Frost & Wind Worry Central Am. Coffee Growers

MEXICO CITY, Jan 11 (Reuters) – Unusually cold weather is
worrying coffee farmers in Mexico and Central America at the
peak of harvest season as ice on trees or heavy winds has
damaged coffee for export, regional producers said on Monday.
Recent freezing temperatures in Mexico’s coffee-growing
regions have affected at least 80,000 60-kg bags of coffee and
farmers are worried about future cold snaps, the national union
of coffee producers said.
Ice encased high-altitude coffee in the states of Hidalgo,
San Luis Potosi, Puebla and Veracruz for six hours over the
weekend, the head of the independent union said. This damaged
some beans and will prevent some cherries from maturing.
The coffee harvest runs from October to around March, and
December and January are peak picking months.
“The damage to quality in these areas could be almost 80
percent,” Gabriel Barreda told Reuters. He said the affected
areas had about 150,000 bags of coffee left to harvest for the
2009/10 season.
Growers in other coffee-producing states could find more
defects in their coffee if the bad weather continues, he said.
The union, which groups more than 220,000 growers around
the country, has predicted an overall drop in the 2009/10
coffee harvest as aging trees produce less.
Barreda said on Monday that this season’s production could
fall 33 percent to 3.45 million 60-kg bags.
In the 2008/09 coffee year, Mexico produced 4.6 million
60-kg bags of coffee.
Separately, Mexico’s national coffee association, Amecafe,
which is linked to the government, said in December it saw
production remaining steady in 2009/10.

STRONG WINDS IN CENTRAL AMERICA
The cold weather hitting Mexico and Central America is part
of the same cold front affecting the United States, which is
forecast to abate later this week.
Growers in El Salvador and Costa Rica were still assessing
potential damage from a weekend of high winds that may have
knocked cherries off trees in some places.
While they had “not yet” found any damage to their crops,
some of Costa Rica’s largest coffee producers said they were
closely monitoring conditions after winds as strong as 38 mph
(60 kph) downed trees and caused electrical outages.
“We hope that it’s over soon,” Jose Angel Vazquez, general
manager of Coopalmares, which sells its coffee to Starbucks
and Farmer Bros Co. told Reuters.
Costa Rica, known for its top-quality beans, is expecting a
larger harvest in 2009/10 compared with the previous cycle.
Agronomists at El Salvador’s national coffee institute were
in the fields on Monday evaluating the scale of the damage from
the weekend cold snap and sent out a letter to farmers last
Friday advising them to speed up the harvest.

Organic coffee: Why Latin America’s farmers are abandoning it

Latin America produces an estimated 75 percent of the world’s organic coffee. But the economic benefits many small farmers were promised if they converted to organic haven’t materialized.

Reuters

By Ezra Fieser Correspondent / December 29, 2009

Guatemala City

Some 450,000 pounds of organic coffee sit in a warehouse here, stacked neatly in 132-lb. bags. It’s some of the world’s best coffee, but Gerardo De Leon can’t sell it.

“This is very high quality and it’s organic. But … the roasters don’t want to pay extra these days,” says the manager of FEDECOCAGUA, Guatemala’s largest growers’ cooperative, which represents 20,000 farmers.

Mr. De Leon is asking $2 per pound for the green (unroasted) coffee, about 50 cents more than the going price. But he says he’ll soon have to sell it as conventionally grown coffee, which sells for less.

That’s why many Mesoamerican farmers here are starting to give up on organic coffee: The premium price that it used to fetch is disappearing.

From Mexico to Costa Rica, at least 10 percent of growers have defected in the past three years, estimates the Center for Tropical Agricultural Research and Higher Education in Costa Rica (CATIE). Researchers say that each year, about 75 percent of the world’s organic coffee comes from Latin America.

Farmers have returned to the chemical fertilizers and pesticides that increase production, albeit at a cost to the environment. Although organic still pays a premium of as much as 25 percent over conventional coffee, it’s not enough to cover the added cost of production and make up for the smaller yields. For consumers, the defections threaten to make the coffee harder to find.

