Category: News

Dubai Coffee Centre Expands to Keep Pace with the Future of Global Coffee Trade

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Dubai, 17 September 2025 (Qahwa World) – The Dubai Multi Commodities Centre (DMCC), the world’s leading free zone and a key driver of global trade flows through Dubai, has officially launched the new mezzanine floor at its Dubai Coffee Centre. The 500-square-meter space has been designed to provide members and stakeholders in the coffee sector with greater access to international markets, foster innovation, and accelerate business growth.

The new facility includes 16 private offices available for lease, flexible co-working spaces, and an exclusive espresso bar for members, offering them the opportunity to host guests and showcase their products with ease. This expansion comes at a pivotal moment for the coffee industry, where the demand for flexible and integrated infrastructure to support origin producers, specialty roasters, and SMEs is more pressing than ever.

Coinciding with the expansion, DMCC released the latest edition of its Future of Trade report, this time focusing on the coffee sector. The report highlights the shifting dynamics of a global industry valued at over $200 billion, with international coffee trade alone exceeding $26 billion. With more than two billion cups consumed daily, coffee remains one of the most traded commodities in the world, yet climate threats, evolving consumer tastes, and shifting power dynamics across the value chain are reshaping the global coffee map.

Ahmed Bin Sulayem, Executive Chairman and CEO of DMCC, said:
“Coffee is not just a commodity; it is deeply woven into our identity in the Arab world and serves as a cornerstone of the global economy. With a consumer market exceeding $200 billion and nearly two billion cups consumed daily, coffee has shaped traditions of hospitality and trade since its journey from Yemen’s terraced farms and the port of Mokha to Europe, where coffeehouses became incubators for modern finance and ideas that fueled the Enlightenment and early industrial revolution. Today, more than 25 million farmers, most of them smallholders, rely on coffee for their livelihoods. The sector stands at a turning point, with direct-to-consumer pathways, climate-smart agriculture, and digital tools—from AI-powered traceability to tokenization of real assets—reshaping the industry. Dubai’s role now goes beyond redistribution; it has become a global platform for specialty coffee. The World of Coffee Dubai 2025 exhibition attracted more than 17,000 visitors and set record auction prices for rare varieties, underscoring the depth of the market in the Middle East and North Africa, expected to reach $11.5 billion. With this ecosystem, complemented by our Tradeflow digital commodities platform, Dubai is writing the next chapter in coffee’s story—where heritage meets innovation and inclusive growth becomes a reality.”

Mike Butler, Associate Director – Coffee at DMCC, added:
“This report paints a picture of a future that is complex but full of opportunities. Our role is to support members of the Dubai Coffee Centre by providing storage, logistics, roasting services, and facilitating trade between members. The new mezzanine floor, equipped with state-of-the-art facilities, is a tangible demonstration of this commitment and part of our broader strategy to solidify Dubai’s position as a global coffee hub.”

The Future of Trade report outlines several trends likely to shape the coffee industry in the coming years, including the rise of new direct-to-consumer trade routes driven by emerging markets such as China and Asia-Pacific, greater value retention in producing countries through local roasting and brand building, digital trade and blockchain-enabled traceability, climate-smart farming practices with drought-resistant varieties and agroforestry, and shifting consumer dynamics led by younger generations, particularly Gen Z, who are driving demand for sustainable specialty coffee and premium experiences.

The report also recommends scaling up investment in climate-smart agriculture, improving price transparency, empowering producers through supply chain digitization, expanding direct-to-consumer models, and developing trade infrastructure in strategic hubs like Dubai to streamline logistics, cut emissions, and strengthen traceability.

The latest edition continues the Future of Trade series, which has become one of the most widely read and trusted resources on global trade dynamics. With more than 2.5 million cumulative downloads and views, the series continues to shape global trade dialogue at a time when economic fragmentation and supply chain transformations are redrawing the map of global commerce.

illycaffè Honors Robert Wilson with Final Art Collection for Barcolana 2025

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Dubai, 17 September 2025 (Qahwa World) – illycaffè has unveiled a new illy Art Collection designed by the late American artist Robert Wilson to celebrate the 57th edition of Barcolana, Trieste’s historic international sailing regatta. This collection holds profound significance, as it represents Wilson’s final creation for the brand and the city, marking the culmination of a long-standing artistic relationship.

For both the Barcolana 2025 poster and espresso cup, Wilson employed a dramatic composition where light plays the leading role. Using bold primary graphic elements, he transformed blue into sky, sea, and sails—capturing the essence of the regatta and reflecting the deep bond between Trieste and the Adriatic. The design draws inspiration from Susan Sontag’s reimagined line in Lady from the Sea: “And so there are people who think they belong to the sea.”

Wilson’s collaboration with illycaffè spans over a decade. In 2014, he worked with young talents from the Watermill Center to create an illy Art Collection, and in 2017, he directed The Dish Ran Away with the Spoon in Venice to mark the collection’s 25th anniversary. This final project continues his legacy of fusing art, light, and storytelling into everyday objects.

