For many years Brazil’s annual harvests, particularly of Arabica beans, have had a significant influence on international coffee prices. Brazil’s sometimes rocky economic situation does have an effect on coffee bean harvests – and the results show up in overall production for various bean types, in organic production trends, and in the country’s total export volumes.

The 2023-2024 coffee harvest season in Brazil was marked by a significant increase in production compared with the previous year. This surge was primarily driven by favourable weather conditions and improved farming practices. Brazil’s total coffee production in 2024 exceeded that of 2023 by a substantial margin.

Brazil is renowned for its high-quality Arabica beans, which are prized for both their flavour profile and their aroma. However, the country also produces Robusta beans, a lowercost alternative, whose reputation has been improving over the last few years. The relative proportions of Arabica and Robusta in Brazil’s harvests do fluctuate from year to year, influenced by factors such as market demand and economic incentives.

In general, Arabica beans continue to dominate Brazil’s coffee production, accounting for asignificantly larger share of the total harvest. However, Robusta production has also shown growth in recent years, driven by increasing demand for lower-priced coffee options.

Organic coffee production has been gaining traction in Brazil, as consumers increasingly seek products that are grown without the use of synthetic pesticides and fertilisers. While organic coffee still represents a relatively small portion of Brazil’s total coffee output, it has experienced steady growth in recent years.

Several factors have contributed to the expansion of organic coffee production in Brazil. These include increased consumer awareness of the benefits of organic products, government support for organic agriculture, and the development of sustainable farming practices.
Brazil’s coffee products reach markets around the world. The volume of coffee exports from Brazil varies depending on the changing dynamics of global demand, competition from other producing countries, and worldwide economic conditions.

Brazil’s coffee bean harvests play a vital role in the global coffee market. The country’s production of high-quality Arabica beans, coupled with its increasing focus on organic coffee, has solidified its position as a leading exporter. Brazil has maintained its strong position due to strong demand for its beans from countries such as the United States, Europe and Japan. However, the country has also faced competition from other coffee-producing nations, particularly Vietnam and Colombia.

Several factors are influencing Brazil’s coffee production, including these four:
Weather: Climate conditions, such as rainfall and temperature, can significantly impact coffee yields. Excessive rainfall or droughts can negatively affect crop health and productivity.
Pests and diseases: Coffee plants, particularly, Arabica, are susceptible to various pests and diseases, which can reduce yields and quality. Effective pest control measures are essential for maintaining healthy crops.
Soil quality: The quality of the soil in coffee-growing regions is crucial for plant health and productivity. Poor soil conditions can limit crop yields and affect bean quality.
Economic factors: Economic factors, such as the price of coffee beans and the cost of production, can influence the profitability of coffee farming. Low coffee prices or rising production costs can discourage farmers from investing in coffee cultivation.

While weather, pests, soil quality, and economic conditions can influence coffee production, Brazil’s ability to adapt to changing market dynamics and invest in sustainable farming practices positions it well for continued success in the years to come.

The Impact of Climate Change
Coffee production is fragile, and the Intergovernmental Panel on Climate Change (IPCC) reports maintain that climate change will reduce worldwide yields on average and decrease land suitable for growing coffee by 2050.

Climate change is affecting Brazil’s coffee industry in ways which may, in the end, become detrimental to everyone – from the growers all the way downstream to those who consume their coffee.

“A Systematic Review on the Impacts of Climate Change on Coffee Agrosystems” is the January 2023 research article published in the prestigious PLANTS science journal. The six co-authors of this study reviewed 148 records from literature considering the effects of climate change and climate variability on coffee production, covering countries mostly from three continents (America, Africa, and Asia).

The main effects of climate change have been hotter temperatures and lower moisture, causing plants and cherries to not only be unable to fully flourish and bloom, but die while developing. Since the majority of Brazil’s coffee plantations are below 6,000 feet, they are being impacted in tangible ways by hotter temperatures.

Coffee plants need very specific temperatures, soil, and environments to grow in and continually produce coffee each year. With the rising temperature and lack of rainfall and humidity, coffee plants aren’t growing and reproducing as they usually would. Climate change has caused typical weather patterns to be inconsistent, making harvest times and crop quality nearly impossible to control and predict. Though rainfall is lacking for some growing regions, it’s happening more often for others, resulting in more harvesting and picking cycles, which is great.
However, this means higher labour costs than usual, making it harder on farmers.

The hotter temperatures have caused plants to lose several growing days in their usual harvest cycle. This is because heat can disturb a plant’s metabolism, driving stress in the plant and possibly reducing its photosynthetic efficiency. While hotter regions have caused harm to some growing regions, it has opened up new areas where coffee can be grown. With the increased temperatures, coffee can now grow at higher altitudes. Twenty years ago, coffee couldn’t grow in altitudes above 6,000 feet, but now, some of the best coffees are coming from these regions. However, the majority of coffee plantations are below 6,000 feet and are being impacted by the hotter temperatures. The main effects of climate change have been hotter temperatures and lower moisture, preventing plants and cherries from fully flourishing and blooming, but also dying while developing.

Climate change is a reason for the rapid spread of coffee leaf rust, a parasite that feeds off the leaves of the Arabica plant, and steals their food, causing the leaves to spot until they fall off and the plant dies. In the 1800s, this disease killed off most of the world’s coffee supply, and in 2012, another horrific outbreak resulted in over three billion dollars in damages. Coffee leaf rust can be controlled and contained by applying fungicides during wet seasons. However, it is only at higher altitudes and cooler temperatures that the disease struggles to reproduce and spread. This is still a very real problem that farmers face.

The Brazilian National Supply Company (CONAB) is a national government agency that manages agricultural policies and supply and provides information on Brazil’s agricultural harvest. In September of 2024, Conab lowered its forecast for 2024 Brazil’s coffee production: 54.79 million bags from 58.81 million as it forecast in May, due to the dry weather and extreme heat the crop experienced during its development phase.

This would put production down 0.5 percent from last year. Arabica production was lowered to 39.59 million bags from the previous forecast of 42.11 million. Conab’s forecast is up 1.7 percent from 2023 due to increased planted area. Yields were lowered, despite this being an ‘on year’ in the country’s biennial cycle.

Robusta production was forecast previously at 15.2 million bags, down from 16.71 million which had been the estimate in May and down six percent from a year ago. Brazil’s weather
conditions are not expected, but there could be a gradual increase in the number and frequency of showers as humidity starts to build for the rainy season. Greater rainfall is possible in the last days of September or early October. Until then, most
of the rain will remain too light to induce any flowering. ICE Arabica stocks are down to 837,656 bags, their lowest level since 4 September. The amount pending review is down to 6,081 bags, which is the lowest in more than six months.

UN FAO economist Fabio Palmeri shared his views about Brazil’s challenges and opportunities, “After negatively affecting the 2024 coffee output, prolonged dry weather conditions are raising concerns over the potential impact on the 2025 crop. In the first nine months of 2024, Brazil exported two million tonnes of coffee, 40 percent more than in the corresponding period last year, with export earnings reaching a record high of USD $8.5 billion, amid strong international demand. Arabica coffee remained the most exported variety. However, exports of Robusta and Conilon coffee surged in 2024, with shipments increasing by 170 percent compared to 2023, amid lower availabilities from Vietnam.”

Palmeri made a special note of the fact that coffee exports increased despite persistent logistics bottlenecks, including limited space at Brazilian ports coupled with greater demand for shipping containers.

Well Positioned for Continued Growth

In tabulating Brazil’s national coffee consumption data for the period from November 2022 to October 2023, the Brazilian Association of the Coffee Industry (ABIC) found that there had been an increase of 1.64 percent as compared to November 2021 to October 2022. This volume represents 39.4 percent of the 2023 harvest, which was 55.07 million bags, according to Conab. In the period from November 2021 to October 2022, the volume consumed inside Brazil represented 41.9 percent of the harvest, which was 50.9 million bags.

As the world shifts to low-carbon economic sectors and markets, Brazil’s rich ecosystems can enable it to discover some lasting growth opportunities created by that shift. Threequarters of Brazil’s greenhouse gas emissions result from land-use change and agriculture. This implies that Brazil can and should make it a greater priority to halt spreading deforestation while transitioning towards low-carbon agriculture.

The scientific consensus is clear: Brazil’s rainforest in the Amazon is close to a tipping point, beyond which it cannot generate enough rainfall to sustain the national ecosystem. This is the power that fuelled Brazil’s growth: the agriculture, hydropower, water supply, industries. That same endangered ecosystem provides a full spectrum of environmental services to all of Latin America and the Caribbean as well as to the rest of the world.

Halting deforestation and scaling-up climatesmart land use can be done within Brazil’s agriculture sector while simultaneously increasing total productivity. It is entirely possible for Brazil to fully integrate agriculture, and other businesses, into the future green economy.

The post Brazil: Progress with Increased Coffee Production and Improved Sustainability appeared first on Tea & Coffee Trade Journal.

To preserve quality, local and national tasting competitions are carried out regularly, and the list of the year’s ten cups ranking on top is published every year. These famous teas called ming cha are exclusive and very expensive, they are highly appreciated by the home market and the over-seas Chinese diaspora, and are making strides in attracting Western tea fans. There are premium cups from both the oolong tea and the white tea categories that appear on the ‘ming cha’ list every year, without exception.

It’s noteworthy that today, in China, there are also oolong and white teas that are grown in non traditional areas, mostly newly developed cultivars, which do not have an origin territory appellation and are therefore considerably cheaper and more accessible for non-Chinese customers. It should also be noted that the manufacturing skills and some of the more recent plant varietals have been introduced outside China, namely in Vietnam, Indonesia, India, and also in some East African countries, among others, where certain tea gardens have begun producing some oolong and white teas.

The vicinity between China and Taiwan, with many tea farmers having crossed the Taiwan strait in the 18th and 19th centuries, taking their tea bushes with them on their boats, and since then developed a thriving and extremely premium high mountain and coastal oolong tea production. Based on their continental China heritage and also newly developed cross bred varietals by the intensely active Taiwanese Tea and Beverage Research Station (TTBRS) in Nantou County, these exclusive Oolong tea cups are rivalling fully with those of China’s Fujian province.

3 Taiwan A li shan high mountain oolong tea. Credit: Barbara Dufrêne

The Complex Oolong Tea Category

All tea experts and tea lovers agree that this tea family is extremely complex, because of the incredible number of cultivars, each with unique flavour characteristics, a statement fully supported by French veteran tea experts, Katrin Rougeventre and Vivien Messavant, aka Zhong Yun Jing. The various manufacturing processes are often still carried out by family tea masters applying the wisdom of many generations. All this input generates an unbelievable amount of leaf shapes cup colours and, most importantly, endless shades of fragrance and aromas, ranging from warm and comforting to mineral and
metallic, offering many different flowery, fruity, spicy and woody notes.

This tea category was reintroduced to the Western markets at the beginning of the millennium and was so different from the well-established green and black teas, with its semi oxidised leaf, that they had to be named first.
Some called them ‘blue-green’, or qing cha and finally the denomination ‘oolong or wulong’, meaning ‘black dragon’ spread and was commonly adopted, with reference to the black and twisted leaf of the deeply oxidised Fujian rock teas. The many different bush varietals harvested in continental China and in Taiwan are genuine to the local lands, to which research has added on more through cross-breeding.

These many cultivars and varietals are grown in several oolong territories, all with their specific origin appellation, namely in Fujian and Guangdong province and in Taiwan’s Central Mountain range and coastal plains.

Additional quality criteria add on more specificity, such as the premium plucking time and picking way and the manufacturing process, with either ball shape rolled or twisted leaf and either low, medium or high oxidation.

Oolong teas can be stored and the aged teas of 20 to 25 years will then be basket toasted again to
bring out their wide range of delicious fragrance and taste notes. Because oolong teas require so much input and have such an intense richness of flavour notes, their brewing has been made into a
ceremonious ritual called gongfu cha, translated into “take your time to brew this state of the art cup” with a set of pots, cups, trays and other tools to serve the outstanding cups.

The best known and sought after heritage oolong teas from China are the low oxidised Tie Guan Yin from Anxi, South Fujian. The premium harvest is picked during the first half of October, whilst for all other oolongs the spring picks are the best – the leaves are tightly rolled into blue greenish pearls that infuse with intense flowery fragrance with notes of lilac and osmanthus. The deeply oxidised Wuyi Shan Rock teas are from Northern Fujian, with Da Hong Pao, Rou Gui, Shui Xian and others offering intensely fragrant cups with fruity and roasted notes with hints of caramel, brown sugar, cinnamon. The medium
oxidised Feng Huang Dancong from Guangdong’s Phenix Mountains, with intensely fragrant cups
offering notes of honey, orchids, gardenia, osmanthus, ginger flower, and magnolia, have big leaves and are harvested from specific single tea trees, very dear and rare cups indeed. According to Chinese statistics, oolong teas represent over 12 percent of the global production, which had a volume of around 382,000metric tonnes (mt ) in 2022.

The most famous oolong teas from Taiwan, initially brought over from Fujian but were then cross-bred and with local processing ways, fall into two main categories: the green or jade oolongs and the dark oolongs. The green or jade oolongs ,which are the low oxidised types such as the Milky Oolong or Nai Xiang Xin Juan, are highly appreciated for their creamy, buttery flavour, the Dong Ding Oolongs grown near Taipei, and the high mountain teas from Central Taiwan’s Nantou Province, namely from Ali Shan and Li Shan with their exclusive and costly frost teas that are picked bet ween November and January,
which are then delivered – in small parcels – to awaiting list of avid tea lovers. The dark oolongs, namely the high oxidised Dongfang Meiren or Oriental Beauty, are grown near Taipei.

