense of community and shared passion among coffee professionals. It also provides a platform for showcasing different coffee traditions and innovations, contributing to the ongoing evolution of the industry.

A Community Event

The WCC is more than just a series of competitions; it is a gathering of the global coffee community. It offers a unique opportunity for coffee professionals to share knowledge, exchange ideas, and celebrate their shared love for coffee. For spectators, it is an immersive experience that provides insights into the artistry and science behind coffee preparation.

Conclusion

The World Coffee Championships 2024 in Copenhagen is set to be a landmark event in the coffee world. With its diverse competitions, expert participants, and vibrant host city, the WCC promises to deliver an unforgettable experience for all involved. Whether you are a seasoned coffee professional or a passionate enthusiast, the WCC offers something for everyone, celebrating the rich tapestry of coffee culture and innovation.

For more information and updates, visit the Copenhagen World Coffee Championships website and stay tuned to WCC news updates.

The most recent Cup of Excellence competition, held on May 28 in El Salvador, marked a historic milestone for the coffee industry. In an extraordinary achievement, ten coffees scored over 90 points, a testament to the relentless pursuit of excellence by El Salvador’s coffee farmers.

“This is a feat made even more impressive with the challenges that coffee farmers are facing every day. Climate change has made harvesting and planning much more difficult and raised the cost of production,” said Erwin Mierisch, Executive Director for Cup of Excellence.

El Salvador, despite its small size, has consistently been at the forefront of quality and innovation in coffee production. The recent competition scores reflect the country’s dedication and resilience. Farmers in El Salvador have had to adapt to the harsh realities of climate change, which has significantly impacted coffee production. Unpredictable weather patterns, increased temperatures, and irregular rainfall have made it challenging to grow high-quality coffee. Despite these obstacles, El Salvador’s farmers have demonstrated remarkable ingenuity and commitment to maintaining high standards.

The final phase of the competition saw an international jury comprising 18 judges meticulously evaluating 40 coffees in three categories: traditional washed and honey, traditional natural, and experimental. The judges, renowned for their expertise and discerning palates, repeatedly scored the coffees to ensure fairness and accuracy. Out of the 40 coffees, 30 were awarded the prestigious Cup of Excellence prize, recognizing the top 10 coffees in each category that scored at least 87 points.

Diego Baraona, representing the Los Pirineos farm, emerged as one of the standout participants, scoring over 90 points in the experimental category. “We are extremely proud of this victory for our farm Los Pirineos! It has been a challenging year for us and good for coffee growing, but this gives us more energy to move forward and overcome all kinds of obstacles,” said Baraona. His achievement underscores the resilience and determination of coffee farmers who continue to strive for excellence despite the numerous challenges they face.

The Cup of Excellence competition not only recognizes the efforts of individual farmers but also highlights the collective progress of El Salvador’s coffee industry. The event serves as a platform for farmers to showcase their best coffees to an international audience, providing them with opportunities for recognition and economic advancement. The winning coffees from the competition will be sold in an online auction on July 18, attracting bidders from around the world. This auction is a significant event for coffee producers, as it offers them a chance to receive fair compensation for their high-quality products and gain access to new markets.

Cup of Excellence, a non-profit organization, owns and manages the annual multi-level competition in coffee-producing countries. Over its 25-year history, it has held competitions in 16 nations, consistently promoting quality and innovation in the coffee industry. The organization plays a crucial role in supporting coffee farmers by providing them with a platform to showcase their skills and connect with international buyers.

The success of the recent Cup of Excellence competition in El Salvador is a testament to the dedication and perseverance of the country’s coffee farmers. Despite the challenges posed by climate change and other external factors, these farmers have continued to innovate and produce exceptional coffee. Their achievements serve as an inspiration to the global coffee community, demonstrating that with determination and resilience, excellence is possible even in the face of adversity.

In conclusion, the record-breaking scores at the Cup of Excellence competition in El Salvador highlight the country’s position as a leader in quality coffee production. The event not only celebrates the achievements of individual farmers but also underscores the importance of supporting and recognizing the efforts of coffee producers worldwide. As the global coffee community looks forward to the upcoming online auction, the success of El Salvador’s farmers serves as a reminder of the remarkable potential that exists within the coffee industry.