Cristina Scocchia, CEO of illycaffè, emphasized the emotional value of this year’s initiative:
“Supporting Barcolana again this year, in its 57th edition, carries an even deeper meaning for us. Celebrating it through the poster and a special illy Art Collection designed by Robert Wilson means paying tribute to his extraordinary talent and continuing to give voice to his vision, even after his passing.”

The new illy Art Collection by Robert Wilson is available at a retail price of €26.90 in illy Caffè and illy Shops, online at www.illy.com, and in dedicated Barcolana spaces.

Founded in Trieste in 1933, illycaffè continues to blend coffee, art, and sustainability. Today, its 100% Arabica blend is served in over 140 countries, with more than 10 million cups enjoyed daily. The company, certified as a B Corp since 2021, reported revenues of €630 million in 2024 and operates 157 branded stores across 28 countries

Yemen: The Future of Drought-Resistant Coffee Amid Climate Change

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Dubai, 17 September 2025 (Qahwa World) –Coffee in Yemen has never been just a crop. It is deeply rooted in the nation’s history, culture, and identity. From these rugged mountains and arid landscapes, coffee spread across the seas more than five centuries ago to conquer global markets. Today, as climate volatility poses unprecedented threats to the coffee industry worldwide, Yemen is once again at the centre of attention—not only as the birthplace of coffee but also as a potential leader in producing drought-resistant varieties that could safeguard the sector’s future.

According to the latest DMCC Coffee Centre report, part of its Future of Trade Agri Series, climate change may render half of today’s coffee-growing land unsuitable for production by 2050. Arabica beans, which account for 60–70% of global production and are prized for their superior quality, are the most at risk. They require cooler climates and well-defined wet and dry seasons, making them highly sensitive to even slight shifts in rainfall and temperature.

Robusta, known for its resilience and tolerance to higher temperatures, may also face threats from ongoing climate disruptions. The report highlights that recent years have already offered a preview of this uncertain future. In Vietnam, prolonged drought caused production to fall by 20% and exports by 10% during the 2023/24 season. In Brazil, the world’s largest coffee producer, one of the most severe droughts in its history pushed Arabica prices up by more than 80% in 2024. These are not isolated incidents but warning signs of a shifting climate reality that threatens global supply.

Against this backdrop of instability, the DMCC report underscores Yemen’s exceptional position. For centuries, Yemeni farmers have cultivated coffee under harsh conditions—scorching heat, scarce rainfall, and limited water resources—yet the crop has endured. This historic resilience is what makes Yemen uniquely qualified to lead the development of drought-resistant coffee varieties that could redefine global production.

Garfield Kerr, president of the Speciality Coffee Association (SCA) and founder of Mokha 1450 in Dubai, put it bluntly: “I expect Yemen to become an industry leader in producing drought-resistant coffees, because farmers and agronomists there are already producing coffee in higher temperatures with less water.”

Garfield Kerr, President of the Specialty Coffee Association (SCA) and founder of Mokha1450

This statement reflects a growing global recognition that Yemen’s traditional practices and harsh realities may hold the key to coffee’s survival in the face of climate change.

The significance of Yemen lies not only in its ability to grow coffee under extreme conditions but also in the potential role it can play in stabilising global supply. If Yemen succeeds in pioneering drought-resistant varieties, it could help reduce the risks facing millions of smallholder farmers across Latin America, Africa, and Asia who are far less equipped to adapt to environmental shocks.

Economically, this advantage positions Yemen to capture new opportunities. With demand for resilient coffee varieties expected to rise, Yemen could evolve from a historically modest producer into a global laboratory for agricultural innovation. Strategic investment in research, farmer training, and international partnerships will be key to transforming this potential into reality.

The report also emphasises that farmers cannot bear the burden of climate adaptation alone. Institutions, trade bodies, and global buyers must work together to foster resilience across the supply chain. Yemen’s experience offers valuable lessons, but scaling them up will require cooperation, knowledge-sharing, and financial backing.

As consumer demand for sustainability and transparency intensifies, regulatory frameworks such as the European Union’s Deforestation Regulation are reshaping access to global markets. For Yemen, aligning with such frameworks could open doors while reinforcing its role as a pioneer in climate-smart coffee production.

Conclusion

The DMCC Coffee Centre report places Yemen firmly back in the global spotlight—not only as the birthplace of coffee but also as a crucial player in shaping its future. At a time when the sector faces escalating risks from droughts, heatwaves, and unpredictable weather, Yemen emerges as a beacon of resilience and possibility.

For the global coffee industry, the message is clear: climate change is already altering production landscapes, and the risks are intensifying. Yet Yemen’s centuries-old experience in cultivating coffee with fewer resources provides hope that adaptation is possible.

If the right investments and collaborations are put in place, Yemen could help secure coffee’s future—not just for itself, but for the millions worldwide whose livelihoods and cultures depend on this extraordinary crop.

DMCC Coffee Centre: Specialty Coffee Redefines the Global Market

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DUBAI, 16 September 2025 (Qahwa -World) – Coffee is no longer just a daily beverage. It has become a cultural experience, a marker of taste, and a symbol of identity. Around the world, the specialty coffee sector is witnessing unprecedented growth, transforming the industry and reshaping global trade patterns. In its latest Future of Trade Agri Series report, the DMCC Coffee Centre emphasizes that this boom in specialty coffee is creating new opportunities but also deep challenges for producers, roasters, and supply chains.