According to International Tea Committee data, Taiwan’s 2022 total tea out put amounted to 14,000mt , with a share for oolong teas that were estimated to stand at around 75 percent and which are currently intensely promoted on international level with significant support from the government.

White Teas: A ‘Newer’ Category

Originating from China’s Fujian province, where the Da Bai and Bai Hao tea bush varietals grow as a local land race, t hes e elegant whit e buds and leaves were relaunched in the Western markets in the early 2000s . Their unbruised immaculate leaves, their reputation for high anti-oxidant effects, and the easy ways of brewing them without any fuss immediately fascinated consumers who jumped at the cup and wanted to learn more about it . This fascination has given rise to more authenticity controls because other producing countries did invest to master the manufacturing process, without necessarily being able to produce comparable cup quality.

As China wanted to protect these exclusive teas, which represent only about one percent of its tea production volume, an ISO Technical Report developed the basic definition and processing requirements in 2013. There are two main white tea terroirs in Fujian, around Fuding City and around Zhenghe City, both mountainous areas , which have started to intensely promote the white teas in recent years and to extend the cultivation surf ace. During the first International White Tea Conference that was convened in Fuding in December 2023,many Chinese tea experts presented their findings concerning tea research, tea and health, export facilities, protected geographical indication rules and more, all geared to the key target : how to enhance foreign markets’ awareness about the goodness of white teas and to make them keen to buy more.

Much clarification was provided about the cultivars, their characteristics and the three main quality grades:
• Early Spring: bud only harvest, called Yin Zhen (Silver Needle 4);
• Late Spring: more mature, one bud and two or three leaves, the still whitish Bai Mudan (White Peony);
• Summer Harvest: no more white down on the leaf, and no more buds, traded as Gung Mei and Shou Mei (Tribute and Longevity Eyebrow).

All grades are sought after in the home market, mainly for their reported health benefits and physiological effects, such as powerful antioxidant properties, antiviral and detoxifying effects, relief from fever, highly refreshing and relaxing during the hot tropical summer times.

Widely acknowledged in China, these reported health benefits come from the high polyphenol and theanine concentration in this rich plant material, which has undergone a soft processing that has not bruised the leaf and not broken up the cell walls, but allowed the leaves to wither for several days in the sun, thus also preserving their silvery downy coat, which makes up their elegant and unusual look.

These teas need a longer brewing time in order to extract all the flavours and juices – ten minutes
or more. They can be stored over years and their enzymes will allow the leaves to slowly continue
to mature, which is an additional bonus.

With their wide range of cups, from the premium origins to more accessible untraditional growing areas, consumers can discover these outstanding teas step by step, indulging in these gently boosting and truly soothing brews for everyday consumption and moments of sharing. Be it in or out-of-home, both oolong and white teas will provide highly pleasant moments of leisure and wellbeing, as well as offering the opportunity to become more knowledgeable about quality details, product botanicals, tea garden geographies and cultural tea brewing accessories.

The post Exploring China’s Prized Oolong and Lesser Known White Teas appeared first on Tea & Coffee Trade Journal.

Supported by the Uganda Coffee Development Authority (UCDA), a delegation of 12 Ugandan coffee roasters showcased standout brands such as Rubanga Coffee, Gorilla Highlands Coffee, and Volcafe Uganda.

Industry leaders celebrated the awards as a milestone for Uganda’s coffee quality improvements, though concerns were raised over proposed plans to merge UCDA with the agriculture ministry.

The Uganda Coffee Federation and other stakeholders praised UCDA’s role in positioning Ugandan coffee on the global stage and stressed the importance of maintaining quality and international participation.

Uganda’s coffee industry has achieved global recognition with an outstanding performance at the 10th International Competition for “Originally Roasted Coffees,” hosted by the Agency for the Valorisation of Agricultural Products (AVPA) in Paris. Backed by the Uganda Coffee Development Authority (UCDA), Team Uganda returned home with an impressive array of awards: three gold, one silver, three bronze, and eight gourmet medals, underscoring the nation’s commitment to premium-quality coffee production.

Represented by 12 skilled coffee roasters, Uganda’s delegation showcased the country’s exceptional quality and growing reputation in the international coffee market. Among the standout brands were Rubanga Coffee, Gorilla Highlands Coffee, Volcafe Uganda, Sasa Coffee, and Great Lakes Coffee House Blend, each distinguishing themselves among competitors from around the globe.

Celebrations erupted on social media as the news spread, with industry supporters and coffee enthusiasts praising the accomplishments. “UCDA’s performance is extremely nice, congratulations!” tweeted one admirer, a sentiment echoed widely online.

Sam Mugabi, chairperson of the Ankole Coffee Farmers Union, hailed the recent awards as a “big milestone for Ugandan coffee.” He noted that, historically, Uganda struggled with quality perception but has made strides, largely due to UCDA’s regulatory efforts to uphold quality and integrity standards across the supply chain. “If this position can be attained globally, it means we are moving forward,” said Mugabi, attributing the improvement to UCDA’s efforts.

Martin Maraka, chief executive officer of the Uganda Coffee Federation, praised the achievement and underscored the importance of Uganda’s ongoing participation in international coffee competitions. “Well done on continuing to improve coffee quality and participating in these contests,” said Maraka. He emphasized that competing on the global stage raises Uganda’s profile and strengthens its coffee industry.

The AVPA, a non-governmental, non-profit organization, celebrates agricultural excellence by recognizing quality and distinctiveness in coffee and other agricultural products. This year’s honors for Uganda underscore the country’s ascent as a competitive force in the global coffee landscape.

The post Uganda dominates at Paris Coffee Awards, winning multiple golds in the international competition appeared first on Tea & Coffee Trade Journal.

The Colombian Milds and Other Milds decreased by 0.8% and 0.6%, reaching 277.10 and 276.82 US cents/lb, respectively, in October 2024. The Brazilian Naturals also depreciated, decreasing by 0.5% to 255.85 US cents/lb in October 2024. The Robustas contracted 8.3% to 221.93 US cents/lb. The New York and London ICE markets were drivers of the contraction, decreasing by 1.3% and 8.2% and reaching 250.62 and 207.11 US cents/lb, respectively.

On 2 October, a press release was published saying that the European Commission “strengthens support for EU Deforestation Regulation implementation and proposes extra 12 months of phasing-in time, responding to calls by global partners.” The news had a bearish impact on the I-CIP, with a market reaction driving the price to 245.29 US cents/lb by 7 October from 263.96 US cents/lb on 1 October. On 16 October, the Council agreed on its position on the targeted amendment of the EU Deforestation Regulation, postponing its date of application by 12 months. As a result, if agreed by the European Parliament, the obligations stemming from this regulation will be binding from 30 December 2025 for large operators and traders and from 30 June 2026 for micro- and small enterprises. The news of the agreement by the Council appears to have further added to the downward momentum of the I-CIP, which steadily fell throughout the remainder of the month, closing October at 242.25 US cents/lb. The Brazilian Real was an additional downward factor on the I-CIP, which reached a 3.5 year low against the dollar at 5.81 BRL to 1 USD on 31 October.

The Colombian Milds–Other Milds differential shrank from 0.75 to 0.28 US cents/lb between September and October 2024. The Colombian Milds–Brazilian Naturals differential contracted by 3.5% to 21.25 US cents/lb, whilst the Colombian Milds–Robustas differential expanded by 48.3% from September to October 2024, averaging 55.17 US cents/lb. Meanwhile, the Other Milds– Brazilian Naturals and Other Milds–Robustas differentials moved by -1.5% and 50.6% to 20.97 and 54.89 US cents/lb, respectively. The Brazilian Naturals–Robustas differential grew by 123.6%, averaging 33.92 US cents/lb in October 2024.

The arbitrage, as measured between the London and New York futures markets, expanded 54.2% to 43.50 US cents/lb in October 2024, marking its highest point in four months. This trend reversal could signal how the market is reacting to longer term higher Robusta prices, where the downward adjustment of the Robustas seems to be stronger in relation to the Arabicas, reflecting that the Robustas may have been overvalued. Furthermore, in September 2024, the Robustas grew month-on-month at a much faster rate than the Arabicas – 12.8% versus 6.2% – thereby permitting a more aggressive downward adjustment.

The intra-day volatility of the I-CIP expanded by 0.5 percentage points, averaging 11.0% in October 2024. The Colombian Milds’ volatility increased by 0.6 percentage points. The Other Milds’ volatility grew by 0.4 percentage points to 11.4% while the Brazilian Naturals followed the same uptrend, gaining 0.7 percentage points and averaging 12.1% in October 2024. The Robustas’ volatility contracted to 11.2% for the month of October, a 0.1 percentage point decrease. Lastly, New York’s volatility increased by 0.5 percentage points to 12.7% while the London futures market’s volatility also increased by 1.0 percentage points to 13.6%.

Exports by Coffee Groups – Green Beans
Global green bean exports in September 2024 totalled 9.69 million bags, as compared with 7.74 million bags in the same month of the previous year, up 25.2%. For coffee year 2023/24, exports of green beans were up 11.8% to 123.75 million bags from 110.72 million bags in coffee year 2022/23, an absolute increase of 13.02 million bags. This is the biggest annual increase on record, surpassing the previous highest of 9.27 million bags in coffee year 1995/96. The rate and the volume of increase in coffee year 2023/24 are largely a reflection of the base effect of two consecutive years of downturn (of 1.1% and 5.6%), with the world green bean exports falling from 118.66 million bags in coffee year 2020/21 to 110.72 million bags in coffee year 2022/23. As such, the double-digit increase in coffee year 2023/24 represents a recovery, and not necessarily an expansion, of the long-term trend. Contextualizing, world exports of green beans have been increasing at an average of 2.36 million bags every coffee year between coffee years 2010/11 and 2020/21, while there was an increase of only 1.69 million bags annually between coffee years 2020/21 and 2023/24. The actual exports level is below the potential level of 125.73 million bags.

Shipments of the Other Milds increased by 22.9% in September 2024 to 1.92 million bags from 1.56 million bags in the same period last year. For coffee year 2023/24, exports of the Other Milds were up 4.7% to 23.05 million bags from 22.02 million bags in coffee year 2022/23.

Green bean exports of the Brazilian Naturals increased in September 2024, jumping by 37.3% to 3.68 million bags. For coffee year 2023/24, exports of the Brazilian Naturals were up 22.6% to 41.89 million bags from 34.16 million bags in coffee year 2022/23.

Exports of the Colombian Milds increased by 22.3% to 0.99 million bags in September 2024 from 0.81 million bags in September 2023. For coffee year 2023/24, exports of the Colombian Milds were up 14.3% to 12.22 million bags from 10.69 million bags in coffee year 2022/23. For coffee year 2023/24, total green beans exports of Arabicas were up 15.47% to 77.17 million bags from 66.68 million bags in coffee year 2022/23.

Overall, for the Arabicas, the double-digit growth in coffee year 2023/24 should, like the total green bean exports, be viewed as recovery back onto the long-term trend. Like the total exports, exports of the Arabicas in coffee year 2023/24 followed two consecutive years of negative growth (3.1% and 10.4%) before recording the biggest absolute annual increase on record at 10.29 million bags. Contextualizing, exports of the Arabicas have been increasing at an average of 1.45 million bags every year between coffee years 2010/11 and 2020/21. The potential level of exports is 81.38 million bags.

Green bean exports of the Robustas were up 15.4% to 3.1 million bags in September 2024 from 3.59 million bags in September 2023. For coffee year 2023/24, exports of the Robustas were up 6.2% to 46.58 million bags from 43.84 million bags in coffee year 2022/23. It is the biggest annual exports on record and was largely driven by Brazil, which exported 9.02 million bags as compared with 2.84 million bags in coffee year 2022/23. The growth in Brazil’s exports more than compensated the large drop in exports from Vietnam, which shipped 23.19 million bags in coffee year 2023/24 as compared with 26.13 million bags in coffee year 2022/23. The origin, the world’s largest producer and exporter of Robustas, has been struggling with domestic supplies, with production falling below the potential levels due to adverse weather conditions.

For coffee year 2023/24, the Arabicas’ share of total green bean exports increased to 62.4% as compared with 60.4% in coffee year 2022/23.

Exports by Regions – All Forms of Coffee
In September 2024, South America’s exports of all forms of coffee increased by 30.8% to 6.2 million bags. For coffee year 2023/24, exports of the region were up 30.7% to 66.13 million bags from 50.59 million bags in coffee year 2022/23. The region’s two largest producers and exporters, Brazil and Colombia, saw their total exports jump by 34.3% and 13.7%, respectively, to 49.03 million bags and 11.91 million bags. For Brazil, these are the largest exports on record. Part of the impetus for Brazil’s growth was the gap in the market created by Vietnam in the Robustas market. Although it is not widely acknowledged, Brazil is the secondlargest Robustas producer in the world, accounting for 32.0% of global supply in coffee year 2022/23.

