Ethiopia – Speciality Coffee: The New Thing at ECX

Ethiopia’s coffee trading is soon to include speciality coffee trading alongside the trading of commercial coffee trading. The speciality coffee trading measure aims at connecting farmers directly with international buyers, opening a direct window for them, according to Eleni Gebre Medhin, CEO of the Ethiopian Commodity Exchange (ECX).

To date the ECX has been handling only commercial grade coffee, whose origin is difficult to pinpoint. Specialty coffee is designated by origin, which adds value to it. The ECX and Specialty Coffee Association of America (SCAA) organized the first specialty coffee event Wednesday, October 21, 2009, at the Sheraton Addis. This event was considered to be the first step towards commencing speciality coffee trading as it brought together key players in the global specialty coffee industry and international buyers to discuss how the ECX could handle the new trading.

“Over time, we think that tables will turn and we might be producing or trading a lot more specialty coffee than commercial coffee,” Eleni had said in an earlier interview with Fortune.

For coffee to be considered speciality coffee, its quality, socio-economic impact on the producer, environmental attributes, and traceability to the grower must be evaluated. Quality and traceability will be given greater emphasis Eleni says.

 

ECX started work to introduce speciality coffee trading by travelling to Atlanta, GA in the US for the annual event of the SCAA held in April.

 

ECX also started preparing the trade and capacity building of the professionals who will taste and grade coffee. That led to the professional accreditation of 37 people by the Coffee Quality Institute (CQI), including some of the coffee tasters who used to work for the old Coffee Board.

CQI is a non-profit organization working to improve coffee quality and the lives of the people who produce it. CQI’s Q Grader Program is the coffee industry’s only professional accreditation programme for cuppers (coffee tasters), according to the information from SCAA. The professionals thus accredited will identify coffee that meets the minimum SCAA standard.

The accreditation of these professionals has given Ethiopia the largest number of Q Graders in Africa. Some of these people were presenting speciality coffee from Yirga Cheffe, Sidama, Jimma, Limmu, Harar and a number of other places during the Sheraton event, proudly displaying their Q Grader badges on their chests.

There are currently 760 Licensed Q Graders worldwide; Brazil, Costa Rica, Kenya, Rwanda, Uganda and the US have 10, 28, 18, 16, 18 and 74 Q Graders, respectively.

 

The Ethiopian government is also in the process of drafting legislation to recognize and accredit international and national certification agencies, such as those for organic coffee, according to Yacob Yala, state minister of Agriculture and Rural Development.

The state minister explained his government’s commitment at the opening of the specialty coffee event, focusing on finding appropriate solutions for marketing specialty coffee in such a way as to be fair to small producers. 

The participants left for Dilla on Saturday, October 24 for the inauguration of the Dilla Regional Laboratory and Warehouse. This centre is the third to open within a month, following the inauguration of one in Hawassa and another in Jimma. These regional centres are expected to help keep coffee sorted by origin without it getting mixed with coffee from other origins.

ECX has handled the transaction of 161,000tns of coffee worth almost three billion Br since December 2008, despite the challenges of the financial crisis resulting in the global recession.

Colombia Sees Specialty Coffee Exports Flat in 2009

Bogota, Nov 20 – Colombian exports of specialty coffee are expected to be flat in 2009 as international buyers were reluctant to purchase the beans due to high international prices, the country’s coffee federation said on Friday.

Heavy rains earlier this year and a crop renovation program that temporarily took some fields out of use also reduced output of specialty beans, helping to cause a spike in prices for Colombian coffee.

Shipments of the specialty coffee from the coffee federation’s growers are expected to total 1.05 million 60-kg bags this year unchanged from last year, said Rodrigo Calderon, director of specialty coffees.

“It was very difficult to increase exports and production of specialty coffees this year because international buyers abstained from buying the coffee due to really high international prices,” Calderon said.

The federation accounts for 65 percent of the country’s total exports of specialty coffees.

Buyers pay as much as $1.83 per lb for Colombian specialty coffee compared with the $1.68 paid for Colombia green beans, said Jose Fernando Munoz at Industria Cafetera La Meseta, which plans to export 150,000 bags this year.