From a simple drink to a global culture

Over the past decade, consumer behavior has shifted dramatically. Younger generations, particularly millennials and Gen Z, are no longer satisfied with a standard cup of coffee. They are seeking quality, transparency, and stories behind their brew. Today’s consumers want to know where their beans come from, how they were cultivated, and the social and environmental impact of the farms that produced them. This demand for authenticity and excellence has fueled explosive growth in the specialty coffee sector, which is expanding at a pace far faster than the commercial coffee market.

According to the report, demand for specialty coffee in Asia alone has surged by 30% over the past five years. Cities such as Shanghai, Tokyo, and Seoul have become leading destinations for coffee culture, rivaling long-established centers in Europe and North America. In the Middle East, Dubai has emerged as a hub for specialty coffee, where entrepreneurs, importers, and consumers converge in a market that views coffee as more than a drink—it is a lifestyle, a cultural statement, and a shared experience.

Yet behind this expansion lies a paradox. While specialty coffee commands premium prices in consumer markets, smallholder farmers—who account for about 80% of global production—struggle to secure a fair share of that value. The DMCC Coffee Centre report highlights the growing disconnect between international futures market pricing and the specialty coffee segment. Futures contracts may indicate falling prices, but specialty beans often continue to rise, placing roasters and consumers under pressure and leaving farmers in a vulnerable position.

Garfield Kerr, President of the Specialty Coffee Association and founder of Dubai’s “Mokha 1450,” describes the situation: “The gap between traditional pricing mechanisms and the real specialty market is destabilizing. We need systems that reward quality fairly and ensure that farmers share in the added value created by specialty coffee.”

Garfield Kerr, President of the Specialty Coffee Association (SCA) and founder of Mokha1450

The report also underscores the role of technology in supporting this sector. Tools such as blockchain and artificial intelligence are becoming essential for verifying sustainability claims and ensuring traceability from farm to cup. These innovations build consumer trust while giving farmers a platform to demonstrate the authenticity of their practices. With regulatory frameworks such as the European Union’s anti-deforestation law, transparency is no longer optional but a requirement for accessing major markets.

Meanwhile, emerging regions like the Gulf are helping shape new patterns of demand. In cities like Dubai, Riyadh, and Doha, specialty coffee has become integral to modern lifestyle and self-expression, placing the Middle East firmly on the global coffee map as both a consumer base and a trade hub.

Dubai’s role is especially significant. The DMCC Coffee Centre not only provides world-class infrastructure for storage, roasting, and packaging but also offers pay-as-you-go services that lower barriers for small producers in Africa and Latin America. By connecting them directly to international buyers, Dubai positions itself as a stabilizing force in a rapidly shifting specialty coffee economy.

Looking ahead, the future of specialty coffee appears both bright and complex. Growth projections estimate annual expansion of over 7% in the coming decade, signaling strong demand. Yet challenges remain. Farmers must invest in training, innovation, and resilience to maintain quality, while roasters and traders must navigate volatile pricing and rising logistics costs.

The DMCC Coffee Centre’s report concludes that the specialty coffee boom is not simply a trend but a structural transformation of the global coffee market. Success will depend on the industry’s ability to balance demand with sustainability, fairness, and transparency. If achieved, specialty coffee will not only be a product of distinction but also an economic and cultural cornerstone capable of redefining global trade—and reinforcing Dubai’s role as a hub at the heart of this transformation.

Nestlé Investors Push for Leadership Change as Chair Paul Bulcke Faces Criticism

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Geneva, September 16, 2025 – (Qahwa World) – A group of Nestlé’s major investors is urging long-serving Chair Paul Bulcke to step down before his scheduled retirement in April 2026, citing dissatisfaction with his handling of recent corporate challenges and leadership transitions.

According to reports in the Financial Times, shareholders have grown frustrated with Bulcke’s leadership after the abrupt dismissal of CEO Laurent Freixe, who left the company on September 1, 2025, following an investigation into an inappropriate relationship with an employee. Freixe’s departure marked the third change in Nestlé’s top executive role in just over a year, following Mark Schneider’s resignation in August 2024. Philipp Navratil, formerly head of Nespresso, has now taken over as CEO.

Investors argue that Bulcke, who launched an internal probe earlier this year but failed to substantiate the allegations against Freixe until a second investigation was carried out with external counsel, did not act decisively enough. Some shareholders have called for Pablo Isla, the designated successor, to assume the chairmanship immediately.

“Paul Bulcke has lost the trust of investors,” one shareholder was quoted as saying, stressing that he should leave the position without waiting until next year.

Bulcke’s long tenure with Nestlé dates back to 1979, including eight years as CEO before becoming Chair in 2017. He announced in June 2025 that he would not seek re-election.

The leadership turmoil has weighed heavily on Nestlé’s stock, which fell 5% after Freixe’s dismissal, closing at CHF 71.86 ($90.85) on September 16. Since 2022, the company’s shares have dropped nearly 40% amid two consecutive years of declining sales.

