AFRICAN

FINEREVIEW MAGAZINE July - September 2020 | Volume 10 | Issue 3

VOLATILE PRICES COVID-19 AND MARKET FUNDAMENTALS

COFFEE MARKET OUTLOOK UNDER THE THREAT OF CORONA VIRUS

AFCA LAUNCHES ONLINE TRAININGS

DOMESTIC CONSUMPTION AN ALTERNATIVE FOR COFFEE GROWERS ABDULLAH BAGERSH GENERAL MANAGER, SA BAGERSH PLC BRANDING THE ORIGINS

African Fine Coffees Review Magazine | July - September 2020 | Volume 10 | Issue 3 1 the old factory unfolds a new path where legacy meets vision

www.accademiaespresso.com accademiadelcaffeespresso

2 African Fine Coffees Review Magazine | July - September 2020 | Volume 10 | Issue 3 IN THIS ISSUE

05 | The Importance of Branding the Origins: A Brand and its Pursuing Values in Coffee 09 | In The Beginning: The African Origins of Coffee 12 | Volatile Coffee Prices: COVID-19 and Market Fundamentals 18 | Coffee Market Outlook Under the Threat of Corona Virus 22 | The Premium Sharing Rewards Model 24 | The “Malaria Of Coffee”: The Past, Present and Future of Coffee Leaf Rust in Africa 26 | Actions Roasters & Buyers Can Take in a Time of Uncertainty 29| Need for Africa to Go Virtual: AFCA Launches Online Trainings 36 | An Alternative for Coffee Growers Now and at “New Normal” Times: Domestic Consumption 38 | AFCA Member Profiles 41 | Open Letter to the US Coffee Industry on Racism 42 | With a Disrupted Coffee Value Chain, Collaboration is Needed to Help Save Specialty 44 | The ‘New Normal’ for Internationally Minded Small Businesses: Four Key Points for Small Businesses to Survive the COVID-19 Crisis 46 | For Coffee Farmers, Climate Change is Nothing New but will 2020 be the Tipping Point for the Rest of the Global Coffee Industry 49 | New Times Call For New Measures: Taking Coffee Education Online

WRITERS’ PROFILES

Judith Ganes, founder and president of J. Ganes Consulting, LLC—a leading, independent commodities Carlos Brando, who attended the research and consulting services SPURS and PhD programs at MIT, is company—is a world-renowned soft a partner of Pinhalense and director commodities and futures analyst at P&A, the company that created with over 35 years of experience in the Step-by-Step Guide to Promote the food and agricultural industries Coffee Consumption in Producing with much of that time spent on Countries for the ICO and consulted Wall Street. In addition to writing or is consulting for programs to her exclusive market reports and Stuart McCook is professor of history promote coffee consumption in providing advisory services to at the University of Guelph, Canada. 15 producing countries. Having numerous corporations, organizations His research explores the histories coordinated coffee projects in and investment groups, Judy regularly of coffee and the environment in a another 35 countries including , contributes articles to industry global context. He is the author of Carlos has written chapters for several publications, and authors’ major COFFEE IS NOT FOREVER: A GLOBAL coffee books and currently chairs the independent studies as well conducts HISTORY OF THE COFFEE LEAF RUST board of the Global Coffee Platform educational seminars on futures and (2019). (GCP). options risk management.

African Fine Coffees Review Magazine | July - September 2020 | Volume 10 | Issue 3 3 A WORD FROM THE EXECUTIVE DIRECTOR

AFCA is introducing measures that (ICO) coffee break series on volatile will support the African coffee coffee prices, which has major read industry. Amongst them is the launch for the coffee industry. of the Online Coffee Trainings and Skills Development Programs. AFCA In three short months, the coffee has put in place a number of trainings industry has had to grapple with to explicitly address the emerging serious issues from all aspects of situation in the coffee value chain. supply and demand and re-examine These trainings include ‘How to every step in the process from farm Move your Coffee Business Online’; to cup. The pandemic has caused ‘Markets, Futures and e-Trading’; havoc on the entire coffee value. We ‘Coffee Price Risk Management’; invite you to review the article by and the ‘SCA Introduction to the Judith Ganes on page 15 for more Coffee Skills program’. These on this. Join Carlos Brando on page trainings are at a special introductory 32 as he points out that domestic price. We encourage our members consumption should be a strong pillar and the broader coffee industry in the coffee industry. to enrol for the same at https:// The Ethiopia Coffee Origin: The COVID-19 is impacting our region, our afca.coffee/programs/afca-online- Birthplace of Coffee is the perfect industry, the coffee supply chain and webinars-workshops-trainings/. venue to converge as we start to the financial health and performance Several virtual meetings have been resuscitate the struggling coffee of the members, and coffee industry held with members, including an value chain, after the pandemic. at large, in unprecedented ways. extensive survey on the COVID-19 situation. These programs are aimed Preparations are on a high gear to In Africa, the COVID-19 infections at supporting members navigate host the 19th African Fine Coffees are increasing daily with some of the new coffee environment and Conference & Exhibition (19th the key economies like South Africa, ensure that the disruptions from AFCC&E) at the Millennium Hall, Addis Cameroon, Kenya and Ethiopia the pandemic are mitigated. We will Ababa Ethiopia. We anticipate that reporting significant increases continuously review the situation and the economies will have embraced lately. The industry, therefore, has look for innovative ways to ensure on a ‘New Normal’ and so invite you to to brace for the inevitable increase that the African coffee value chain visit the renowned origin. in hospitalisation and potential remains vibrant, and that we are able AFCA has put in place adequate disruption of the coffee value chain at to spot any potential disruptions. measures to support all delegates and the regional level. Compounding the exhibitors, including the introduction situation is the persistent low coffee In this issue, we explore the of a robust refund policy to cushion prices experienced over the last 5 importance of branding the origins. all registered exhibitors and delegates years, and the costs to mitigate the Turn to page 5 for an in-depth against financial loss when they effects of climate change. The farmers, discussion of branding the origins register to participate at the 19th therefore, have no financial reserves with Abdullah Bagersh, General AFCC&E. In this issue, we introduce nor adequate medical insurance to Manager of SA Bagersh PLC and the event coordinator and some of counter the pandemic. It’s no wonder former AFCA Board of Directors’ the partners who will work with us to that most find prayers as the only Chair. On page 8, we review the deliver the conference. resort during this difficult time. International Coffee Organisation

Editorial Team

Editors Associate Editors Publisher Samuel N. Kamau Doriane Kaze African Fine Coffees Association Nandi Jordaan Wambui Waiganjo Cover Page Mary Mbabazi Abdullah Bagersh General manager, SA Bagersh PLC

4 African Fine Coffees Review Magazine | July - September 2020 | Volume 10 | Issue 3 THE IMPORTANCE OF BRANDING THE ORIGINS: A BRAND AND ITS PURSUING VALUES IN COFFEE

In summary, what is the between 50,000 and 70,000 tons up Coffee. After the bull years of the History of Ethiopian Coffee? to the early 1970s. It peaked at about 1990s, we saw the coffee crisis and The first recorded official statistics of 100,000 tons during the socialist the lowest prices in coffee history at the Export of Coffee from Ethiopia military government which ended in the beginning of 2000 decade. NY ‘C’ were from about 1920. The earliest the early 1990s. After the overthrow prices touched a low of 39 c/lb! awareness of coffee leaving Ethiopia, of the military government, a new In 1999, we invested in our first which is the origin of Arabica coffee, more liberal economic environment washing station in Yirgachefe, is thousands of years old. This allowed the growth of coffee exports because we wanted to control and long-time line makes the available to more than double to over 200,000 elevate the quality of our higher knowledge about the discovery tons and almost up to 240,000 tons end coffees. During this journey, and the movement of the coffee in the following 3 decades. The we discovered and produced the somewhat anecdotal and in the number of stakeholders, exporters, First Specialty Natural coffees which realm of the inherited stories told suppliers and growers increased astonished the world with the new by the elders. The legend of Kaldi, significantly and coffees started to be flavors that it embodied. No one had the famous Ethiopian goatherd more segmented, specialty market previously seen coffees that had such is symbolic of these happenings grew, and so did the interest for flavors. Ethiopian coffees. By the way, local thousands of years ago. It is told that As soon as we recognized the consumption increased significantly he saw the effect of the coffee beans extreme specialness of these coffees, in the country during this period, on the goats after they ate them and we branded them as Misty Valley, absorbing a big portion of the his curiosity led him to try the beans being inspired by the surreal image production increase. and the rest is history. of the Mist covering the Washing As we come a bit closer in time, Who is Abdullah Bagersh? Station on a particularly early the statistics from the 1900s show morning. This was in 2002, and When and how did your soon after, the coffee won awards that there were only two types of coffee career begin? coffee being exported to the world. and coveted by the burgeoning My grandfather, Salem Bagersh, specialty coffee movement in the About 6,000 tons were known as started his coffee business in the “Abyssinian” coffee and the other early 1940s in Addis Ababa. I was USA and Japan. Until now half, another 6,000 tons was “Harrar” studying Engineering in the USA in in Ethiopia, people refer coffee. The Harrar coffee from the 1980s. After the death of my to these high-end natural the Eastern part of Ethiopia was father Abubaker in 1987, my brother coffees as “specialty” coffee. exported directly from there, across Omar kept the business going the Red Sea and onwards. The during those difficult times. With How would you “Abyssinian” was probably the rest of the change of government in 1991, I define a brand and the Ethiopian coffees from the West. decided to leave my Engineering job how important is it One can already see a differentiation in the USA and returned to Ethiopia for coffee owners to between the two and the Harrar to join my brother. Over the next coffee is already desired and distinct, own brands for their decades, together with our other coffees? and therefore an early example of brothers, we rebuilt our family’s “brand” loyalty. valued “BAGERSH” brand. I think once a producer creates a product of some Since then, the coffee sector Ethiopia Misty Valley – What value as recognized by the was formalized and government Is the Story Behind the Cup? regulatory structures were put in place. Coffees started being The Misty Valley coffee is now exported more representative of recognized by many as a turning their regions. Volumes increased to point in the journey of Specialty

African Fine Coffees Review Magazine | July - September 2020 | Volume 10 | Issue 3 5 consumer, and can recreate it from dealt with as commodity producers. samples were submitted, year to year, the basic elements of If we create and stand by a quality breaking the long-running a brand have then been created. product, either big or small, that competition’s previous The brand can be as simple as the becomes a brand with a higher value records. The 1,459 samples name of the producer, or the area, and connotation. the village, the town or the locality. We already know how valuable the entered into the competition Or any name given exclusively to global coffee brands are as finished surpassed previous COE that product. It is very normal for a retail products. A “Rolex” watch is records by more than 400 roasted product to have a name, i.e. only a piece of steel, if not for its sample entries. What does a brand attached to it. It is not as brand, and what the name conjures this mean to the Ethiopian normal for a brand to be attached to quality, reliability and style. Coffee Industry? a raw product. The Cup of Excellence program has But with the advent of specialty, or What successful Marketing Strategies have you applied been on-going for about 20 years. In even “super - specialty”, then even the countries where it has been held, raw products can be branded and at SA Bagersh to build the effect of the high qualities being thus becomes important for the awareness of your brand and produced, and the prices obtained at owner to own that brand. for a successful business? auction for those lots has been like The challenge of producing At S.A. Bagersh, after the extreme marketing gold for those countries. countries, is that they are considered success of the Misty Valley coffee, we That is the “SPEAR HEAD” effect. as commodity producers. However, expanded the very high processing Unfortunately, the journey of that they produce raw materials of very of coffees in different regions. We program to Ethiopia has been long high quality that should be branded worked hard to build our company and full of many logistical, legal and and recognised. brand. One has to remember that ownership issues. the very high-end distinctive coffees We are reminded by the long journey have more of a “spear head” effect to Now that it has finally come to Ethiopia has gone through to own open and create awareness of the Ethiopia, the number of high quality the names, “brands” of its famous company and ultimately the country lots, the enthusiasm of the producers coffee regions, which in essence where those special coffees are being and the extraordinary efforts of COE, represents brands of the country produced from. USAID and the Ethiopian Coffee and therefore, long term value. As and Tea Authority are who made it producers, we do not recognize Research shows that a reality. The COE competition has that our indigenous names, once been one of the most anticipated registered in consumer countries, generally, the consumer’s purchasing decision is to buy competitions, raising expectations are effectively owned by that entity at all levels. Though the volumes are registering the brand name. So, as the most preferred brand, not that big, the attention that this countries, it is important to recognize could this be the same case competition brings will benefit all these values, own those brands, and with coffee purchasing? Ethiopian stakeholders, the country infact as companies and producers, Do you think consumers and the “spear head” effect may even we have to do the same with the influenced by the ‘Coffee spill over to other East African coffee products and therefore brand those producers. products. Brand Effect’? The “brand effect” absolutely works Recently, you were for coffee as well. We know it Branding conveys one’s ideas nominated by Cup of definitely works for roasted, retail and views to the world and Excellence to be their official helps one connect with the level coffee. We also know it works for country brands for green coffee, Exporter for the top coffees potential customers. What is such as Ethiopian Yirgachefe, Panama that participated in the Cup the impact of a branding on Geisha, Kenya AA. The very small of Excellence competitions in the coffee industry? leap of faith we are making is that it 2020. What does this mean A brand, encapsulates in one word works at the producer exporter level, to your company SA Bagersh for example BAGERSH MISTY VALLEY or name the full ethos of the product PLC? behind that name. It connotes, the from ETHIOPIA. All are brands at quality, the integrity of the producer different levels. To me, it is a recognition of our or owner of the brand, and its company as a valued partner in sustainable availability. Recently, Ethiopia hosted its making this historic event happen. first Cup of Excellence (COE) We are proud of our nomination as We as origin countries, as we competitions and it was official exporter of the first Ethiopia Cup of Excellence competition, 2020. produce “commodities”, we will be reported that 1,459 coffee

6 African Fine Coffees Review Magazine | July - September 2020 | Volume 10 | Issue 3 Direct Coffee Sourcing African Coffee Origin Trips

Direct Coffee Sourcing African Coffee Origin Trips

The African Coffee Origin Trips will take you to the origins of coffee to see how coffee is grown, harvested, processed and graded in different coffee producing countries in Africa.

Join the origin trips to meet Africa’s top coffee producers, build direct trade relationships with exporters and source your own coffee ethically. Learn to understand different coffee varieties, processing methods and appreciate each coffee in its own context.

Register: https://afca.coffee/programs/registration Email: trainings@africanÞnecoffees.org

AFCA Member: USD650 / Non Member: USD850

African Fine Coffees Review Magazine | July - September 2020 | Volume 10 | Issue 3 7 CARMOMAQ AFCA DEZ19.pdf 1 19/12/2019 08:35:28

[ INTRODUCING TO AFRICA ] FROM COFFEE SHOPS TO INDUSTRIAL LINES, PERFECT ROASTS. GSB2

C

M

Y

CM

MY

CY

CMY

K

ROAST TIME: 12-18 MIN ROAST TIME: 12-18 MIN STAINLESS STEEL AND ELECTROSTATIC COATING LOW ENERGY CONSUMPTION NATURAL GAS OR LIQUID PROPANE 100% ELECTRIC, NO GAS LINES TOUCHSCREEN CONTROL PANEL TOUCHSCREEN CONTROL PANEL CAPACITY: 5 KG, 10 KG, 15 KG AND 30 KG PER BATCH CAPACITY: 300G - 1KG PER BATCH COMPATIBLE WITH ROASTING SOFTWARE COMPATIBLE WITH SMARTPHONES, TABLETS AND ROASTING SOFTWARE

Contact P&A or the sales agent in your area Ethiopia - Probex - [email protected] Southern Africa - I & M Smith - [email protected] Cameroon - Kenzo - [email protected] Angola - ECSA - [email protected] 8 carmomaq.com.brAfrican Fine Coffees@carmomaq Review [email protected] | July - September 2020 | Volume 10 | IssueGhana 3 - Z&J Company - [email protected] CARMOMAQ AFCA DEZ19.pdf 1 19/12/2019 08:35:28

[ INTRODUCING TO AFRICA ] FROM COFFEE SHOPS TO INDUSTRIAL LINES, PERFECT ROASTS. GSB2

C

M

Y

CM

MY

CY

CMY

K

ROAST TIME: 12-18 MIN ROAST TIME: 12-18 MIN STAINLESS STEEL AND ELECTROSTATIC COATING LOW ENERGY CONSUMPTION NATURAL GAS OR LIQUID PROPANE 100% ELECTRIC, NO GAS LINES TOUCHSCREEN CONTROL PANEL TOUCHSCREEN CONTROL PANEL CAPACITY: 5 KG, 10 KG, 15 KG AND 30 KG PER BATCH CAPACITY: 300G - 1KG PER BATCH COMPATIBLE WITH ROASTING SOFTWARE COMPATIBLE WITH SMARTPHONES, TABLETS AND ROASTING SOFTWARE

Contact P&A or the sales agent in your area Ethiopia - Probex - [email protected] Southern Africa - I & M Smith - [email protected] Cameroon - Kenzo - [email protected] Angola - ECSA - [email protected] carmomaq.com.br @carmomaq [email protected] Ghana - Z&J Company - [email protected] 9 African Fine Coffees Review MagazineAfrican | JulyFine - CoffeesSeptember Review 2020 | VolumeMagazine 10 | July | Issue - September 3 2020 | Volume 10 | Issue 3 9 10 African Fine Coffees Review MagazineAfrican | JulyFine - CoffeesSeptember Review 2020 | VolumeMagazine 10 | July | Issue - September 3 2020 | Volume 10 | Issue 3 10 Originally published in The Coffee Magazine.

