An online resource library for the coffee industry
This paper addresses the issue of unfair trade practices, investigating the drivers of the differences between farm-gate and free-on-board (FOB) prices in the most important Arabica coffee producing countries worldwide: Brazil, Guatemala, Colombia, Honduras, Peru, and Ethiopia. Our study looks at those differences taking into account the literature on governance in agri-food chains, with a focus on each country’s domestic market. We performed panel-corrected standard error (PCSE) estimates in ICO and World Bank data, covering the period from 2007 to 2016. In the paper we analyze (i) property rights as a proxy of transaction costs, once it brings more transparency and support to negotiations; (ii) access to electricity as a proxy of supporting infrastructure in communication and information activities, and (iii) quality of roads and quality of ports as proxies of transportation infrastructure. Our results show that heterogeneity in institutions and infrastructure are key in explaining the differences between farm-gate and FOB prices. The transaction costs derived from institutional failures and infrastructure gaps, lead to the use of intermediaries in the coffee supply chain, and this reduces the margin for coffee farmers. Actions that aim to reduce these inefficiencies bring more transparency and lower transaction costs, thereby directly contributing to the United Nations (UN) Sustainable Development Goals (SDGs).
When unfair trade is also at home: the economic sustainability of coffee farms
Legends and myth. Apocrypha and simple fictions. It’s that time of year. Coffee has at least one oft-told holiday story and it, too, is a combination of fact and fabrication, or things we just don’t know to be true.
If you want to take the long way around, and we do, our story begins but does not end with John Arbuckle, a man who it seems to me would be happy enough if remembered as a coffee roaster and not much more. But he was much more. He was a philanthropist, innovative entrepreneur, “trust buster,” and inventor. He held several patents on coffee roasters and improvements to the coffee roasting process. He held a patent, appropriately, on a method for fireproofing buildings. He also, it is worth mentioning, invented mittens that included a tube so you could blow warm air from your mouth directly onto your fingers. The last patent he applied for was a method for raising sunken ships, a method so significant in its design that even 60 years later subsequent patent applicants for similar procedures were obliged to cite Arbuckle’s work. That ship lifting patent was approved, but not until after his death in 1912. But we’re getting ahead of ourselves. We’ve killed him already and he hasn’t even been born yet.
coffee story, coffee blog, olam specialty coffee
Dec 01, 2020
A christmas coffee story
Uganda, like other sub-Saharan African countries, continues to experience increasing levels of youth unemployment in view of its rapid population growth in recent decades. Such a trend exerts mounting pressures on the overall capacity of the national economy to generate adequate numbers of decent jobs to absorb the working age population. The country depends on agriculture as a source of livelihood and foreign exchange earnings. The country’s 2015/16–2019/20 Agriculture Sector Strategic Plan identified coffee as one of the 15 priority commodities that the Government of Uganda is focusing on to promote growth, development and employment creation. In its effort to support the Government to enhance youth employment in agriculture, in 2018 FAO launched a selection process to identify the value chain with the greatest potential to boost youth employment. Based on considerations of economic and socio-political feasibility, as well as overall sustainability considerations, national youth and agriculture stakeholders have decided on pursuing actions in the coffee value chain. This study was therefore commissioned to analyse the coffee value chain and identify constraints and opportunities for youth employment. It also aimed at suggesting upgrading options and policy actions that could realize the potential for creating and enhancing youth employment in the coffee sub-sector.
sustainability, gender equity, coffee value chain analysis,
Dec 01, 2020
Mwesigye, F., Nguyen, H.
Coffee value chain analysis Opportunities for youth employment in Uganda
While businesses and supply chains have worked to adapt to the COVID-19 pandemic’s extraordinary challenges, little concrete data has been available to aid in understanding consumers’ needs, making it difficult for many in our industry to plan for the future. To meet this need, the NCA commissioned an exclusive COVID-19 supplement to our yearly National Coffee Data Trends (NCDT) market research series.