“This is a critical point for organic coffee. It was starting to make the conversion to the mainstream,” says Jeremy Haggar, who oversees the research for CATIE. If farmers continue to abandon organic coffee, “prices will definitely go up and it will return to being a niche product.”

‘Promised economic benefits’

Under specialty “green” labels at places like Wal-Mart and McDonald’s, organic beans and brews have become cheaper and more widely available recently. Last year, North American sales reached a record $1.3 billion, a 13 percent increase from 2007.

Major retailers already struggle to fill demand. Seattle-based Starbucks Corp., the world’s largest coffeehouse company, said just 3 percent of its coffee purchases, about 10 million pounds, were organic last year.

“Our purchases of certified organic coffee are limited due to the limited quantities available worldwide and the constraints of the organic certification system for farmers,” the company said in a statement issued in response to questions.

The expense of organic certifications, composts, and the losses incurred by pests and other factors mean growing organic costs about 15 percent more than growing conventional crops, Mr. Haggar says. More notably, by using chemical fertilizers a farmer can coax about 485 pounds of coffee out of one acre, versus 285 pounds per acre on an organic farm, according to CATIE.

With coffee prices rebounding from the historic lows of a decade ago, there’s little financial reason for growers to continue raising organic beans.

“I can sell [nonorganic coffee] to a coyote [middle man] for around the same price [as organic], a little less, and I can use whatever I want on the coffee plants – fertilizers I can buy, pesticides,” says Jose Perez, who stopped growing organic coffee on his three-acre farm in Guatemala last year. “I can grow a lot more this way.”

Mr. Perez is an example of what World Bank coffee researcher Daniele Giovannucci says was an empty promise made to growers. “Many farmers … were promised economic benefits by those that wanted them to convert, which was a very bad idea,” he writes in an e-mail, “and [this trend] is bearing the fruit in their dissatisfaction.”

Organic demanded, but not at higher price

A decade ago, with coffee prices bottoming out and at the urging of some development organizations, tens of thousands of Latin American farmers began to convert their fields to producers of certified organic products. To do so, farmers followed strict rules set by a handful of agencies, including the US Department of Agriculture, that require soil be free of pesticides and chemical fertilizers for three years.

After making the conversion, they would be supplying a growing market that paid as much as 40 percent more. They would also be preserving their land. Conventional farms apply as much as 250 pounds of chemical fertilizers on every acre. “And they use tons of pesticides that are harmful to human health and affect biodiversity,” Haggar says. Organic farms, rich with flora, trap more carbon than their conventional counterparts, an important benefit for a crop threatened by climate change.

However, the farmers don’t receive the financial benefits of organic coffee until they are certified, meaning they were expected to absorb extra costs for three years. Many went into debt. Now, they are quitting organic farming.

“When you’re a small organization like ours, it’s already difficult to survive against the big growers. So when you lose members, it hurts you a lot,” says Marvin Lopez, manager of APODIP, a Coban, Guatemala-based cooperative of organic growers that lost half of its members, about 380, last year.

“I get calls every day from buyers in the US who are asking me if I have any organic [coffee] available. But then I tell them the price, $2 per pound,” De Leon says, pointing to an e-mail with an offer to pay $1.50 per pound. “So, the coffee just sits there.”

 

East Africa:Fight Against Coffee Disease Gathers Strength


Nairobi — A devastating disease of coffee plants that may have cost East African farmers as much as US$1 billion over the last ten years could be brought back under control after the rapid development of resistant varieties.

The disease – coffee wilt – is caused by a fungus and is present in the Democratic Republic of Congo (DRC), Ethiopia, Tanzania and Uganda.

It is not only lethal but also leaves the soil infected for many months and is the “largest single natural disaster ever to affect African coffee”, according to the Centre for Applied Biosciences International (CABI).

Scientists in Uganda released results this month (14 December) of a project in which they developed several resistant varieties of the coffee plant. Their results are described in a report of CABI’s seven-year study of the disease.