In a notable event that took place last week, the Victoria Arduino Expertise Center, in partnership with the renowned Juan Valdez Colombian coffee chain, hosted “Harvesting Sustainability: A Colombian Coffee Experience.” Estefania Hernandez, the Regional Director at COLOMBIAN EXOTIC COFFEE GROWERS, was among the distinguished speakers. She delivered an insightful presentation titled “Environmental Sustainability: Climate Change in Colombia from a Farm Perspective,” which shed light on the significant impacts of climate change on Colombian coffee farms and suggested effective strategies to counter these challenges.

Understanding Climate Change

Climate change is defined as a long-term, slow change in the global climate system. Human activities, particularly the increased emission of greenhouse gases (GHGs) such as carbon dioxide, methane, and nitrous oxide, have accelerated this process. Since the 1850s, the average global temperature has risen by approximately 1°C and is projected to rise between 1.5°C to over 5°C by 2100, depending on future emission scenarios.

The greenhouse effect, wherein gases in the atmosphere trap heat from the sun, is a major driver of global warming. These gases allow sunlight to enter the atmosphere but prevent some of the heat from escaping, leading to a gradual increase in the Earth’s mean temperature. Over the past century, human activities, especially the burning of fossil fuels, have significantly increased the emission of these GHGs.

Effects of Climate Change

The effects of climate change are far-reaching and multifaceted:

• Unpredictable Weather Patterns: There is increased variability in rainfall, changes in the timing of wet seasons, and extended droughts.
• Extreme Weather Events: The frequency and intensity of storms, heavy rainfall, and high temperatures have increased.
• Environmental Degradation: Excessive rains lead to flooding, landslides, and soil erosion, while rising sea levels and ocean acidification further threaten ecosystems.
• Urban Challenges: Cities experience increased heat and pollutant buildup, alongside longer and more intense wildfire seasons.

Impact on Coffee Production

Climate change poses significant challenges to coffee production in Colombia. Since 1980, the average temperature in the Colombian coffee region has increased by 1.2°C, with projections indicating a rise of 0.3°C per decade. These changes disrupt traditional growing cycles, increase the incidence of pests and diseases, and threaten the overall productivity of coffee farms. Additionally, the global coffee sector faces an imbalance between supply and demand, with predictions suggesting a potential shortfall of 60 million bags in the future.

Mitigation Strategies

To combat these challenges, the coffee industry must adopt comprehensive mitigation strategies:

1. Reducing Greenhouse Gas Emissions: This includes minimizing fertilizer overuse, transitioning to renewable energy sources like biomass, and using naturally dried coffee methods instead of mechanical driers.
2. Conserving and Restoring Forests: Reducing deforestation and reforesting riparian zones can help maintain carbon sinks, crucial for trapping greenhouse gases.
3. Improving Agricultural Practices: Introducing shade trees, establishing windbreaks, and enhancing soil and water management can bolster the resilience of coffee farms.

Resilience Pathways for Coffee Farming

Hernandez emphasized three main pathways to enhance the resilience of coffee farming:

1. Relocation: Moving coffee cultivation to higher elevations where the climate remains suitable. However, this approach can lead to competition for land and affect the livelihoods of lower elevation farming communities.
2. Adaptation of Farming Practices: Utilizing irrigation, improved shade, and mulching practices to mitigate the effects of changing weather patterns.
3. Development of Resilient Coffee Varieties: Investing in breeding and developing new coffee crop species that can withstand harsher climates.

Additional Facts About Climate Change in Colombia:

1. Temperature Rise: Since the 1980s, the average temperature in Colombia’s coffee-growing regions has increased by 1.2°C. This temperature rise impacts the delicate balance required for coffee cultivation.
2. Rainfall Patterns: Colombia has experienced shifts in rainfall patterns, leading to unpredictable wet and dry seasons. This variability affects coffee flowering and fruit development, reducing crop yields.
3. Pest and Disease Proliferation: Higher temperatures and increased humidity create favorable conditions for pests like the coffee berry borer and diseases such as coffee leaf rust (Hemileia vastatrix), which have devastated coffee crops in recent years.
4. Economic Impact: Coffee farming is a critical source of income for over 500,000 families in Colombia. Climate change threatens their livelihoods, increasing the need for adaptive strategies to ensure economic stability.
5. Water Stress: Extended drought periods and irregular rainfall lead to water stress for coffee plants, affecting their growth and productivity. Effective water management practices are essential for maintaining healthy crops.
6. Soil Erosion and Degradation: Intense rainfall events contribute to soil erosion, reducing soil fertility and impacting coffee plant health. Sustainable farming practices, such as terracing and cover cropping, are necessary to combat soil degradation.