Exports of all forms of coffee from Africa increased by 14.3% to 1.37 million bags in September 2024 from 1.2 million bags in September 2023. For coffee year 2023/24, exports from the region were up 17.3% to 16.02 million bags from 13.66 million bags in coffee year 2022/23. Ethiopia was the main driver of the region’s double-digits growth, with the origin’s exports up 63.5% to 5.59 million bags in coffee year 2023/24 as compared with 3.42 million bags in coffee year 2022/23. These are the largest exports on record for the origin, and it is also the first time the 5.0 million bags ceiling has been breached. The underlying reason for Ethiopia’s double-digit growth was the resolution of internal contract disputes, which had led to export shipments being delayed in coffee year 2022/23. Once again, contextualization is necessary when analysing the exports of Ethiopia: exports fell in coffee year 2022/23 by 15.0% to 3.42 million bags from 4.02 million bags in coffee year 2021/22, the lowest level since 3.09 million bags in coffee year 2015/16. As a result, the 5.59 million bags should be viewed as a recovery.

In September 2024, exports of all forms of coffee from Mexico & Central America were up 18.1% to 0.9 million bags as compared with 0.76 million bags in September 2023. For coffee year 2023/24, exports of the region were down 4.1% to 14.51 million bags from 15.13 million bags in coffee year 2022/23. The downturn was primarily driven by Honduras and Nicaragua, which suffered from decreases of 12.1% and 16.5%, respectively. The former’s exports were hampered by its off-years in the biennial production cycle, while the latter’s exports were negatively affected by the bankruptcy of Mercon Coffee Group in December 2023, a coffee trader and the owner of CISA Exportadora, a company responsible for more than half of Nicaragua’s coffee exports. Exports from Guatemala and Mexico were the two main mitigating positive factors of the region, increasing by 8.6% and 8.9% to 3.28 million bags and 2.97 million bags, respectively.

Exports of all forms of coffee from Asia & Oceania increased by 19.6% to 2.29 million bags in September 2024 as compared with 1.91 million bags in September 2023. For coffee year 2023/24, exports of the region were down 6.7% to 40.62 million bags from 43.54 million bags in coffee year 2022/23. Vietnam, the largest producer and exporter in Asia & Oceania, was the main driving force behind the region’s annual downturn, with its exports decreasing by 11.7% to 24.96 million bags. This is the lowest exports level since 22.03 million bags in coffee year 2014/15. Tightness in domestic supply due to lower production from adverse weather conditions and loss of productive areas to other cash crops, and depletion of local stocks, was the main reason for the double-digit downturn. India was a positive mitigating factor within the region, recording a 10.0% increase in its exports to 6.98 million bags in coffee year 2023/24 as compared with 6.34 million bags in coffee year 2022/23.

Exports of Coffee by Forms
Total exports of soluble coffee increased by 24.3% in September 2024 to 1.02 million bags from 0.82 million bags in September 2023. For coffee year 2023/24, soluble coffee exports were up 11.6% to 12.82 million bags from 11.48 million bags in coffee year 2022/23.

Soluble coffee’s share in the total exports of all forms of coffee for the year to date was 9.3% in September 2024, the same for the same period a year ago. Brazil is the largest exporter of soluble coffee, having shipped 0.37 million bags in September 2024 and 3.89 million bags in coffee year 2023/24.

Exports of roasted beans were down 9.2% in September 2024 to 54,544 bags, as compared with 60,040 bags in September 2023. For coffee year 2023/24, roasted coffee exports were down 0.5% to 0.71 million bags from 0.713 million bags in coffee year 2022/23.

For the full report, visit icocoffee.org.

The post World green coffee exports grew 11.8% in CY 2023/24 appeared first on Tea & Coffee Trade Journal.

Why This Matters, and Why Now
The contemporary agri-food sector faces a profound challenge that threatens the socio-economic stability of smallholder farmers worldwide: the pervasive inability to secure a living income. This issue stems from multiple factors, including limited arable land, suboptimal agricultural productivity, and inequitable value distribution within supply chains. As global commodity prices fluctuate, smallholder farmers remain vulnerable, often unable to influence market trends or earn a fair share for their products.

Amid these challenges, the European Union’s Corporate Sustainability Due Diligence Directive (CSDDD) marks a critical juncture for international supply chains, mandating higher social responsibility standards for commodity buyers. This regulation offers a unique opportunity to create a level playing field, benefiting all producing countries equally. The white paper’s release is timely, aiming to harness this regulatory shift to drive significant, data-informed changes across global supply chains.

Introducing the White Paper
The Commodity Living Income Strategy is a data-first intervention aimed at achieving living incomes in commodity supply chains. It is founded on principles of fair value distribution and data-driven decision-making, advocating for a two-pronged intervention approach: first, assisting producers, organized producer groups, and their supply chain partners in understanding their cost-efficiencies and living income price gaps; second, it leverages this data to design holistic intervention strategies tailored to local sustainability, production, and quality needs.

This white paper introduces two key methodologies:
1. Living Income Price (LIP): The LIP calculates the price per unit of a commodity based on its actual production costs across various supply chain stages (farmgate, producer organizations or “cooperatives”, and Free on Board. This approach helps establish a minimum viable price floor, ensuring that producers are compensated fairly for their sustainable and efficient production efforts.
2. Cost-Yield Efficiency (CYE): This CYE categorizes producers’ efficiency by considering both their costs and yields. It provides a nuanced understanding of efficiency levels among farmers, identifying areas for improvement and forming the basis for tailored intervention strategies.

The strategy presented within this white paper encapsulates both methodologies, providing a structured approach to understand both productivity and efficiency aspects of pricing, and identify the necessary interventions to bridge living income gaps. It addresses the critical question: Where is this supply chain currently, and how far do we need to go to achieve sustainability? Moreover, it promotes data-driven, defensible decision-making involving both efficiency and pricing interventions, strategically co-created with supply chain stakeholders, and, most crucially, with farmers themselves.

“By leveraging real, verifiable data, and investing in both efficiency and pricing interventions, we can set a new standard for transparency and accountability in global supply chains,” said Antoinette Marie, director of Heifer Labs, a digital technology unit within Heifer International.

Commitment to Transparency and Open-Source
By making the parameters and tools publicly accessible and open-source, Heifer and Fairfood aim to inspire industry-wide change. This transparency is designed to foster a community of informed stakeholders, enhancing dialogue and collaboration across the supply chain. The Open-Source Toolkit previewed in the White Paper will provide practical resources for implementing LIP and CYE methodologies, driving sustainable practices, and ensuring that all stakeholders can contribute to and benefit from these innovations. “This is not just about compliance or corporate responsibility,” said Sander de Jong, managing director of Fairfood International. “It’s about recognizing the human side of supply chains and committing to a future where every farmer can live with dignity.”

Download the white paper here.

The post Heifer and Fairfood release “Commodity Living Income Strategy” white paper appeared first on Tea & Coffee Trade Journal.

The I-CIP averaged 258.90 US cents/lb in September, an 8.4% increase from August 2024. The I-CIP posted a median value of 264.57 US cents/lb and fluctuated between 241.20 and 272.70 US cents/lb. The September 2024 I-CIP is above the September 2023 I-CIP by 69.1%, with the 12-month rolling average at 201.71 US cents/lb.

The Colombian Milds and Other Milds increased by 5.9% and 6.5%, reaching 279.27 and 278.52 US cents/lb, respectively, in September 2024. The Brazilian Naturals also appreciated, increasing by 6.2% to 257.24 US cents/lb in September 2024. The Robustas outperformed all groups of coffee, expanding 12.8% to 242.08 US cents/lb. The New York and London ICE markets were drivers of growth, expanding by 6.0% and 13.8% and reaching 253.89 and 225.68 US cents/lb, respectively–the highest point since September 2011 for the Arabica futures, and the highest point since May 1977 for the Robusta futures (nominal prices).

Strong consumer demand continued to apply positive price pressure on the I-CIP as people returned to work in September following the northern hemisphere summer holidays. The rise in climate-related irregularities also contributed to upward pressure on prices via logistical disruptions – Typhoon Yagi not only claimed several lives, but damaged infrastructure and homes through extensive flooding and mudslides. There has been increased disruption to return flows of empty containers as key shipping routes remain susceptible to the effects of geo-political tensions. As attacks from insurgents continue to threaten commercial maritime routes in the Bab al-Mandab Strait, shipping lines continue to re-route their operations through the Cape of Good Hope. Also adding to logistical pressure was the news of a potential strike at the US East Coast ports, first heard over the second half of September. The strike ultimately went ahead on 1 October and ended on 3 October.

The Colombian Milds–Other Milds differential shrank from 2.33 to 0.75 US cents/lb between August and September 2024. The Colombian Milds–Brazilian Naturals differential expanded by 2.1% to 22.03 US cents/lb, whilst the Colombian Milds–Robustas differential declined by 24.2% from August to September 2024, averaging 37.20 US cents/lb. Meanwhile, the Other Milds– Brazilian Naturals and Other Milds–Robustas differentials moved by 10.6% and -22.0% to 21.28 and 36.45 US cents/lb, respectively. The Brazilian Naturals–Robustas differential retracted by 44.9%, averaging 15.17 US cents/lb in September 2024.

The arbitrage, as measured between the London and New York futures markets, contracted 31.8% to 28.21 US cents/lb in September 2024, marking its lowest point since March 2003. The intra-day volatility of the I-CIP retracted by 0.4 percentage points, averaging 10.5% in September 2024. The Colombian Milds’ volatility decreased by 0.1 percentage points. The Other Milds’ volatility grew by 0.2 percentage points to 11.0% whilst the Brazilian Naturals lost 0.1 percentage point, averaging 11.4% in September 2024. The Robustas’ volatility contracted to 11.3% for the month of September, a 0.8 percentage point decrease. Lastly, New York’s volatility increased by 0.1 percentage points, whilst the London futures market’s volatility decreased by 0.9 percentage points to 12.6%.

Exports by Coffee Groups – Green Beans
Global green bean exports in August 2024 totalled 9.91 million bags, as compared with 9.11 million bags in the same month of the previous year, up 8.8%. This is the tenth consecutive month of positive growth, resulting in the cumulative total for coffee year 2023/24 to August 2024 being up 10.5% at 113.81 million bags as compared with 102.99 million bags over the same period a year ago. The Robustas was the main group responsible for the overall strong growth seen in August 2024, accounting for 59.8% of the 0.8-million-bags net gain in total exports.

Exports of the Colombian Milds increased by 26.7% to 1.05 million bags in August 2024 from 0.83 million bags in August 2023. The latest jump in the exports was driven by Colombia, the group’s largest producer and exporter, with its August 2024 exports up 27.9% to 0.95 million bags as compared with 0.75 million bags in August 2023. The cumulative total for the origin is 10.06 million bags, up 16.1% versus the 8.66 million bags exported from October 2022 to August 2023. Exports of the Colombian Milds for the first 11 months of coffee year 2023/24 are up 13.6% at 11.22 million bags, as compared with 9.88 million bags in the first 11 months of coffee year 2022/23.

Shipments of the Other Milds increased by 5.6% in August 2024 to 1.99 million bags from 1.88 million bags in the same period last year. This is the fifth instance of positive growth since the beginning of coffee year 2023/24. The cumulative volume remained up at 2.2% in the first 11 months of said coffee year and is now at 20.91 million bags as compared with 20.46 million bags last coffee year. Ethiopia, Guatemala and Peru were the three main drivers of the region’s 5.6% growth in exports, with a combined net increase of 0.25 million bags, while Honduras continued to be the main driver of negative growth, with a net decrease of 0.14 million bags. Honduras is currently in the “off-year” of its biennial production cycle, and the cumulative total of the origin’s Other Milds to August 2024 is down 12.9% at 4.46 million bags from 5.12 million bags in the same period a year ago, negatively weighing on the overall export performance of the Other Milds.

Green bean exports of the Brazilian Naturals decreased in August 2024, falling by 0.2% to 3.036 million bags from 3.042 million bags in August 2023. The latest growth is the first negative growth rate in the past 11 months for the group. It mainly stems from the change in the dynamics of the group’s largest producer and exporter, Brazil. In August 2024, exports of Brazilian Naturals from Brazil fell by 6.2% following eight consecutive months of double-digit growth, which had averaged 30.1%. The sudden change in the direction of the growth rate of the group and origin is in large part due to a base effect. Exports from Brazil in August 2023 were an anomalous 2.62 million bags, the third-largest August exports in history, up 16.0% over August 2022. Coffee year 2023/24 was an “off-year” for Brazil, and as such the volume of exports in August 2023 was expected to be lower, with historic data suggesting that Brazil would export 2.24 million bags.

However, the knock-on effect of the frost in 2021 turned it into a good “off-year” for Brazil, resulting in a higher-than-expected volume of exports. Furthermore, in August 2024 Brazil faced significant challenges in exports logistics, with 86% of shipments subject to delays and changes in schedules as compared with 60% in August 2023 at the port of Santos, the largest port for coffee exports. The Brazilian Naturals saw only a shallow downturn in August, mainly due to the 64.0% increase in exports from Ethiopia, which had a net gain of 0.16 million bags. For the first 11 months of coffee year 2023/24, green bean exports of the Brazilian Naturals amounted to 38.22 million bags, up 21.4% from 31.49 million bags over the same period a year ago.

Green bean exports of the Robustas were up 14.3% to 3.84 million bags in August 2024 from 3.36 million bags in August 2023. As a result, the growth rate of the cumulative total accelerated, increasing to 5.6% in August 2024 from 4.8% in July 2024, with total shipment at 43.46 million bags as compared with 41.16 million bags in the first 11 months of coffee year 2022/23. The main drivers of August’s double-digit growth rate were Brazil, India and Indonesia, whose combined exports were up 36.2% at 1.66 million bags as compared with 1.22 million bags in August 2023. The three origins accounted for 92.1% of the net gain made by the Robustas in August 2024.