11 African Fine Coffees Review MagazineAfrican | JulyFine - CoffeesSeptember Review 2020 | VolumeMagazine 10 | July | Issue - September 3 2020 | Volume 10 | Issue 3 11 VOLATILE COFFEE PRICES: COVID-19VOLATILE ANDCOFF EMARKETE PRICES : FUNDAMENTALSCOVID-19 AND MManuelAR A. KHernandez,ET Rebecca FU Pandolph,ND ChristophAM SängerE andN RobT VosA1 LS This is a joint-publication produced by both the International Coffee Organization (ICO) and the International Food Policy Research Institute (IFPRI).

Over the past three months, coffee prices have experienced multiple spikes and high volatility. This is in contrast to world market prices of major staple foods, whichfoods, which have remained relatively stable. While experts initially International Coffee Organization attributed the instability of coffee prices Coffee Break Series N° 2 to supply-side uncertainty and market May 2020 tightening, the covid-19 pandemic seems to have aggravated coffee’s price fluctuations.

1. Manuel A. Hernandez and Rob Vos work at the International Food Policy Research Institute (IFPRI), Rebecca Pandolph and Christoph Sänger work at the International Coffee Organization (ICO).

12 African Fine Coffees Review Magazine | July - September 2020 | Volume 10 | Issue 3

than one year ago. These shifts in spot prices are essentially being driven by Arabica coffee, which represents around 60 percent of globally traded coffee and about which there have been more concerns about supply disruptions (combined with ongoing demand uncertainties) compared to Robustas. The price of Colombian Milds, for example, increased by 8.6 percent in March and 1.8 percent in April, averaging 161.92 US cents/pound. Other Milds and Brazilian Naturals showed a rather similar trend, while Robusta prices decreased by 0.9 percent in March and 5.2 percent in April, averaging 63.97 US cents/pound (see the ICO Coffee Market than one year ago. These shifts in spot prices are essentially being driven by Report). Arabica coffee, which represents around 60 percent of globally traded coffee and he novel coronavirus Futures pricesFutures have followed prices a similar have followedIn terms of day-to-day a similar fluctuations, pattern. The closest-to-maturity Arabica about which there harepresentsve been an unprecedented more concerns pattern. about The closest-to-maturity supply disruptions the ICO (combined Composite Indicator ranged Tjoint supply and demand Arabica futuresfutures price inprice the New in York the Newbetween York 103.22 market and 117.41 increased US by 10.8 percent in March and with ongoing demandshock to the uncertainties global coffee sector,) comparedmarket increased to Robustas by 10.8 percent. The in pricecents/pound of in the past two months constituting an enormous challenge March anddecreased decreased slightly slightly by 1.2 by(between 1.2 percent 149.17-172.56 in April,US cents/ averaging 113.61 US cents/pound, while Colombian Milds,to coffeefor example, growers, farm increasedworkers, bypercent 8.6 in percent April, averaging in Ma 113.61rch andpound 1.8 in percent the case of Colombianin and downstream value chain actors. US cents/pound,the Robustas while the Robustas 2nd- andMilds 3rd and- 60.78-68.9position US averagecents/ futures price in the London market April, averagingThese 161 various.92 US supply cents/pound and demand . Other2nd- and Milds 3rd-position and average Brazilian Naturalspound in the show case ofed Robustas), impacts will be felt at demand futures pricedecreased in the London by market 2.8 percentwhile the in futures March price and of Arabica 5.2 percent in April, averaging 54.4 US a rather similar impactstrend, will while be felt atRobusta different pricesdecreased decreased by 2.8 percent by 0.9 in March percent ranged in March between and102.6 and 129.95 points in time further contributing and 5.2 percentcents/pound. in April, averaging US cents/pound (between 51.35- to global market uncertainties and 54.4 US cents/pound. As of May 60.71 US cents/pounds in the case 5.2 percent in April, averaging 63.97 US cents/pound (see the ICO Coffee Market the ongoing price volatility. The 15, the spotAs (ICO of Composite)May 15, pricethe spotof Robusta’s(ICO Composite futures). These) high price remained on 104.5 US cents/pound pandemic may also have major remained on 104.5 US cents/pound fluctuations in coffee prices have also Report). implications for poverty and food and the futuresand (Arabica)the futures price on (Arabica)raised a pricered flag on on the106.85 Excessive US cents/pound. insecurity for the world’s 25 million 106.85 US cents/pound. Futures prices have followed a similar pattern. The closest-to-maturity Arabica coffee producers, most of whom are smallholders in low - and Figure 1. Evolution of daily spot and futures coffee prices futures price in middlethe New - income York countries market that are increased (January byFigure 2, 10.8 2019 1. –percent May Evolution 15, 2020) in of March daily andspot and futures coffee prices (January 2, 2019 – May 15, 2020) unprepared to respond to a public decreased slightlyhealth by crisis 1.2 of thispercent proportion. in April, averaging 113.61 US cents/pound, while Spot prices Futures prices the Robustas 2ndRecent- and evolution 3rd-position of coffee prices average futures200 price in the London market 160 and high volatility 180 140 2 160 decreased by 2.8The percent ICO Composite in March Indicator Priceand, 5.2 percent in April, averaging 54.4 US 120 which is a weighted average of all 140 cents/pound. 120 100 major coffee origins and types, has 100 80 shown a fluctuating but upward 80 60 As of May 15, thetrend spot since (ICO February. Composite After a 6.9 ) price remained60 on 104.5 US cents/pound 40 percent month-to-month increase in US cents/ pound 40 US cents/ pound and the futures March(Arabica) (averaging price 109.05 on US cents/106.85 US cents/pound.20 20 pound), the composite indicator 0 0 averaged 108.91 US cents/pound in Jul-19 Jul-19 Jan-20 Jan-19 Jan-19 Jan-20 Jun-19 Jun-19 Oct-19 Oct-19 Apr-20 Apr-19 Apr-20 Apr-19 Feb -2 0 Feb -1 9 Sep -1 9 Feb -1 9 Sep -1 9 Feb -2 0 Dec-19 Dec-19 Aug-19 Aug-19 Nov-19 Nov-19 Mar-20 Mar-19 Mar-19 Mar-20 May-20 May-19 April — the third highest monthly May-19 May-20 Figure 1. Evolutionaverage of dailyin crop syearpot 2019/20 and futures and coffee pricesComposite (January Indicator 2, 2019Colombian – May Milds 15, 2020)Robustas New York Arabica London Robustas 15.3 percent higher than one year ago. These shifts in spot prices are Note: The vertical line indicates the date covid-19 was declared a global pandemic (March 11, 2020). Spotessentially prices being driven by Arabica Futures prices 200 coffee, which represents around 60 160Source: ICO, Bloomberg. 180 percent of globally traded coffee and 140 160 about which there have been more 120 140 concerns about supply disruptions In terms of day-to-day fluctuations, the ICO Composite Indicator ranged between 120 100 100 (combined with ongoing demand 80 uncertainties) compared to Robustas. 103.22 and 117.41 US cents/pound in the past two months (between 149.17-172.56 80 60 60 The price of Colombian Milds, for 40 US cents/ pound 40 example, increased by 8.6 percent US cents/ pound US cents/pound in the case of Colombian Milds and 60.78-68.9 US cents/pound in 20 in March and 1.8 percent in April, 20 0 averaging 161.92 US cents/pound. 0 Other Milds and Brazilian Naturals Jul-19 Jul-19 Jan-20 Jan-19 Jan-20 Jan-19 Jun-19 Jun-19 Oct-19 Oct-19 Apr-20 Apr-19 Apr-20 Apr-19 Feb -2 0 Feb -1 9 Sep -1 9 Feb -1 9 Sep -1 9 Feb -2 0 2 Dec-19 Dec-19 Aug-19 Aug-19 Nov-19 Nov-19 Mar-20 Mar-19 Mar-19 Mar-20 May-20 May-19 May-19 showed a rather similar trend, while May-20

Composite Indicator RobustaColombian prices decreasedMilds byRobustas 0.9 New York Arabica London Robustas percent in March and 5.2 percent in April, averaging 63.97 US cents/ Note: The vertical line indicates the date covid-19 was declared a Note: The vertical linepound indicates (see the ICO the Coffee date covidMarket -19 was declaredglobal a pandemicglobal (Marchpandemic 11, 2020). (March Source: ICO,11, Bloomberg. 2020). Source: ICO, Bloomberg.Report).

In terms of day-2.to The- ICOday Composite fluctuations, Indicator is based on the prices forICO prompt C ompositeshipment, that is, Indicator ranged between shipment within 30 calendar days from date of contract 103.22 and 117.41 US cents/pound in the past two months (between 149.17-172.56 African Fine Coffees Review Magazine | July - September 2020 | Volume 10 | Issue 3 13 US cents/pound in the case of Colombian Milds and 60.78-68.9 US cents/pound in

2

the case of Robustas), while the futures price of Arabica ranged between 102.6 and 129.95 US cents/pound (between 51.35-60.71 US cents/pounds in the case of Robustas futures). These high fluctuations in coffee prices have also raised a red flag on the Excessive Food Price Variability Early Warning System, maintained by IFPRI’s Food Security Portal, which identifies periods of unusual price variability in different commodity markets (i.e. price variability that exceeds a pre-established estimated band). By May 15, futures coffee (Arabica) prices had shown 83 consecutive days of excessive or moderate variability, while spot (ICO Composite) prices had shown 73 consecutive days of excessive or moderate variability.

Food Price Variability Early Warning System, maintained by Box 1. Spot and futures daily coffee price variability Box 1. Spot and futures daily coffee price variability (as of May 15, 2020) IFPRI’s Food Security Portal, which (as of May 15, 2020) identifies periods of unusual price variability in different commodity Last 30 Days Last 90 Days Last 365 Days markets (i.e. price variability that exceeds a pre-established estimated Spot prices 30 day s in 76 day s in 149 day s in band). By May 15, futures coffee red or y ellow red or y ellow red or y ellow (Arabica) prices had shown 83 consecutive days of excessive or Futures prices 30 day s in 86 day s in 157 day s in moderate variability, while spot (ICO red or y ellow red or y ellow red or y ellow Composite) prices had shown 73 = At least 25% of the days in the specified period registered extreme consecutive days of excessive or price variations relative to that expected by the model. moderate variability. = At least 25% of the days in the specified period registered moderate price variations relative to that expected by the model. = A period characterized by a low price variability. Covid-19’s impact on coffee prices: a joint supply and demand shock with varying effects Note:over time The spot priceNote: is Thethe spot ICO price Composite is the ICO Composite Indicator Indicator price price and and the the futures price price is the is New the New York Arabica price. The Yorkexcessive Arabica price.(red) The and excessive moderate (red) and (yellow) moderate price (yellow) variability price variability periods periods are identified In early 2020, higher and more are identified through a statistical model of daily fluctuations in price variations. through a statistical model of daily fluctuations in price variations. volatile coffee prices seemed to Source: Authors’ calculations based on Excessive Food Price Variability Early Warning stem from poor harvestSource: prospects Authors’ calculationsSystem maintained based by IFPRI’s on Excessive Food Security Food Portal. Price Variability Early Warning System in some producing countriesmaintained (e.g., by IFPRI’s Food Security Portal. bad weather in Brazil) at a point in time when inventories were running demand-side factors through which transaction and trade costs. Across seasonally low. covid-19C oappearsvid-19 to’s impactcovid-19 on seems coffee to be prices contributing: a joint supplya wide range and of demand coffee-producing shock with varying be maintaining and exacerbating to coffee market volatility, we countries, businesses have reported effects over time these price fluctuations (especially build on a recent assessment of that post-harvest processing and channels of transmission into food movement of crops to harbors for for Arabica coffees) fromIn earlyboth the 2020, higher and more volatile coffee prices seemed to stem from poor supply and the demand side. Since and agriculture by the Food and export are subject to delays (Table 1 the covid-19 outbreak washarvest declared prospects Agriculture in some Organization producing of the countriesprovides (e.g., some bad anecdotal weather evidence in Brazil) at a a global pandemic by the World United Nations and on the impact providing a snapshot of disruptions). Health Organization in pointmid-March, in time pathways when inventories identified by the were World running For example,seasonally in some low. ports, covid social- 19 appears to the virus has spread to virtually all Bank in the evaluation of the 2014 distancing measures dictate that only coffee exporting and importingbe maintaining Ebola a ndoutbreak exacerbating in West- African these priceone fluctuationsperson at a time can(especially access a for Arabica countries. container to load bags, resulting in countries. This has resultedcoffees) in a from both the supply and the demand side. global shock. While the pandemic is lower packing density and thus one likely to affect all stagesSince of the thecoffee covid 1. Supply-side-19 outbreak factors was declared a- third global fewer pandemic bags per container. by the In World Health value chain to a greater or lesser We are already observing supply-side additional, many port and customs extent — from on-farmOrganization operations impactsin mid (to-March, varying degrees)the virus in the has spreadauthorities to arevirtually working withall coffeereduced exporting (coffee cultivation and harvest), downstream value chain, including staff. Land-locked countries (e.g. post-harvest processing, and international shipping and local Rwanda, Uganda, Burundi) have domestic and international logistics currency devaluations. Impacts in the 3 experienced delays for trucks to intermediate and final demand — upstream value chain will likely occur crossing the borders of neighboring the specific impacts on regional and mostly when more countries enter countries with sea access. While local markets will be felt at different the harvest season in the upcoming coffee in green form is less perishable points in time. The overall effects will months. than fruits and vegetables, delays ultimately depend on the interaction and hold-ups along the supply between multiple supply and Downstream value chain chain can still negatively affect demand factors, how market actors Covid-19 infections have had coffee quality and thereby prices. anticipate and respond to these, and direct impacts on the functioning In addition, these delays hinder the the capacity of individual countries of key export infrastructure, such timely fulfillment of contracts. to detect and contain the virus while as warehouses and ports, as well moving into the harvest season as indirect effects due to social International shipping when labor demand peaks. distancing and other measures In February, before the novel imposed by governments to coronavirus had spread significantly Key factors driving the high contain the virus. These have beyond the initial epicenter in volatility in coffee prices resulted in disruptions and delays, China, market participants reported To identify the major supply- and and subsequently in increased reductions in the availability of container space as China reduced

14 African Fine Coffees Review Magazine | July - September 2020 | Volume 10 | Issue 3

Table1:Table Impact 1: Impact of covid-19pandemic of covid-19 pandemic on coffee on coffee supply supply chain chain in selected in selected countries countries in April in April2020 2020

Official Harvest / Domestic Port operations Container Country measures delivery of trucking / customs availability taken coffee Delays in Harvesting Normal at ports delivery and Partial season delayed / customs Brazil Normal shortages with lockdown by 15-20 days operate with some shipping in Minas Gerais reduced staff lines Reduced mobility of Operational National seasonal capacity No major lockdown workers / 87% Minor delays decreased due problems until 11/05 of coffee to shortage of reported delivery staff centers open Trucks are now Slowed down Number of Lockdown allowed to move operations but incoming India N/A until 03/05 as coffee is returning to vessels is essential good normalcy reduced Roadblocks, curfews, Robusta is social reported to Shortage of Indonesia Normal Normal distancing delay about a containers (varies by month district) Incoming Operations vessels reduced National slower due to as shipping lockdown health & safety Kenya N/A Slight delays lines cancelled (until 05/05) protocol, port calls on / curfew quarantine and their routing ex mass testing Asia Restricted entry/exit No major Partial within regional Delays N/A problems lockdown communities reported continues International shipping Delays: Special procedures for National No Inmajor February, beforeDelays the duenovel to coronavirus had spread significantly beyond the testing and Rwanda lockdown problems covid-19 testing Normal initial epicenter in China, market participantstruck cleaning reported reductions in the until 30/04 reported at borders at border add 2 availability of container space as Chinadays reduced to transit exports. So far, the impact of the Reduced pandemic on shipping activities does notReduced seem to have been dramatic. Global capacity & Partial capacity at Tan Vietnam N/Acoffee exports in MarchNormal totaled 11.06 million bags, whichfrequency is 3.7 percent on lower than lockdown Thanh border shipping line the total bags shipped in March 2019gate. Several with Chinatop exporting countries have routes