Future Strategies and Investments

To ensure a sustainable and resilient coffee industry, multiple strategies need to be implemented:

• Research: Further studies on the localized impacts of climate change on coffee are essential to inform effective adaptation strategies.
• Farm-Level Investments: Supporting farmers with the resources and knowledge to implement climate-resilient practices.
• Financial Mechanisms: Designing and implementing financial instruments to facilitate investment in adaptation measures.
• Breeding and Development: Investing in the creation of more resistant coffee varieties.
• Policy Support: Strengthening national development and environmental policies to support sustainable coffee farming.
• Farmer Organizations: Empowering farmer organizations to play a critical role in climate resilience efforts.

The “Harvesting Sustainability” event underscored the urgent need for the coffee industry to adapt to the realities of climate change. By implementing these strategies, the Colombian coffee sector can continue to thrive, ensuring the sustainability of one of the country’s most cherished and economically significant crops. The collaborative efforts of industry stakeholders, researchers, and policymakers are crucial to safeguarding the future of Colombian coffee amidst a changing climate.

In a significant blow to the global coffee market, the Vietnamese coffee trading company Volcafe has reported that Vietnam’s Robusta coffee crop for the 2024/25 season is expected to reach only 24 million bags. This marks the lowest production level in 13 years, primarily due to severe drought conditions that have caused “irreparable damage” to coffee blossoms in one of the world’s largest Robusta-producing regions.

Impact of Drought on Vietnamese Coffee

The adverse weather conditions have significantly impacted Vietnam, the world’s largest producer of Robusta coffee beans. The lack of rainfall has not only reduced the quantity of the crop but has also affected its quality. This situation highlights the vulnerability of coffee production to climate change, where unpredictable weather patterns can lead to substantial agricultural losses.

El Niño, a recurring climate pattern that warms the ocean surface in the central and eastern tropical Pacific, has exacerbated the drought conditions in Vietnam. This phenomenon typically brings heavy rains to Brazil, another major coffee producer, while inducing droughts in Southeast Asia, thus adversely affecting Vietnam’s coffee crop​ (TradingView)​​ (Barchart.com)​.

Global Implications

The reduced output from Vietnam is expected to contribute to a global deficit of 4.6 million bags of Robusta coffee for the 2024/25 season. Although this is an improvement compared to the 9 million bag deficit in the 2023/24 season, it still represents the fourth consecutive year of shortages in the Robusta market​ (TradingView)​​ (Barchart.com)​.

The global coffee market is already under pressure from various factors, including fluctuating weather patterns in key producing regions and increased demand for coffee worldwide. According to the International Coffee Organization (ICO), global coffee exports have seen a significant rise, which suggests that demand remains robust even as supply becomes more constrained​ (TradingView)​.

Economic Repercussions

For Vietnam, the economic repercussions of a reduced coffee crop are substantial. Coffee is a major export commodity for the country, and a significant decrease in production can impact the livelihoods of millions of farmers. The drought conditions have forced many farmers to rethink their strategies, including possibly diversifying crops or investing in more resilient coffee varieties​ (Barchart.com)​.

Mitigation and Adaptation Strategies

To combat the adverse effects of climate change on coffee production, several strategies are being considered and implemented:

1. Irrigation and Water Management: Enhancing irrigation systems to ensure a consistent water supply during dry periods can help mitigate some of the impacts of drought.
2. Shade-Grown Coffee: Implementing shade-grown coffee practices can help protect coffee plants from extreme temperatures and reduce water evaporation from the soil.
3. Resilient Varieties: Investing in research to develop coffee plant varieties that are more resistant to drought and heat can provide long-term solutions to climate-induced challenges.
4. Diversification: Encouraging farmers to diversify their crops can reduce the economic risks associated with reliance on a single commodity.

Future Outlook

The situation in Vietnam underscores the urgent need for the global coffee industry to adapt to changing climatic conditions. As climate change continues to pose significant threats to agricultural production, countries that rely heavily on coffee exports must invest in sustainable farming practices and resilient agricultural infrastructure.

The global coffee community, including major stakeholders such as coffee producers, traders, and researchers, must collaborate to develop and implement strategies that can safeguard the future of coffee production. This includes sharing knowledge, investing in innovative agricultural technologies, and supporting policies that promote environmental sustainability.

In conclusion, the projected decline in Vietnam’s Robusta coffee crop for the 2024/25 season serves as a stark reminder of the impacts of climate change on global agriculture. With proactive measures and international cooperation, the coffee industry can navigate these challenges and ensure a sustainable future for coffee production worldwide.