Nestlé has struggled with weaker performance across its dairy, culinary, pet care, infant nutrition, and water divisions. However, its coffee portfolio remains resilient. Nescafé, Nespresso, and the Starbucks ready-to-drink range all recorded strong results, with double-digit growth in the Americas and mid-single-digit gains in Europe during the first half of 2025.

Brazil Coffee Harvest 2025/2026: A Decent Crop Amid Market Volatility

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São Paulo – September 16, 2025 – Qahwa World (EFICO’s Coffee Bean Scene) – There is an old saying in the coffee world: “When Brazil sneezes, the rest of the coffee world catches a cold.” The phrase remains true today. With the upcoming Brazil Coffee Harvest 2025/2026, accounting for nearly 40% of global production, Brazil continues to dictate the rhythm of supply, prices, and the flavor profiles that reach consumers around the globe. At times, it offers stability; at others, it sparks volatility across the market. In fact, the Brazil Coffee Harvest 2025/2026 will likely dominate coffee sector discussions for the coming year.

The past has proven this influence repeatedly. The frost of 1975 sent international prices soaring, while the droughts of 2014 and 2021 created deep uncertainty for exporters. Currency swings have only added to the turbulence, reshaping contracts and global trade dynamics. Brazil remains, without doubt, the heartbeat of the coffee industry, especially as we anticipate the results of the Brazil Coffee Harvest 2025/2026.

Harvest Progress and Outlook

By the end of August, Brazil’s 2025 harvest was virtually complete, with 100% of robusta and 98% of arabica collected. Rainfall—up to 50mm in arabica areas and 30mm in robusta regions—did little to damage bean development. Average bean size is larger than last year, and mild winter conditions extended the processing season, allowing more washed and semi-washed coffees to enter the market. Light frosts in June caused only localized impact, with no major losses.

The 2025/26 crop is now projected at 62.3 million bags—down 3.4% from earlier estimates and 5.4% compared to last year. Arabica is expected at 36.5 million bags, a sharp decline of 18.4% year-on-year, while robusta will rise to 25.8 million bags, a gain of nearly 22%. Strong vegetation growth after harvest suggests excellent potential for the 2026/27 cycle, with nurseries already sold out and farmers reinvesting in renewal and expansion. Notably, Brazil Coffee Harvest 2025/2026 will be closely watched for its impact on these numbers and future cycles.

Regional Insights

South Minas Gerais, the world’s largest coffee region with 500,000 hectares under cultivation, continues to showcase both challenges and innovation. Cities like Varginha, Três Pontas, Poços de Caldas, and Guaxupé remain central hubs. While productivity averages 25 bags per hectare, EFICO’s field visits revealed stark differences between farms. Yet one constant was clear: investment in innovation, from modern warehouses to irrigation projects that allow precise fertilization and improved yields. As a result, Brazil Coffee Harvest 2025/2026 outcomes will be partially driven by the ongoing modernization in these regions.

The Cerrado, often referred to by EFICO Brazil director João Marcos Crespo as “The Factory,” demonstrates a more industrialized approach. With 250,000 hectares—more than half irrigated—its productivity averages 35 bags per hectare, producing nearly 6 million bags annually. Regenerative agriculture is widely adopted here, both for cost savings and soil health. Farmers are also installing new high-capacity mechanical dryers, doubling efficiency compared to traditional models.

Market Dynamics

Despite decent production levels, commercialization has slowed to its lowest point in five years. Producers are financially stable and releasing coffee in small volumes, waiting for favorable prices. The introduction of a 50% U.S. import duty on Brazilian coffee in August has added further uncertainty to the market. Exporters are now carefully balancing procurement and sales strategies while watching international flows closely.

Overall, Brazil’s 2025 harvest stands between 60 and 62 million bags. While arabica output has dropped, robusta is filling part of the gap, and investments in quality continue to push screen sizes above last year’s levels. Market volatility is expected to persist at least through October, as the flowering season and rainfall patterns will set the tone for the 2026 crop.

Final Note

From the innovation-driven Cerrado to the tradition-rich farms of South Minas, Brazil’s coffee sector remains both resilient and deeply influential. As the new harvest begins arriving in early October, one thing is certain: when Brazil sneezes, the entire coffee world feels it. Ultimately, only time will reveal the full implications of the Brazil Coffee Harvest 2025/2026 for the global industry.

Vietnam on the Brink of a Thriving Coffee Season: Higher Yields and Greener Practices

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Hanoi – September 15, 2025 – (Qahwa World) – Vietnam is preparing for the 2025/26 coffee harvest season with a sense of optimism, as early forecasts point to higher yields, improved quality, and significant progress on sustainability initiatives. Industry experts confirm that weather conditions, farming practices, and regulatory readiness are aligning to strengthen the country’s position as one of the world’s most important coffee producers.

Production expectations for the new crop are estimated at 29.65 million bags, an 8.3% increase compared with last year. Robusta, the dominant variety in Vietnam, is projected at 28.34 million bags (+7.4% year-on-year), while Arabica is forecast to reach 1.31 million bags, marking an impressive 31.3% rise. These estimates are based on crop surveys and current field observations. Farmers report that the cherries are developing steadily, with many Robusta plants entering maturation and Arabica already approaching harvest.