Coffee, Consumers, & COVID-19: Road Map to Recovery
Popular with consumers around the world and supporting numerous developing nations as one of their key commodities, the coffee industry is both valuable and – up to the beginning of 2020 – expanding. However with Covid-19 slowing both production and demand, and disrupting the global supply chain, the global coffee industry has stalled in recent months – and seen new trends take hold. Here’s our summary of the key factors set to affect the coffee industry in 2021 and beyond.
global coffee market, coffee industry, coffee industry trends, coffee trends, coffee market, specialty coffee, 2021 coffee trends
Oct 29, 2020
The key coffee industry trends for 2021 & beyond
There are not many things done repeatedly day after day, but drinking coffee is one of them. Coffee is one of the most popular beverages in the world and essential part of daily life to many. Cafés are visited for different reasons, whether to work or socialise, but often a cup of coffee is enjoyed on side. Cafés aim to ensure good coffee for their customers. Though, farming that brewed cup of coffee requires a significant amount of resources. Environmental sustainability is perhaps one of the most pressing issues in the modern world. Increase in environmental efforts on the commercial stage leads people to expect cafés too to take sustainability seriously. This thesis focuses on the final phase of the value chain of coffee, consumption, with a focus on the coffee buying process of cafés. The purpose of this thesis is to find out what factors have an effect on the decisions cafés in Helsinki make about the coffee they buy. In this thesis, coffee buying is viewed as the action of cafés buying coffee from a roastery. The thesis examines the decisions made by the person in charge of buying coffee in a café and is limited to cafés located in the capital city of Finland. The objective is to determine the main factors that influence the buying of coffee in cafés located in Helsinki, and the research question and investigative questions are created based on this objective. The investigative questions aim to find out the criteria set for the bought coffee, the thoughts on the future of coffee and the sustainable operations in and outside of coffee buying in the selected cafés. Two major topics, coffee and sustainability, are addressed in the literature review. The theory helps to describe the key concerns related to the cultivation and purchase of coffee. This thesis uses the qualitative approach of data collection, in the form of semi-structured interviews. In total of five interviews were conducted during April 2020. Together with literature review, the interviews with the selected cafés prove that coffee buying should be done with sustainability in mind. The interview findings show that importance of good coffee and sustainable actions as part of business are evident. The views on sustainability and actions taken differ between cafés. The cafés all find it important to buy coffee that tastes good and is of good quality. The findings reveal that all cafés buy their coffee from a roastery and trust the roastery to offer them best possible coffee. Though, the research showed that the taste is not the only important thing to keep in mind. Availability of coffee at the time the coffee is bought is also considered important. Also, for every coffee purchase the cafés make, they cast a vote for environmental sustainability, for labour conditions and global justice. The research made it relatively clear that the majority of Finnish consumers are not too interested in the quality, taste, origin or sustainability of coffee. These four factors mentioned, however, greatly influence the decisions related to coffee buying in cafés
Coffee buying and sustainability in cafés in helsinki
The objective of this study was to evaluate the volatile composition and the sensory effect of the presence of Quaker beans in natural specialty coffee beverage and, consequently, to confront the requirement of the Specialty Coffee Association regarding the total absence of Quaker beans in a natural specialty coffee batch. Sensory analysis and volatile composition were performed for three different colorations of Quaker beans, added separately to natural specialty coffee samples at seven different concentrations. Beans with color equal to or above Agtron 82.8 negatively affected the sensory characteristics of natural specialty coffee only from the presence of 7 Quaker beans in one cup (65 beans). Through the analysis of volatile composition, volatile compounds formed during roasting were identified in Quaker beans from precursors present in raw immature beans. Therefore, the color and sensory characteristics of Quaker are a consequence of the chemical composition of an immature bean.
Impacts of quaker beans over sensory characteristics and volatile composition of specialty natural coffees
The brew temperature is widely considered a key parameter affecting the final quality of coffee, with a temperature near 93 °C often described as optimal. In particular, drip brewers that do not achieve a minimum brew temperature of 92 °C within a prescribed time period fail their certification. There is little empirical evidence in terms of rigorous sensory descriptive analysis or consumer preference testing, however, to support any particular range of brew temperatures. In this study, we drip-brewed coffee to specific brew strengths, as measured by total dissolved solids (TDS), and extraction yields, as measured by percent extraction (PE), spanning the range of the classic Coffee Brewing Control Chart. Three separate brew temperatures of 87 °C, 90 °C, or 93 °C were tested, adjusting the grind size and overall brew time as necessary to achieve the target TDS and PE. Although the TDS and PE both significantly affected the sensory profile of the coffee, surprisingly the brew temperature had no appreciable impact. We conclude that brew temperature should be considered as only one of several parameters that affect the extraction dynamics, and that ultimately the sensory profile is governed by differences in TDS and PE rather than the brew temperature, at least over the range of temperatures tested.
brew temperature, extraction, tds, total dissolved solids, control chart, coffee, chemistry, sustainability, brewing, pourover, barista
Oct 05, 2020
Batali, M., Ristenpart, W., Guinard, J.X.