Exports by Regions – All Forms of Coffee
Exports of all forms of coffee from Asia & Oceania increased by 6.2% to 2.93 million bags in August 2024. This is the first positive growth rate in the past four months and it was mainly driven by Indonesia and India. The region’s second- and third-largest producers and exporters saw their respective exports increase by 26.3% and 31.3% to 0.89 million bags and 0.57 million bags as compared with 0.68 million bags and 0.45 million bags in August 2023.

Together the two origins accounted for 82.9% of the region’s 0.17-million-bag net rise. Vietnam, Asia & Oceania’s largest producer and exporter of coffee, saw its exports fall by 12.1% in August 2024 to 1.3 million bags from 1.44 million bags. The latest downturn marked the ninth in total and seventh consecutive decline for Vietnam in coffee year 2023/24, and as a result the country’s cumulative exports up to August 2024 fell to 24.09 million bags from 27.4 million bags between October 2022 and August 2023, down 12.1%. The latest decrease continues to be due to tightness in domestic supply, which is waiting for new supply from the 2024/25 harvest, the start of which is still one month away.

Exports of all forms of coffee from Africa increased by 29.5% to 1.75 million bags in August 2024 from 1.35 million bags in August 2023. As a result, the cumulative total for the first 11 months of coffee year 2023/24 is 14.62 million bags, up 17.3% compared with the 12.46 million bags shipped in coffee year 2022/23. Ethiopia was the main driving force behind the region’s growth in August 2024, with the origin’s exports having increased by 62.4% to 0.6 million bags as compared with 0.37 million bags in August 2023. Ethiopia had accounted for 57.5% of Africa’s August 2024 net rise. Côte d’Ivoire and Uganda were secondary positive drivers of Africa’s double digit growth in August, combining to account for 43.2% of the 0.4-million-bag net rise of the region, increasing by 48.5% and 4.5%, respectively.

In August 2024, South America’s exports of all forms of coffee increased by 8.6% to 5.41 million bags. As a result, the cumulative total of 59.84 million bags for the first 11 months of coffee year 2023/24 is up 30.5% as compared to the 45.85 million bags shipped in coffee year 2022/23. Colombia was the source of the strong positive growth of the region, which saw its exports increase by 13.4% in August 2024 to 1.04 million bags from 0.83 million bags in August 2023. As a result, the origin accounted for 52.9% of South America’s 0.43-million-bag net rise in August 2024. Much of the gains made by Colombia in August were down to the base effect, reflecting the historically low exports in August 2023, when 0.83 million bags were shipped. The average exports in August from 2017 to 2021 were 38.0% higher, at 1.14 million bags. Peru accounted for 31.8% of the net rise of the region, with August 2024 exports at 0.55 million bags, up 30.0%. This brings the cumulative total for Peru for the first 11 months of coffee year 2023/24 to 3.83 million bags from 2.37 million bags in the same period a year ago. Exports from Peru are enjoying the benefits of its on-years in the biennial production cycle.

In August 2024, exports of all forms of coffee from Mexico & Central America were down 28.7% to 0.83 million bags, as compared with 1.16 million in August 2023. As a result, cumulative total exports remain down at −10.3%, having decreased to 12.88 million bags, as compared with 14.36 million bags for the same period a year ago (October 2022 to August 2023). Honduras was, once again, the main negative driver of the region’s exports performance in August 2024. Exports from Honduras continue to be hampered by its off-years in the biennial production cycle, said exports being down 12.9% to 0.25 million bags in August 2024 from 0.39 million bags in August 2023.

Exports of Coffee by Forms
Total exports of soluble coffee increased by 13.3% in August 2024 to 1.22 million bags from 1.08 million bags in August 2023. In the first 11 months of coffee year 2023/24, a total of 11.79 million bags of soluble coffee was exported, representing an increase of 10.6% from the 10.66 million bags exported in the same period during the previous coffee year. Soluble coffee’s share in the total exports of all forms of coffee for the year to date was 9.3% in August 2024, the same as in August 2023. Brazil was the largest exporter of soluble coffee in August 2024, shipping 0.33 million bags.

Exports of roasted beans were down 19.7% in August 2024 to 47,730 bags, as compared with 59,417 bags in August 2023. The cumulative total for coffee year 2023/24 to August 2024 is 0.63 million bags, as compared with 0.65 million bags in the same period a year ago.

For the full ICO September report, visit: icocoffee.org.

The post Robustas outperformed all groups of coffee in September, expanding 12.8% appeared first on Tea & Coffee Trade Journal.

With 100,000 cups of its teas drunk every hour, globally, Traditional Medicinals shares its herbal remedies and teas with two million people a day, providing itself the opportunity to inform, to be transparent, and to raise issue of importance, as well as bringing them each a little bit of nature in every cup.

Traditional Medicinals’ story begins more than 50 years ago, when Drake Sadler who co-founded the company with Rosemary Gladstar, met in the woods of Northern California where they were both living in the late 1960s. Gladstar collected plants and was teaching students and young people about the herbs and formulas that had been passed down through her family.

“Her great grandmother was a herbalist from Armenia [who taught her daughter], [who in turn, taught her daughter]. All this knowledge was passed down, as it always has been, in an oral tradition with women from generation to generation. They were the ‘medicine women’ in their communities and Rosemary was the medicine woman in her community,” explained Sadler, chair of Traditional Medicinals. Gladstar had a small shop and people would come to see her seeking remedies for their ailments.

Meanwhile, Sadler came from a background of social development. He worked for the US government on what was called the War on Poverty, setting up social programmes in poor communities. At this time, Gladstar wanted to further educate the community about herbal education, so she started packaging her herbal formulas and inserting inside information she had written to provide further explanation about the herbs they were using to treat the illnesses. This was the founding purpose of Traditional Medicinals – herbal education – and why the pair decided to launch it as a business.

The second founding principle came as Sadler and Gladstar began to visit the countries and communities from which they were sourcing plants. There they discovered that the herb and spice communities were quite impoverished. “This then triggered the evolution of the company’s second purpose,” said Sadler, “which was to build sustainable communities where these plants came from.”

Traditional Medicinals Throat Coat packaging circa 1980. Image: Traditional Medicinals

When Traditional Medicinals began, it offered nine products, each chosen to meet specific consumer needs and address ailments people had come in for, such as sore throats, problems sleeping, digestive troubles or morning sickness. “But that quickly expanded. I think within the first two or three years we had about 20 products,” commented Sadler. “People were like, why can’t I get this? What about that? So, Rosemary was formulating remedies that people needed. We weren’t trying to come up with the latest flavour or something, it was all about consumer needs.” Now Traditional Medicinals has more than 60 products (teas, lozenges, and capsules), which still change according to consumer needs and the ingredients they are interested in, such as dandelion, raspberry leaf or hibiscus.

These trends and demands also vary by region; Joe Stanziano, newly appointed CEO of Traditional Medicinals (see the announcement in People News) added, “according to industry data, the stress/relaxation segment has the highest regional share in California and has the lowest regional share in the mid-south; whereas the immunity segment has the highest regional share in the mid-south and lower in the northeast [of the US].”

Sustainable from the start

The majority of these products are distributed across the United States, but its market generally covers Central and North America. “The products are in a lot of countries I visit, but we don’t have a strong foreign strategy,” said Sadler. “There’s only so many places we can be and be there successfully […] There’s a limit: there’s a limit to these plants, there’s a limit to our capacity to produce […] We’re not trying to be the biggest, we’re just trying to be the best.” This notion is something integral to the workings of Traditional Medicinals.

Sadler spoke about how both he and Gladstar were interested in Buddhism during the origins of the company, one of the principles of which is ‘right livelihood,’ which he said they have always strived to embody within the company. “The notion of right livelihood is how business, or how people, should conduct themselves when they’re doing business. And the fundamental of right livelihood is to do no harm. So, conducting business in a way that helps people and does no harm, no harm to the environment, does no harm to each other, does no harm to the community.” This is something Sadler said distinguishes Traditional Medicinals from many other businesses.

This ethos also guides the company through purchasing and working with organic and fair-certified suppliers. Traditional Medicinals made a commitment to using quality and efficacious ingredients to deliver tangible health benefits. Its first certified organic products were in the late 70s, and then fair-certified ingredients began in the 90s. “The company has a real commitment to its stakeholders from these supply communities all the way through our trading partners […] We operate from a place of integrity,” said Sadler, and sustainability has always been a part of this, whether it is environmental or social.

When Sadler and Gladstar first started visiting their source communities, they would find children working in fields and not going to school, because their parents needed them to work and often there weren’t schools for them to go to. “So, then the next time that we would come back to those communities, we would bring books; we’d bring books written in the language of that country, school books. And we’d ask, ‘Can we hire a teacher and have children learning in the evenings? Would you give them room to study? We will hire the teacher and bring the books,’” recounted Sadler, explaining how the company’s opportunities for scale of impact have expanded since its founding. “Now we build schools. We have five schools in one remote area of Rajasthan [India], five schools just in this little remote area and there’s 2,000 kids going to school there every day.”

Traditional Medicinals now works in 43 countries through fair certification projects and partnerships. Its community projects in these regions impacts tens of thousands of farmers and collectors and their families, in areas such as health, hygiene, education, economic development, food and water security and women’s empowerment, the latter of which is especially crucial, said Sadler.

Historical Traditional Medicinals packaging. Image: Traditional Medicinals

Since the beginning of humankind, people have been experimenting with plants for food and medicine, for clothing and for shelter. Now in modern times, 50 percent of the world’s medicine contains plants, 80 percent of which are not farmed and must be collected in the wild, Sadler shared. It is in these remote areas that they grow and are collected by indigenous people, the vast proportion of which are women. This is why “we want to work on projects that empower them, raise their voices in the community, educate them better. And make sure that their daughters are going to school.”

While these practices have been embedded in the company since its founding, Sadler noted that there has been a strong increase in demand for sustainable activities from consumers, particularly young consumers who are wanting more information about the products they buy. “Young consumers really want education, they want to know what they’re consuming, they want to know about the ingredients, they want to know where those ingredients come from, they want to know who’s involved in the production of those ingredients, whether they’re farmed or collected, and how they’re manufactured and under what conditions,” he said. “They really demand transparency and this is wonderful. This is the way it should be. We should be knowledgeable about the products that we’re using and under what conditions they’re produced.”

Not business as usual

Integrity, right livelihood or transparency, however Sadler’s Traditional Medicinals’ ethos manifests itself, it is all under the umbrella of sustainability, and safeguarding resources and people’s livelihoods for the future, a pressure that is becoming increasingly urgent, something Sadler feels keenly. “There’s no more business as usual. We’re done with business as usual. I’m fed up with business as usual. I’m fed up with corporate America. I’m fed up with billionaires who are acquiring wealth,” he emphasised.

“That’s not the answer for the future. That’s not how we’re going to survive as a species. It is my belief that business has not only an opportunity, but an obligation to lead in the evolution of business as a platform for social change.”

Sadler said he is now focused on creating a structure of ownership within the company that ensures this purpose “is embedded in the company’s operating system, it’s part of its daily governance. So that it can’t be disrupted,” long after he is no longer there to steer it.

Newly appointed CEO, Stanziano, is taking up this mantle, and explained how he hopes the company will continue to evolve. “Traditional Medicinals has built a strong legacy as a leader in herbal wellness and as a Certified B Corporation, deeply rooted in sustainability and social responsibility. As we look to the future, my vision is for Traditional Medicinals to continue advancing its mission-driven approach, placing people and the planet at the forefront of every decision we make, even as we adapt to the evolving market landscape and changing consumer needs.”

Stanziano said that in the next 20 years, he sees Traditional Medicinals “solidifying our position as a global leader in herbal wellness by broadening our market presence and diversifying our product portfolio. We’ll achieve this through our strategic partnerships and collaborations with local communities and suppliers, ensuring that our sourcing and production practices remain sustainable and transparent.

Our commitment to environmental stewardship is unwavering, and in 2023, we took a significant step by aligning with the Science Based Targets initiative (SBTi), setting ambitious goals to reduce Scope 1 and 2 emissions by 42 percent by 2030 and achieve net zero emissions by 2050,” he said, adding, “looking 50 years ahead, I envision Traditional Medicinals sharing more of its leadership position to inspire – empowering global communities and consumers to embrace the healing power of plants and live in harmony with nature. Our focus will be on innovation, continuous improvement, and expanding our impact, ensuring that we remain a trusted source of wellness for generations to come.”

Over the last 50 years, from its roots as Rosemary Gladstar’s homemade herbal remedies, passed down through generations, and shared with her community, to a far-reaching company, who’s impact stretches even further than it’s teas, Traditional Medicinals has managed to maintain its founding ethos and principles throughout.

This is something that Sadler articulates accordingly, “People think we’re a tea company. We’re actually not. We’re a tea company, but the tea company is actually the means to an end. It’s the work in those supply communities and educating people about herbal medicine, that’s really what we do and the products are the means to an end. They’re what financially support the purpose. It’s not the other way around.”

• Kathryn Brand is an associate editor with T&CTJ, while still writing for several of Bell’s other magazines. She joined Bell Publishing at the beginning of 2022 after graduating from the University of East Anglia with a degree in English Literature and Creative Writing. She may be reached at: kathryn@bellpublishing.com.

The post From herbal roots to global impact: Traditional Medicinals celebrates its 50th anniversary appeared first on Tea & Coffee Trade Journal.