Weather conditions have remained favorable so far, with rainfall close to historical averages. This suggests that harvest timing will mirror last year: Arabica is expected to begin in mid-September, Robusta in mid-October, with both peaking in early December and concluding by late January. If favorable conditions continue, quality is expected to improve, supported by the growing adoption of Good Agricultural Practices (GAPs) such as pruning, weeding, and shade management. Many farmers are also converting from chemical fertilizers to organic compost, which is expected to further enhance cup quality and reduce input costs.

At this stage, no major challenges have been reported. Producers and processors are optimistic, and high prices across agricultural commodities are providing farmers with strong returns for the second consecutive year. This economic stability is enabling many to invest in better inputs and more sustainable practices, creating a positive outlook for both production and livelihoods.

Vietnam’s coffee industry is also navigating an evolving regulatory environment. Domestically, the government has introduced a 5% Value Added Tax (VAT) on coffee trading, with exporters and buyers required to comply through verified suppliers. On the international stage, the European Union Deforestation Regulation (EUDR) will come into force on January 1, 2026. Although not yet active, Vietnamese supply chains are already preparing by strengthening traceability systems and collecting farm-level data to ensure compliance when the regulation takes effect.

Sustainability remains a central focus this year, with multiple initiatives underway to boost farm productivity, resilience, and environmental responsibility. The IMPACT responsible sourcing program continues to expand, with a 4,000-metric-ton supply chain in Gia Lai now in its second verification cycle and a 3,500-metric-ton chain in Lâm Đồng advancing into its third year. According to Senior Sustainability Coordinator Nhu Le, more than 80% of the supply chain has now been mapped using polygon farm plots, a sharp increase from 30% earlier this year, both to prepare for EUDR and to support broader forest conservation efforts.

Expansion is also taking place in Arabica-growing regions. In Son La and Lâm Đồng, more than 1,500 farmers across five wet mills have joined programs certified under RA, 4C, and the Global Coffee Platform (GCP). These farmers are receiving training on sustainable agricultural practices aligned with international standards, further strengthening Vietnam’s network of responsible suppliers.

Farmer training remains a cornerstone of the country’s sustainability agenda. Over the past season, more than 1,500 farmers have participated in interactive workshops covering composting, fertilizer management, water and weed control, Integrated Pest Management (IPM), and shade tree cultivation. These sessions not only transfer technical knowledge but also create opportunities for farmers to share experiences and apply practices directly in their fields, enhancing resilience at both farm and community level.

One of the most promising developments has been the shift from chemical fertilizers to organic composts. Farmers are increasingly learning to produce compost from coffee husk waste generated during Robusta natural processing. So far, nearly 500 farmers have been trained in composting techniques, collectively producing more than 3,000 metric tons of organic fertilizer. This practice reduces chemical inputs, improves soil health, cuts costs, and contributes to lower carbon emissions.

Tree planting projects are also taking root. Over the past year, farmers have received 47,000 forest and fruit tree seedlings, which will help diversify local ecosystems, improve environmental resilience, and provide additional sources of income through fruit and timber.

Soil and carbon initiatives are another priority. The Vietnam team has collected 475 soil samples to provide tailored fertilizer guidance, helping farmers cut input costs while maintaining yields and lowering emissions. At the same time, carbon footprint mapping is underway across partner projects, with the results expected to shape long-term reduction strategies and support compliance with new global standards.

The combination of favorable weather, improved agricultural practices, and strong sustainability investments has positioned Vietnam’s coffee industry for a productive 2025/26 season. With production projected to rise and sustainability outcomes deepening, the outlook for both farmers and buyers is positive. The sector’s early adaptation to regulatory changes and its ongoing commitment to responsible sourcing reinforce Vietnam’s role as a global leader in coffee supply.

As the harvest begins in the coming weeks, industry stakeholders are closely watching how these combined efforts will translate into both higher yields and better quality in the cup. For now, Vietnam’s coffee story in 2025/26 is one of growth, resilience, and readiness for the challenges and opportunities that lie ahead.

China’s wonders never end .. Mushroom coffee is the latest craze

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Dubai – 16 September 2025 – (Qahwa World) – A café in China’s southwestern Yunnan province has launched two seasonal drinks that blend coffee with penny bun (porcini) mushrooms, priced at 23 yuan (about US$3) per cup. The offerings are a “Cheese Americano with Penny Bun” and a “Penny Bun Oat Milk Latte,” an innovation built on uniting two local signatures in one cup: Yunnan coffee and premium wild mushrooms.

The preparation details point to a measured flavor approach: the Cheese Americano is served with mushroom powder, a coffee base, a layer of cheese cream, and a cookie shaped like the mushroom, while the oat-milk latte is made with coffee, mushroom powder, and oat milk. Each is priced at roughly 23 yuan. These formulations have been attributed to “Forleaf Coffee” in Yunnan, according to recent regional coverage.

