Coffee Report: Insights From Major Producing Countries

Published 2022년 9월 13일
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Tridge's global market analysts and country representatives take a deep dive into what is happening in the global coffee landscape

Brazil

Brazilian Arabica Coffee Producers are Waiting for Coffee Prices to Increase

Arabica Coffee producers are not willing to sell their coffee right away. They expect that coffee prices will increase due to the lack of coffee in the market and the decrease in volumes during the current harvest. In this scenario, producers are refusing some trading companies’ orders. Trading companies are even making higher value orders to see if producers accept to sell, but at the moment, most producers say they prefer to wait for the next days to see coffee quotation prices at the market.

Colombia

The Price of Colombian Coffee Drops by 9% in W27

In W27 2022, the wholesale price of Colombian coffee dropped by 9%, which made producers decrease their supply offer. Colombian coffee growers use a strategy to regulate coffee prices by pulling back their supply offer to generate a price increase. It is expected that the Colombian coffee price will rise, and supply will become more available in the upcoming weeks.

Guatemala

Plans to Export Guatemalan Coffee to the Middle East

At the 31st Coffee Congress in Guatemala, organized by the National Coffee Association (Anacafé) was held on August 11, the Ministry of Economy announced the possibility of opening a commercial office in Qatar for coffee commercialization in the Middle East. The congress is holding meetings with coffee growers to learn about the industry trends and create growth plans to reach their export projection of 4.2M quintals per harvest.

Costa Rica

Coffee Rust Disease Affecting Costa Rican Crops

Many Costa Rican coffee producers are concerned about the effects the "La Niña" phenomenon caused on crops. The country has been facing 4.5 months of heavy rains that have caused floods and enabled the growth of fungus that damages crops. Coffee has been affected by the Coffee Rust Disease, causing damage to the plantations. Producers hope the weather will stabilize so Costa Rican crops can return to normal production levels.

2022/23 Tarrazú Coffee Harvest Begins

The first 5.5 mt of fresh coffee cherries were harvested for the 2022/23 season in Tarrazu, Costa Rica. The last interanual season yield reported 10,200 mt in Los Santos, Costa Rica. The biannual seasonality of coffee supposes a decrease in volume for the 2022/23 season.

Indonesia

International Producers in Lampung Taking Over the Available Supply of Indonesian Robusta Coffee Beans

The increasing price trend of Indonesian Robusta coffee in the international market encourages the international coffee producers and exporters in Lampung to increase their inventory. Most coffee beans are bought directly from the farmers and collectors for exports. As a result, the local producers have difficulty finding coffee beans supply available for the local market, which is why many have decided to stop operating this season.

45 Green Coffee Bean Containers From Indonesia Actioned in Egypt

Egyptian Customs held an auction on W30 to sell 45 containers of green coffee beans shipped from Indonesia to Egypt as they had remained in the port for over three months without any action for clearance from the importers. Egyptian coffee bean importers have been facing challenges to import since May 2022 as new import regulations were applied by the Central Bank of Egypt. The auction was a great opportunity for Egyptian buyers to take over the abandoned supply.

Ethiopia

The Coffee Harvest in the South Western Lowlands of Ethiopia Has Commenced

Ethiopia has two major coffee growing clusters: the high altitude South-Eastern cluster known for its slow cherry maturity and the South-Western lowland known for its fast cherry maturity. In W36, the harvest of matured coffee cherries commenced in the South Western lowland at a farm gate price of USD 0.76/kg, which is expected to increase in the coming weeks. The starting price for the 2022 season is significantly higher compared to last year's maximum cherry price which reached USD 0.57/kg in the area.

Price of Ethiopian Coffee Is Steadily Increasing by 1% Per Week

The minimum weekly floor price for Ethiopian coffee set by the government shows a stable 1% increase since W31. Thus, over the past 4 weeks in a row the price of Ethiopian coffee has increased by 4%. For example, the price of Lekempti G5 coffee increased from USD 4.06/kg in W31 to USD 4.20/kg in W35.