Brew temperature, at fixed brew strength and extraction, has little impact on the sensory profile of drip brew coffee
Brazil is the world's leading coffee exporter, contributing billions of dollars to the global food economy. Yet, a majority of Brazilian coffee farms are operated by 'smallholders', producers with relatively small properties and primarily reliant on family labor. While previous work indicates that climate change will decrease the area suitable for coffee production in Brazil, no study has assessed the impacts of climate change on coffee yields or the relative exposure and vulnerability of coffee producing regions to changes in climate hazards (climate-associated losses in yield). To address these knowledge gaps, we assess the sensitivity of coffee yields to temperature and precipitation variation from 1974 to 2017 to map coffee climate hazards. Next, we identify which coffee producing regions in Brazil have the highest exposure to climate hazards due to high dependence of coffee production as a proportion of agricultural area. Finally, we generate a Vulnerability Index to identify which regions are theoretically least able to adapt to climate hazards. Our study finds that since 1974, temperatures in Brazilian coffee growing municipalities have been increasing by ~0.25 °C per decade and annual precipitation has been decreasing during the blooming and ripening periods. This historical climate change has already resulted in reductions in coffee yield by more than 20% in the Southeast of Brazil. Minas Gerais, the largest coffee producing state in Brazil, has among the highest climate hazard and overall climate risk, exacerbated by ongoing coffee expansion. Additionally, many municipalities with the lowest adaptive capacity, including the country's mountainous regions, also have high climate exposure and hazards. Negative climate hazard and exposure impacts for coffee producing regions could be potentially offset by targeting climate adaptation support to these high-risk regions, including research, extension, and credit subsidies for improved coffee varieties, irrigation, and agroforestry and diversifying agricultural production.
Flavor continues to be a driving force for coffee’s continued growth in the beverage market today. Studies have identified the sensory aspects and volatile and non-volatile compounds that characterize the flavor of different coffees. This review discusses aspects that influence coffee drinking and aspects such as environment, processing, and preparation that influence flavor. This summary of research studies employed sensory analysis (either descriptive and discrimination testing and or consumer testing) and chemical analysis to determine the impact aspects on coffee flavor.
This report presents results from a survey launched by the Internal Coffee Organisation (ICO) in May 2020 and directed to 16 exporting countries. Responses were provided by representatives to the ICO and other organisations which shared their perspectives on the local situation caused by COVID-19. The first section presents the impact of the pandemic on the coffee sector, assessing that 80% of the countries had implemented risk-management measures, such as social distancing. According to the report, even though not all the countries felt particularly affected by the measures, criticalities arose in countries starting the harvest season, due to lack of labour and employment. A decrease in income and access to finance has also been highly reported. Finally, on a local level consumption has shifted to e-commerce and delivery. In the second section, the report presents some projections on the impact of COVID-19 on the long-term sustainability of the sector indicating negative and positive factors. The last section includes the policies and support measures that the different government implemented to mitigate the impact of COVID-19 on the coffee sector. This report is particularly interesting for professionals looking at future projections of COVID-19 impact on exporting countries.
COVID-19, coffee production, farmers, export
International Coffee Organisation
Impact of COVID-19 on the global coffee sector: Survey of ICO exporting Members
Packaging plays an important role on attracting the consumers’ attention and creating hedonic and sensory expectations, which may affect actual product experience. The present study aimed at investigating whether the colour and/or shape of design elements of packaging labels would influence sensory and hedonic judgments of specialty coffee by amateur consumers. Participants (n = 174) first evaluated their expectations of coffee acidity and sweetness by looking at the coffee package, and subsequently, their experience of the same attributes when tasting a cup of coffee, in addition to rating their liking and purchase intent. The experiment followed a 2 × 2, between-subject design for label type (green or pink, round or angular), and the same coffee was served to all participants. Multivariate analysis of variance was conducted in order to assess main effects of colour and shape of the design elements of the packaging labels as well as interactions on sensory and hedonic ratings. Both colour and shape significantly affected consumers’ sensory expectations (pre-tasting ratings) regarding the specialty coffee, but they had no significant effect on post-tasting (actual perception) sensory ratings. Interactions between colour × shape were found to affect the hedonic measures. The coffee associated with the congruent labels (i.e., angular/green or the round/pink) received higher liking and purchase intent ratings than the one associated with the incongruent labels (i.e., angular/pink and the round/green). The implications of these results for the design of coffee packaging that convey some functional benefit as well as possible directions for future research are discussed.