Note: N/A = Not applicable. reported significant drops in shipments, including Colombia (20 percent), India (10 Source: TheNote: table N/A contains = Not applicable. a non-exhaustivepercent), Source: Theand list tableHonduras of supplycontains (7 chainpercent), a non-exhaustive disruptions but others list c haveompiled of supply seen bymore chain the modest authors declines, based ondisruptions publicly availablecompiled by information the authors basedby coffee on publicly traders available Olam Specialty information Coffee, by coffee Sucafina traders S.A. Olam and Falcon Coffees (as of 30Specialty April). Coffee,such Sucafinaas S.A. (4and percent), Falcon Coffeesand Vietnam (as of (230 percent). April). These reductions need not all be on account of covid-19 and disruptions in international logistics, but also caused by other factors such as lower availability of coffee for export from availability of coffee for export from exports. So far, the impact of the in internationalprevious harvest logistics, and current but alsostocks . pandemic on shipping activities does caused by other factors such as lower previous harvest and current stocks. 6 not seem to have been dramatic. Global coffee exports in March Figure 2. March shipment volumes of top-10 coffee exporting countries (2015-2020) totaled 11.06 million bags, which is 3.5 3.7 percent lower than the total bags 3.0 shipped in March 2019. Several top 2.5 exporting countries have reported 2.0 significant drops in shipments,

kg bags kg 1.5 including Colombia (20 percent), - India (10 percent), and (7 1.0 percent), but others have seen more million 60 0.5 modest declines, such as Guatemala 0.0 India

(4 percent), and Vietnam (2 percent). Brazil Uganda Ethiopia Viet Nam Colombia Honduras Indonesia These reductions need not all be on Guatemala account of covid-19 and disruptions Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20

Note: All forms in Green Bean Equivalent (GBE). Source: ICO (based on official export statistics from countries). African Fine Coffees Review Magazine | July - September 2020 | Volume 10 | Issue 3 15

Local currency devaluations Local currencies of some coffee producing countries have sharply devalued against the US dollar in which coffee is traded internationally. For example, in the

7

Local currency devaluations the internal movement of seasonal 2. Demand-side factors Local currencies of some coffee labor in Brazil Similar constraints The coffee market saw a surge producing countries have sharply are reported for cross - border in demand in the first weeks of devalued against the US dollar in movements in Central and South the covid-19 crisis. However, this which coffee is traded internationally. America. Fewer pickers in the fields increase was mainly driven by higher For example, in the first quarter of could translate to harvest delays or supermarket sales resulting from 2020, the Brazilian real lost around extended harvest periods, negatively panic buying and stockpiling and 15% against the US dollar. The affecting quality and producer by substituting out-of-home with correlation between international prices. A reduction of labor supply at-home consumption in the face of coffee prices and movements in the could also raise wage levels, thereby social distancing measures. Brazilian real has been previously increasing labor costs, with a knock- documented. Farmers and exporters on effect on profitability as labor In the upcoming months, with in countries that experience already makes up more than 50 worldwide negative growth devaluation tend to become more percent of total production costs in forecasts for 2020, a looming global competitive in the world market as various origins. recession could impact overall coffee a result of this exogenous shock. consumption. Rising unemployment However, it remains to be observed This poses an immediate threat to and lower household incomes will whether these farmers will indeed countries currently in or entering probably make consumers more benefit in terms of higher farm- the harvest cycle such as Brazil, price sensitive. This could lead to gate prices. As long as domestic Colombia (mitaca crop), Ecuador, reduced sales in the high-end market supply chains are severely disrupted, Indonesia, and Peru. The National segment (including specialty coffee increasing labor and trade costs as Federation of Coffee Growers of and some certified sustainable well as higher costs of imported Colombia has already noted a coffees) as consumer demand intermediate inputs may off-set initial decline of 28 percent in Colombia’s shifts to cheaper market segments. gains from currency devaluation. harvest for April, compared to the However, demand for food items like same month one year ago. Harvests coffee tends to be relatively inelastic, More generally, previous studies have will begin in another group of small and the demand-side effects are also shown that price variations and producer countries in July. Over half likely to materialize with a time lag volatility in international agricultural of producers begin the harvest in depending on the level of household markets do not necessarily transit the last quarter of the year, however, savings and social safety nets. to all domestic and local markets in at which time the initial peak of the developing countries. In the case pandemic is expected to be over. 3. Potential speculation of coffee in Ethiopia, for instance, Besides supply and demand factors, there is a low degree of correlation In addition to reducing access to non-fundamental factors such as between international and farm-gate labor, the covid-19 pandemic could speculation could also potentially price fluctuations. constrain coffee growers’ access aggravate coffee price volatility. Like to credit. Interest rates on fresh to other agricultural commodities, Upstream value chain (farm level) credits have increased recently in coffee futures markets are subject Access to seasonal and migrant labor low – income countries. This could to financialization. As seen in the is vital in many coffee production raise production costs and limit food price crisis of 2007-08, sudden systems. Even in Brazil, the world’s credit access, reducing farmers’ movements in coffee prices during largest producer and exporter of use of fertilizer and pesticides and the covid - 19 pandemic may attract coffee where mechanical harvesting thereby affect yields (and prices). speculators (i.e. non-commercial is more widespread, some of the In some cases, it may postpone or traders). Previous research has Arabica coffee and the entire cancel long-term investments in the documented causal effects between Robusta crop is still picked by hand. replanting of coffee trees. non-commercial traders’ activity in The spread of the virus could reduce futures coffee markets in New York labor supply due to social distancing Lastly, social distancing measures (Arabica) and London (Robusta) and and lockdown measures and, to a reduce farmers’ access to public spot prices. However, this effect is lesser extent, illness. Experiences extension services as well as short-term and has occurred both in from previous epidemics (e.g., the technical assistance provided periods of falling and rising prices; in Ebola outbreak) have shown that by coffee buyers (traders and the long run, market fundamentals the indirect impact of avoidance roasters), and international and have been shown to prevail. strategies is more significant since non-governmental organizations Research is on-going to assess the a large share of the workforce has (NGOs), as field visits are temporarily link between potential speculation to stay home. Social distancing suspended in many countries. and price volatility in coffee markets, measures are expected to affect as well as any subsequent impacts along the value chain.

16 African Fine Coffees Review Magazine | July - September 2020 | Volume 10 | Issue 3 Looking forward while fostering climate change The covid-19 pandemic represents Potential policy responses include: adaptation and productivity a severe joint supply and demand • Establishing emergency growth in the long term. Finally, shock to the global coffee sector. responses to mitigate the policymakers could facilitate This shock already seems to be impact of the pandemic and investment in mechanization contributing to coffee price spikes support countries with lower and automatization of harvest and high volatility. However, the institutional capacity. This and supply chain processes effects of the pandemic will continue includes implementing safety (where possible) to ensure that to materialize in different places at guidelines that protect farmers safety protocols are being met; in different times. Policymakers should and workers along the value chain addition, digitalization of business recognize this in order to prepare for during the upcoming harvest transactions as well as port and effective responses. period and providing short-term customs procedures can help to social safety nets to protect the reduce transaction and trade costs. The timing of major supply-side incomes of vulnerable groups. measures depends on the start of • Supporting the demand for the harvesting cycle, which begins • Facilitating recovery coffee. A (temporary) reduction in October in over half of coffee- while fostering long-term of taxes on coffee could help producing countries. Specific sustainability. This includes reduce prices to the consumer. interventions could be field-tested supporting vital links along the This would partially off-set among those countries in which value chain and increasing the households’ decreased income harvest is currently ongoing (or resilience against external shocks due to the looming recession imminent); successful programs (e.g., market, climate, pandemics). and support the at-home and out could then be extended to other In addition, international financial of-home demand for coffee in key countries that start their harvest institutions (IFIs), including consuming countries, helping to later in the year. Similarly, if major multilateral development banks, stabilize the market. demand-side effects are likely to could support the coffee sector in come into effect with a lag that the replanting and rehabilitation By taking such actions and working will depend on the extent of social of coffee plantations during the together with sector stakeholders, distancing measures and the severity upcoming period of slowing policymakers can help attenuate the of the global recession (and recovery global demand growth. This likely negative impacts of covid-19 scenarios), there is still a time window would temporarily reduce supply on poverty and food insecurity in which to devise and implement in order to stabilize prices and among millions of coffee-producing specific actions. incomes in the medium term smallholders worldwide.

African Fine Coffees Review Magazine | July - September 2020 | Volume 10 | Issue 3 17 COFFEE MARKET OUTLOOK UNDER THE THREAT OF CORONA VIRUS Judith Ganes

When many of us attended the 18th AFCA Conference held in Mombasa mid-February, it was difficult to imagine how quickly the world was going to change and with that how the impact it will have on the coffee industry from end to end. At the time, as we traveled home to our respective countries, a few people wore masks in the airport, but at the time, only China, Korea and Japan had recorded some cases and the fear from which we all live under was not real to us but seemed distant and only a minor threat.

ince then five million people dangerous and unacceptable for There already is a noted container have officially been tested as risking people’s health. shortage because of reduced freight Spositive for infection and it is bookings and many containers left possible that just as many people In some countries, strict rules or in China following the lockdown have been asymptomatic or simply guidelines have been put in place there and then seeing a plunge in not tested because they were lucky reducing the number of workers demand for Chinese exports, leaving enough to not be so sickened that allowed on the farm or in sleep the containers piling up and creating they needed to seek out medical quarters. This certainly could slow shortages elsewhere. This is not attention, but not recognizing the picking of the cherries and cause the going to immediately ease since danger they pose to their family, crop to not be harvested optimally, China has gone on a buying spree of friends, or strangers they have come reducing quality and income for agricultural commodities that in the in contact with. In the three short producers. There are also challenges months ahead will fill up even more months, the coffee industry has had for getting sufficient workers to containers without sufficient product to grapple with serious issues from all farms, because of limitations in being exported. aspects of supply and demand and transportations crossing from one re-examine every step in the process region within a country to the next While there are challenges for many from farm to cup. The coronavirus and governments are working producers, Brazil has been able to has wreaked havoc on farms, to try to ease constraints to keep benefit from the meltdown in their transportation, distribution, and then agriculture as a priority. The added currency and coffee priced in reals is the way we purchase, prepare and costs of not being able to optimize near record levels, providing ongoing drink our coffee as well as who is labor and the increased expense incentive for Brazil to be committed near us when we do. The industry of cleaning/sanitizing materials, to growing coffee, even under a has grown and developed on the thermometers for temperature period of low international quotes premise that workers stand shoulder checks and other protective and distressed sales. This puts other to shoulder to harvest coffee and measures reduce earnings. There producers at a disadvantage, where break bread together eating as a are fewer disruptions port side but they don’t have the benefit of being family unit rejoicing the hard work this could always change depending shielded by foreign exchange rates. and the fruit of their labor. Women on hotspots of infection and if a This is similar to what happened in sit gathered around a table, sorting freighter arrives with sickened crew the price crisis 20 years ago and Brazil coffee while singing with each other. that must then be quarantined was able to gain market share at the This was the joy and celebration before the vessel can load and expense of other producers. of coffee and now is considered depart for onward ports of call.

18 African Fine Coffees Review Magazine | July - September 2020 | Volume 10 | Issue 3 Where I see greater concern though or heat on a sunny day. A café is a activity. A crop on the trees is with demand not supply, With safe place and easy to find location represents money and to the greatest more people at home, grocery for a meeting or a first date. All extent possible, farmers will try to stores and online purchases have these are occasions where someone avoid losses. Brazil is in the process increased and some cafes are trying may drink coffee out of their normal of harvesting a potential record crop to reformulate their stores to do curb daily routine. The biggest harm and this too will take the heat off side pick up and drive thru service, to the industry is in the loss of the the market from delays elsewhere. where possible, but in many areas, hospitality sector with about 25% Earlier in the year, it appeared that being able to sit in a café for hours of volume of bags consumed falling there were concerns about interim reading a newspaper or catching under this category. Airlines have tightness, particularly of coffee up with a friend, is no longer being cut more than 90% of their flights from Central America and then encouraged. The number of tables and are flying mostly empty. It will also from Colombia. This opened and customers allowed inside is take well into next year to see a an opportunity for Arabica coffee limited. This is going to reduce recovery in travel and some business from Africa to fill this void. Certified sales and make operating a coffee travel may be lost as companies find coffee stocks had been in a modest shop unprofitable for many under themselves equally comfortable decline and with differentials firming, this new model. It is possible now using technology to replace there was some expectation that that as much as 35% of cafes and face to face meetings and to shave this trend would continue. Stocks in restaurants may not open or fail expenses. Hotel bookings will the United States and Europe were with distancing guidelines making remain low. Major events, sports, starting to trend lower, although still it impossible to cover expenses, concerts and conferences have deemed adequate if there were no aside from monies lost during an all been cancelled pretty much major supply disruptions. Now, the extended closure. In addition, through year end. It is uncertain if first evidence of the market suddenly even for restaurants and cafes not Universities will hold fall semesters shifting to one of surpluses has reducing the number of clients at and reduce travel by students already been seen with a jump in a given time that are permitted returning to campuses. Large social April United States warehouse stocks inside, it doesn’t mean the store gatherings and celebrations are by about a half million bags. This traffic will be the same as before. A being postponed. There is no June type of increase has not been seen combination of fear of being safe wedding season this year or college for a single month since the early inside establishments coupled with graduations. The hospitality sector 1990s following the collapse of the a deep global recession and sky-high is in shambles with minimal catered International Coffee Agreement. unemployment is another challenge, events and food/beverage servicing. operators will face, there is also A key distinction between coffee During the financial crisis of 2008/09, the additional cost of cleaning and shop coffee and food service is that the number of unemployed was protective equipment for employees in a café, a single cup of coffee is far, far less than what is now being and remodeling to fit new safety prepared especially for the client reported. Joblessness is rampant guidelines, such as partitions to whereas in catering, coffee is made with industries being badly hurt by separate customers from staff. A by a large pot/batch with generally closures and changes in consumer café should smell of fresh brewed 15% to 20% more coffee prepared behaviors. At that time though, coffee not disinfectant and this too than expected to be actually there wasn’t a fear to fly or travel or may be a put off for clients taking the consumed. After the event, meal, be near other people. While there pleasure out of sitting to enjoy a cup flight or gathering, the leftover coffee was pared spending, cafes actually of coffee. is poured out. The coffee that is benefited because people would served may be above normal usage choose to socialize over coffee and While some believe there is a trade for some drinkers and they simply dessert rather than a meal as a way of off between having coffee at a café take the coffee that is being offered, lowering the cost of entertainment. and at home, keeping the number of but it is the waste itself that adds Now, the opposite is true, with cafes cups consumed daily the same, this up to millions of bags of coffee no being avoided. This will negatively is simply not true. Habits are being longer needed. Unfortunately, it is impact the demand for specialty changed and broken. People may this sector of coffee consumption coffee, which will be difficult for be sleeping in later because they are that is hurt the most by people growers who have invested heavily working from home. There are many distancing and cancellations of life’s on their farms to assure the highest who go to a café for other reasons events and will be the slowest to see quality. besides the love of coffee. A friend a recovery. Prior to this, there was a chasm that may suggest going as a get together was growing within the industry with or someone needed WIFI or a The massive downdraft in demand often times divisiveness between bathroom, or had an hour to kill time is certainly not welcome news and producers and roasters/retailers between appointments. Maybe, is likely to more than offset any because of the scant price paid to even to get out of the rain or snow disruptions or delays in harvesting farmers VS the much higher prices

African Fine Coffees Review Magazine | July - September 2020 | Volume 10 | Issue 3 19 being received for a cup of coffee in a retail shop. Misconceptions about why prices paid to growers were depressed were increasingly more rampant with blame and finger pointing towards consumer side interests. Now more than ever, the industry needs to work in alignment to adjust to the new reality and have clear transparency on the issues and hardships being faced through the entire value chain. If there is a silver lining, one can hope that the industry becomes even stronger with new appreciation and understanding of the challenges faced by all segments and will work together in alignment to develop solutions that will make a positive difference for all. It is the main road to survive this unprecedented period and for the industry as a whole to come away stronger and better at the end of it. United States Coffee Stocks Showed a Big Jump in April After Several Months of Declines Source: Green Coffee Association

Brazil 2020/21 Crop Potential Still Strong USDA, J Ganes Consulting, LLC

Collapse in Brazil’s Currency Gives the Leading Producer an Advantage

20 African Fine Coffees Review Magazine | July - September 2020 | Volume 10 | Issue 3 CAPE TOWN INTERNATIONAL CONVENTION CENTRE

THEME: DOMESTIC CONSUMPTION: AFRICAN COFFEE ORIGINS UNVEILED

CARAMELIZED

MAPLE SYRUP HONEY

CHAMOMILE

ROSE

JASMIN DARK CHOCOLATE MOLASSES BLACKBERRY

RASPBERRY

BLUEBERRY CHOCOLATE STRAWBERRY

RAISIN ALMOND PRUNE HAZELNUT COCONUT

PEANUTS

OVERALL SWEET SWEET AROMATICS BLACK TEA BLACK CHERRY VANILLIN VANILLA

POMEGRANATE CLOVE BROWN SUGAR FLORAL PINEAPPLE CINNAMON BERRY COCOA GRAPE NUTMEG NUTTY APPLE DRIED FRUIT ANISE PEACH FLORAL SWEET PEAR BROWN SPICE OTHER FRUIT