Colombia is the world’s third largest coffee producer after Brazil and Vietnam. Its coffee is prized for its intensely aromatic taste without bitterness and is very popular in the United States, Germany, Switzerland and Japan.

But poor weather conditions and coffee-tree replanting programs forced the federation to reduce the country’s total output forecast to 8.3 million 60-kg bags for this year, down from an earlier estimate of 9.3 million bags.

INTEREST IN SPECIALTIES

Despite flat specialty coffee exports this year, international roasters are still keen on Colombia’s offer.

Italy’s top coffee roaster, illycaffe, on Wednesday awarded a small group of coffee growers the prize for the country’s best beans, allowing 150 farmers from the province of Casanare to sell their product to the company.

The winning lot consisted of 25,000 kg of specialty coffee produced in the municipality of Tamara. Illycaffe will pay producers from this province about $1.83 per lb, said Pedro Leal, who represents coffee producers from Casanare.

Leal estimated coffee producers could sell illycaffe 100,000 kg of coffee next year.

Illycaffe selected Casanare’s coffee because it is produced with high biological diversity and organic fertilization.

“As a result of all those factors, the coffee has a discreet bitterness and a soft aroma. It is very complete,” Luca Turello, an illycaffe Latin America buyer told Reuters.

Illycaffe has been buying 10,000 70-kg bags of premium Colombian coffee per year from the provinces of Norte de Santander, Huila, Cauca, Tolima, Narino and now Casanare to produce arabica espresso coffee.

March 2010 Coffee Futures

March ICE Arabica (KCAH0) Coffee:
The picture is mixed, with a slightly bullish bias for the short-term.
Remaining above 137 will keep KCAH0 positioned to continue higher, and challenge 145, then 146.85.

Invalidation: On the other hand, a close below 137 would signal a decline towards 133.05. At that point, a close below 133 would open the door to a decline towards 130, then 128.05

Colombia 2009 Coffee Output Seen at 8.3 Mln Bags

Carlos Gonzalez said at the Sintercafe >coffee conference in Costa Rica that Colombia’s coffee output for 2010 was seen at 11 million bags.


Nestor Osorio, executive director of the International Coffee Organization, said on

Friday at the same event that Colombia’s 2009/10 coffee harvest, which runs from October through September, will come in at 9 million bags.


Gonzalez said the country usually calculates its coffee output in calendar years.


Coffee production in Colombia is being hurt by the rapid spread of broca worms amid unusually high temperatures due to El Nino weather system. The plague causes irreversible damage to plantations by eating into coffee kernels.


But an emergency plan to curb its effects is expected to yield good results in 2010 as newly renovated fields return to production and farmers increase their use of fertilizers.

Coffee brims with health benefits, researchers say


THE PALM BEACH POST


Drink up, coffee lovers. Not only is coffee aromatic and delicious, it’s good for you.

Who says? None other than Harvard Medical School.

Once considered questionable for your health, it turns out that the beloved beverage is actually healthful in moderation. That means a few cups a day.

At about 20 cents per 6-ounce cup, coffee is a good deal if you brew it yourself.

Harvard researchers say drinking coffee might help prevent diseases such as:

Cancer: Some studies have found coffee drinkers have lower rates of colon and rectal cancers and are 50 percent less likely to get liver cancer than coffee abstainers.

Type 2 diabetes: Coffee is thought to contain chemicals that lower blood sugar because heavy coffee drinkers might be half as likely to get diabetes as those who drink little or no coffee. Coffee also may increase your resting metabolism rate, which could help prevent diabetes.

Parkinson’s disease: Coffee seems to help protect men from Parkinson’s disease, but not women. The difference might be due to estrogen, researchers say.

Heart disease: Coffee is not linked to the development of heart disease. In the past few years, Harvard scientists say, coffee has been shown to be safe even for heart attack survivors. Scientists think antioxidants in coffee may reduce inflammation and protect blood vessel walls.