With the disease threatening to spread to West Africa from DRC, and to Kenya from Ethiopia, the new varieties could be rolled out to farmers as early as next year.

Georgina Hakiza, head of the coffee wilt disease programme at the Coffee Research Institute in Uganda said that despite the considerable effort spent on the new varieties, their mass production will be cheap as they are made from cuttings from mother plants (known as clones).

She added that the spread of the disease had also slowed recently because the researchers have educated farmers on control and prevention measures.

The CABI study has revealed that there are two forms of the disease, one attacking the Robusta coffee variety – the target of the Ugandan clone – and the other, found only in Ethiopia, attacking Arabica.

To control disease spread CABI is recommending quarantine, uprooting and burning of infected plant material, and leaving infected soils for at least a year before replanting.

It is also calling for more research to protect Arabica coffee in Kenya from the disease.

The disease was brought under control in the 1950s only to re-emerge in the 1990s, partly because of the situation in DRC.

“Conflict in the DRC weakened the country’s economy and coffee research was not spared, paving the way for return of the disease,” said Noah Phiri, a senior plant pathologist at CABI in Nairobi and co-author of the report.

Refugees from the war in DRC then spread the disease, which clings to soil.

CABI’s study involved scientists from Belgium, France, the United Kingdom and seven East African countries. It was funded by the Common Fund for Commodities, the European Union and the UK’s Department for International Development.

Project Kenya

Introducing the rules of the international market to Kenyan coffee farmers

If you order a cup of coffee, you mainly want it to taste good. In the international market, however, more requirements are set. Are there good working conditions at the coffee plantations? Is production environmentally friendly? With the support of Hivos and coffee trader ECOM / SMS, small coffee farmers in Kenya receive training to be able to meet these requirements.

Most co-operative farmers are ill equiped to take full advantage of these new opportunities in the coffee business. Low production levels, usually 4 to 5 times lower than that of well managed coffee plantations in the same region, are unlikely to guarantee them any tangible benefit. Cooperative farmers lack knowledge on basic mangement and crop husbandry skills such as pruning, coffee handling, soil management, etc. and yet today’s coffee trade demand that they comprehend issues such as cupping, intergrated pest management (IPM), transparent record keeping and a respect for economic, social and environmental responsibility.

To take advantage of the opportunities and address the weaknesses of smallholder cooperative farmers, Sustainable Management Services Ltd. (SMS) was established on 24 July 2006 by Ecom Agroindustrustrial Corp Ltd in Switzerland and Sangana Commodities Ltd. Kenya. SMS focuses on management services for smallholders and small/medium estates, creating sustainable and feasible farming units through “best practices”. SMS offers coffee extension and advisory services on all aspects of coffee business, farm management services, training on best coffee practice, and coffee liquouring and quality training services, coffee sustainability and certification, risk management in coffee business, proposal writing and project managent on behalf of producers and provision of farm inputs and credit facilities to run the coffee business.

Hivos supports SMS because it addresses one of Hivos major concerns in Sustainable Production, namely incusion of smallholder coffee farmers in world quality markets.

Kenya coffee is in high demand on the world market due to its inherent superior quality. Consequently, premiums for these coffees have the potential to be high. The introduction of certification (eg. Starbucks, Fairtrade, CAFE practices, Rain Forest Alliance, Organic Coffee and Utz Kapeh) has the potential of adding further value to those premiums.

Seven New Wild Coffee Species Discovered

Giant rainforest trees, tiny fungi and wild coffee plants are among almost 300 species that have been described by UK botanists for the first time in 2009.

…Seven wild coffee species also feature on the list of new species, most of which were discovered in the mountains of northern Madagascar.

Two of the plants – Coffea ambongensis and Coffea boinensis – have the largest seeds of any coffee species, whose “beans” are more than twice the size of Arabica coffee (Coffea arabica), the main species used in commercial coffee production.