FRUITY GRAPEFRUIT NUTTY/ COCOA PEPPER ORANGE PUNGENT MALT SPICES LEMON CITRUS FRUIT CEREAL GRAIN

ROASTED LIME

BROWN, ROAST SOUR AROMATICS BURNT

SMOKEY SOUR/ SOUR ACETIC ACID

FERMENTED ASHY TOBACCO OTHER BUTYRIC ACID ALCOHOL/FERMENTED PIPE TOBACCO GREEN POSTPONEDACRID ISOVALERIC ACID VEGETATIVE

CITRIC ACID

CHEMICAL GREEN/VEGETATIVE OLIVE OIL MALIC ACID

RAW

WINEY RUBBER

BEANY WHISKEY SKUNKY PAPERY/MUSTY FERMENTED

OVERRIPE PETROLEUM

MEDICINAL SALTY

BITTER UNDERRIPE

PEAPOD

PHENOLIC FRESH

DARK GREEN

VEGETATIVE ANIMALIC MEATY/BROTHY HAY-LIKE

CARDBOARD HERB-LIKE

STALE

MUSTY/EARTHY WOODY

PAPERY MUSTY/DUSTY

MOLUDY/DAMP

CAMEROON African Fine Coffees Review Magazine | July - September 2020 | Volume 10 | Issue 3 21 THE PREMIUM SHARING REWARDS MODEL Sustainable Growers Rwanda

Since 2013, with the generous support of the Bloomberg Philanthropies, Sustainable Growers Rwanda has been working to increase economic opportunities for women and their families in Rwanda and the Democratic Republic of Congo through various initiatives including farmers capacity building in Best Agricultural Practices (BAP), cooperative management and business support which involves market linkages A farmer receives a cow during the 2019 graduation in the Northern province and facilitating their access is done based on farmers’ adoption of community based Sustainable to credit from financial of both Sustainable Growers training Growers trained women institutions. packages and implementation of extensionists called Relationship government initiatives. These include: Coffee Women (RCWs) along with ustainable Growers devised an farmer team leaders, cooperative innovative model called “The • Implementation of best board members and local leaders SPremium Sharing Rewards” agricultural practices to increase are involved to ensure transparency. (PSR) which seeks to recognize and production both in quantity and Field staff and farmers become part reward the best performing farmers quality of setting the selection when farmers and farmer teams amongst its • Practicing coffee farming as have similar scores. Local leaders program beneficiaries. All in an effort, a family business by keeping are also present during the asset to drive adoption of best agricultural proper farm business records and distribution process. practices so that farmers can increase involvement in farmer savings production, embrace farming as a and lending groups Farmers select items from an asset family business, adopt government catalogue based on their scores. The initiatives, and cooperative • Good cooperative management asset catalog is developed with input management best practices. practices, and from the farmers themselves and • Update and implementation of recommendations from government The funding for this program comes government initiatives including authorities. The catalogue contains from an additional premium paid obtaining health Insurance, items distributed at individual farmer by the coffee buyers, roasters and setting up and maintaining and farmer team levels. The items in consumers – as a recognition to kitchen garden practices to the catalogue include tools used to farmers for their hard work in coffee improve nutrition, building implement best agricultural practices farming. and maintaining clean latrines, like pruning saws and sheers, spray school enrollment of children, pumps, and livestock (including The PSR program uses a point and participation in community cows, goats, and pigs) from which accumulation system to score meetings to collectively come organic manure is created. The and measure the performance of up with solutions towards catalog also has items for home individual farmers and team who community issues. and personal use including mobile have graduated the program. At the phone, radio, mattress and solar end of the 12-month engagement During the evaluation process charged lamp (with phone charging in the coffee curriculum, the scoring which is done using a network capabilities).

22 African Fine Coffees Review Magazine | July - September 2020 | Volume 10 | Issue 3 Asset Catalogue showing items which model farmers choose from

An assessment conducted in early 2020, a year after farmers received these assets found that farmers to have benefited tremendously from the assets and a significant number of farmers (59%) shared these benefits with the community. Those who received goats got organic manure to fertilize their farms, and have earned money Ubudehe refers to the social-economic classification of from selling newborn to cover their social needs (health Rwandan citizens and is long-standing Rwandan practice insurance, children school fees, among others). While and culture of collective action and mutual support to those who received solar lamps used them to light their solve problems within a community. Category 1 refers to homes and enable children to do their homework when families who do not own a house and can hardly afford the sun has gone down. The solar lamps/chargers are also basic needs, while Category 2 refers to those who have used to charge mobile phones. Farmers save money from a dwelling of their own or are able to rent one but rarely not having to buy torch batteries. Those who received get full time jobs (Reference: http://www.rgb.rw/index. mattresses stated they provide comfortable bedding and php?id=35) improved hygiene while those with sprayers use them to control pests and diseases and have saved money from not renting such farm tools from community lenders. Asset Catalogue showing items which farmer teams choose from

Women graduates of the program receiving spray equipment

Since 2014, about 7,000 model farmers have been rewarded assets and over 1,000 farmer teams representing over 28,000 farmers received shared team assets through PSR. Women graduates of the program receiving livestock (goats)

The graduates attended regional level farmer award ceremonies, while other graduates received certification and assets at district level ceremonies. All graduates of the program have been encouraged to transfer BAP trainings and application of the PSR motivational model to their family plots.

Model farmers receive kitenge fabric during the 2019 graduation ceremony in the southern province

African Fine Coffees Review Magazine | July - September 2020 | Volume 10 | Issue 3 23 THE “MALARIA OF COFFEE” THE PAST, PRESENT, AND FUTURE OF COFFEE LEAF RUST IN AFRICA By Stuart McCook

Between 2007 and 2015, the coffee farms of Peru, Colombia, and rust, and have remained largely Central America were rocked by a regional outbreak of the coffee free of the disease. In the late 1600s leaf rust. The disease is caused by a fungus known as Hemileia and early 1700s, European colonial powers broke Yemen’s monopoly, vastatrix. The fungus can cause the leaves of the coffee plant to drop and spread arabica coffee cultivation prematurely, which in turn stunts the development of both the fruit across the Indian Ocean Basin and and the plant itself. This recent outbreak, known as the Big Rust, the Americas. temporarily reduced coffee production in Colombia by almost a third; in Central America, it reduced production by fifteen percent. Commercial arabica production

he Big Rust came as a Rust should be a warning to coffee initially flourished outside of Africa, in surprise. Since 1869, the farmers in Africa, who have an even landscapes that were free of the rust. Trust had spread through the longer experience with coffee, and In the nineteenth century, settlers world’s coffeelands, and farmers the coffee rust. around in colonies around the everywhere had either abandoned coffee or learned to coexist with the The main coffee of commerce is Indian Ocean Basin pushed arabica disease. But in the Americas, at least, arabica coffee (C. arabica). It is native cultivation down into the warm and this coexistence had weakened. to the forests of southwestern humid tropical lowlands. The coffee Chronically unstable coffee prices Ethiopia, where Hemileia vastatrix plantations of Ceylon, India, and the made it difficult for farmers to carry is also found. Commercial Arabica Dutch East Indies were, for a time, out rust control strategies. And production began across the Red Sea among the world’s most productive. climate change made the behaviour in Yemen. The landscapes of Yemen But they were also highly vulnerable of the fungus unpredictable. The Big were not hospitable to the coffee to the rust.

24 African Fine Coffees Review Magazine | July - September 2020 | Volume 10 | Issue 3 The same forces that drove the such as the coffee berry disease coffee boom. Its impact on coffee coffee boom in the Indian Ocean and the Antestia bug, among many production there was limited, since Basin also accelerated the movement others. The geographical contours of the cultivated robustas were mostly of diseases and pests. At some point commercial coffee farming in Africa resistant to the rust. in the 1860s, the rust fungus was were, to a large extent, shaped by the accidentally transported from Africa diseases and pests. In the late 1960s, the rust leapt to Ceylon. It may have traveled from West Africa to the Americas, along trade routes that linked the In 1930, Alleyne Leechman, a coffee whose vast, susceptible arabica Great Lakes region (where rust was expert at the Amani Institute in farms had previously been free of present on wild coffees) to Indian Tanganyika, described the coffee the disease. Between 1970 and 1985, Ocean trade routes. The fungus leaf rust as “the Malaria of Coffee.” the rust spread from Brazil across likely stowed away on one of the Both were endemic to Africa, and the Americas. It did not provoke the new steamships that linked the he argued that both were “chronic collapse of coffee that some experts coffeelands of the Indian Ocean ever and weakening” diseases, impossible had feared. Coffee farmers and coffee more tightly together. to eradicate. Constant vigilance experts could benefit from more would be necessary to keep them than a century of research produced The first rust outbreak was recorded in check. In the 1930s, Kenya’s in Africa and Asia. By the mid–1980s, on Ceylon, beginning in 1869. public agricultural research station most farmers in the Americas had Within fifteen years, it had driven inaugurated programs to breed successfully adapted to the rust, and the island’s planters to abandon pioneering rust-tolerant arabicas. they saw it as “just another disease.” coffee cultivation for tea. The story Since then, breeders in Kenya have This assessment was premature. was repeated throughout Asia and continually developed new, rust- the Pacific; by 1910 the rust had tolerant arabicas such as K7, Ruiru 11 The Big Rust in the Americas contributed to the rapid decline and Batian. Breeding programs like should be a warning to coffee of coffee production in places like this have helped farmers coexist with farmers in Africa — especially those Java, whose name had once been the rust and other diseases. who cultivate the high-value but synonymous with coffee. susceptible arabicas destined for Farmers at lower elevations, where specialty coffee markets around European planters in the affected the rust was more severe, turned the world. It is a reminder that regions scoured Africa’s forests a to robusta cultivation. In much of coexistence with diseases like the rust-resistant variety of coffee. One Eastern Africa, farmers had often coffee rust is always provisional. This of these, known as robusta coffee (C. cultivated robusta for their own coexistence can break down when canephora), showed resistance to consumption before European chronically low coffee prices cause the rust, and also grew better than colonialism. In Uganda, commercial farmers to reduce control practices, arabica in the lowland environments. robusta production expanded in or abandon them altogether. Dutch planters took robusta coffee to earnest during the 1920s and 1930s. And climate change — especially the Dutch East Indies in 1900. In the 1950s, robusta production warming temperatures and changing boomed in Central and Western rainfall patterns — may trigger new Over the next decade, breeders Africa, fueled in part by growing outbreaks in high-altitude farms selected some commercially useful demand for instant coffee in Europe where the rust has not previously strains. After 1910, most coffee and North America. The coffee been a problem. Vigilance and famers planters in Java switched rust seems to have spread through preparation remain essential. from arabica to robusta. Over the the western half of Africa after the next four decades, farmers across the Indian Ocean Basin followed suit. Arabica cultivation survived only in a handful of highland areas, where the conditions were cool and dry enough to keep the rust in check.

Commercial coffee production in Africa began around the turn of the twentieth century. Coffee farmers in Africa did not enjoy the same ecological honeymoon that their counterparts elsewhere had done. From the very beginning, they had to contend with the rust, along with other endemic diseases and pests,

African Fine Coffees Review Magazine | July - September 2020 | Volume 10 | Issue 3 25 ACTIONS ROASTERS & BUYERS CAN TAKE IN A TIME OF UNCERTAINTY Sustainable Harvest Coffee Importers This article has been edited from its original format which was published on April 13, 2020 by Sustainable Harvest Coffee Importers @ https://www.sustainableharvest.com/blog/impact-of-covid19-at-origin-part-1

In these turbulent times, it seems as if every day brings a new, unforeseen development as industries around the world continue to grapple with the pandemic. Over the past few weeks, we’ve leveraged our global network and have been in close communication with all of our partners to better understand the global coffee supply chain’s vulnerabilities.

ur Chief Coffee Officer, Jorge Cuevas, weighs in on the Oimpact we’re seeing at origin, and the challenges that producers are facing as they adjust to labor shortages, government mandated restrictions, and slowdowns at mills, ports and warehouses.

We also take a look at what we believe are key actions roasters and buyers can take to help support their producer partners, and how best to Rwanda COVID PPE prepare for potential supply chain delays and offset risks. The short answer is coffee is seen more disruptions. Colombia What is the impact that COVID-19 flowing—but very slowly. There are as well. In Colombia, we have seen is having at origin? going to be chronic delays that will mills quick to close and restrictions The main one is logistical disruptions. affect all origins, essentially. I do not tightened. Countries with the least Throughout Central America, coffee know of a single country that does amount of restrictions in place would has been harvested. Coffee is at the not have some COVID-19 restrictions. be Nicaragua and , but we mill and at the warehouses. For the expect that to change as the crisis most part, coffees are in relatively Are delays worse in certain grows. good locations from the standpoint countries? How are different of risk mitigation. However, countries responding and what The caveat is that all of these warehouses and the dry mills that challenges are they facing? countries mentioned are in season process coffee are being limited. Yes, but just to be clear, when we or their harvest has just ended. Some of them are closing due to pinpoint a certain country that’s The ones we haven’t talked about government restrictions. Others have struggling more than others, it’s not are those that are about to begin been given exemptions to operate as a criticism of the country. It’s just the their harvest season, which brings essential businesses, but with limited circumstances: either there are more a whole new level of challenge. We crews and staggered shifts, meaning cases causing disruptions or they’re started by saying that coffee is in everything is slowing down. All of just being more careful. They might the warehouse, that coffee quality this is understandable, of course, in just be doing the right thing. is good and we’re just not getting order to protect workers. Honduras is one country that has it to market as fast as we normally

26 African Fine Coffees Review Magazine | July - September 2020 | Volume 10 | Issue 3 Pacayal-honduras Asproguate-Guatemala AltoMayo-Peru

FCC-Colombia

could—which isn’t the worst thing address these challenges? to be convinced. So, again, labor given quality preservation thanks to Brazil has communicated most is going to be among the biggest GrainPro bags. For Peru, for Brazil, for clearly. The strength of the Brazilian challenges as we head into the southern Colombia, and for our East coffee sector is extremely high, harvest season. African friends, however—coffee is and Brazil is, relatively speaking, just starting to be harvested. There’s a highly developed country in How is all of this going to affect great uncertainty regarding the labor comparison to Central and South how buyers will be purchasing force. You need a lot of pickers to go American countries. Brazil has been coffee? out into the fields—often in groups able to widely implement certain These are 5 actions I would consider to collect coffee. There’s an issue of workarounds. For example, if a bus best practices: how to properly transport workers normally carries 30 workers, it now 1) Have at least 3 weeks’ worth and then how to properly house only carries 10, and after every drop- of coffee on site. At least. To the them while keeping conditions safe off a team will go in and disinfect best of every roaster’s capabilities, of and sanitary. This alone is a huge the entire bus. None of this is free or course. Anything less, however, and challenge and not many are ready cheap, of course. But I expect other you’re potentially opening yourself for it. In this case, the Great Lakes countries will soon adopt similar up to risk and disruption. Coffee region of Africa is ahead of the curve practices. warehouses haven’t closed in the given their experience combatting US and Europe, but they’re working contagions like Ebola. We’ve also seen the Colombian with shortened shifts and smaller government quickly respond to crews. Everything is slowing down A lot of workers are migrants. In the crisis, especially as the harvest and we can’t rule out the possibility northern Peru, a majority of workers season begins in Southern Colombia. that warehouses will close. So, at the come in from Ecuador—but Peru’s City halls are providing farmers with very least, have three weeks’ worth borders are closed, so Ecuadorian health safety instructional materials of product on-hand, but ideally up workers cannot pass through. From to distribute to their workers and to three months, if possible. That’s a labor force accessibility standpoint, cleaning materials to thoroughly physically having coffee on-hand, not this is a major risk and everybody I’ve disinfect their farms. Farmers are just contracted. talked to has reinforced this point. also implementing a modified For the countries whose harvests are picking method that allows for social 2) Shift your expectations forward just started in April and May, access distancing while requiring far less by 2 months. To be clear, this is not to labor is critical. It’s something pickers. to say that, at this time, shipments we’re monitoring very closely will be two months late. To best because nobody should be getting At the same time, there are prepare in the event that delays do sick for the sake of picking coffee. producers who are telling me, “I have occur, however, we recommend Yet, at the same time, coffee doesn’t 25 pickers. They are very afraid. They acting as though this was the case. wait. It needs to be picked or it goes just simply do not want to pick even Doing so will expose gaps; the next to waste. If that happens, a different though we posted the guidelines.” So, step will be to work closely with sickness may grow—poverty, part of the challenge is to implement your import partner to fill those malnutrition, and greater inequality. the guidelines, and the other half is gaps either through spot purchases, reassuring people that the guidelines a realignment of your blends, etc. Have there been any strategies will be effective if they follow them But in order to be safe, we advise that countries have adopted to properly. But not everybody is going recalibrating expectations and