“We have noticed that many packages of coffee, whether green or industrialised, have been improperly labelled with the DO “Cerrado Mineiro,” which could compromise the region’s reputation and harm consumers choices, partners and producers. This is considered an infringement of the rules of the Federation of Coffee Growers of the Cerrado, which has its Designation of Origin registered by the INPI (National Institute of Industrial Property). That’s why we want to be closer to the different links in the chain to provide guidance on the processes for using controlled origin designation,” said Juliano Tarabal, executive director of the Federation of Coffee Growers of the Cerrado.

Campaign

One of the highlights of the campaign is also to increase the traceability of coffee lots, adding value to the product on national and international markets. Since 2013, the label of origin and quality has attested to the fact that the batch sold is certified in the Cerrado Mineiro region, according to the requirements established in the production process. The Designation of Origin policy establishes that all coffees that achieve at least 80 points and pass through the cooperatives will be certified, with the aim of increasing the supply of DO coffee in the market.

“The authenticity of Cerrado Mineiro coffee needs to be protected and it is a collective responsibility to guarantee the quality and history behind the region’s coffee. For us, as producers, it is very important that our partners and consumers know that they are drinking a real coffee of origin and quality, which has a beautiful story behind the cup. This brings value to our product, and the buyer asks for it,” says Augusto Faria, producer.

The campaign includes social media, videos, talks, printed materials and banners to engage as many people as possible around the world.

For the Cerrado Coffee Growers’ Cooperative (Expocacer), one of the supporters of this marketing action, traceability and certifications reaffirm the quality, attributes of the drink and good agricultural practices adopted by producers. “We are the first region in Brazil with a Designation of Origin, certifying that our coffee has a unique quality, characteristics and production methods. That’s why it’s so important that the DO is used correctly, as the campaign reinforces,” says Simão Pedro de Lima, executive president of Expocacer.

Designation of Origin

The Designation of Origin (DO) is a label of quality that identifies products originating in a specific region and which have unique and differentiated characteristics, resulted from geographical, climatic and cultural factors. In the case of coffee from the Cerrado Mineiro region, this certification guarantees that the product was grown and processed in the area of the 55 cities in the region and by one of the 4,500 producers, complying with strict standards of quality, sustainability and guaranteeing traceability.

“The campaign represents an effort to ensure that consumers receive quality products of certified origin, fighting against infringements, strengthening confidence in coffee from the Cerrado Mineiro region, as well as valuing the work of producers who follow the necessary requirements for getting the certification. We have enough potential to attend the demand of the global market, for which we have mapped the use of the Cerrado Mineiro Origin in 44 countries by more than 700 brands,” Tarabal concluded.

The post Coffee Growers Association campaigns to protect authenticity of the Cerrado Mineiro origin appeared first on Tea & Coffee Trade Journal.

In recent years, business was tough for tea growers in Caucasia, comprised of Armenia, Azerbaijan, and Georgia. The importance of tea production at the world’s most northern plantations is even recognised at the state level, but in the face of stiff competition with imports, this is still not enough to help the industry out of its current predicament.

The Caucasus region has a rich history in tea production, which might surprise many. In the 1970s, this area was a significant contributor to the global tea industry, with an impressive output of nearly 140,000 metric tonnes (mt) of tea. Georgia played a major role in this, accounting for 60 percent of the total production. At its peak, Georgia’s tea production alone reached an impressive 95,000 mt per year.

Caucasus tea largely met the demand of the tea market on one-fifth of the world’s land surface. It was also exported across countries of the socialistic camp, as well as to Afghanistan, Iran, Syria, Yemen, Mongolia, and some African states. In the 1980s, the Soviet Union was the fourth largest tea producer, following India, China, and Sri Lanka.

Those days are long gone now. In the 2020s, Caucasus tea accounts for only around 0.05 percent of the global production, as estimated by the Food and Agriculture Organization (FAO) of the United Nations. The transition to a market economy has been brutal for the tea industry in the Caucasus. Over 90 percent of cooperative farms involved in tea production have gone bankrupt, leaving behind vast swathes of abandoned tea plantations across the region.

Now, Georgian tea is even losing the domestic market, as estimated by Tengiz Svanadze, head of the Georgian Tea Association. In fact, Georgian tea meets only 25 percent of the local demand, while the rest is covered by imports.
Despite the bleak situation, there are glimmers of hope. In 2016, Georgia launched a tea industry revival programme, aiming to rejuvenate 7,000 hectares (ha) of abandoned tea plantations. A similar initiative was undertaken in Azerbaijan in 2018, with a goal of increasing tea production eightfold by 2027 to 8,500 mt.

However, these efforts have yet to pay off. Svanadze estimated that as of 2022, Azerbaijan manufactured between 500 and 1,000 mt of its own tea. A substantial share of the tea imported on the Georgian market comes from Azerbaijan, he admitted, adding that those were not locally grown products.

Georgian tea brand. Image: Friends in Georgia

Over the last several years, Azerbaijan heavily invested in several tea factories, which import tea leaves from Asia, instead of cooperating with local farmers.

In Armenia, the tea industry has a much smaller scale and is primarily concentrated in several high mountain areas nearly 1,700 meters above sea level, where farmers focus on herbal tea production. As reported by a local news outlet, Mir, Armenian mountain herbal tea is exported to Russia, Europe, and North America, though in small quantities.

In fact, tea growing has never been popular in Armenia – a country of coffee lovers. For example, BusinesStat, a local think tank, calculated that sales in the domestic tea market between 2018 and 2022 dropped from 370 to 346 mt, and the trend is likely to continue. The analysts emphasised that, on the other hand, Armenia has some of the highest coffee consumption levels per capita in the entire post-Soviet space.

A hard-to-forget bad name

It has been over three decades since the Soviet Union ceased to exist, but Caucasus tea growers still blame it for the ruined reputation of their brands.

“They [Soviet managers] tried to pump up Georgia to produce large quantities of tea to cover the Soviet’s needs for the drink. But this was an impossible task for a small country,” commented Andrey Skidan, tea production technologist. As a result, the quality of Georgian tea at that time was poor. Tea leaves were mixed with pieces of wood and other components, sometimes of unknown origin. “In the end, the drink was poorly brewed; its taste was dull and unsaturated,” he said.

Similar practices were introduced in Azerbaijan, but poor-quality tea is primarily associated with Georgia since it was the largest tea manufacturing republic at the time.

“We tried to break out to the Russian market with our tea, but the memories of Soviet-era quality are still blood-curdling,” a manager of a Georgian tea company revealed, admitting that some Russian importers still refrain from working with Georgian tea suppliers, though there are signs of improvement in this field.

Unfortunately, official figures suggest that the Georgian tea industry revival programme has gone sideways. In 2023, the country exported 1,522 mt of tea, worth only USD $2.2 million. Exports have been steadily shrinking during the last five years, plummeting by 27.5 percent during this time. In monetary terms, sales to foreign customers are halved compared with 2019, when they generated $4.4 million for the Georgian tea companies.

Georgian tea exports are shrinking but prospects are bright. Image: Organict Store

Svanadze insisted that the downward dynamics are not a sign of a crisis. He explained that the drop in sales is primarily attributed to a gradual switch of Georgian farmers towards manufacturing better quality products, which entails a temporary decline in output. “Georgian firms have switched to the production of high-quality tea. Everyone wants to brew high-quality tea, while the low-quality tea production, in practice, is no longer profitable, and accordingly, the harvest has shrunk.”

Svanadze said the change in quality helps Georgian tea better compete with imports on the domestic market, and the share of locally grown products has been steadily growing in recent years.

Some Georgian firms have reported a burgeoning tea-export renaissance. Tornike Shekiladze, director of tea manufacturing company, Gezruli Tea, disclosed that the company exported 400 kg of tea last year, primarily to the European Union (EU). Nearly 60 percent landed in France, 30 percent in the Czech Republic and the rest in Germany.

There might be other reasons for the negative production dynamics. Recently, Georgian farmers growing tea have faced fierce competition for land with other agricultural manufacturers and even investors from other economic segments. An ongoing boom in solar power generation in the country promises to drive the cost of land even higher, meaning that only high-margin businesses can sustain the rising costs.

Organic tea potential

Shote Bitatdze, founder of the Association of Georgian Organic Tea Manufacturers, is one of the enthusiasts struggling to give a new life to the local tea production. Bitatdze, who was engaged in successful business in China until 2006, moved back to his country where he saw a potential in growing high-quality ‘specialty’ tea.

Organic tea production perked up to 30 mt in Georgia in 2023, Bitatdze estimated. He added that this figure has a potential to grow to 200 mt if there is sufficient demand in the global market. Since 2009, the Chinese government has supported organic tea production in Georgia, helping to train local farmers and their personnel, Bitatdze said. “As practice showed, there are no preconditions for the development of mass tea production in Georgia,” he said, adding that at the end of the day, production costs at Georgian tea plantations appear to be higher than that of those from countries with tropical climates.

Exports in the spotlight

Analysts believe exports will largely determine the future of the Caucasus tea industry.

Natalya Zhukova, director of the European Bank for Reconstruction and Development’s (EBRD) Agribusiness Department, for example, expressed confidence that the region can benefit from its strategic location, close to the big markets of the post-Soviet space and the EU. However, he emphasised that to grasp its opportunities, the tea industry should play its cards right and not repeat the mistakes of the past.

“The international tea market continues to develop, with trends showing strong demand for a variety of quality tea products such as oolong and white leaf tea. By ensuring improved product quality and efficiency throughout the supply chain, as well as diversification of production, Georgia and Azerbaijan have much to offer tea lovers,” Zhukova said.

High quality Caucasus tea is on demand on the global market. Image: TeaTerra

Georgia, with a population of 3.7 million, Azerbaijan, with 10.1 million, and Armenia, with 2.8 million, are markets not comparable in size with the nearly 200 million Eurasia Economic Union and 450 million EU populations.

Dodging the reputational damage, Azerbaijan’s tea industry, in recent years, has been successfully utilising the export-oriented development model. In fact, there is more high-quality Azerbaijani tea abroad than in Azerbaijan itself, Rauf Garayev, a local agricultural economist, said. “For example, if you buy Azerbaijani tea in Russia, you will see that it is of higher quality and tastes better than what is sold here.”

Remarkably, tea consumption in Azerbaijan has jumped by nearly 50 percent over the past decade. However, local customers are still unwilling to pay extra for high-quality tea, while in Russia and the EU, Azerbaijani tea is perceived as a premium exotic product.

“We can sometimes hear from our citizens that the [locally grown] tea is impossible to drink, while foreigners who bought our tea in their countries [report] that it is of excellent quality,” Garayev said.

Azerbaijani tea companies are confident that some measures are needed to help them regain their market from importers. Uncontrolled tea imports into the country reportedly threaten the industry, including its premium segment. “In the near future, Azerbaijan can become a net tea importer instead of a tea manufacturer. And no steps are being taken to prevent this from happening,” Garayev stated.

Tea exports are now on the agenda even in Abkhazia and South Ossetia – breakaway unrecognised regions of Georgia. The Abkhazian government has purchased and installed a line for processing premium tea products from China for $22,000 million. Thanks to these investments, several tea plantations were revived in the country, securing an output of eight metric tonnes of tea. A part of this volume is due to be exported to Russia.

It is unlikely that the Caucasus tea industry will ever again achieve the Soviet-era production performance. However, by focusing more on quality and less on quantity, local growers have every chance of finding a comfortable niche in the global market.

• Vladislav Vorotnikov is a Batumi, Georgia-based multimedia B2B freelance journalist writing about the tea and coffee industries since 2012.

The post The rise and fall of the Caucasus tea industry appeared first on Tea & Coffee Trade Journal.

The programme offers producers specialised services for the environmental development of their properties in three areas: restoration, climate-smart agricultural practices, and efficient water resource management. “We recently launched the first line of funding for water resilience and initiated an irrigation project with electronic sensors, which achieved a 30% water savings in the pilot project,” said Marcelo Urtado, coffee producer and president of the CCA.

The consortium team develops actions and projects aimed at creating sustainable productive landscapes, generating positive environmental and socio-economic impacts throughout the entire Cerrado Mineiro region. Results include: 2,981 hectares (or 7.366 acres) of crops with climate-smart agriculture strategies implemented, 195 hectares (or 481 acres) of conserved native vegetation, and to current date, 68,000 native species seedlings planted as part of the climate-smart agricultural initiatives.

For Expocacer, one of the consortium’s stakeholders, the health and sustainable use of the region’s watersheds are not only the most important indicators of intervention outcomes, but also a priority given the current water scarcity. “Without water, there is no coffee. That’s why we need to continue on this path of healthy and conscious agriculture, establishing more ethical and fair commercial relationships throughout the production chain, in line with the market’s sustainability agenda. We are committed to providing technical support and resources for those who wish to produce coffee responsibly,” emphasised Farlla Gomes, technical and sustainability manager at Expocacer.

Currently, services are provided across 116 rural properties in three basins: Patrocínio, Serra do Salitre, and Coromandel, covering a total area of 99,571 hectares (or 493.150 acres). The CCA has ensured water supply for the three municipalities, which together have more than 131,000 residents. “Our expansion strategy aims to reach other cities in the Cerrado region and additional basins to improve soil and water quality, enhance vegetation, create climate-smart agricultural corridors, and boost overall biodiversity in the region,” said Urtado.

