Reframing the Narrative on Coffee Production ROI

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A coffee farmer inspects his crop in Colombia. Photo: Neil Palmer (CIAT) – via Wikimedia

Perspectives on the New SCA Report On Farm Profitability

In an article published on Daily Coffee News, Kraig Kraft from CRS Coffeelands addressed the Specialty Coffee Association’s recently released report that reviewed existing public information about farm profitability and costs.

The main — and surprising — conclusion from the analysis is that farm yield is not correlated to farm income. On the surface, this seems somewhat paradoxical.

Why wouldn’t higher production lead to more income?

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Can Cold Brew Perk Up the Coffee Market?

[Editor’s note: To learn more about this major market trend, join John Buckner, S&D Coffee & Tea, for the NCA webinar, Cold Brew Coffee: Why is it “Hot”?, July 25, 1-2 pm EDT]

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The following article was originally published by Bloomberg Markets

By Marvin G. Perez

For roasters and producers, cold brew can lead to more bean sales at a time of year when demand traditionally slackens. The need to soak up extra supply is especially important with the price of arabica coffee futures in New York dropping as much as 21% in the past year, and the pace of demand growth in the U.S. forecast to slow.

The benefit of cold brew is twofold: it uses more than twice the amount of ground beans, and it does battle against the efficient single-serve pods that have whittled coffee use and waste.

In the 12 months ended in February, sales of cold brew in the U.S. were up about 80% over the prior year, according to estimates from Cedarhurst, New York-based researcher StudyLogic. Sales of hot coffee fell 3% over the same period. Americans drank 105 billion cups in the 12 months ended in May, StudyLogic Chief Operating Officer Samuel Nahmias said.

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A Producer’s Perspective: Challenges Across the Coffee Value Chain

Editor’s note: Next month, the global coffee industry will gather in Medellin for the World Coffee Producers Forum to explore how to strengthen farmers, discussing sustainability, labor, managing price volatility, and improving productivity and yields.  Here, Frederick Kawuma, Secretary General of the Inter African Coffee Organization (IACO), sets the stage for these discussions by providing an overview from the producers’ perspective.

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Coffee farmer Feleke Dukamo checks the latest coffee prices. Source: Wikimedia Commons

By Frederick Kawuma, Secretary General of the Inter African Coffee Organization (IACO)

There has recently been a spate of studies analyzing the income of coffee farmers. The first thing that becomes evident is that the income from coffee farming varies depending on the country, and even the region within the country, where the studies have been done.

The second thing that becomes evident is that the income from coffee farming depends on the price the farmer gets for his coffee, which depends on “the market.”

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Coffee Career Center: Jobs of the Week

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Give your job search a jolt and check out the latest opportunities on the Coffee Career Center, the coffee industry’s targeted job board.

Hiring? Find the right fit for your team – learn more about posting a job or internship today.

(Please note that a free account is required to view the listings.)

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Coffee and Espresso Service Tech
Lacas Coffee Co.
PA

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Director, Commodities Procurement |
Mother Parkers Tea & Coffee
Canada

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Dive Deep into the Coffee Market

By Julio Sera, INTL FCStone

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One of my favorite aspects of working in the coffee trade – as opposed to markets like soybeans, precious metals or government bonds (like some of my colleagues) – is that so many people have such a direct experience with it every morning. In fact, we drink approximately 3.5 billion cups of coffee each day – equivalent to one cup each for nearly half of all the people on earth right now. That’s a lot of folks “jonesing” for “Joe.”

Stats like that ensure that I’m never at a loss for conversation starters. For example, can you name the top 10 coffee-producing countries in the world? In order?

How about the top 5 importers globally? (This one’s a bit of a trick question, which I’ll get into below.) Continue reading