African Fine Coffees Review Magazine | July - September 2020 | Volume 10 | Issue 3 27 assuming coffees at source will be importing partner, make a smaller producer partners directly and ask late. This will help you maintain purchasing decision now, and plan them what they need and what you business continuity. to review together in the immediate can do to help. Many cooperatives future. It’s more work, but it allows for are on the frontlines right now 3) Over-communicate with your the ability to adjust. This will help to providing support to their wider importer and send a signal of avoid a purchasing freeze, while also communities. If you’re not already commitment to your source preventing you from overcommitting connected with your partners, work partners. Producers facing the most and carrying inventory. Constant and with your importer to get in touch. uncertainty are those about to begin consistent communication is key Many producers and producer their harvest and are wondering, during this time. cooperatives are also active on “Are people going to buy my coffee? social media where you can directly Will I be able to bring my coffee to 5) Find ways to support message them. market?” This is where relationship marginalized producers, if coffee, communication and supply you can. While the pandemic is Even if you can’t provide financial chain engagement is extremely impacting everyone, it’s also true support or buying commitments, valuable, now more than ever. As a that it’s affecting some groups you can send messages of solidarity. roaster, it’s crucial that you stay as significantly more than others; in In this unprecedented moment, we engaged as possible with both your the case of the coffee supply chain, can all feel isolated or overwhelmed. importing and producing partners. our producer partners and their Let’s show farmers who are the Together, we can figure out the families could be the ones hardest lifeblood of our industry that they are best strategies to carefully move hit. Most coffee farming families not alone! forward. For example, if you used to are starting out at a much lower buy two containers from a certain baseline. Many of them don’t have As the crisis continues to unfold, this village—commit, instead, to one, access to the same resources and is where transparent and integrated sooner rather than later. You’ll be support systems that we do in typical supply chains can really make an sending a signal to your producing “consuming” countries—resources impact. This is when it’s actionable. partners that says, “We are still here like preventative equipment, During a crisis is when we make it with you. We can’t commit to what government loans and grants, count. When crisis hits, our system we used to buy from you, but we’re adequate healthcare and affordable has to respond in the best way not giving up on you.” A complete food. Virtual classrooms aren’t an possible to all participants across the freeze of buying from source would option for the vast majority of board. only further compound labor issues producer children, and with ever and add to the sense of uncertainty. tighter curfews and lockdown Lastly, it’s worth remembering that So be responsible AND sensible, restrictions, going grocery shopping despite the social distancing, our but, to the extent that you can, send has become exponentially more sense of community as an industry a signal of commitment to your difficult. Remember, there’s is as strong as it’s ever been. Coffee source partners and stay in frequent no Amazon or Instacart in the roasters, by and large, have a very communication with your importers. coffeelands. strong connection with their Make your decisions gradually, step local communities and with their by step, but engage with origin and Of course, we know that many of consumers. Coffee is a ritual for give them the signal that things can us on the other side of the supply everyone. It doesn’t matter where move forward, carefully. chain are hurting as well—let’s not you get your coffee from; people’s minimize that at all. But for those connection to their coffee is very 4) Parcel out purchases and buy of us who are in a position to look strong. Consumers still want their incrementally. Just like producers, beyond our own circumstances, coffee and they still want to support green buyers are also facing we believe that we all have a their local businesses in any way uncertainty without a clear way to responsibility to do so. This is the they can. With everyone so stressed forecast purchases as coffee shops heart of our Relationship Coffee and worried, a break for coffee is one close and demand shifts to grocery Model. It’s during times like these of those few cherished moments and online sales. As you assess your that our producers must be able to that we all still need in our day, situation, the safest route would depend on us, just as we regularly even if that might involve making be to break up your purchases depend on them. Because our the coffee yourself. That sense of and buy in increments. Whereas producer partners are just that—our connection through coffee still exists, before you might buy all of your partners. so roasters will need to be adaptable Colombian needs in one go, now and creative to continue engaging make two or three sets of purchases Consider supporting NGOs active in their communities. People still want instead. Again, this is where over- the field like Food 4 Farmers, Heifer their coffee, so let’s make sure we communicating with your importer International, or Root Capital— continue to provide it. is important. Get in touch with your or, better yet, reach out to your

28 African Fine Coffees Review Magazine | July - September 2020 | Volume 10 | Issue 3 NEED FOR AFRICA TO GO VIRTUAL AFCA LAUNCHES ONLINE TRAININGS

INTRODUCTION TO COFFEE COURSE

HOSTED BY 3 TIME SA BARISTA CHAMPION SA AEROPRESS CHAMPION AND AFRICAN BARISTA CHAMPION WINSTON THOMAS

01-03 JULY | 08-10 JULY 22-24 JULY | 29-31 JULY

10:00 - 12:00 EAT

AFCA Online Webinars SCA Coffee Skills Program Workshop & Trainings Introduction to Coffee

Join the global coffee community in innovative The SCA Introduction to Coffee Course is and advanced online webinars, workshops & hosted online by Authorised SCA Trainer, trainings to discover the journey behind a cup Winston Thomas. The training will cover of coffee. Improve coffee and barista skills, theory on coffee knowledge and history, roasting courses, coffee markets and trading, processing and sensory skills, roasting, price risk strategic coffee sourcing and how to move your coffee business online. International brewing, coffee freshness, water quality, and accredited trainers are brought to your cleaning and maintenance. The virtual doorstep so you can meet the Introduction to Coffee Course awards you masterminds behind La Marzocco, brew a cup credits towards enrolling in the Barista of coffee with a Barista Champion, host Judy Skills Foundation and Intermediate Ganes in your office and enjoy the smell of Courses, for baristas aspiring to start a freshly roasted coffee in the comfort of your coffee career, train and compete. home. We bring the experts to you!!

Register: ttps://afca.coffee/programs/registration Register: https://afca.coffee/programs/registration Email: [email protected] Email: [email protected]

AFCA Member: USD175 AFCA Member: USD175 Non Member: USD200 Non Member: USD200

African Fine Coffees Review Magazine | July - September 2020 | Volume 10 | Issue 3 29 WEBSITE, BLOG SOCIAL MEDIA MANAGEMENT

DIGITISING YOUR COFFEE BUSINESS

Judy Ganes Consulting Move your Coffee Business Online Markets, Futures and Trading Modern Marketing & Management

Judy Ganes, world renowned soft The Online Marketing & Management commodities and futures analyst has Course is hosted by digital and more than 35 years working at Wall advertising specialist, Natalie Roos. Street for major brokerage houses and Awarded some of the top blog and the food and agricultural commodities. social media accounts in the world, The Judy Ganes Online Training offers she talks about modern marketing knowledge and expertise on coffee and branding across the digital scope markets, futures and trading from the to create engaging content, ground up to have more campaigns and expand the digital understanding on coffee market footprint of your coffee business. Get reports and make better buying in touch with global online trends, decisions. Learn about the New York increase your market linkages and C, the coffee price crisis, commodities business connections, learn about trading, risk management, futures and influencers and followers and hedging and identify the major practicce quality content writing to impacts on coffee as a commodity to uncover ‘How to Move your Coffee project coffee market trends and the Business Online’. market outlook ahead.

Register: https://afca.coffee/programs/registration Register: https://afca.coffee/programs/registration Email: [email protected] Email: [email protected]

AFCA Member: USD175 AFCA Member: USD175 Non Member: USD200 Non Member: USD200

30 African Fine Coffees Review Magazine | July - September 2020 | Volume 10 | Issue 3 AFCA Coffee Price Risk Management by Judy Ganes

Coffee Price Risk Management | 01-03 July 2020 by Judy Ganes Consulting

Judy Ganes, world renowned soft commodities and futures analyst has over 35 years of knowledge and expertise in the food and agricultural commodities with much of that time spent on Wall Street. Judy publishes exclusive world market reports and conducts international educational seminars on commodities trading, futures and hedging, options and price risk management. This training offers knowledge and understanding on coffee price volatility, identifying and minimising risks, calculating and monitoring risk positions and practical applications to implement price risk management in your coffee business.

Register: https://afca.coffee/programs/registration Email: trainings@africanÞnecoffees.org

AFCA Member: USD175 / Non Member: USD200

African Fine Coffees Review Magazine | July - September 2020 | Volume 10 | Issue 3 31 19TH AFRICAN FINE COFFEES CONFERENCE AND EXHIBITION

17TH - 19TH FEBRUARY 2021 The Millenium Hall, Addis Ababa, Ethiopia

THEME: “SPECIALTY COFFEE AT ORIGIN” COFFEE FIELD VISITS SUSTAINABILITY FORUM 14TH - 16TH FEBRUARY 2021 16TH FEBRUARY 2021

Event Hashtag: AFCA2021 www.afca.coffee/conference

32 African Fine Coffees Review Magazine | July - September 2020 | Volume 10 | Issue 3

TH 19 19TH AFRICAN AFRICAN FINE FINE COFFEE COFFEE CONFERENCE CONFERENCE & EXHIBITION & EXHIBITION “SPECIALTY COFFEE AT ORIGIN” “SPECIALTY COFFEE AT ORIGIN” Addis Ababa, Ethiopia Addis Ababa, Ethiopia

DEADLINE FOR SUBMISSION: 30th August 2020 DEADLINE FOR SUBMISSION: 30th August 2020 Conference Brief Addis Ababa will play host to the . The Conference Brief 19th African Fine Coffee Conference and Exhibition event will be held from Wednesday 17th to Friday 19th February 2021 at the Millennium Hall, AddisAddis Ababa Ababa, will Ethiopia. play host to the 19th African Fine Coffee Conference and Exhibition. The event will be held from Wednesday 17th to Friday 19th February 2021 at the Millennium Hall, Addis Ababa, Ethiopia. Call for Presentations The 19th African Fine Coffee Conference & Exhibition Presentation Committee calls for technical presentations on the main theme “Specialty Coffees at Origin” to be made during the CallConference. for Presentations The 19th African Fine Coffee Conference & Exhibition Presentation Committee calls for technical presentationsThis year AFCA on thewould main like theme to invite “Specialty all members Coffees to submit at Origin” their abstracts to be made in line during with the the Conference.theme. Key themes include: i. World Coffee Markets: Review of the Specialty Markets and exploring the This year AFCAspecialty would segments like to invite all members to submit their abstracts in line with the theme.ii. KeyInnovations themes include: and emerging technology in the Coffee Markets iii. Domestic Coffee consumptions i. World Coffee Markets: Review of the Specialty Markets and exploring the iv. Production and productivity at the Farm level v. specialtyClimate segmentsChange and Mitigation strategies ii. vi. InnovationsEmerging trends and emerging in the Coffee technology industry world in the-wide Coffee Markets iii. vii. DomesticEconomic Coffee viability consumptions models for coffee farming iv. Production and productivity at the Farm level However, while we are seeking a variety of topics, we would also like to inform presenters v. Climate Change and Mitigation strategies we have raised the standards for the selective process, with key emphasis on coffee vi. technicalEmerging presentations. trends Companyin the Coffee promotional industry presentations world-wide will not be accepted. vii. Economic viability models for coffee farming Presentations should be relevant, practical and offer solutions and information on emerging However,issues in while the Coffee we are Industry. seeking Country a variety specific of topics,presentations we would will be also accepted. like to inform presenters we havePlease raised submit athe brief standards (1) page summary for the /selective abstract of process, your preferred with key area emphasis of presenta ontion coffee by 30th technicalAugust presentations.2020 for evaluation Company by the Technical promotional Committee. presentations will not be accepted.

PresentationsYour abstract should must include be relevant, a signed copypractical of the submissionand offer solutionsguidelines below, and information to be considered on emerging valid. issues in the Coffee Industry. Country specific presentations will be accepted.

PleaseIMPORTANT submit a TObrief NOTE: (1) page summary / abstract of your preferred area of presentation by 30th August 2020 for evaluation by the Technical Committee.

Your abstract must include a signedAfrican Fine copy Coffees of theReview submission Magazine | July -guidelines September 2020 below, | Volume 10 to | Issue be 3considered33 valid.

IMPORTANT TO NOTE:

Flawless Events is established in 2008 in • Becoming specifically sought after by Ethiopia in recognition of the potential the Government of Ethiopia for high level and opportunities in the flourishing capital events; and of Africa, home to a growing number of • Developing a client base that includes international conventions, events and household brands like Coca Cola, IBM and forums. Flawless Events increasingly became Google, as well as front-runners in global recognized for its organizational excellence development such as Gates Foundation, among the international development, UNDP, GIZ, USAID and the World Bank. private and government sectors. • Advising the government on the strategy Flawless Events has excelled in offering to develop the MICE sector and make comprehensive event planning services, Ethiopia a highly competitive destination including logistics management, marketing for meetings and conferences. and communication, and production. Among the company’s achievements are: For over 12 years, we have been providing • Building a strong reputation among strategic advisory and logistics support, international clients to grow the company complete management and execution to a regional service provider; for private & public institutions that need events-related services. Our commitment to • Successfully executing numerous events excellence continues to set the standard for in various parts of Africa; the event planning industry in Ethiopia.

(Gedeb) which are ~200 ha and 30 ha cuppers at once. respectively. Both farms are located in the Southern part of Ethiopia, about 470 km At METAD, we strongly believe that and 439 km from Addis Ababa the capital hospitality is key in businesses and hence of Ethiopia, respectively. Both Guji and we aim at providing our buyers a positive About Us Gedeo Zones are known for producing experience which led to the construction METAD Agricultural Development plc high quality coffees. Currently, we are in of twenty-two roomed bungalows with is a family-owned business under the the process of acquiring additional 1,500 clean and flowing water where we host leadership of Aman Adinewe (in photo Ha farmland in Keffa, Sheka, Ilu Ababora mainly our coffee buyers, students and on the left) who doubles as the Founder (Bure) and Gojam. cuppers and also for eco-tourism. and Chief Executive Officer (CEO) and also a former Chief of Operations (COO) METAD is the first Private farm that Our Coffee at the Ethiopia Commodity Exchange managed to Organic certify not only its METAD produces its own specialty (ECX). The business has an executive farms and processing plants but it’s out- coffee grades 1 and 2 beans, as set forth team of Ethiopian natives - US citizens growers’ farms. The premium from the by the Specialty Coffee Association of who returned to their homeland with certifications helps us make the second America (SCAA). We also buy coffee from a deep desire to invest in and improve payments and share part of the proceeds nearby farmers through our out-growers coffee quality and marketing by actively with the community. program which enables our coffees to participating in the value-chain. The be traceable at three levels including; We have also provided over 600 team is in three generations with farmer association level (“Kebele”), farm thousand CBD resistant seedlings to the experience in growing and trading block level and at a lead farmer level. Out-growers for at no cost. coffee. We are gender sensitive with 70% This out-growers program has grown exponentially since its initiation in 2013 staff members being women. We are an in-country partner for with only 480 smallholders. Currently, Specialty Coffee Association of America At METAD, we grow and source some of METAD’s out-grower membership is over (SCA) and Coffee Quality Institute (CQI). the best coffees Ethiopia has to offer. We 7,500 at both locations (3,500 in Hambela We own and operate the First Privately do so in a manner that honors our family and 4,000 in Yirgacheffe (Gedeb). owned Coffee Quality Laboratories heritage, our respect for our buyers and METAD provides Pre- and Post- Certified by SCAA in Africa. Our our love for Ethiopia. With headquarters harvesting training twice a year to its largest and certified laboratory can in Addis Ababa, METAD) has farms farmers and pays premiums for the red accommodate 22 students and up to 40 in Hambela (Guji) and Yirgacheffe cherries during harvesting and a second