Crowds have shown up from the early days. Staff at the café say they sell around 50–70 cups of mushroom coffee daily, with customers coming specifically to try the two drinks. The venue has previously offered a “black truffle coffee,” suggesting a pattern of seasonal, attention-grabbing innovations that ride the wave of curiosity.

The timing is no accident; June through September is wild-mushroom season in Yunnan, when celebrated varieties—such as matsutake, termite mushrooms, and penny bun—top the lists of those seeking forest-driven flavors. This seasonal context helps explain the widespread interest and the early impression that “the mushroom here is part of the terroir,” not a passing add-on.

On social platforms, opinions split between those who see mushrooms as “too precious to be mixed with coffee” and others who found the taste “surprisingly delicious.” These differing positions have accompanied news of strong sales, giving the innovation a debate that goes beyond mere “trendiness.”

Even so, short-term success does not guarantee continuity. Management at Forleaf Coffee has indicated that repeating the drinks next year is not assured and will depend on the cost of ingredients—chief among them the mushroom. For reference, penny bun prices in August ranged between 40 and 80 yuan per kilogram, a band wide enough to make the decision to continue primarily an economic one before it is a marketing call.

The Yunnan experiment fits into a broader Chinese wave that blends coffee with local or unusual components. In 2024, Starbucks China offered a pork-flavored latte for Lunar New Year—priced at 68 yuan per cup—in a notable example of limited editions serving as both flavor testbeds and marketing tools. In recent months, other controversial drinks—such as a “pork-intestine latte” in Sichuan—have also spread widely on social media.

What distinguishes the Yunnan case is that the “mushroom” here is not “functional” in the wellness sense common in global mushroom-coffee blends (like lion’s mane and chaga), but an edible porcini used for flavor—crafting a new profile that marries a gentle umami with coffee’s sweet-bitter edge. This approach relies on the ingredient’s rootedness in the region’s forests and daily life, not on physiological claims or dietary supplements.

Despite the momentum, repeatability is constrained by several factors: price volatility during the harvest season, the cost of developing and localizing recipes inside production lines, and the café’s ability to maintain powder quality and a stable supply. While queues often mark the initial “buzz,” turning the novelty into a seasonal signature requires a precise balance of feasibility, supply, and flavor. Local coverage—explicitly and implicitly—has tied the drink’s fate to input costs and annual availability.

In sum, this is a flavor-first experiment that draws more on terroir than on “novelty for novelty’s sake,” while capturing the spirit of rapid innovation in China’s highly competitive coffee market, where local blends become shareable stories that drive visits. Between admiration and objection, the future of “mushroom coffee” in Yunnan rests on seasonal pricing—numbers alone will decide whether the craze returns next season or remains a memory of 2025.

Coffee Prices Surpass $4 per Pound Amid Global Supply Strains and Trade Tensions

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Dubai, September 16, 2025 (Qahwa World) – The global coffee market has once again taken center stage as New York arabica futures surged above $4 per pound for the first time since April. This sharp rally reflects a confluence of factors—from severe drought in Brazil and dwindling inventories to U.S. import tariffs and weaker global exports—raising new concerns about supply stability.

A Sharp Rally in Prices

On Monday, arabica futures jumped 3.6%, bringing total gains since early August to nearly 47%. In New York, arabica rose 3.1% to $4.0905 per pound, while robusta in London climbed 3.6%. The steep rise has fueled market anxiety, with momentum indicators signaling overbought conditions: the 14-day relative strength index crossed above 70, pointing to unusually rapid gains.

Brazil at the Epicenter

Brazil, the world’s top coffee producer, remains at the heart of the current price surge. According to meteorological firm Somar Meteorologia, the key producing states of Minas Gerais and São Paulo face abnormal heat and drought, while Espírito Santo is also expected to receive below-average rainfall. Such conditions threaten the upcoming flowering stage—a critical period for setting the next harvest due in mid-2026.

Brazil’s crop forecasting agency Conab lowered its 2025 arabica output estimate by 4.9% on September 4, cutting projections to 35.2 million bags from 37 million in May. Overall coffee production was revised to 55.2 million bags from 55.7 million previously.

Currency movements are amplifying the pressure: the Brazilian real rallied to a 15-month high against the U.S. dollar, discouraging export sales and lending further bullish support to global coffee prices.

U.S. Tariffs Tighten Supply

Trade tensions are another driving force. The U.S. imposed a 50% tariff on Brazilian coffee imports, prompting American buyers to cancel new contracts. This shift is tightening domestic supplies, particularly significant given that nearly one-third of U.S. unroasted coffee imports come from Brazil. Analysts warn this could amplify short-term volatility.

Shrinking Inventories

The decline in exchange-monitored stockpiles underscores the strain on global supply. ICE-monitored arabica inventories fell Monday to a 16-month low of 666,337 bags. Robusta inventories also slipped to a two-week low of 6,556 lots, hovering just above the seven-week low reached in late August.

Reduced reserves highlight how vulnerable the market is to further disruptions, with less buffer available to absorb shocks.

Export Slowdowns Worldwide

Export data confirms these tightening conditions. The International Coffee Organization (ICO) reported on September 3 that global exports fell 1.6% year-on-year in July to 11.6 million bags. Cumulative shipments from October through July declined 0.3% to 115.6 million bags.