Colour and shape of design elements of the packaging labels influence consumer expectations and hedonic judgments of specialty coffee
In recent years, the trend in coffee consumption has increased rapidly in various countries, especially in Indonesia. The government has predicted that there will be a significant increase in domestic coffee consumption in the coming years — the central government plans to increase the role of coffee commodities in the national and global circular economy. A central government with the Ministries of Agriculture, Industry, Trade, together, have the confidence to increase the value and quantity of exports through increasing productivity in the coming years through various regulations that have been mature and published. Unfortunately, based on the perspective of the downstream chain or farmers, the central government is less aware of various productivity and sustainability issues arising in the field. For decades, the national coffee production has indeed increased, but due to various issues such as land productivity, seed quality, human resource management strategies on coffee and even exchange rates, slowly and volatilely, there has been a decline in coffee production. The primary objective of this study is to provide a general analysis of coffee commodities at the national level with analysis of government regulations, provide information on applicable regulations, and pay attention to current issues that affect the conditions of coffee production. The policy review section aims to clarify the functions, responsibility, and consistency of the applicable regulation that offers the opportunity to engage with people involved in the Indonesian coffee development. At the end of this study, a section describes the draft plans and strategies of the central government in increasing the value of coffee commodities in the new 2020 cabinet.
indonesia coffee, sustainability issue, production, trade coffee policy review
Jul 01, 2020
Andoko, E., Zmudczynska, A.
A Strategy Review of the Coffee Policies and Development by the Indonesian Government
In recent years, the trend in coffee consumption has increased rapidly in various countries, especially in Indonesia. The government has predicted that there will be a significant increase in domestic coffee consumption in the coming years-the central government plans to increase the role of coffee commodities in the national and global circular economy. A central government with the Ministries of Agriculture, Industry, Trade, together, have the confidence to increase the value and quantity of exports through increasing productivity in the coming years through various regulations that have been mature and published. Unfortunately, based on the perspective of the downstream chain or farmers, the central government is less aware of various productivity and sustainability issues arising in the field. For decades, the national coffee production has indeed increased, but due to various issues such as land productivity, seed quality, human resource management strategies on coffee and even exchange rates, slowly and volatilely, there has been a decline in coffee production. The primary objective of this study is to provide a general analysis of coffee commodities at the national level with analysis of government regulations, provide information on applicable regulations, and pay attention to current issues that affect the conditions of coffee production. The policy review section aims to clarify the functions, responsibility, and consistency of the applicable regulation that offers the opportunity to engage with people involved in the Indonesian coffee development. At the end of this study, a section describes the draft plans and strategies of the central government in increasing the value of coffee commodities in the new 2020 cabinet.
Indonesia coffee, sustainability issue, production, trade, coffee policy review
Jun 01, 2020
A Strategy Review of the Coffee Policies and Development by the Indonesian Government
Fair Trade certification aims at transferring wealth from the consumer to the farmer; however, coffee passes through many hands before reaching final consumers. Bringing together retail, wholesale, and stock market data, this study estimates how much more consumers are paying for Fair Trade-certified coffee in US supermarkets and finds estimates around $1.50 per lb. The study then assesses how this price premium is split between the different stages of the value chain: most of the premium goes to the roaster’s profit margin, while the retailer surprisingly makes smaller absolute profits on Fair Trade-certified coffee, compared to conventional coffee. In the period studied in this study, the coffee farmer receives about a sixth of the price premium paid by the consumer.
CoffeeFair trade, price premium, value chain, voluntary, sustainability standards
May 15, 2020
Where does the fair trade money go? how much consumers pay extra for Fair Trade coffee and how this value is split along the value chain