34 African Fine Coffees Review Magazine | July - September 2020 | Volume 10 | Issue 3 payments in August annually, based on the red cherries volume delivered during the harvest season by the ETHIOPIAN WOMEN farmers. IN COFFEE (EWIC) Coffee processing. METAD has installed state-of-the-art and modern processing facilities at both farm locations with eco-friendly Wet Mills (Penagos) in Alaka (5,000 kgs/hr) and Buku (2,500 kgs/hr) in Hambela and at the Halo Beriti site (10,000 kgs/hr) & Udeye site (2,500 kgs/ hr) in Yirgacheffe (Gedeb); Dry Mills and Drying Beds at the Alaka, Bishan Fugu, Buku and Benti Nenqa sites in Hambela and at the Halo Beriti and Udeye sites in Yirgacheffe (Gedeb). In total, we have over 1,500 drying beds, 20,000 kgs/hr wet mill capacity, 9,000 kgs/hr dry mill (huller) capacity at the farms. At About us with various capacity building efforts our new facility, we have a warehouse is the CORE of its existence. EWIC and coffee cleaning facility near Addis Ethiopia Women in Coffee (EWiC) has been successfully creating the Ababa, a warehouse capacity of 4,500 is a legally registered Sect-oral platform and enabling women in Sq. Mtr, Cleaning Machine (dry mill) Association since September 2016 coffee to contribute to the growth of from Cimbria; capacity 10,000 kgs/hr. with 22 founding members and has We process both washed and sun- the coffee sector in Ethiopia and to got its legal status with the vision the economy in general. dried coffees and we are open to of support and empower women process honey or any other type of in the coffee value chain, who are coffee upon request by the customers. EWiC is also registered as one of the coffee exporters, growers, processors, Chapter to the International Women Coffee types produced, processed traders, roasters (in local and export in Coffee Alliance (IWCA) in April and exported: market), coffee professionals & 2017, which is an organization that • Washed Organic Guji (Hambela) cuppers…/. Currently the seven connects individuals, communities, Grade 1 at Woreda district- i.e., board members along with one and organizations, empowering Hambela level, at Kebele Farmer Administrative Manager are serving women to lead the way to Association – i.e., Alaka] level, and at to bring more benefits and quality sustainable livelihoods, ultimately Lead Farmer – i.e. Genale level or at services to its over 45 members. advancing the global coffee industry. farm block level – i.e., Mulu. IWCA is a vibrant network of • Sun-dried Organic Guji (Hambela) EWiC has been running a number Grade 1 independent organizations, called of activities that benefit women in Chapters, in 24 countries, which • Washed Organic Yirgacheffe (Gedeb) the coffee value chain especially, Grade 1 (at Woreda [district- i.e., are united by the shared mission to conducting various trainings that Yirgacheffe-Gedeb] level, at Kebele empower women across the global could enable members and become [Farmer Association – i.e., Gotiti level coffee industry. or at Lead Farmer level – e.g., Zekios) competitive in local and global • Sun-dried Organic Yirgacheffe coffee markets. Since its inception, Since its establishment EWiC has (Gedeb) Grade 1 EWiC had been engaged in activities been working in collaboration and that increase visibility of its members in partnership with many National Community Impact and building their capacities. and International organizations METAD has adopted a school of more such as Ethiopian Coffee and than 400 students in Hambela. We Global competitiveness of women Tea Authority, Ministry of Trade, have provided school uniforms to entrepreneur’s faces major the students, purchased benches Ethiopian Commodity Exchange challenges and among those are; (ECX), Ministry of Agriculture, Feed and tables, and supplemented the lack of access to information, lack of teachers’ salaries in order to encourage the Future Ethiopia –Value Chain access to resources, lack of proper retention. METAD is currently working Activity, International Women in communication skills, financial and with several of our buyers to drill a well Coffee Alliance (IWCA), African Fine others. These problems are more for the school and the community. To Coffees Association (AFCA), Center find out more or participate, magnified in coffee industry since it for the Promotion of Imports from is the 2nd largest commodity traded Developing Countries (CBI), PSD HUB, Contact details globally. and International Trade Center (ITC), METAD Agricultural Development plc She Trades initiative, SCA and CQI BAWA Center, 3rd Floor (Gerji) Thus, EWiC’s vision to equip its towards the achievement of its goal P. O. Box 4695, Addis Ababa, Ethiopia members by way of reciprocity, reach www.metadplc.com ‘Empowering women in the coffee women small holder farmers value chain’.

African Fine Coffees Review Magazine | July - September 2020 | Volume 10 | Issue 3 35 AN ALTERNATIVE FOR COFFEE GROWERS NOW AND AT “NEW NORMAL” TIMES: DOMESTIC CONSUMPTION Carlos H. J. Brando - Partner, Pinhalense & Director, P&A

Plenty has been written lately about the impact of Covid-19 on coffee consumption trends. There seems to be consensus on two trends: consumers will seek lower cost coffees and the specialty coffee sector will be hurt the most. If this may be good news for producers of commercial coffees, it may be a problem for the growing number of growers focusing on the specialty coffee market.

hat traditionally happens that both Central in Brazil at times of low America and the Wcoffee prices may hint at Caribbean and Africa, an alternative for coffee growers at led by Promecafé both Covid-19 and the “new normal” and the Inter-African times expected afterwards. When Coffee Organization faced with a period of low coffee respectively, are prices that is expected to last, a few currently involved at an growers in the large coffee towns ICO-sponsored effort start to roast their coffees and to to start promoting sell them in the town itself if not in coffee consumption in surrounding towns too. The prices producing countries. that quality conscious growers may On the other hand, it obtain are not very different from is known that coffee what they would get from exporting consumption is strong their coffee as specialty. When prices in Ethiopia and is go up, most of these growers favor growing fast in coffee the easier alternative of going back producing countries Grower roasting his own coffee to supplying foreign markets even of Southeast Asia and though some remain and develop Asia itself. Therefore, there may be a the specialty market abroad. This their own brands. market for coffee growers to capture happens because they learn more in their own countries. about consumers’ preferences, the The question here is whether importance of quality consistence growers in many countries who An interesting side effect of the and other consumer and market will face a shrinking demand for approach proposed above, again features that make them improve specialty coffees will have a thriving bearing in mind the example of their production techniques not local domestic market in their what has happened in Brazil, is to say marketing ability. This will own countries as Brazilian growers that the effort by growers to sell be very positive when the market have had in the last two or three in their domestic market makes for specialty coffee returns to the decades. It is interesting news them better prepared to also supply previous scale or even goes beyond

36 African Fine Coffees Review Magazine | July - September 2020 | Volume 10 | Issue 3 it and importers, roasters and implementation of a small central coffee shops can then count on a mill that is equivalent to the size of a The advantage of better pool of suppliers in different micro-lot processing unit. Needless equipping themselves countries. to say that these small facilities to supply the local market can also for local coffee supply is Growers interested to tap the be used to process micro-lots for that growers who do it local market will have to equip the specialty coffee sector and will also be in a position themselves, which may not make also commercial coffees if that is sense if this will be a short-term demanded. to export directly and reply to the conditions created by with value added to the pandemic. However, one of the It may be argued that this article the specialty market, at trends expected in “new normal” assumes a short-term growth of times will be to buy local products coffee consumption in producing new normal times and and no one knows how long it will countries that is impossible to whatever comes after! take for the specialty coffee market obtain. First, as the title says, it to return to pre-Covid-19 levels. The is one alternative. Second, the advantage of equipping themselves entrance of growers into the One final comment is that a for local coffee supply is that growers market in their own geographical substantial part of this market to who do it will also be in a position to region may create a virtuous cycle be tapped is low income, which export directly and with value added of educating consumers and may curtail returns to growers. Even to the specialty market, at new increasing consumption in an area though the price of coffee sold in normal times and whatever comes that is usually beyond the scope the low-income market segment is after! of programs to promote coffee likely to be below average, returns to consumption, that tend to focus growers may still be larger than by The types of machines that on the larger urban areas. Third, selling green coffee for exports when growers need to process coffee growers learn about quality from the international prices are low. This is from cherry to green beans are the standpoint of consumers and are exactly why many Brazilian growers same irrespectively of their size. empowered to tailor their products who go into roasting abandon it What changes is the capacity of to market requirements. Fourth and when green coffee prices go up. The the machines and there should be last, growers may start in an informal ones that usually remain are those a minimum size or scale for this way, even with door-to-door sales, who started to develop a brand or to to be economically feasible. To be and eventually become formal actors specialize on a specific market. successful in this endeavor, small in a process that helps them tap growers have to get together to markets that are more difficult to reach coffee volumes that justify the reach.

Small dry mill for local market and micro lots Small wet mill for local market and micro lots

African Fine Coffees Review Magazine | July - September 2020 | Volume 10 | Issue 3 37 AFCA MEMBER PROFILES

WE FOCUS ON HIGH QUALITY GREEN BEAN COFFEE PRODUCTION

ABAHUZAMUGAMBI BA KAWA YA MARABA COOPERATIVE COFFEE BELT EAST AFRICA

About Us About us This cooperative started in 1999 with 70 coffee farmers and has Coffee Belt East Africa is a specialty coffee producers company now grown to 1,327 members. The farms of their cooperative based in East Africa. It was founded by Ephrem and James, with a members are located in mountains at altitudes of 1,500 to 2,000m. collective 35 years of experience in the coffee industry, spanning Abahuzamugambi Maraba has four coffee washing stations and one from planting and harvesting techniques, production processes, dry mill; one of its washing stations was the first such facility in all of cupping, grading, roasting, logistics, with a wealth of experience and Rwanda. The co-op’s coffees have competed in Cup of Excellence passion for what they do. and are known and consumed throughout the world, including in the UK, USA, Japan, and Australia. The cooperative is Fairtrade Coffee Belt East Africa is keen on delivering the best coffee produced certified and is in the process of becoming Rainforest Alliance in the community of farmers in which we not only work but are an certified. integral part of. We never stop asking ourselves how we could make it better. We have been introducing new technology and scientific Abahuzamugambi Ba Kawa cooperative was founded by 300 methods, using the Q processing system of CQI (Website), to refine small farmers after the 1994 war and genocide that devastated the at its best the coffee making process from farm to cup. Rwandan country and coffee industry. It is located in Maraba, one of the poorest districts of Rwanda. The members are subsistence Ephrem has got his Q-grader certificate in 2010 and has been a farmers who rely on the sale of their high-quality coffee for 70 cupping judge in national coffee competitions such as Cup of percent of their cash income to pay for basic necessities. This Excellence. Since 2019 he has got a Q-Processing level 2 certificate rapidly growing cooperative is working to make coffee farming a CQI Q_Processing Program viable occupation by accessing the specialty coffee market and Producers developing strong relationships with coffee roasters. We have been working at the farm-level supply chain for more than Abahuzamugambi (which means “those who have common goals”) two decades and built trust among the coffee farming communities produces an exemplary crop from 100 percent Bourbon cultivars, locally and regionally. We have shaped our entire supply chain (from highly noted for its natural sweet fruity flavor and rich body. Their farm to green beans) from the smallholders’ farmers to the importers coffee entered the specialty market as Rwanda Maraba Bourbon, and roasters we supply. When choosing to work with our network of proudly the “world’s first single origin Rwanda Coffee” and the producers, you will be expecting to work with East African coffees “world’s first Fair Trade product from Rwanda,” which was certified origins of the finest grade and unique cup taste. in 2002. Services offered

With help from the NGO Project Pearl, Abahuzamugambi opened Green Coffee Sales, Roasted coffee sales, Cupping and Grading, their own banking branch in 2003, which offers members a variety washing stations and dry mills processing management , Sourcing, of banking services and provides new employment opportunities in Exporting, Logistics, quality control, Roast and Blend profile the area. Their first washing station was constructed in 2002 and in consulting, Origin Tours. 2007 they completed their fourth–allowing cherries to be processed within hours of picking, helping maintain more of its original Contact details qualities. Other projects funded with Fair Trade premiums include Address: Munkaze Hills, Kayanza, Burundi training sessions for women, medical insurance for members and Telephone: +257 79 24 42 40 / +257 75 57 56 24 academic scholarships for members’ children. E-mail: [email protected]

Contact details Contact person: BIZIYAREMYE Theophile/ Phone: +250 788635763/ Mail: [email protected]

38 African Fine Coffees Review Magazine | July - September 2020 | Volume 10 | Issue 3 BUKONZO ORGANIC FARMERS COOPERATIVE UNION MT. RWENZORI COFFEE FARMERS’ COOPERATIVE UNION

About us About us Bukonzo Organic Farmers Cooperative Union (BOCU) was founded Mt. Rwenzori Coffee farmers’ cooperative union is a farmers’ in 2009. At BOCU, Quality is key. Our attitudes have changed towards organization registered with the registrar of cooperative in Uganda, our coffee. We are inspired to revive our reputation from the 1970s with registration number 10981/RCS. The union currently has for producing excellent quality coffee. It is now our main cash crop membership of 20 primary cooperative societies with 2,948 individual and it is helping us to pay school fees, medical expenses and build farmer members all together – 1697 men, 1,251 women and 972 our homes. youth members. The Organization is registered to operate in the 7 districts on and around Mt. Rwenzori including Kasese, Bunyangabu, We traditionally only produced Natural Arabica as there were no Kabarole, Rubirizi, Ntoroko, Bundibugyo and Kamwenge. central washing stations in our region. But over the last few years, we have invested in 36 micro-washing stations in our communities, The purpose of forming Mt. Rwenzori coffee farmers cooperative to fully-wash and process our coffee, and to realize its full potential. union was to establish farmer managed production and marketing And we have attended training sessions to become experts in system that will help coffee farmers gain what is worth their effort in coffee processing. the coffee value chain.

In terms of Adapting to climate change, we are proud to make Our Coffee is high quality green beans of Arabica coffee grown on sustainability the focus for all of our activities and there is an the Rwenzori Mountain an altitude of 1500 – 2300m above sea level. abundance of life and diversity to be found on our farms. We The fertile loamy soils with remarkable amounts of rainfall along the intercrop our coffee with bananas, beans, fruit trees, coco-yams, equator give unique coffee product with special taste and flavor. vanilla, passion fruit, and mango trees. We have innovation programs to support our farmers, including the ‘Boar goat Project’. A Boar goat In terms of quality attributes, our coffee has a wide flavor profile with is given to a farmer and the manure from it is added in our coffee flavor notes of Chocolate, Caramel, honey, fruity and nutty notes. fields as compost, leading to better soil fertility. In this way, it helps The cup from our product will have a medium body, a clean finish to boost coffee yields and to improve the soil. and a mild acidity all together giving a wonderful experience.

We are living with the effects of climate change on a daily basis. We 70% of our product is wet processed Arabica coffee and 30% is dry are noticing more erratic weather patterns, such as heavy storms processed. that cause soil erosion and even landslides. We have started taking measures to adapt to the challenges, building contour channels into The critical control quality points include Harvesting, Fermentation, the hillsides for moisture retention and to prevent erosion. Drying and storage. Services offered Harvesting And Processing 1. Pre-financing primary cooperatives enable them purchase coffee Harvesting is done by selective handpicking of only red-ripe cherries from farmers. which are then floated in water as a primary sorting criterion. The 2. Capacity building on coffee Good agronomic practices (GAP), floaters are skimmed off the surface and considered separately training Farmers on certification and paying for certification costs, whereas sinkers are subjected to a pulping process. After pulping supporting model farmers with Farm inputs like offering varmi the coffee is fermented for 18 hours then washed and spread on composting organic manure and seed to the farmers), Offering wire meshes for water to drip off, from wire mesh to the tarpaulin premiums to farmers, Offering market linkage to members. until it dries to the right moisture content. Supporting farmers to start micro station lending associations (MSL) and supporting the involvement of youth in Agriculture. The dry parchment is subjected to hulling process using a specialized 3. Training executive members in good governance skills like huller with pre cleaner and destoner combined. training on records management, roles of executive members and conducting meetings. Further processing involves sorting by hand done by a team of 4. Supporting farmers to improve on coffee quality through building women and men employed by the union. The sorted and cleaned coffee central micro stations. beans are stored centrally on pallets awaiting grading and gravity 5. Conducting exposure visits to other organizations for capacity tabling. building. Contact details Physical location and contacts Uganda Rwenzori Mountains, western Uganda +256 772 887 949 P.O Box 278 Kasese, Uganda [email protected] Tel: +256 (0) 781526613 https://mtrwenzoricoffeefarmers.org [email protected] [email protected]

African Fine Coffees Review Magazine | July - September 2020 | Volume 10 | Issue 3 39 GIC SONDASON COFFEE COOPERATIVE COOPADE COOPERATIVE-CA OF KIVU

Who we are About us The GIC SONDASON Coffee Cooperative was formed by Fobissie Founded in June 2014, Cooperative Paysanne de Développement/ Kamga. It is an organic farming cooperative whose members COOPADE Cooperative farms are Located in North Kivu, high in comprise mainly farmers from villages. GIC SONDASON operates the Kyondo Mountains along the National Virunga Park and Lake in rural villages where coffee, cocoa, ginger, fruits and vegetable Edward in the territories of Beni and Lubero, COOPADE COOP consist are grown. These crops are the main source of income for most of 4,159 producers (1276 women and 2883 men). The organization farmers. Other crops like bananas and yams are produced for home is assisted by agronomist, rural development professionals, an consumption and for the local market. GIC SONDASON currently attorney, an accountant, and a computer scientist. The washing has over 1300 members, 500 of which are organically certified by EU station is owned and operated by the COOP membership. organic program and Fair-trade program. Our mission: To combat unemployment and poverty. To promote The GIC SONDASON Coffee Cooperative is mainly concerned with a lasting peace in the region of Kivu and all its surroundings, one social, economic and environmental entrepreneurship. The goal community at a time. is not to provide aid but rather to provide an infrastructure that supports the production and marketing of organic crops. To achieve Our coffee is certified Organic. The variety is primarily Bourbon, but this, the Cooperative offers the farmers a 2-year fixed minimum some Marogogype and Cataui is present. Fully washed and dried on Agenda 21 price guarantee for their produce. This price is 40% raised beds. higher than that offered in the market. Today, the farmers get a fair In terms of infrastructure, the cooperative has 11 micro washing price for their produce and can rely on their farming activities as a stations where four of these washing stations are run by the women’s source of income. This has enabled them to provide for their families section and 14 additional micro washing stations are planned. and by practicing organic farming, they have improved their health and restored the integrity of the earth’s ecosystem. Contact details Democratic Republic of Congo The Cooperative’s ecological principles entails the practicing of ‘agro- Email address: [email protected] ecology’, that is, agriculture in harmony with the ecological cycles in which it is embedded. This means practicing agriculture without the use of pesticides, herbicides, chemical fertilizers or monocultures which reduce biodiversity. The harmony with the ecology not only ensures a high quality pure product but also maintains the reproductive ability of the ecosystem, ecological diversity and the maintenance of the habitat for other living creatures.