Brazilian exports have been particularly weak. The Trade Ministry reported a 20.4% year-on-year drop in July shipments of unroasted coffee to 161,000 metric tons. Exporter group Cecafe said July green coffee exports fell 28% to 2.4 million bags, with arabica shipments down 21% and robusta plunging 49%. Overall, Brazil’s exports in July totaled 2.7 million bags, while January–July shipments fell 21% to 22.2 million bags.

Vietnam Adds to the Strain

Vietnam, the world’s second-largest producer, is also struggling. Production in the 2023/24 crop year fell 20% to 1.47 million metric tons, the smallest crop in four years, while exports for 2024 dropped 17.1% to 1.35 million tons. The Vietnam Coffee and Cocoa Association in March lowered its 2024/25 production estimate to 26.5 million bags from 28 million.

Yet more recent figures show some rebound: Vietnam’s National Statistics Office reported January–August 2025 exports up 7.8% year-on-year to 1.14 million tons, highlighting mixed signals from the world’s robusta powerhouse.

Mixed Forecasts and Outlook

The outlook remains divided. The USDA’s Foreign Agriculture Service (FAS) projects global coffee production in 2025/26 will rise 2.5% year-on-year to a record 178.7 million bags. Arabica production is forecast to fall 1.7% to 97 million bags, while robusta is expected to jump nearly 8% to 81.7 million bags. Ending stocks are seen climbing 4.9% to 22.8 million bags.

By contrast, commodity trader Volcafe projects a global arabica deficit of 8.5 million bags in 2025/26, widening from a 5.5 million bag shortfall this season. This would mark the fifth consecutive year of supply deficits for arabica, underscoring persistent structural imbalances.

Harvest Progress in Brazil

One counterweight to bullish factors is Brazil’s rapid harvest progress, which typically exerts downward pressure on prices. On September 5, cooperative Cooxupé reported that its members had harvested 97% of their crops. Separately, Safras & Mercado said Brazil’s 2025/26 harvest was 99% complete as of August 20, compared with 98% at the same time last year. Robusta harvesting was complete, and arabica was 98% finished.

Still, despite the near-completion of the harvest, broader supply-side issues—including weather stress and declining exports—continue to outweigh the potential bearish impact of fresh beans entering the market.

The Bigger Picture

The coffee market now finds itself caught between conflicting forces. On one side are bullish drivers: drought in Brazil, U.S. tariffs, shrinking inventories, weaker exports, and long-term arabica deficits. On the other side are bearish signals, including harvest completion and USDA’s optimistic production outlook.

For now, the bullish momentum dominates. The symbolic $4-per-pound threshold has been breached, highlighting the fragility of coffee supply chains. With climate uncertainty, trade disputes, and tightening stockpiles all in play, volatility looks set to remain a defining feature of the global coffee market in the months ahead.

JDE Peet’s Transfers Shares to Participants Under Employee Incentive Plans

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Amsterdam – September 15, 2025 (Qahwa World) – JDE Peet’s N.V. (EURONEXT: JDEP), the world’s largest pure-play coffee and tea company, announced today that it has transferred a total of 319,417 shares to participants under its employee incentive plans.

The transfer was made for no consideration to 21 participants who were previously granted or committed awards under the company’s long-term incentive programs.

Each share carries a nominal value of EUR 0.01. Following this transfer, the company confirmed that its total issued and outstanding share capital remains unchanged at 488,178,642 shares, of which 4,095,966 shares are held as treasury stock.

The move comes in line with disclosure requirements under Dutch offer rules, amid the ongoing recommended public offer by Keurig Dr Pepper, Inc. (the Offeror) for all issued and outstanding shares in JDE Peet’s.

The company clarified that it does not hold shares in Keurig Dr Pepper and is not aware of the Offeror holding any shares in JDE Peet’s.

Dreams and Ambitions: Youth Academy Middle East Launches in Dubai

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Dubai – Qahwa World

The Middle East has welcomed a new chapter in coffee education with the launch of the first edition of Youth Academy Middle East 2025, held in Dubai and organized by Simonelli Group. This pioneering program provides six young coffee talents with full scholarships to attend the prestigious SCA Coffee Skills Program, giving them the opportunity to build professional careers in the global coffee industry.

The inaugural edition began at the Simonelli Group Middle East Experience Lab, where participants embarked on their training under the guidance of SCA-certified trainers. The program blends theory with practice, offering young baristas and coffee enthusiasts a chance to deepen their knowledge and discover new perspectives on coffee.

The Scholarship Winners

Among the six winners are young professionals whose passion and dreams reflect the diverse paths coffee can inspire:

  • Hnin Kha Nady (22 years old), a barista who hopes to inspire others through her craft: “Eventually I want to share my passion by creating unique coffee experiences for others.”

  • Mark Mwangi Mungai, a Kenyan barista, fascinated by both tradition and innovation: “The slowly emerging trends with AI and modern technology show how coffee, which has been here for ages, is adapting to new times.”

  • Amritha Varsha PR, an engineer-turned-coffee explorer: “For me, learning is exciting, but re-learning is like a second brew—often richer and clearer.”