Committed to the United Nations 2030 agenda for Sustainable Development, CCA and its supporters work to help producers and facilitate the transition to smart agriculture by offering technologies applicable to both native vegetation and productive areas, with a focus on improving water resource management, always based on scientific research and practical experience.

“Our cooperative is leading by example, demonstrating that it is possible to achieve commercial success while protecting and preserving natural resources, promoting the well-being of the environment, the people involved in coffee production, and local communities,” concluded the technical manager of sustainability at Expocacer.

The post Smart agriculture programme to save up to 30% water for plantations appeared first on Tea & Coffee Trade Journal.

Yemen boasts a rich coffee heritage and stands as a unique coffee origin. It is the driest and most extreme coffee-growing region in the world, with the widest range of temperatures. Despite these harsh conditions, Yemeni coffee farmers have developed innovative cultivation practices that balance economic sustainability with environmental conservation. These practices have led to the development of cultivated varieties that have been foundational to the world’s arabica varieties.

Yemen’s contribution to the history of coffee is significant, and its potential role in the future is equally noteworthy. The ability of Yemeni farmers to grow coffee in seemingly impossible conditions offers valuable insights, especially as other coffee-growing regions face similar challenges due to climate change. The knowledge and techniques developed in Yemen may be crucial for other coffee communities worldwide as they contend with the threat of arabica extinction from climatic stress.

Faris Sheibani, founder and CEO of Qima Coffee, said, “The delicate yet intricate relationship between coffee and climate remains unexplored in the context of Yemen; coffee farmers here have been growing their crops in diverse conditions for generations and possess an intuitive ecological understanding of their fields.

“The incoming challenges from climate change will disproportionately impact their lives and livelihoods, and ripple through the supply chain. Thus, this year’s Best of Yemen goes beyond its identity as an event; it is a call for a more sustainable future that is backed by contemporary scientific research and equitable community action.”

Erwin Mierish, executive director at Cup of Excellence and ACE, said, “Yemen coffee stands as a remarkable testament to quality and resilience; despite the harsh climate and political environment, it continues to deliver a flavour as rich and enduring as its heritage.”

Best of Yemen, a cornerstone of the Yemeni specialty coffee, invites exceptional produce from all corners of the country and presents them to some of the most discerning global buyers through its innovative, online auction platform. As part of Qima’s work to cement an equitable supply chain, the auction returns in its sixth edition envisioning a resilient future for thousands of its participants.

The post Qima Coffee and the ACE celebrate Yemeni coffee with PCA appeared first on Tea & Coffee Trade Journal.

Since 1947, the Devagiri estate has produced teas consumed in the UK, sold through a traditional supply chain with distributor brands squeezing margins and harming the farming community, says the company. In 2022, Roshana Gammampila, granddaughter of founder, Francis Nanayakkara, and her partner Mike Bailey, left their London city lives, raised investment, and bought the estate to turn things around. Their mission: to revolutionise the tea industry by demonstrating that it can be fair and sustainable, without altering the end retail price. Devagiri’s farm-to-table model eliminates the financial and environmental costs of middlemen, ensuring fairer value distribution and unlocking social mobility for tea-producing communities.

Over the past 18 months, Bailey and Gammampila have built relationships and secured partnerships with trade accounts nationwide. Farm-to-table tea represents a new frontier in the UK market, challenging entrenched supply chains with its transparent and traceable approach, and it has been warmly received so far. Bailey shared, “At Devagiri, we’re not just selling tea; we’re sharing a story of sustainability and social responsibility. Visitors to our estate can witness firsthand the journey from leaf to cup, an experience unique to Devagiri.” Rosh added, “We take great pleasure in welcoming customers to Devagiri, so they can see what sets our UK tea brand apart.”

In addition to their efforts in the UK market, Bailey and Gammampila are focusing on immediate community welfare initiatives in Sri Lanka. Devagiri channels its profits directly back into the estate and local community. They have implemented a childhood interventions programme aimed at enhancing child development and education, alongside providing direct financial support to families within the community who are in the greatest need. Bailey and Gammampila’s goal is for the farm-to-table model to enable an end to charity and interventions. They aim for tea-producing communities to earn their fair share of the value chain, breaking free from the cycle of social immobility that has trapped them for so long. Devagiri intend to demonstrate the transformative potential of this approach, empowering communities to earn their own livelihoods and achieve sustainable prosperity.

The traditional tea supply chain is deeply unjust, says Devagiri; while producers earn an average of £3 per kg, consumers in a London café pay the same amount for just 2g of tea. Devagiri proposes a farm-to-table model akin the wine industry, aiming to drastically shorten the supply chain and enhance lives.
Numerous case studies highlight a post-colonial legacy where communities have endured generations of poverty. Face high debt, alarming suicide rates, and widespread issues such as alcoholism and low educational attainment.

Gammampila and Bailey are committed to proving that tea producers can escape poverty without changing the retail price, solely by implementing transparent, direct supply chains.

Beyond ethical sourcing, Devagiri meets a market need by offering premium single estate teas at the same price as standard brands. Their commitment to quality and ethical standards ensures consumers can enjoy their tea with confidence, knowing it supports sustainable practices and community well-being.

From the plucking of tea leaves, to the detail that goes into the withering and rolling, to their zero plastics policy and biodegradable teabags and recyclable packaging, Devagiri manages every step of the process to uphold the highest standards of quality and ethics. Their farm-to-table approach guarantees that consumers can enjoy their tea with confidence, knowing it has been produced responsibly and sustainably.

The post Devagiri launches farm-to-table tea brand appeared first on Tea & Coffee Trade Journal.

Using traditional breeding methods, Nestlé plant scientists and agronomists have developed Star 4, a novel high-yielding Arabica coffee variety. Selected in Brazil for its resilience, the new variety also possesses the characteristic taste of Brazilian coffee.

“We are proud to make another important step towards resilient coffee supply chains, ensuring that consumers can continue to enjoy great coffee in the future. The new variety is characterised by its larger bean size and coffee leaf rust resistance. Our field trials have demonstrated that, using similar inputs, the yields of Star 4 are substantially higher than the two most used Brazilian local varieties, which reduces its carbon footprint,” said Jeroen Dijkman, head of Nestlé’s Institute of Agricultural Sciences.

Reduced GHG emissions from higher coffee yields are attributed to improved plant productivity as well as farming methods. Marcelo Burity, Nestlé’s head of green coffee development, commented: “Optimising cultivation practices remains vital as they are the primary factor contributing to the environmental impact of a cup of coffee.” The largest share of GHG emissions in the process of obtaining ground coffee originates from its cultivation.

The development of locally relevant solutions such as Star 4 also contributes to Nestlé’s Agriculture Framework (pdf, 18Mb) promoting sustainable farming practices and responsible sourcing. The first plants were tested in São Paulo and Minas Gerais, two traditional coffee regions in Brazil. Moreover, in partnership with the Brazilian foundation Procafé, Nestlé was successful in registering the novel Arabica variety in Brazil.

Beyond the development of Star 4, Nestlé previously developed two Robusta varieties Roubi 1 and 2 which are being rolled out in Mexico.

The post Nestlé develops high-yielding Arabica coffee variety appeared first on Tea & Coffee Trade Journal.

Producing just over one half of the world’s tea in 2023, China remains the world’s dominant tea producer. Global tea production rose by 3.2 percent over the previous year, from 6.4 to 6.6 million metric tonnes (mmt) and the Middle Kingdom accounted for 50.6 percent, or 3.3 mmt while increasing its production by 5 percent over the previous year. India took second place with 20.7 percent of global production, having increased its yield by 2 percent.

Kenya rounds out the top three producers with 8.6 percent of the world’s annual production. Taken together, these three producers accounted for 80 percent of global production in 2023.

The top four tea-producing countries saw gains in production, including Sri Lanka. Ceylon tea production increased by 1.8 percent after having experienced a tumultuous period of economic struggle and agricultural policies that stymied tea production levels. Argentina, a significant source of black teas for the US market, has seen steady production declines for several years. Argentine tea production decreased by 4.5 percent over 2022 levels. Given historic trends and that the major producers continue to increase their production, overall global tea production levels are expected to continue rising.

All graphs courtesy of FirsdTea

Unlike the other main tea-growing countries, China is primarily a green tea producer: 57.9 percent, or 1.9 mmt of its 2023 production was green tea, followed by 0.49 mmt of black tea. This green tea alone accounts for just under 30 percent of 2023 global tea volume. The remainder of China’s tea is dark (hei) at 13.7 percent, wulong at 10 percent, white at 3 percent, and yellow tea at 0.7 percent. In 2019, black tea surpassed dark tea as the second-largest segment of tea production. Since then, production volumes of the two have remained fairly close. The broader popularity of black tea, along with growing domestic demand for ready-to-drink (RTD) teas and black tea’s relatively high average export price speaks in favour of further gains in black tea production share.

China’s top four tea-producing provinces – Fujian, Yunnan, Sichuan, and Guizhou – accounted for half of China’s tea production, and they each showed increases in production of between 1 and 5 percent. Double-digit gains in production were exhibited by Hubei, the fifth largest producer with a 10.6 percent gain, and Anhui, the eighth largest producer with a 12.4 percent gain. While Fujian may be the single largest tea-producing province, the greatest share of tea is still grown in the Western Belt (35.3 percent from Yunnan, Sichuan, and Guizhou provinces combined) followed by the Eastern Belt (25.7 percent from Fujian, Anhui, and Zhejiang). The Central Belt (Hubei, Hunan, and Shaanxi provinces) follows close behind with 22.2 percent of production.

Fujian may also be China’s top yielding tea province in terms of tons per hectare, but it is only fifth in terms of growing area. Yunnan province leads the pack with over 0.51 million hectares (mha) of tea fields, followed by Guizhou (0.47 mha), Sichuan (0.40 mha) and Hubei (0.38 mha). Fujian’s advantages lie in its warmer climate and more established production areas.

The Chinese government has encouraged the establishment of tea fields in the more poverty-impacted counties of the Central and Western Belts as a means of promoting rural development and strengthening local incomes. Efforts appear to have made progress, as the central government declared victory in eradicating poverty and now aims towards securing more infrastructure development and economic stability. For tea production, however, training these less-experienced workers continues. Outputs are expected to improve along with the maturity of young tea plants and the advancement of tea workers in the areas.

A notable exception is Guangdong province, which has the second highest yield per ha. The province does produce some well-known teas, like yingde black tea and dan cong wulong, but it is generally better known for its industrial output and commercial trade. Guangdong ranks ninth in overall tea production and thirteenth in hectares planted. It shows little sign of dedicating more land to future tea production.

China’s exports dip slightly

Global tea exports from producing countries declined by about 5 percent over the previous year, with China exports dipping by about 2 percent. China, however, maintained its place as the producing country with the second highest volume of exports. Kenya took the top position, having increased its exports by 14.7 percent over 2022 levels. Kenya accounted for 30.1 percent of global exports from producing countries. China’s 0.37 mmt of exports accounted for 21.2 percent of global exports from producing countries, and 11 percent of China’s annual production.

In terms of volume, 84.2 percent of China’s tea export was green tea and the next highest volume was black tea with 7.9 percent. Green tea exports remained relatively steady compared with 2022 levels, but black tea dropped by 12.6 percent over the previous year. This rise and fall in black export volumes coincided with a few factors. Supply of Ceylon black tea dropped in 2022. When this occurred, Pakistan and other major black tea-importing countries turned to China and others to meet their black tea demands. This surge stands in contrast with what occurred in other parts of the world, where tea imports increased in 2022 as buyers re-stocked after Covid, created supply chain woes, and then decreased their import levels in 2023 as they worked through excess inventory.

Morocco, China’s largest tea-export partner, showed a similar pattern. Most years, Morocco alone takes in about 20 percent of China’s exports, usually around 75,000 metric tonnes. 2020 saw a 9.6 percent decline in Chinese tea imports. The next two years saw import volumes return to usual levels, but 2023 levels declined again by about 16 percent from 75,400 metric tonnes to 59,800 metric tonnes. Ghana, which has been the third largest export destination, increased imports by 44 percent, swapping places with Uzbekistan. Taken together, these three countries import one third of China’s tea exports.

Russia and the United States took in 4 percent and 2.3 percent of China’s exports, respectively. Import volumes were down by 25.1 percent for Russia and 33.7 percent for the US. Overstocking was the main culprit for these declines, particularly for the US. Imports of Chinese teas into the US have been showing signs of rebalancing beginning early in 2024.

A strong outlook

China’s overall tea trends appear positive. Production levels are on track to increase around 4.5 to 5 percent based on average annual increases. Spring 2024 weather in most areas has cooperated, providing a healthy crop thus far. Development in tea producing areas, especially the Western and Central Belts, remains steady. Domestic consumer demand also appears to be on the uptick.

China’s tea industry has been highlighting the need for promoting demand, and recent years have seen an increase in the introduction of bottle teas and other tea-based RTD beverage products. Average export prices can be expected to stay steady between USD $5.50 to $6.00 per kg, although labour and farm inputs (fertiliser, agrochemicals) continue to rise. Export volumes are showing signs of rebounding after last year’s decline. With production and consumption rising, and exports recovering, China is poised to maintain its dominant role in global tea.

• Jason Walker is marketing director of Firsd Tea North America. Prior to his work with Firsd Tea, Walker served in a variety of roles in tea and beverage business capacities. His experience includes business services for small tea companies, a top-ranked online destination for tea consumer education and co-founding a coffee business. His insights draw upon his diverse range of experience in sales, operations and management in the tea world. He may be reached at: jason.walker@firsdtea.com.