Our products include; Coffee, espresso, tea, groundnuts, beans, ginger, artwork, and dried fruits.

Contact details Cameroon TESTI TRADING PLC Email: [email protected] Website: www.gicsondason.com About us Testi Trading PLC is a family owned organic certified specialty coffee producer and exporter based in Ethiopia. Testi Coffee owns two farms, Independently owns and operates 10 washing stations in all coveted specialty coffee growing areas. We are certified by UTZ/RFA, NOP, EOS and JAS.

We are nearing completion of the first Specialty coffee only processing warehouse in Ethiopia. Testi warehouse will only process high grade specialty coffee with state of the art machine (CIMBRIA). Our mission with this warehouse is to set the standard for processing of specialty coffee.

Contact details Email : [email protected] Website: www.testicoffee.com

40 African Fine Coffees Review Magazine | July - September 2020 | Volume 10 | Issue 3

Open Letter to the US Coffee Industry on Racism

This letter serves as a call to action for industry leaders to come together and provide resources, tools, and funding to fight against racism

Dear US Coffee Professionals,

While many organizations are providing updates on how COVID-19 is having a profound impact on the 225 billion-dollar US coffee industry, the recent acts of racial injustice galvanizing the world have silenced us. Some have shown solidarity via social media, however that is not enough. Now is the time the industry needs to come together and take immediate action. Our credibility is at stake when asking coffee producers to create greater social and equitable programs when we in the US are silent on blatant injustices here at home.

The pandemic is providing us with new insights as we mourn our losses. Over the past several weeks, we’ve found ourselves facing a new normalcy, quarantined and tuned into the most disturbing and blatant acts of racism. Racism and police brutality towards Black Americans are our reality. We cannot wish it away; nor can we continue to avoid the necessary work required to build a more equitable and just society. We must use our power and resources for positive change. As industry leaders we have a responsibility not only to our global partners but also employees, partners, and consumers, all who are participants in building this industry.

As a Black woman, let me unequivocally say that racism is an every-day reality that destroys the lives of Black Americans while others opt to deny or look away. Your silence has consequences. Your silence and inaction enable systemic oppression that destroys Black communities. Now is not the time to ignore and deflect.

Ahmaud Arbery, Breonna Taylor, and George Floyd are among the most recent to join a long list of individuals who faced senseless and violent deaths, simply because of the color of their skin. We are clearly aware that coffee producers around the world rely heavily on us for economic stability and to be a vocal partner on social and equality issues.

I am proud of our industry’s efforts towards gender equality. NOW is our opportunity for building partnerships to combat racism. Black Americans and the world are in desperate need of change that requires your participation. I commit to helping build a coalition of industry stakeholders who will take concrete steps to move our industry and the nation forward. Please consider joining me. I encourage you to donate to local and national organizations who are on the front lines of fighting racism. Please be more aware of your actions and their unintended consequences. Together we will make a difference.

We are the ones bearing witness to wrongful tragedies as we sit quietly calculating our own risk in speaking up.

We are the ones who can be a force against racism.

Sincerely,

Phyllis Johnson President, BD Imports [email protected] www.bdimports.com

African Fine Coffees Review Magazine | July - September 2020 | Volume 10 | Issue 3 41 Elsewhere in the coffee-producing world, exporters like Christian WITH A DISRUPTED COFFEE Safie with Unitrade Coffee Trading Company in Guatemala are seeing some producers still in the midst of VALUE CHAIN, COLLABORATION IS harvest leaving coffees on the trees without known buyers. Beyond the lost income for this season, this NEEDED TO HELP SAVE SPECIALTY abandonment of cherries can lead to future challenges, like broca borer. Daily Coffee News Christian is seeing an uptick in delayed and cancelled contracts, As the initial panic over COVID-19 begins to subside and coffee which will ultimately push losses companies begin to look beyond their immediate, short-term back to producers who “are not only losing the coffee that they worked so concerns, specialty coffee sellers and buyers are beginning to take a hard to grow because it’s falling off deeper look at the disruptions that various value chain partners are the tree, but they’re not able to get experiencing, and what the medium-term effects might be. an income for whatever they already harvested.”

Nick Kirby from Enveritas, a nonprofit focused on data-driven solutions for long-standing obstacles to sustainability in specialty coffee, echoed these concerns. Enveritas recently surveyed producers in their networks to begin understanding the effects of COVID-19.

Nick highlighted that “the overarching concern [is about whether or not] buyers are still there” and whether farmers’ sunk investments in lot separation and Pickers don protective masks at Luiz Roberto Saldanha Rodrigues’ quality-oriented processing will yield farm in Brazil prepared for harvest during the COVID-19 pandemic. any return at all. Image courtesy of Fazenda California. Christian also spoke of the increased risk exporters are assuming to avoid everaging our work with data Rodrigues of Capricornio Coffees, a further delays amidst the quarantine. donors to the Specialty Coffee Brazilian exporting company. Once specialty coffee finally makes Transaction Guide, we brought Farmers in Brazil, faced with L its way through congested milling together a group of progressive ambiguities about whether they will processes, transportation restrictions coffee industry representatives to have a market for quality coffees, and port delays are causing hold ups. talk about harvest, the movement are thinking through the value “There are containers waiting at of coffee, preexisting inventory, and proposition of whether investing port, just sitting there and baking expected impacts on supply chain in expensive quality-yielding … maybe it will affect quality [but] relationships in the coming weeks, production and preparation practices then we don’t know [to] what months and years. will be worth it. extent,” Christian said, adding that at Unitrade, “we’ve seen some roasters Uncertainties Complicate Coffee “If we don’t have the buyers, we that are just waving off receiving Production and Exports could have a problem of having a pre-shipment samples and just Our conversation started on the huge crop, higher prices for labor in telling us to ship the coffee, as soon farm. In Brazil, where harvest is just order to make this harvest, and then as possible.” beginning, worries about health we can have a crisis on pricing … and safety, labor costs, and market [bringing] huge uncertainty in terms We hope that decisions like this to liquidity were all on the top of the of how we should manage this crop,” speed the shipment process do not mind of Luiz Roberto Saldanha Luiz said.

42 African Fine Coffees Review Magazine | July - September 2020 | Volume 10 | Issue 3 lead to the unnerving expectation explained that challenging herself roasters to be creative with the tools that the exporter assumes the risk and her peers to consider the myriad that all roasters have, including the of any quality-based rejections from disruptions faced by colleagues skill to blend coffees and the ability importers and roasters upon arrival. throughout the supply chain can be to shape consumer expectations. exceptionally difficult, but it is also a This kind of creativity will help to Navigating Changing Demand and necessary exercise in order to adapt accommodate shifting consumer Business Channels and move forward. demands in ways that benefit the Demand uncertainty is also entire value chain. overwhelming in consuming “Now is the time to put competition markets such as the United States. aside and really evaluate our Hope for an Evolving Industry of Jessica Brooks of Allegro Coffee and expectations for the way that we Shared Responsibility Geoff Watts of Intelligentsia Coffee want the specialty coffee industry While realizing that we are all joined the conversation to help us in particular to operate,” Meister scared and are all facing immense understand how roasters have been said, while advocating for stronger challenges, parts of our conversation innovating to keep up with shifting supplier-buyer relationships moving felt like this pandemic might also consumer demands while trying to forward. be a call to action. With the right keep their most trusted relationships collective mindset, the COVID-19 strong. “I know buyers are scared,” said Luiz, crisis could galvanize a market that but “we [exporters] are also scared; too often struggles to honestly Reflecting on Christian’s comments farmers are scared.” address the many inequities within it. about shipment quality concerns, Jessica described a new orientation Mutual empathy will lead to a better Our collective fear and anxiety related to how her team approaches collective understanding of the can inspire collaboration, lead to coffee quality. Rather than quibbling best paths forward. Throughout our dignified and mutually beneficial over the value of half a point on a call, there was a shared sentiment, importance of partners in the value pre-shipment sample to make sure stressed by Luiz and Christian, to chain and, most of all, deepen it exactly matches the specifications stand with buyers and clients and empathy and understanding for for its intended use, the roasting to develop solutions collectively the difficulties we all face in our team at Allegro Coffee has chosen to achieve a common goal of businesses, even in the best of times. to think creatively when allocating resiliency. This is one of the ways in preexisting contracts and inventory. which these challenging weeks and Our network at the Specialty Coffee These efforts mean they can honor months ahead might produce lasting Transaction Guide is made up of forward commitments critical to their improvements in specialty coffee progressive and innovative coffee supply partners. supply chains. industry stakeholders who embrace and welcome greater transparency “I think there’s a definite need for According to Geoff Geoff Watts and honesty in the value chain to collaboration and an openness of Intelligentsia Coffee, out of strengthen it. Their leadership and between buyers and our suppliers.” crisis often comes some of the willingness to share their own fears Said Jessica. best innovation, the most creative and talk about the challenges they thinking, the most willingness… to face at this time is inspiring and we Geoff echoed the sentiments of have to think your way out of it. hope others feel motivated to have increased flexibility in the allocation Rather than the forecasting rigidity critical and challenging conversations of coffees, noting that online sales at and zero-risk-tolerance typically in their own supply chains. Intelligentsia have been up as people held tight by roasting companies, have been drinking more coffee from our progressive peers aligned on a In order to emerge from this intact, home. desire for flexibility, empathy, and we will need to keep talking to one transparency to cultivate collective another about our experiences He encourages roasters to use this paths forward along which risks and and challenges and even fears. We time of rapid change to “contemplate rewards are more evenly shared. encourage you to do so within and examine with new eyes what it In this spirit, our export and import your own networks and to reach is we do and figure out how to do peers, Christian and Meister, are out to others with empathy and it better.” When Geoff says “better,” encouraging conversations with a collaborative spirit as we work he is looking for ways where we all clients that prioritize honoring together to come out of this crisis a consistently win as participants in the contracts and sharing risk in the stronger, more equitable specialty specialty coffee value chain. movement of coffee during this coffee industry. uncertain time. Collaboration and Transparency Throughout the Value Chain Meanwhile, Jessica and Geoff, on Ever Meister from Cafe Imports the roasting side, are encouraging

African Fine Coffees Review Magazine | July - September 2020 | Volume 10 | Issue 3 43 THE ‘NEW NORMAL’ FOR INTERNATIONALLY MINDED SMALL BUSINESSES: FOUR KEY POINTS FOR SMALL BUSINESSES TO SURVIVE THE COVID-19 CRISIS Anders Aeroe, Director, Division of Enterprises and Institutions, ITC

The COVID-19 pandemic has interrupted production, trade, Trade Organization finds a growing consumption and our lives at large in an unprecedented manner. number of export restrictions in The impact has been dreadful for millions of people across the globe. response to the COVID-19 crisis. Trade and development practitioners, academics and the public Better public-private partnership increasingly reflect on the recovery period and the implications approaches can identify and address for production, trade and socio-economic development. Four the constraints that normally impede aspects appear to be of particular importance for internationally rapid supply replenishments of minded micro, small and medium-sized enterprises (MSMEs) to essential products. Looking at the get ready for the ‘new normal’ and be on the forefront of generating bigger picture, there is often a resilience, inclusiveness, sustainability and growth in the future. disconnect between the vertical operations of supply chains, often across several borders, and the horizontal multilateral dialogues on regulatory frameworks and related topics in public-private dialogue.

Let us take for example the production of a car. The many parts that go into a car are typically produced and assembled in a range of countries. The parts going into a gearbox, for example, might be produced in different countries and assembled into a gearbox in a third country. The gearbox is then shipped to a fourth country where it is put into the car and mounted to the engine. The car is then shipped to a fifth country where it is sold. As production happens in many countries, they are governed 1. Enhance public-private of essential goods, particularly for by different national regulations dialogue for robustness and developing countries. However, informed by domestic private-public transparency in international trade-related practices in recent dialogues. Yet, they form part of one supply chains years have witnessed an increase in vertical supply chain. Consequently, trade-restrictive measures combined the vertical organization of the The current crisis proves that efficient with waning political support supply chains and the horizontally supply chains and reduced trade for an open world economy and held private-public dialogues do barriers are crucial for the supply multilateralism. Currently, the World not conform. Having frameworks for

44 African Fine Coffees Review Magazine | July - September 2020 | Volume 10 | Issue 3 private-public dialogues along the employees, women and youth are vertical supply chains would allow ... Better access to often in vulnerable job situations addressing matters along the chain information, addressing - and many operate in sectors in a more coherent matter. logistical issues and currently challenged by substantially other barriers, better reduced demand, such as tourism One solution to this could be having and hospitality, textile and garment, the operations of international access to finance, public retail etc. supply chains mirrored by an procurement, e-commerce, institutional structure, for example by tax abatement etc. are some Poor farming communities face a supply-chain councils with public- important elements to help triple challenge of climate change and private-sector participants from MSMEs face and survive the issues, often combined with those countries in which the various pandemic’s consequences. substantial price fluctuations and functions of the supply chains now with a deepened health crisis. happen. The concept of international While climate issues have all but supply-chain councils, promoted better access to finance, public disappeared from the headlines by Bernard Hoekman¹ among procurement, e-commerce, tax in the daily news, environmental others, appears very relevant in the abatement etc. are some important concerns will still be with us in a post current context with a need for rapid elements to help MSMEs face COVID-19 era. deployment of goods and for a long- and survive the pandemic’s term solution. consequences. Moving out of the COVID-19 crisis, these challenges indicate that we Supply-chain councils could lead to In addition, ‘stress testing’ the need fairer, more equitable and more better private-public dialogues on supportive ecosystems in which the sustainable outcomes to ensure a regulatory frameworks that would MSMEs operate might be a good prosperous, robust, inclusive and ensure robust operations and better idea. A stress or pressure test can green world. They also imply that transparency in value chains. This help identify the systems’ weaknesses a substantial share of economic implies embracing supply chains, not and help understand how to stimulus packages should be spent rejecting them - and acknowledging strengthen their robustness. Stress on sustainable solutions, and be pro- that trade and open markets are not and shock testing financial systems poor with a focus on labour-intensive a contradiction to building national in the aftermath of the 2008-09 activities and fast implementable resilience to shocks caused by virus financial crisis provided interesting initiatives. outbreaks or other external factors. and useful insights into making these systems more resilient. 4. Finding global solutions to 2. Strengthen the ecosystems in global problems which small businesses operate Within business ecosystems, the to protect them in the future institutions involved play a particular COVID-19 has reconfirmed our role. A key insight from the current interdependence as a global The COVID-19 pandemic has severely crisis is that capable and competent community and the need for global affected MSMEs across the world in institutions, underpinned by citizens’ dialogue to find global solutions to three fundamental ways: a collapse in trust in these institutions, make a global problems, whether these are supply, a collapse in demand and by huge difference for countries’ ability related to the next virus outbreak, confinement requirements. to address the crisis. This applies to environmental or social issues. business support organizations as In some OECD countries, well as other organizations at large. International dialogues and governments have provided financial multilateralism are important to support programmes to soften the 3. While trade is a powerful vehicle ensure recovery and resilience as blow from the crisis. Most developing for creating growth and societal we exit this crisis. Institutions that countries are not able to do so to the welfare, we need better trade facilitate this dialogue and establish detriment of their MSMEs and the outcomes in a post Covid-19 the related rules and guidelines that affected communities. world steer us as a global community, such as the United Nations, are critical The current situation points to a Women, youth and poor actors in this space. need for more robust ecosystems communities are hit hardest by the to support small businesses and impacts of COVID-19. MSMEs run http://www.intracen.org/covid19/blog/ their production, jobs, livelihoods by women or youth are on average The-new-normal-for-internationally- and societal welfare. Better less resourced and have less access minded-small-businesses/ access to information, addressing to markets, information and finance logistical issues and other barriers, than enterprises run by men. As

African Fine Coffees Review Magazine | July - September 2020 | Volume 10 | Issue 3 45 FOR COFFEE FARMERS, CLIMATE CHANGE IS NOTHING NEW BUT WILL 2020 BE THE TIPPING POINT FOR THE REST OF THE GLOBAL COFFEE INDUSTRY Coffee Global Report May 2020 issue.

and back in October 2019, illycaffé committed to carbon neutrality by 2033, its centennial anniversary.