  • Brenzen Labarete, Senior Barista, Brand Ambassador, and Middle East Barista of the Year 2023: “I look forward to connecting with people who share the same passion, exchange ideas, and be inspired to take my craft to the next level.”

  • Mohamed Alameeri, who describes himself as a “normal coffee guy” driven by curiosity: “The endless amount of information in the coffee world fascinates me. No matter how much you know, there is always more to learn.”

  • Donna Santianez, a passionate barista dreaming of opening her own café: “My dream is to become a professional barista and, one day, to have my own coffee shop.”

A Future Built on Passion

With their unique stories, ambitions, and dedication, these six young talents embody the essence of the Youth Academy—transforming passion into knowledge and knowledge into opportunity. Their journey marks not only a personal milestone but also a promising step for the future of coffee in the Middle East.

As the Youth Academy Middle East continues, the energy, curiosity, and commitment of its first participants highlight the growing importance of education and innovation in shaping the next generation of coffee professionals.

DMCC Coffee Centre: Supply Chain Pressures and Tariffs Threaten Global Coffee Trade

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Dubai, 15 September 2025 ( Qahwa World) – Coffee, the world’s second most traded commodity after oil and a cultural staple for billions, is entering a critical stage in its global journey. The threats facing the industry are no longer confined to climate change alone. Increasingly, they include mounting supply chain disruptions and escalating tariffs that are reshaping the economics of one of the most vital agricultural products on earth. In its latest report, released as part of the Future of Trade Agri Series, the DMCC Coffee Centre warns that unless urgent measures are taken, the future of the global coffee trade may be defined by instability, rising costs, and deep uncertainty.

For decades, coffee has been regarded as a model commodity for international trade thanks to its durability and storability as green beans. But according to the report, this traditional advantage is no longer sufficient. Shipping costs have risen sharply amid ongoing global supply chain disruptions, compounded by geopolitical tensions across key trade corridors such as the Red Sea and the Panama Canal. Even a 1% increase in transport costs, the report notes, can result in months of accumulated price hikes for coffee worldwide. What was once a relatively resilient supply chain has become a fragile lifeline vulnerable to external shocks.

The situation has been further aggravated by protectionist trade policies. Most notably, the United States recently imposed tariffs of up to 50% on coffee imports from Brazil, the world’s largest exporter. While this may appear to offer short-term relief for American markets, it has shaken investor confidence and created uncertainty for Brazilian producers who rely heavily on exports. Many growers now face the prospect of cutting back production or seeking alternative markets, both of which come with risks of their own.

Mike Butler, Assistant Director for Coffee at DMCC, described the dilemma: “Large buyers often have the option of stockpiling coffee to protect themselves against price swings, but this strategy is not available to everyone. Smallholder farmers and specialty roasters remain the most exposed, as they lack the resources to hedge or hold inventories for long periods.”

The pricing system itself is also under strain. For decades, futures markets like the Intercontinental Exchange (ICE) provided reliable benchmarks for coffee. But the DMCC report highlights how these benchmarks are increasingly detached from reality. Futures contracts may show declines, while specialty coffee prices remain elevated, squeezing small and medium-sized roasters who cannot reconcile speculative market prices with real-world sourcing costs. Garfield Kerr, President of the Specialty Coffee Association and founder of Dubai’s “Mokha 1450,” summed it up: “The futures market has become more speculative and no longer reflects the actual value of high-quality coffee.”

Adding to this pressure is the rapid transformation of consumption patterns. Across Asia—in countries like China, Japan, and the Philippines—demand for coffee is accelerating, particularly among younger generations seeking premium quality and unique experiences. This growth, while promising, makes these markets especially vulnerable to global supply shocks. A shipping delay in Brazil or a tariff dispute in the U.S. can now ripple instantly into cafés and supermarkets in Beijing or Manila, underscoring the fragility of today’s interconnected coffee economy.

Amid these challenges, Dubai is positioning itself as a stabilizing hub. The DMCC Coffee Centre offers a pay-as-you-go model for storage, roasting, packaging, and logistics, lowering barriers for producers and small exporters to access global markets. Its geographic location at the crossroads of Africa, Asia, and Latin America allows Dubai to act as a natural bridge, absorbing shocks and keeping trade flows alive even in turbulent times. This strategic advantage, the report argues, could prove decisive as volatility becomes the new normal.

Still, the outlook remains precarious. Global production is expected to reach a record 178.7 million bags in the 2025/26 season. But without meaningful reforms, these volumes may not translate into market stability. Tariffs, freight costs, and speculative pricing continue to weigh heavily on the system, leaving more than 25 million smallholder farmers—who form the backbone of global coffee production—on the edge of economic survival.

The DMCC Coffee Centre’s report concludes with a stark choice. Either the industry embraces international cooperation, reforms outdated pricing mechanisms, and invests in supply chain infrastructure, or it risks plunging into prolonged volatility. Coffee, long celebrated as a symbol of connection and culture, could instead become a mirror of global trade’s fragility. But with decisive action, from fairer pricing models to transparent trade systems and collaborative investment, the industry has the tools to safeguard coffee’s future as a unifying global commodity.