The post China’s dominance in tea shows no signs of waning appeared first on Tea & Coffee Trade Journal.

“Those who are born on a farm are many times discouraged from continuing their parents’ activities, which is why it is very important to introduce new perspectives, technologies and experiences through dynamic projects such as Teens. Passing on this knowledge and the feeling of love for the countryside makes all the difference, because making a successor is different from having an heir. We need future generations to continue to produce great Brazilian coffee,” said Raquel Paza Lazzarin, Expocacer’s director of organizational development.

Through directed courses and activities, the project’s participants will learn about all the processes involved in coffee growing, from production, management, and exports to final consumption. The classes are distributed in stages, combining theory with coffee-growing practices, including: cooperative principles; the history of coffee in Brazil; production of specialty grains; classification; cupping and roasting; a visit to the Expocacer warehouses; notions of management, leadership and marketing; as well as visits to the farms of cooperative members.

“I already had a basic knowledge, but taking part in this project was essential in broadening my experience in coffee growing and made a difference on my decision to continue in my family’s business. I was able to learn about the theory and practice of the techniques and thus to identify and specialise in areas that I hadn’t tried before, such as quality production. I take with me what is new, and my father comes in with all his years of knowledge, one complements the other,” says Eduardo Fardin, son of the producer Carlos Fardin.

The project, now in its third edition, also aims to encourage more sustainable and quality cultivation, also to help young people and their families providing new professional prospects and at the same time training them with general notions and practices about their family’s business, therefore improving the family succession scenario.

“It is important to show our children and grandchildren the greatness and importance of coffee growing. Coffee is something that is in the daily lives of thousands of people, and it is one of the fastest growing sectors in Brazil, also an extremely important sector for our economy. We are the largest producers and exporters of this bean in the world, we have something great here that opens countless opportunities,” Raquel concluded.

The post Expocacer works to continue succession in coffee farming appeared first on Tea & Coffee Trade Journal.

The Lunch Box programme by Paddy & Scott’s, which has now been fully rolled out across Macdonald Hotels & Resorts venues, is a pioneering project designed to fund meals for children living in coffee-growing regions around the world.

As part of the partnership, Lunch Box coffee is served in all of Macdonald Hotels & Resorts’ 32 properties throughout the UK, with guests able to support this charitable effort by enjoying breakfast, afternoon tea or a light refreshment in the hotel of their choice. Each bag of coffee funds a meal for a child in Kenya as part of The Muchomba Project, and other coffee-growing regions around the world.

A joint venture between a Kenyan coffee farm and Ipswich, UK-based Paddy & Scott’s, The Muchomba Project helps fund life-changing initiatives in the Kenyan farming community. The project is currently financing improvement works at the local school, ranging from installation of windows and toilets, to running clean drinking water.

Michael Savage, head of energy & sustainability at Macdonald Hotels & Resorts, said, “Paddy & Scott’s work to support communities aligns seamlessly with our values, and we’re proud to now stock Lunch Box coffee in all our properties throughout the UK. By doing this, we can make a real difference and change young people’s lives in the locations where our coffee is sourced.

“We’re looking forward to growing this partnership further over the coming months, and continuing to support those most in need, in developing countries.”

Joseph Cordy, head of commercial at Paddy & Scott’s, commented, “We are thrilled to partner with Macdonald Hotels & Resorts. When two companies come together with the same values and drive to do more to improve the planet and support communities in coffee-growing regions, incredible things happen. This partnership presents an exhilarating opportunity to feature one of our distinguished coffee blends, Lunch Box, enhancing the luxury experience for customers across more than 32 sites.

“Lunch Box coffee is more than just a bag of coffee; with each purchase, a school meal is provided for a child in need, allowing them to focus on their studies without the worry of where their next meal will come from. We use a blend of our finest beans to produce a premium-quality espresso, creating a beautiful crema and delicious taste for all to enjoy.”

For more information, please visit macdonaldhotels.co.uk.

The post Coffee producer and hospitality company fund school meals appeared first on Tea & Coffee Trade Journal.

“This proves the sustainable work our members have been doing for over 10 years. Our intention is to promote, encourage, and nurture a cutting-edge coffee culture tied to positive impact. We are very pleased to be able to support the movement towards a healthier environment,” says Farlla Gomes, technical sustainability manager at Expocacer.

The properties together have a total area of more than 3,600 hectares of coffee plantations. For Expocacer, the trend towards reducing greenhouse gases is something that should be followed by other coffee growers around the world.

“We’re proud to have our property verified and to be able to contribute to the environment. We feel like we’re doing the right thing, which is taking care of our planet and collaborating with the future,” says Maria Aparecida Fernandes Pires Ruiz, a coffee grower.

For the producer Roger Montanari, the initiative attests to the practices that are already adopted by the majority of coffee growers in the region. “The carbon verification comes to consolidate the work that rural producers in the Cerrado Mineiro region have been doing for decades, which is to reduce carbon emissions through sustainable agricultural practices, serving as a model protocol for the world in environmental, social and economic terms. With this label, we can prove that we are protagonists in this crucial role of contributing to a more sustainable future, with a reduced impact on climate change.”

“Expocacer’s pioneering spirit is fundamental to opening doors for the coffee-growing sector to move towards low-carbon production, since verification processes play a fundamental role in adding impartiality and greater reliability to the process,” explains Alessandro Rodrigues, Imaflora’s ESG and Carbon on Track Services manager.

Carbon on Track – An Imaflora programme designed to recognise low-carbon agriculture and forest restoration in the climate agenda. Through the programme, agricultural enterprises can contract the calculation of the carbon balance that shows the estimated emission and removal of greenhouse gases from their activities, based on internationally recognised methodologies.

The post Imaflora recognises Expocacer farms with Carbon on Track label appeared first on Tea & Coffee Trade Journal.

The preliminary main data for 2023 has just been issued to membership by the International Tea Committee (ITC), and the 25th Plenary Session of the Intergovernmental Group (IGG) on Tea of the UN Food and Agriculture Organization (FAO) recently ended. Tea is thus fully in the focus with all the concerned parties: the farmers who produce the leaf, the factories that process it, those who trade, export, import and ship tea, as well as the packers, the multinationals, medium and small operators, the retailers, and the consumers who buy mass market, traditional, premium or novelty tea.

Considered an agricultural product that provides income to millions of smallholders, in particular in remote rural areas, tea is labelled as a ‘poverty relief crop’, and as such, is instrumental for keeping populations on the lands. Often, these farmers will also grow coffee as well as herbs and spices, which all together can provide a fair income. Although many are living reasonably well off their plot, others have no market access and remain poor. When farmgate prices are not rewarding, the leaf quality inevitably goes down, before a possible switch to other crops.

Whilst the main Western consumer markets in North America and Europe are all entirely addicted to their daily morning cups of tea and/or coffee, the global trade pattern of tea and coffee differs greatly, which may help to understand why tea is most often the cheapest cup on display. The fact is that only a relatively small share of the global tea production – ie, just 26 percent in 2023 – is exported, whilst three quarters are consumed by the home markets, which compares to over two thirds of the global coffee production being exported, and only about 34 percent being consumed domestically. Coffee, therefore, gets much more attention in the West and has been benefitting from intense promotion schemes for decades, giving the product a high cup profile that tea has not been able to access to date.

Aerating Vietnam Snow Shan Tea. Image credit: Vanessa Facenda

A first step towards enhancing the product profile globally may well be the introduction of the annual International Tea Day, which was approved by the UN General Assembly in December 2019 and has since been celebrated on 21 May every year. Following the Covid pandemic, the traditionally observed health benefits of tea are consistently highlighted in both consumer and producer markets, and more research is ongoing to take the issue further. However, despite several attempts to set up an interactive global platform for sharing relevant health related data, no effective steps have been taken towards this key target.

It may be of interest to note that some coffee ‘VIPs’ have been heard saying that tea is so obviously good for peoples’ health, that it does not need any further promotion, whilst coffee has to invest continuously to demonstrate that the cup does not carry any adverse health effects, a statement which does provide food for thought.

Production vs consumption

According to data issued by the London-based ITC, which publishes an Annual Bulletin of Statistics, tea production continues to steadily increase year over year and stands at 6.604 million metric tonnes in 2023, ie, up by 2 percent over 2022, and up by 26 percent over the past ten years. At the same time, consumption continues to lag, with an apparent 2023 consumption tonnage of 6.212 million tonnes, hence a gap of 392,000 tonnes between supply and demand, equivalent to about four times the US tea consumption in 2023. The latest provisional data issued by the ITC to membership show that this gap between world tea supply and world tea absorption was the highest ever in 2023 – bear in mind the trade disruptions due to political conflicts which weigh heavily on traditional consumer market patterns, together with the currently ongoing disruptions of transport logistics, in particular in the Red Sea towards the Suez Canal for supply to continental Europe.

China Chengdu tea market alley. Image credit: Barbara Dufrêne

The preliminary data for 2023 shows that there have been no major changes in the main market structure on the supply side, with China remaining the world’s leading producer and continuing to dominate with a production of 3.181 million tonnes, which represents a 49 percent share of the global production. This is quite overwhelming, although domestic consumption absorbs about 88 percent of this production. India holds the second spot with a production tonnage of 1.365 million tonnes, of which less than 17 percent has been available for export. The two giants are followed by the big black tea exporters: Kenya with 353,000 tonnes, Sri Lanka with 251,000 tonnes, Vietnam with 174,000 tonnes, and Indonesia with 125,000 tonnes. Amongst these major tea producers, one must also list Turkey, with a global production of 246,000 tonnes, which is mainly consumed by the domestic market.

The remaining 30 or so countries that produce tea today represent less than ten percent of the global volume, all with volumes less than 100,000 tonnes. This, of course, in no way impacts their quality potential, terroir or specialty tea profile, as they are world respected origins such as Japan, Taiwan, South Korea, Nepal, Malawi and Rwanda – all renowned for their premium quality teas.

Concerning the consumer markets, demand appears to not be fully recovered from the Covid disruptions and is negatively impacted by the various political conflicts that interfere with the traditional trade flows. Thus, the global tonnage of exported teas, which had remained fairly stable, with an average level of around 1.750 million tonnes every year, over the past ten years, has slumped to 1.655 million tonnes in 2023, representing only 26.3 percent of the world production.

The ITC data show a consistent slowdown in the import volumes for all the big consumer markets in 2023 compared to 2022, with the exception of Pakistan, the world’s number one tea importer, keeping the import tonnage at the unchanged level of 236,000 tonnes. All the ‘big players’ show reduced tea import volumes in 2023, namely:

• USA: 104,240 tonnes, -13 percent;
• UK: 83,550 tonnes, -16 percent;
• Russian Federation/CIS: 220,000 tonnes, -5 percent;
• (Rest of) Europe: 129,000 tonnes, -8 percent;
• Central Asian markets: 540,430 tonnes, -5 percent;
• African markets: 344,235 tonnes, -7 percent, amongst which are the two main players (Egypt with 72,000 tonnes, -16 percent and Morocco with 60,000 tonnes, -27 percent) show significant reductions.

Although it is a fact that most producing countries are actively promoting domestic tea consumption, the export markets remain of vital importance to their economy, thus many believe it is urgently necessary to restore the balance between supply and demand. The ITC CEO, Manuja Peiris, recently travelled to East Africa and had many discussions with tea board officials and market operators in Kenya, Rwanda and Malawi. He reported that the Mombasa Tea Auction, the biggest in the world, which handles over 500,000 tonnes of tea per year, is heavily glutted with “unfresh teas,” which remain unsold auction after auction, take up precious storage space and severely obstruct the market.

Indonesia factory leaf variety. Image credit: Barbara Dufrêne

Peiris said he was surprised to learn that many years ago a huge oversupply of coffee had occurred in Brazil, generating such a dramatic price slump that the government decided to act. First, the excess coffee beans were withdrawn from the market and used as fuel for railway engines, replacing fire wood. Next, the government contracted scientific research to find a way to process the beans into a storable and convenient format. It took some time to eliminate the oversupply of green beans and more time to elaborate an attractive soluble coffee extract, but the prices moved up swiftly and some ten years later the Nescafé soluble coffee brand set out to conquer the world. Several decades later Brazil became the world’s number one coffee producer and the number one coffee consuming market (by volume) after intensely promoting quality cups locally. Peiris wonders whether this impressive success story could be adapted to the tea market.

Added value and diversification

There is the huge potential for integrating tea extracts into ready-to-drink (RTD) teas and other cola drinks, which launched in the 1990s in Europe, followed by many evolving RTD launches ever since, despite the drawback of a small sugar content not yet overcome. Instant teas have been extremely successful even before in North America, where brewed iced tea has been the favourite cup for a long time. Chinese and Japanese tea majors have been investing in canned RTD specialty tea and bottled RTD mass market teas for decades and these tea extract-based soft drinks have been spreading widely.

Matcha Organic Japan’s tea field and factory, Shizuoka, Japan. Image credit: Yumi Nakatsugawa

More pricey segments continue to be explored by fine-tuning premium origins and also targeting specific health options. In searching of some more massive innovation, it might be of interest to recall a challenging debate between the former FAO official in charge of IGG Tea, Kaison Chang (who retired in 2018), and some Chinese tea science experts, about a possible “Global Road Safety Campaign,” which promotes small RTD cans or bottles containing a strong and sweetened ‘safe driving tea’. Road safety is a huge issue everywhere, with overtired drivers, not only in China and India, but everywhere in the world. If such bottles of ‘safe driving tea’ were formally approved, labelled as such, and given official support from the UN World Health, the UN FAO, as well as from producer country authorities, their global launch would combine many key assets. With tea extraction factories operating in many producing countries that could cooperate readily in such a Road Safety Campaign, the first result would be the resorption of considerable volumes of leaf.