How coffee adapts

Climate change has manifested across regions and industries in various ways and its impacts are being felt worldwide, especially in the agricultural sector. Meanwhile, agriculture itself is a significant contributor to climate change through direct and indirect Since the 2016 Paris Agreement our years in and a decade from greenhouse gas emissions. The first set into motion global the first benchmark, 2020 is coffee industry is not exempt from commitments from 195 Fshaping up to be a year of more either. significant pledges and change, countries to slow climate change including from the coffee industry. “Not only is climate change by decreasing greenhouse gas In January, the 2020 World Economic threatening the future suitability of emissions, companies and Forum in Davos, Switzerland, made growing regions with major shifts organisations around the world its focus once again on climate or entire loss, it is also amplifying have been making their own change. the challenges already facing the commitments to lessen their There, global asset management industry, from aging coffee trees respective carbon footprints. firm BlackRock announced plans to and pest and disease outbreaks to rebuild its multitrillion-dollar portfolio poor management practices and The agreement set an ambitious around climate change and the limited investment funding for goal of limiting the global McKinsey Global Institute released an implementing change,” reads the temperature increase to “well in-depth “Climate Risk & Response” Brewing up Climate Resilience in below” 2°C above pre-industrial report. Earlier that month, Microsoft the Coffee Sector report, produced levels by the end of the century. committed to removing more carbon in 2019 by a consortium of industry In working toward that longer- from the atmosphere than it emits by climate leaders. term target, the Agreement 2030, as well as removing its 45 years of historic carbon emissions by 2050. The report highlights five critical required countries to set climate issues: loss of suitable areas shorter-term commitments for From the coffee sector, for coffee production, increased 2030, and to become carbon announced its commitment to water stress, outbreak of pest neutral by 2050. become “resource positive” by 2030, and diseases, poor flowering and

46 African Fine Coffees Review Magazine | July - September 2020 | Volume 10 | Issue 3 cherry development, and growing unsuitable for coffee growing. to double down on climate action vulnerability of smallholder coffee Although estimates skew more in line with the Paris Agreement. At farmers. The common climate factors toward decreasing land suitability, the time of the initial goal setting behind most of these are increasing some areas that were previously in 2007, the United Nations Climate temperatures on average and unsuitable for coffee will eventually Change Conference in Bali was also variable, erratic weather. become available as the planet developing nationally appropriate warms. This factor may enable mitigation actions (NAMAs). Given “Weather is something farmers have relocation for larger producers, Costa Rica’s climate commitment always had to contend with and it but relocation otherwise remains and coffee’s role there, Costa has always been one of their biggest too expensive or unfeasible for the Rica launched the first NAMA for risks,” explains Hanna Neuschwander, average smallholder farmer. coffee – also making coffee the first Communications Director at World agriculture NAMA worldwide. Coffee Research (WCR). “It’s just a lot Concerning coffee plant varieties, more unpredictable now and the those that can withstand hotter, According to María Paz Lobo trajectory of it is changing in a way drier climates and pest and disease Zeledón, Project Manager in that is really difficult.” are essential in adapting coffee to traceability and environmental climate change. In its multi-location management at the Costa Rican In response, scientists have variety trial (MLVT), which launched Coffee Institute (ICAFE), NAMA Café attempted to create climate models in 2015, WCR is testing a number of has five areas of work, including to identify patterns and make useful varieties in diverse growing regions at the farm and mill levels; in forecasts. But as climate change around the world, including in hot, measurement, reporting and has made weather increasingly dry climate zones where a lot of verification; in promotion and unpredictable, historical weather and varieties haven’t been tested before, communication; and in financing. past observations are less indicative Neuschwander tells Global Coffee of future trends and, thus, of limited Report. One of WCR’s trial sites is in Through ICAFE, NAMA Café has use to guide decision making and Zambia, where the hottest month trained more than 8500 farmers adaptation measures. maximum last year was 34°C. in good agronomical practices specifically to reduce carbon “We have ongoing research projects Heat tolerance is of particular interest emissions, says Lobo. At the mill level, for this, but we don’t yet have to WCR because the biggest driver 62 of Costa Rica’s 272 coffee mills the more granular information in designating a region unsuitable have become low carbon and three that is important to guiding farm for coffee is actually heat, says are completely carbon neutral. management,” says Christian Bunn, Neuschwander, referencing research scientist at the International Center from Bunn and CIAT. “So, heat Aside from positive impacts on the for Tropical Agriculture (CIAT). tolerance will clearly be a breeding planet, one of the biggest outcomes “Because our climate models are not target for climate resilience, as well for producers under NAMA Café is at the level of accuracy that allows us as resilience to variability because that “they can eventually sell their to give specific recommendations for it has the most dramatic impact on coffee for a higher price because its certain management practices, we’re farmers.” low carbon or even carbon neutral,” not saying what farmers should do she tells GCR. “So as a country and [so much as we are trying to answer] How coffee mitigates a sector, our goal is to eventually the question of how we can increase produce 100 per cent low-carbon resilience and how we can [equip] While the urgency for adaptation is coffee.” farmers to make the decisions very real for coffee farmers, endless themselves.” experts and studies warn that global What’s more, Costa Rica now has a warming is currently outpacing plethora of lessons learned, insight, As much as Bunn stresses the efforts to curb it. This is where many and methodologies to share on a importance of data and analysis in organisations and companies have global scale, Lobo adds. “Although assessing adaptation measures, he stepped up to actively mitigate the NAMA Café has been entirely linked stresses the importance of good coffee industry’s contribution to to Costa Rican coffee, it should agricultural practices. Some more global warming, ultimately working eventually shift to be seen more as common adaptation measures toward the greater global goal of a global initiative as other countries include irrigation, mulching, pruning, carbon neutrality by 2050. start adopting their own coffee shade management, and terracing. NAMAs.” After initially setting an ambitious A more intensive measure that goal to become carbon neutral by Land degradation, deforestation, and has been explored is expanding 2021, its 200-year anniversary of fertiliser use are the main sources of or relocating farms out of lower- independence, Costa Rica decided carbon emissions from agriculture. altitude regions that are increasingly So natural mitigation measures

African Fine Coffees Review Magazine | July - September 2020 | Volume 10 | Issue 3 47 include proper land and soil Path toward progress reduce carbon emissions have an management, reducing deforestation economical component,” Lobo tells and implementing reforestation, Not unlike coffee farmers’ current GCR. “For example, a lot of the good and switching or reducing fertilisers. operating environment, one of agronomical mitigation practices also Another measure is reducing water the biggest constraints on climate mean diminishing costs at the farm use, largely in wet processing. Where change progress in the coffee level. It’s easier to sell an initiative possible, producers can switch to a industry is the significant lack of when the [stakeholder] can also see semi-wash process or even fully dry resources at the farm level, including the monetary benefit.” process. financing, infrastructure, tools, training, and other support. Although consumers are increasingly At the 2019 Ernesto Illy International conscious about their impact on the Coffee Awards in October, illycaffé While many producing countries environment, extending through to Chairman Andrea Illy announced have dedicated government their favourite brands and products, that the company was dedicated to institutions for coffee, the level of buy-in and participation at the “the mother of all causes: climate investment into climate research, consumer level is still lacking. change,” he said, highlighting carbon extension programs, farmer “Even though all [climate change] sequestration and soil enrichment. organisation, and other critical mitigation is important, in the training and support is often lacking, life cycle of coffee, farming and “Everything starts from the soil. according to the Climate Resilience processing isn’t the biggest Besides being where plants are report. impact,” says Lobo. “The greatest rooted, the soil is the second-largest environmental impact is at the carbon sink after oceans, with a “The countries that are succeeding consumer level.” She stresses that capacity of three times as much as on a meta scale are the ones that both adaptation and mitigation the atmosphere.” In March, illycaffé have coordinated institutional efforts need more support from adopted Benefit Corporation status support across all of these domains,” consumers and consuming countries. for its commitments to sustainable adds Neuschwander. “They’ve and integrated agriculture, energy figured out a way to [provide] According to the WWF and Quantis efficiency and reduction of higher access to training, credit for assessment, Starbucks generated emissions, as well as quality of life for farmers to renovate their farms, and 868 kilotonnes of coffee cups and stakeholders. investments in the sector in their other waste in 2018. But when the countries.” company tried to convert one- While illycaffé is pushing a bigger quarter of its customers to reusable “virtuous agriculture” movement as The other hurdle is buy-in and cups between 2008 and 2015, part of its goal of carbon neutrality subsequent participation all along the effort fell flat, indicating that by 2033, Starbucks seems to be the supply chain. Illy believes that the industry just wasn’t ready for focused on the later stages of the success in his company’s goal is widespread consumer uptake. coffee value chain in its commitment only possible if there is strong to be “resource positive” by 2030. engagement from the grower But in light of the big signals from communities and other partners. big business so far this year, perhaps In a public letter in January, CEO “Growers need to believe and 2020 is the tipping point for climate Kevin Johnson promised formalized understand to appreciate the action among coffee consumers, too. goals and action plans in 2021, advantage of this virtuous agriculture the company’s 50th anniversary. revolution, as well as the capacity “Today, more than ever, the world For now, Starbucks has set five to implement the practices,” he needs leadership in environmental preliminary benchmarks based explained in October. “And we sustainability,” said Johnson. “We on comprehensive footprint need an open innovation system, agree with the consensus of scientific assessments by the World Wildlife with a network of innovators and experts who note that without Fund (WWF) and Quantis. Namely, information sharing. There is no way drastic action from everyone – this includes more environmentally we can implement a system like governments, companies, and all friendly menus, packaging, stores, virtuous agriculture by teaching top- of us as individuals – adapting to and overall operations, and investing down to growers what they must do.” the impact of climate change in the in conservation all along the supply future will be far more difficult and chain. Through these priorities, For NAMA Café, it helped to costlier, taking a toll on our supply Starbucks hopes to halve carbon highlight climate action’s positive chains, our business, and more emissions, water withdrawal, and impact on a producer’s bottom importantly, the lives of everyone waste sent to landfills by 2030. line. “A lot of the initiatives that involved.”

48 African Fine Coffees Review Magazine | July - September 2020 | Volume 10 | Issue 3 NEW TIMES CALL FOR NEW MEASURES: TAKING COFFEE EDUCATION ONLINE

At Ciro Coffee Academy, education is at the heart of everything we do. We have always prided ourselves on our varied array of training courses, covering every aspect of the specialty coffee industry – from modules on latte art and pouring the perfect shot of espresso to fully qualified local and international accredited qualifications.

ny passionate educator from anywhere in the world; a More about the Training Courses will tell you that there is platform where we can talk, befriend, no substitute for personal teach and learn, all of which are A The 3-day Coffee Shop Course (CSC) interaction, whether one-on-one important to people during these is recommended, before you embark or in small groups, especially when trying times. on the SCA Coffee Diploma journey. making coffee. Yet training as we’ve It will set you up to continue your always known it suddenly had to Yes, there were concerns to raise studies with greater ease. change drastically. – would people be willing to pay for online training; how will they The Specialty Coffee Association The current global pandemic has access the platform; will data be (SCA) – through the Ciro Coffee forced everyone to think, act and an issue and how do we overcome Academy – offers some of the most execute differently, and our industry any bandwidth problems – and the advanced and respected coffee is no exception. Sitting back and apprehension of creating a poor user training qualifications in the world. waiting for COVID-19 to pass has experience, without the practical Their main purpose is to improve simply not been an option, and demonstrations that we are so reliant coffee standards through their adaptation has been the order of the on, kept us up at night. Coffee Diploma System, constantly day. furthering knowledge and education. Fortunately, human beings are more Through the various modules – The challenge has been finding the resilient than we give them credit which cover the coffee journey from right way to interact and engage for, especially if the need to adjust bean to cup – you are allowed to with our customers through a digital to changing environments is driven choose the coffee education path platform, and without direct human by a love for coffee. Sign-ups for the that most suits your needs and interaction – the one thing that courses started picking up rapidly, interests. teachers and trainers thrive on! with some people simply keen to Enter the launch of Ciro Coffee learn a new skill during lockdown, The foundation courses, which Academy e-Learning - an online and others wanting to remain require no previous experience and training solution that allows relevant in our very competitive are open to all coffee enthusiasts, customers in all sectors of our environment. are just the beginning of your business to connect with us virtually journey and a great way to get

African Fine Coffees Review Magazine | July - September 2020 | Volume 10 | Issue 3 49 some initial insight into the basic array of training courses, covering skills of a coffee professional. Then, every aspect of the specialty We aim to take the lead in coffee as you are working through the coffee industry – from modules on education. The cycle, of course, is introductory modules, you will be latte art and pouring the perfect never complete without evaluating introduced to the balance of the shot of espresso to fully qualified our customers’ satisfaction, which is SCA coffee courses available, as the local and international accredited done by asking people to complete online training courses evolves from qualifications. 16-2.pdf a survey, giving us feedback on ways classroom to virtual. Theory is mostly we can improve. covered during the online training, The future is now and some courses do need to finish Our goal at Ciro Coffee Academy a practical session in class. This is While the decision to launch our remains, as always, to make training scheduled for a session post Covid e-learning hub was a necessity for more accessible, engaging and Lockdown. our industry – an industry in which informative for everyone who is professional skills development is passionate about our industry – with For more information on the SCA invaluable – it also signals a long- every barista course allowing learners and the other courses on offer, term move toward expanding online a chance to earn a certification. please download this brochure : programming to complement our http://www.ciro.co.za/wp-content/ physical campuses. Contact www.cirocoffeeboutique. uploads/2017/03/Ciro-Coffee- co.za | [email protected] Academy-and-SCAE-20 At Ciro Coffee The nationwide COVID-19 lockdown Academy, education is at the heart may have accelerated the launch of of everything we do. We have always our online platform but the concept prided ourselves on our varied has been many years in the making.

AFCA REVISED STRATEGIC PLAN 2020 - 2024 VISION: MISSION: Sustainable Coffee Business Delivering Transformational Coffee Services to Members

VALUES: SLOGAN: Integrity | Innovation | Commitment “Home of Africa’s Finest Coffees”

AFCA STRATEGIC OBJECTIVES: 1. Membership 5. Regional Coffee Market Development 2. Coffee Institute 6. Policy Advocacy 3. Coffee Conference & Expo 7. Institutional Strengthening 4. International Coffee Market Development 8. Gender & Youth

The revised AFCA strategy is focused on member value proposition delivery through Coffee Programs, Trainings and Competitions from the new AFCA Coffee Institute to all sectors of the coffee value chain of producers, Quality Graders, Logistics & Exporters, Roasters and Baristas.

50 African Fine Coffees Review Magazine | July - September 2020 | Volume 10 | Issue 3 AFRICAN

FINEREVIEW COFFEES MAGAZINE MAGAZINE ADVERTISING RATES

AFRICAN

FINEREVIEW COFFEES MAGAZINE October - December 2020 | Volume 10 | Issue 4

AFRICAN AFRICAN ETHIOPIA HOLDS 1ST CUP OF EXCELLENCE AUCTION FINEREVIEW COFFEES MAGAZINE FINEREVIEW COFFEES MAGAZINE April - June 2020 | Volume 10 | Issue 2 October - December 2020 | Volume 10 | Issue 4 COVID - 19: INNOVATION IN THE VOLATILE COFFEE PRICES: COFFEE VALUE CHAIN WITH COVID-19 AND MARKET EFFECTS AT FARM LEVEL THE BEYCO: THE WORLDWIDE FUNDAMENTALS COFFEE TRADING PROGRAM COFFEE MARKET OUTLOOK CLIMATE CHANGE: THE REAL UNDER THE THREAT OF THREAT TO ECONOMIC VIABILITY CORONAVIRUS OF COFFEE FARMING AFCA LAUNCHES ONLINE TRAININGS UNLOCKING THE POWER OF DATA COLLECTION DOMESTIC CONSUMPTION: AN ALTERNATIVE FOR COFFEE BAMBI ACTION HEAD CENTER FOR SUSTAINABLE LANDSSEMROC & WATERS AT CONSERVATION INTERNATIONAL GROWERS ANTHONY MURIITHI THE TIME IS NOW: COFFEE’S POTENTIAL INTERIM DIRECTOR GENERAL AGRICULTURE & FOOD AUTHORITY ABDULLAH BAGERSH GENERAL MANAGER, SA BAGERSH PLC TO TACKLE CLIMATE CHANGE BRANDING THE ORIGINS

African Fine Coffees Review Magazine | July - September 2020 | Volume 10 | Issue 3 1

Use our magazine to push your brand to the next level by reaching out to international and local audiences. MEMBER RATES NON – MEMBER RATE NO. POSITION (USD) (USD) 1. Back cover & center page 850 950 2. Front page strip 400 500 3. Inside front, Inside facing & inside back cover 750 850 4. Full pages (exclusive of center & cover pages) 700 800 5. Half page 400 450 6. Quarter page 220 250

For advertising inquiries, contact; [email protected] and [email protected]

African Fine Coffees Review Magazine | July - September 2020 | Volume 10 | Issue 3 51 52 African Fine Coffees Review Magazine | July - September 2020 | Volume 10 | Issue 3