“Coffee is the world’s second most traded commodity, after oil, with at least 25 million farming families dependent on its production for their livelihoods,” explained RBG Kew’s coffee expert Aaron Davis.

“Yet, we still have much to learn about its wild relatives.”

Dr Davis estimated that almost three-quarters of the world’s wild coffee species were threatened, as a result of habitat loss and climate change.

“Conserving the genetic diversity within this genus has implications for the sustainability of our daily cup, particularly as coffee plantations are highly susceptible to climate change,” he added.

Professor Hopper said that, around the globe, about 2,000 species were described for the first time each year, adding that it was “vital” that these areas of botanical sciences were adequately funded and supported.

Kew Gardens has published profiles of the new species on its website, and added the information to Google Earth.

<i>Coffea ambongensis</i> "bean" (left) next to the commercially grown Arabica coffee (Image: RBG Kew)

Coffea ambongensis “bean” (left) and the commercial Arabica variety

Licht Sees Sharp Drop in 09/10 World Coffee Output

London, Dec 22 – World coffee production in 2009/10 is projected to fall to 127.0 million bags from 135.0 million in 2008/09, analyst F.O. Licht said on Tuesday.

“The outlook for 2009/10 offers a mixed picture at this time,” Licht said in a statement.

“The market will be in its low-production year of the biennial production cycle, with output significantly reduced in the Brazilian crop that was concluded around two months ago while the Vietnamese crop will also be down year-on-year.”

Colombia, the world’s number three coffee producer, suffered a disastrous crop in 2008/09, due to a combination of weather problems and a tree replanting programme.

Hopes were significantly high for a significant recovery in Colombian production this year.

“But this may prove to be wishful thinking as the main 2009/10 crop, which accounts for the better part of total output, started with similarly dismal crop figures as had been recorded in previous months,” Licht said.

Colombia May Struggle to Meet Coffee Target

Bogota, Dec 21 – Colombia will likely produce one of its smallest coffee crops in 35 years, with some growers expecting production to fall nearly 30 percent from last year to no more than 8.0 million 60-kg bags in 2009.

The coffee growers’s federation in the world’s No. 3 coffee exporter has said coffee production will recover next year to 11 million bags as a result of more favorable weather conditions, a crop rejuvenation program bringing more trees into production and renewed fertilization.

Colombia, the world largest producer of top-quality of arabica beans, is struggling as the harvest has shown little sign of recovery in the last months of the year. Intense rains in 2008 and a coffee crop rejuvenation program took some fields out of production.

The coffee growers’s federation recently lowered its output target to around 8.3 million sacks in its fifth downward revision, producers said.

The Andean country produced 6.99 million bags in the first 11 months of the year, according to coffee federation.

In November output was 760,000 bags, down 19 percent from the same month a year earlier. November output marks the 19th consecutive monthly fall in production from year-earlier levels, according to federation.

But registering an output of 1.31 million bags in December to meet the target will be “simply impossible,” said Hector Falla, who represents coffee producers for the southeastern province of Huila.

“The country’s coffee production could be below 8 million bags. Output in December is seen as diminished as we have seen production throughout the year,” Falla said.

Huila accounts for 11 percent of the country’s total output and is the fourth heaviest-weighted province in terms of production.Colombia’s 2008 coffee output was 11.4 million bags and 12.6 million bags in 2007.

Javier Bohorquez, who represents coffee producers for the central province of Cundinamarca, said production will pick up in December propelled by increasing output in the coffee-rich central production area known as the “Eje Cafetero” but the recovery will not be enough to reach the annual target.

Bohorquez estimates production in the last month of the year at 1 million bags, which would bring the total output ending at around 7.99 million bags.

Lower rainfall starting in April has led to an “excellent” flowering of coffee plants, he said.

“Unfortunately, the sharpest increase of production will be seen in the first months of next year,” Bohorquez said

Study: Coffee will not sober you up after drinking


Quantcast

PHILADEPHIA, Pa. — Nevermind what they do in the movies; coffee will not sober you up after a night of drinking.