Rainy Ethiopian Weather Lead To Processing Delays of Sun-Dried Commercial Coffees

The peak shipment season of sun-dried commercial coffees out of Ethiopia is currently ongoing, which makes up more than half of the country's production. However, the wet and humid rainy season weather is making it difficult for exporters to pulp their natural coffee at the primary warehouses located in nearby towns with access to power supply. If the natural coffee pods arrive with too high moisture levels, exporters have to dry it on temporary patios at the hulling warehouse, which the weather is not allowing them to do. This situation may negatively affect coffee quality and also delay delivery time by as much as 2 weeks as it takes several days to pulp and transport to the final cleaning and/or packaging warehouses to ready the coffee for export.

Kenya

Kenyan Government Steps in to Revitalize Coffee Industry

The government of Kenya has taken steps to address the declining production of coffee in the county. The revitalization process through the The Kenya Climate Smart Agriculture Project (KCSAP), which started on the 5th of September, is tasked to train farmers on new production technology which includes soil analysis to address soil fertility and formulation of specific coffee fertiliser. The implementation will enable farmers to harvest 10kg from a coffee tree rather than the current 2kg per tree. The increased yield per tree will be vital to attain the production target of 200,000MT per year. This will be attained by distributing 12 million seedlings per year to the farmers. For comparison, in 2021, the total coffee production was 34,500MT with 800,000 seedlings distributed to farmers.

Kenyan Government Seeks to Control Use of Banned Pesticides on Coffee

The government is looking to control the use of banned pesticides on coffee by farmers. This is currently being done by training farmers and inspecting agrochemical distribution centres to ensure the banned crop protection material is not being retailed to unsuspecting farmers. This came as a result of Japan flagging local exports due to tests done and the use of non-recommended pesticides in the produce. The Japanese said samples taken from Kenyan coffee have been found to have Chlorpyrifos, an active ingredient found in insecticides, which is not recommended for use in coffee. The authorities say they detected 0.06 parts per million in the coffee that was sampled, which was above the required minimum of 0.05 percent.

Uganda

Coffee Nursery Farmers in Uganda Petition Government Over Unpurchased Seedlings

Ugandan coffee nursery farmers demonstrated and petitioned the parliament of Uganda to direct the Ministry of Finance, Planning and Economic Development to allow coffee nursery farmers to supply seedlings to planters for later payments. The concerned nursery farmers disclosed that coffee seedlings estimated to be worth USD 18.6 million have overgrown and are going to waste if no immediate intervention is made by the Ugandan government. Coffee farmers have also expressed concerns over the delay in the supply of seedlings as the August/September planting season is nearing its end.

Drought Negatively Affects Uganda Coffee Harvest

Uganda is experiencing a severe months-long drought which negatively affected the size of the coffee beans and subsequently the coffee yield of the first harvest of 2022. The coffee growing regions have not received any rainfall for a prolonged period which is a major concern for coffee growers and exporters in Uganda. The true extent of the damage caused to the second harvest will only be known when the season starts in September.

Tanzania

Coffee Producers in Kagera Region of Tanzania Earn USD 32.3 Million Over 2 Months

Coffee producers in the Kagera region of Tanzania have benefited from the coffee sales system using an open online auction where 35,000MT of coffee worth USD 32.3 million have been sold in the past two months until 22 August, 2022. Recent prices through agricultural marketing cooperatives (AMCOS) were as follows: 142MT through the Workforce Amcos traded at USD 0.9/kg, 136.3MT through the Kijumbura Amcos sold for USD 0.92/kg while 15.1MT through the Ngara Amcos traded for USD 0.88/kg.

Good 2022 Season for Tanzania Coffee Producers in the Kagera Region

Coffee producers in the Kagera region of Tanzania are experiencing a good 2022 coffee season, primarily from the sale of Robusta coffee which is conducted through the open online auctions system facilitated by the Tanzania Mercantile Exchange (TMX). Producers in the region have sold 35,000MT of coffee worth USD 32.2 million from June to August, 2022. The average auction price for Robusta coffee during this period was USD 920/MT.

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