Looking forward

Whilst there are happy tea farmers, successful tea brands, and thriving tea houses, there are many in the tea industry who are struggling with unrewarding prices, low quality cups, and the lack of global support and high-level genuine product promotion. There are many efforts developed in the consumer markets to enhance product knowledge through tea teaching, tea training, tea tasting competitions, tea awards and more, but there is no global platform and no global structure for providing shared visibility; nor is there a universally supported reference message underlining the goodness of the cup.

Coordinating research about the health benefits of tea would be a great step forward. Establishing a platform to allow direct market access for small producers has been a discussion item on the IGG Tea agenda for several years. There seems to be a growing worry about the lack of an efficient team prepared to take action and follow up the several constructive proposals tabled during the UN FAO IGG Tea plenary meetings, which take place every two years. Whilst they readily take stock, there does not seem to be any follow up action, which is creating true concern.

• Barbara Dufrêne is the former Secretary General of the European Tea Committee and editor of La Nouvelle du Thé. She may be reached at: b-dufrêne@orange.fr.

The post The Global Tea Report 2024 appeared first on Tea & Coffee Trade Journal.

The London speciality-coffee roaster was paying a minimum of GBP £1.75 per lb before this point, and this change came at the same time as Fairtrade International’s price increase, which was up from $1.40 to $1.80 per lb. 

Prior to August 2023, the Fairtrade base price didn’t cover Fairtrade’s estimated cost of production for farmers, which was, based on the 2021 harvest, $1.76.  

Now, the Fairtrade minimum price covers the estimated cost of production, and certified farmers can also benefit from Fairtrade Premiums, which are additional sums of money invested in projects to improve productivity, climate adaptation, quality, infrastructure, and community services. 

Will Corby, Pact Coffee’s director of coffee and social impact, said:

“As coffee farmers face even tougher economic conditions due to climate change, increasing production costs and inflation, this is a massive change for good, and this is down to the fantastic work of the brilliant people at Fairtrade International.”

“But it’s not compatible with our sourcing model. Fairtrade requires that farmers join cooperatives to get certified. This doesn’t work for many of the small, independent farmers we’ve forged strong, mutually beneficial relationships with over a decade, and we’re sticking by them.”

“For some of these farmers, becoming Fairtrade certified would be too costly, require leaving their farms, and, ultimately, come at the expense of quality.”

“So we’ve instead raised our minimum price to $2 per pound to cover this increase while recognising the extra $0.20 Fairtrade Premium. As always, all of this will go directly to the farmer.”

“This way, we’re encouraging the pursuit of outstanding speciality coffee, while adhering to the Fairtrade Minimum Price and, in many instances, paying significantly more.”

The post Pact Coffee raises its minimum farmer payment appeared first on Tea & Coffee Trade Journal.

The I-CIP averaged 216.89 US cents/lb in April, a 16.4% increase from March 2024. The I-CIP posted a median value of 221.99 US cents/lb, having fluctuated between 193.39 and 235.50 US cents/lb. The April 2024 I-CIP is above the April 2023 I-CIP by 21.5%, with the 12-month rolling average at 172.01 US cents/lb. The I-CIP grew steadily in April 2024, reaching a 13-year high. Following a similar trend, the Robustas price also hit a 45- year high, reaching its highest level since July 1979, when it averaged 195.90 US cents/lb.

In the first half of April 2024, the I-CIP surged 21.8% from 193.39 to 235.50 US cents/lb on the back of heavy rainfall in Minas Gerais, Brazil, which will affect the country’s 2024/25 supply. Vietnam also continues to face supply difficulties on the back of poor harvests in coffee years 2022/23 and 2023/24. On 26 March, Vietnam’s agriculture department projected that its national coffee production in the 2023/24 crop year could drop by –20% to 1.472 million metric tonnes, the lowest in four years, due to drought. This was reflected in the surging domestic Robusta green bean price in the country, which rose to over 132,000 VND/KG by 26 April from an average of 80,000 VND/kg on 15 February 2024 and 61,000 VND/kg in mid-November 2023. The surge was broken on 19 April on the back of three factors: (i) recovery of ICE warehouse stocks; (ii) profit taking on the paper market (the net long position on the ICE’s Europe market retreated by 5,042 lots between 16 and 23 April 2024); and (iii) the strengthening dollar (moving from 5.29 Real to 1 US$ on 16 April to 5.12 Real to 1US$ on 30 April). As a result, the I-CIP fell to 218.10 US cents/lb by 30 April.

The Colombian Milds and Other Milds increased by 15.0% and 14.8%, reaching 241.80 and 239.73 US cents/lb, respectively, in April 2024. The Brazilian Naturals presented the strongest increase amongst all coffee groups, at 17.8%, reaching an average of 218.77 US cents/lb. The Robustas grew by 16.8% to 193.65 US cents/lb in April 2024, the highest level in 45 years. ICE’s London market was also a strong driver of the growth, increasing by 18.5% to 176.04 US cents/lb, whilst the New York Futures market expanded by 18.1% to 217.97 US cents/lb, a 20-month high.

The Colombian Milds–Other Milds differential expanded from 1.41 to 2.07 US cents/lb. The Colombian Milds–Brazilian Naturals differential contracted 6.0% to 23.03 US cents/lb, whilst the Colombian Milds–Robustas differential expanded 8.4% from March to April 2024, averaging 48.14 US cents/lb. Meanwhile, the Other Milds–Brazilian Naturals differential shrank 9.2% reaching 20.96 US cents/lb. However, the Other Milds–Robustas and the Brazilian Naturals– Robustas differentials both expanded 7.1% and 26.1%, averaging 46.07 and 25.11 US cents/lb, respectively, in April 2024.

The downtrend of the Arabica and Robusta arbitrage, as measured between the London and New York Futures markets, is now over two years long, falling from 130.30 US cents/lb in April 2022 to 41.93 US cents/lb in April 2024, i.e. a 67.8% decline. However, measured against March 2024, the arbitrage expanded by 16.3% in April 2024.

Intra-day volatility of the I-CIP increased by 0.9 percentage points to 8.0% between March and April 2024. The Colombian Milds’ and Other Milds’ volatility increased to 8.5% and 8.2%, respectively. Meanwhile, the Brazilian Naturals’ volatility grew by 0.9 percentage points to 9.0% from March to April 2024. The Robustas presented an average volatility of 9.1% for the month of April. The London Futures market’s volatility also increased by 0.3 percentage points to 9.7%. Lastly, the New York futures market’s volatility moved in the same direction to that of London, reaching 9.1%, a 0.5 percentage point increase.

The London certified stocks expanded by 27.4% to 0.63 million 60-kg bags. Certified stocks of Arabica coffee reached 0.64 million 60-kg bags, a 1.7% increase since March 2024.

Exports by coffee groups – green beans

Global green bean exports in March 2024 totalled 11.87 million bags, as compared with 10.85 million bags in the same month of the previous year, up 9.4%. As a result, the cumulative total for coffee year 2023/24 to March is 62.64 million bags, as compared with 56.36 million bags over the same period a year ago, up 11.1%. The Brazilian Naturals and Robustas were the two main groups responsible for the overall strong growth observed in March 2024, together accounting for 91.5% of the 1.02-million-bag net gain in total exports. This further consolidated their already-dominant positions, increasing their combined share of the total exports to 72.5% in March 2024 as compared to 70.8% in March 2023. For the year to date, the combined share is an even higher 73.4%.

Shipments of the Other Milds decreased by 1.6% in March 2024 to 2.19 million bags from 2.22 million bags in the same period last year. As a result, the growth rate of the cumulative volume decreased to 4.2% in the first six months of coffee year 2023/24 to 9.87 million bags, as compared with the 6.0% growth rate in the first five months. In March 2024, 15 of the 29 origins in this coffee group saw their exports fall, with Costa Rica, Guatemala, Laos and Uganda suffering the largest absolute losses. On the opposite side, Ethiopia, Honduras, Papua New Guinea and Peru saw the highest absolute net gains.

Green bean exports of the Brazilian Naturals increased in March 2024, rising by 19.0% to 3.57 million bags from 3.0 million bags in March 2023. For the first six months of coffee year 2023/24, green bean exports of the Brazilian Naturals amounted to 21.36 million bags, up 17.5% from 18.19 million bags over the same period a year ago. The sharp positive growth rate stems from the 16.1% increase in exports of the Brazilian Naturals from Brazil, the biggest producer and exporter of this group of coffee, which rose to 3.07 million bags in March 2024 from 2.64 million bags in March 2023.

Exports of the Colombian Milds increased by 12.8% to 1.07 million bags in March 2024 from 0.95 million bags in March 2023. As a result, exports of the Colombian Milds for the first six months of coffee year 2023/24 are up 11.5% at 6.25 million bags, as compared with 5.6 million bags in the first six months of coffee year 2022/23. The double-digit growths, for both the current month and coffee year to date, are a consequence of the 11.9% weather-driven fall in exports in coffee year 2022/23 and subsequent normalization of supply conditions in Colombia, the largest producer and exporter of the Colombian Milds. For the current month and cumulative total to March 2024, the country’s exports of the Colombian Milds are up 12.4% and 13.1%, respectively.

Green bean exports of the Robustas were up 7.8% to 5.04 million bags in March 2024 from 4.68 million bags in March 2023. The cumulative total for the first six months of coffee year 2023/24 is up 8.9%, at 25.16 million bags, as compared with 23.1 million bags in the first six months of coffee year 2022/23. The main driver of March’s Robustas increase was Brazil, which shipped 0.85 million bags as compared with 0.11 million bags in March 2023, up 686.1%.

Exports by regions – all forms of coffee

Exports of all forms of coffee from Asia & Oceania decreased by 9.7% to 4.54 million bags in March 2024. The two main sources of the near double-digit downturn are Indonesia and Vietnam, which saw their exports fall by 33.5% and 10.2%, respectively, to 0.31 million bags and 3.22 million bags in March 2024. As a result, Indonesia’s exports to date in coffee year 2023/24 are down 21.8% at 3.04 million bags, the lowest level since coffee year 2018/19. The fundamental reason behind the fall is the shortage of local supply due to the poor harvest in coffee year 2023/24, which is estimated at 10.0 million bags as compared with 11.98 million bags in the previous coffee year. Vietnam’s latest performance is mitigated by the unusually high exports seen in March 2023, when the country shipped 3.58 million bags, the second highest March exports on record. To put this into perspective, the March 2024 exports of 3.22 million bags are above the average March volume from 2019 to 2023 (3.12 million bags).

Exports of all forms of coffee from Africa increased by 12.6% to 1.19 million bags in March 2024 from 1.06 million bags in March 2023. As a result, the cumulative total of 6.22 million bags for the first six months of coffee year 2023/24 is up 0.6% as compared with the 6.18 million bags shipped in coffee year 2022/23. Ethiopia was the driving force behind the region’s growth in March 2024, with its own exports having increased by 112.8% to 0.38 million bags from 0.18 million bags in March 2023. The size of the rebound is due to a favourable base effect and a comparative normalization of market circumstances. Contract disputes arising from a mismatch between local purchasing prices and global market prices had previously affected the volume of exports, leading March 2023’s shipment to be the lowest since 2012.

In March 2024, South America’s exports of all forms of coffee increased by 33.1% to 5.49 million bags. As a result, the cumulative total of 33.56 million bags for the first six months of coffee year 2023/24 is up 28.7% as compared with the 26.07 million bags shipped in coffee year 2022/23. The source of the strong positive growth is Brazil, which saw its exports increase by 38.8% in March 2024 to 4.31 million bags. The size of the latest growth of Brazil’s export volume remains a reaction to the 20.2% fall in the March 2023 exports (3.1 million bags). Fundamentally, South America’s and Brazil’s strong export performance reflects Brazil’s good harvests in coffee years 2022/23 and 2023/24, estimated to be up by 8.4% and 9.2%, respectively.

In March 2024, exports of all forms of coffee from Mexico & Central America were down 1.9% to 1.78 million bags, as compared with 1.82 million in March 2023. As a result, the cumulative total exports are down 3.0% from October 2023 to March 2024 at 5.74 million bags, as compared with 5.91 million bags for the same period a year ago.

Exports of coffee by forms

Total exports of soluble coffee decreased by 4.8% in March 2024 to 1.06 million bags from 1.11 million bags in March 2023. In the first six months of coffee year 2023/24, a total of 6.16 million bags of soluble coffee were exported, representing an increase of 4.0% from the 5.92 million bags exported in the same period during the previous coffee year.

Soluble coffee’s share in the total exports of all forms of coffee for the year to date was 8.9% in March 2024, down from 9.5% in the same period a year ago. Brazil is the largest exporter of soluble coffee in March 2024, having shipped 0.35 million bags.

Exports of roasted beans were up 11.5% in March 2024 to 68,467 bags, as compared with 61,396 bags in March 2023. The cumulative total for coffee year 2023/24 to March 2024 was 0.37 million bags, as compared with 0.36 million bags in same period a year ago.

For the full report, visit: icocoffee.org.

The post Robusta prices reach 45-year high in April appeared first on Tea & Coffee Trade Journal.