That’s according to a new study at Temple University that uses lab mice.

Mice were given either alcohol or caffeine.  Caffeinated mice were able to get through a maze just fine, while the ones given alcohol predictably failed.

When researchers gave mice alcohol plus caffeine– the equivalent of 8 cups of coffee– the mice seemed relaxed and alert, but still failed to get through the maze.

Researchers say this shows drinking a lot of caffeine after alcohol could make a person look just fine, but would still be too drunk to drive.

For more information on the study, go to www.apa.org/journals/bne.

Kenya – Nairobi Coffee Exchange – Auction Report

There were 15,600 bags on offer at yesterday’s auction, of which most were confirmed as sold.
The first new crop estate coffees were available, and exporters started taking positions ahead of what promises to be a shorter crop year for the trade.
The lower crop, the perceived lack of quality coffees from other origins, and now the growing tension over Colombia’s internal supply situation are all just fuel for the fire of Kenya differentials at the moment. AA only accounted for 10% of the volume on offer, and this is what buyers need to track going forward. The expectation is that the drought experienced throughout much of 2009 has restricted the development of the bean size, and therefore demand for Kenya AA will not be met in the coming crop – unless premiums go higher.

Quality wise, we are not disappointed by the first estate coffees on offer. Most Socfinaf estates were FAQ quality, with some better cups mixed in. The next – and last auction of the year – will be held on 15th Dec. We expect around 25,000 bags to be available, as suppliers try to push out as much volume as possible before the month long Christmas break.

US Consumers Report Increased Interest in Premium Coffee for Breakfast

US Consumers Report Increased Interest in Premium Coffee for Breakfast New York (CoffeeNetwork) A new study by Chicago-based foodservice industry consultant Technomic finds that increasingly U.S. consumers demand more premium coffee for their breakfast as a wider variety of options and marketers widen their choices and knowledge. The findings are part of Technomic’s new Breakfast Consumer Trend Report, designed to help restaurant operators and suppliers understand consumer attitudes, preferences and dining behavior associated with breakfast. The survey of 1,500 consumers, found that “roughly a third of today’s consumers (34%) prefer premium coffee as compared to 29% of consumers surveyed in 2007,” said Technomic, in a report detailing breakfast trends in the U.S. Breakfast (the first meal after rising, even if only had fruit juice or coffee) continues to be the dominant day-part for coffee consumption in the U.S. (see chart in Breaking News) Nearly half of consumers surveyed (46%) say they would like to see full-service restaurants offer breakfast throughout the day. About a third of consumers (32 percent) would like breakfast offered all day in limited-service restaurants. In both cases, females were significantly more interested in breakfast items for lunch or dinner than were males. “Operators looking to expand breakfast into other dayparts should be mindful of their customer base and develop new offerings accordingly,” says Darren Tristano, EVP at Technomic. “Understanding the general flavor, ingredient and preparation preferences held by female consumers can help operators and suppliers introduce the most appealing breakfast options beyond morning hours for these guests.” Four in ten (43%) say they visit their preferred restaurant for weekend breakfasts because the food tastes really good, while weekday breakfast visits are driven by inexpensive offerings (45%) and convenience of location (38%). More than three in five consumers (63%) say they expect their breakfast purchases at restaurants and convenience stores to remain about the same in the coming year. Consumer interest in breakfast sandwiches has grown since 2007. More than three-quarters of today’s consumers (77 percent) purchase breakfast sandwiches sometimes or often during weekdays, compared to 73% in 2007. Breakfast sandwiches fared even better on weekends, increasing from 61% two years ago to 70% today. Fast-food restaurants have improved in consumers’ perception of healthy food offerings. Only a third of consumers (35%) say they would like fast-food establishments to offer more healthy options, down from 43% in 2007. Leading fast-casual restaurant chains are adding new entrees and side items to their breakfast menus faster than any other restaurant subsegment, added Technomic, in a press release highlighting some of the findings. Edited by Marvin G. Perez; CoffeeNetwork.com