The International Coffee Organization (ICO) has announced the release of the much-anticipated fourth edition of “The Coffee Guide.” This extensive resource, first published in 1992 by the International Trade Centre (ITC), remains the world’s most detailed and hands-on source of information on the international coffee trade. It serves as a crucial reference for coffee growers, traders, exporters, transportation companies, certifiers, associations, and authorities.

A Legacy of Coffee Expertise

“The Coffee Guide” has been a trusted resource in the coffee industry for decades. The newly updated fourth edition builds on this strong legacy, reflecting the latest trends and challenges in the coffee sector. The update is the result of a remarkable coordination effort, engaging over 60 members from across the globe in a collaborative process to shape its structure and content. The goal is to provide the industry with relevant and actionable information that aligns with current realities and future trends.

Focus on a Values-Based Supply Chain

A central theme of the fourth edition is the emphasis on a values-based supply chain. The guide addresses critical issues such as climate change, price volatility, and unbalanced supply chain dynamics. It highlights the importance of sustainability and explores concepts like living income, climate solutions based on the ‘Project Drawdown’ logic, and the roles of youth and women in advancing the coffee sector.

Mario Cerruti, Chief Institutional Relations & Sustainability Officer at Lavazza Group, emphasizes the guide’s focus on preserving the dignity of coffee farmers and their families while integrating good practices within coffee systems. Jhannel Tomlinson, Board Secretary at the International Women’s Coffee Alliance in Jamaica, underscores the vital roles of women and youth, advocating for their empowerment and engagement to ensure the sector’s future continuity and success.

Redefining Coffee Quality

The fourth edition introduces new definitions of coffee quality, reflecting an evolving understanding that ties quality closely with sustainability. The guide categorizes coffee quality into three segments: Standard, Premium, and Specialized. This tiered quality segmentation provides the industry with a new data set, enabling a more comprehensive market analysis and better recognition of value.

Ric Rhinehart, former Executive Director of the Specialty Coffee Association, notes that linking quality and price positively requires consumers to identify important quality attributes. These attributes include flavor, aroma, sustainable provenance, equitable reward systems, and the absence of unethical practices.

Embracing Digitalization

Digitalization is a significant theme in the new edition, highlighting its transformative potential across the coffee supply chain. The guide explores how digital tools enhance productivity, quality control, consistency, and efficiency. This digital shift is expected to democratize information, bringing more transparency and balance to the industry.

Jennifer “Vern” Long, CEO of World Coffee Research, explains that digitalization enables the flow of information, which could dramatically shift how value is distributed through supply chains. However, she cautions that digitalization should not replace the necessary systems and institutions that support farmers.

Impact of COVID-19

The global COVID-19 pandemic has had a profound impact on the coffee sector, disrupting international trade and altering consumption patterns. The guide provides an in-depth analysis of these changes and discusses how the sector is adapting. The pandemic has accelerated the shift towards at-home consumption and e-commerce, while significantly reducing on-trade business.

Vanusia Nogueira, Executive Director of the Brazil Specialty Coffee Association, notes that although the production chain was only slightly affected by the pandemic, it has driven significant changes in consumption patterns. Coffee producers are increasingly investing in research, sustainable production, and post-harvest technologies to enhance productivity and quality.

Joao Mattos, Supply Chain and Commercial Manager for Coffee at CLAC, highlights how the pandemic has prompted the coffee sector to rethink its traditional ways of doing business. It has created both challenges and opportunities for small producers, who are now tapping into previously inaccessible markets through online platforms.

A Collaborative Update Process

The fourth edition of “The Coffee Guide” is the result of a highly participatory and collaborative process. The update involves a wide range of contributors from around the world, including producer organizations, major coffee roasters and brands, policymakers, and coffee organizations. This inclusive approach ensures that the guide addresses the needs of all supply chain actors.

The advisory panel for the guide includes representatives from various sectors:

• Producer groups
• Traders, roasters, and coffee brands
• Coffee associations and institutions
• Certification bodies
• Finance and investment groups
• International organizations and NGOs
• Academia and research
• Expert support services across the supply chain

The panel’s geographical representation ensures that diverse perspectives are considered, making the guide a truly global resource.

Conclusion

The fourth edition of “The Coffee Guide” is poised to be an invaluable resource for the coffee industry, providing up-to-date information and addressing contemporary issues with a forward-looking perspective. This comprehensive guide reflects the collective effort of various stakeholders to ensure the coffee sector continues to thrive sustainably.

For more information, visit the International Trade Centre’s website or contact Sarah Charles at [email protected].