Life span: Recent studies suggest that drinking coffee decreases the risk of premature death, especially in women. Women who drank at least five to seven cups a week had a death rate 26 percent lower than non-consumers, a large investigation by researchers in Spain and at Harvard Medical School found.

It’s not only Harvard researchers who are touting the brew’s benefits.

Last month, a study led by Neal Freedman of the National Cancer Institute in Bethesda, Md., showed that people with chronic hepatitis C and advanced liver disease who drank three or more cups of coffee a day cut their risk of the disease progressing by 53 percent.

Although caffeine might be considered the “active ingredient” in coffee, coffee is only 2 percent caffeine and 98 percent “other stuff,” including more than 1,000 different compounds such as vitamins, minerals and amino acids.

It even contains fiber. Each cup contains from 1.1 to 1.8 grams of soluble dietary fiber, the kind that dissolves in water and helps prevent cholesterol from being absorbed by the intestines, according to researchers at the Spanish National Research Council in Madrid.

Do researchers have any words of caution? Yes — although regular coffee drinking isn’t harmful for most people, that might not hold true for pregnant women. Research has linked miscarriage to caffeine consumption of 200 milligrams or more per day. A typical cup of coffee has 100 to 150 milligrams, Harvard reports.

Of course, we like to be able to justify our morning addiction as healthful, when the truth may be we can’t get moving without it!

Is it possible to be caffeine-addicted? Yes, University of Florida professor and director of toxicology Bruce Goldberger says.

“It is one of the most commonly ingested drugs worldwide. It is addictive. One example of that is if you consume a lot of caffeine, then you don’t, you start to crave it. If you consume a lot of caffeine, and it is not working, then you need to consume more,” Goldberger said.

Like anything, experts advise, moderation counts. Anyone who’s ever had the jitters from drinking too much coffee knows that.

Tropical Storm Ida Hits Nicaragua

Coffee futures inched down as dealers focused on tropical storm Ida which hit eastern Nicaragua on Thursday, although the initial impression was that the depression was not likely to trigger a reaction to futures prices. Tropical Storm Ida slammed into Nicaragua’s Caribbean coast on Thursday but coffee and sugar producers in the Central American nation said their crops were likely to be safe from major damage. Harvesting of arabicas has been under way in Nicaragua since October. “The storm is a supporting factor, but volumes are very thin,” one London-based coffee dealer said. ICE December arabica coffee futures were down 2.05 cents to $1.4005 per lb, while Liffe January robustas were down $3 to $1,442 per tonne.

Colombia’s Q1 Coffee Output Seen Hit by El Nino

Bogota, Oct 26 – Expectations of strong droughts hitting Colombia in the first three months of next year have led some of the country’s coffee growers cut their production estimates for 2010.
The El Nino weather phenomena is producing high temperatures across the country and the tendency is expected to worsen into the first quarter.

Rains in September were 30 percent lower in the coffee producing departments of Santander, Norte de Santander, Quindio, Tolima, Huila and Narino compared with average September levels in previous years.

It was the driest September in 12 years, Humberto Gonzalez, director of weather forecast for the government’s weather office, IDEAM, told Reuters.

But the worst of El Nino could be yet to come. Rains in October through December could decrease 30 percent from average levels, while precipitation may be even lower during the first quarter of 2010.

“The average levels of rains in the October-December period will be below normal, affecting mainly the Andean region, where most of coffee production is located and the Colombian Caribbean,” Gonzalez said.

“The dry season could be worst between January and March, when El Nino is expected to intensify,” he said.

Colombia’s dry season is in the first quarter, but 2010’s will be particularly severe due to El Nino, Gonzalez added.

El Nino is an abnormal warming of water in the eastern Pacific Ocean off the west coast of South America. El Nino usually recurs every 3 to 7 years with varying degrees of intensity.

The intensity of the current Nino is moderate, Gonzalez noted.

Were it not for El Nino, rich-coffee producing areas such as Quindio, Risaralda, Antioquia and Tolima, which accounts for 52.4 percent of the country’s total bean production, could have an average rainfall of 2,150 millimeters (85 inches) this year.

But rainfall would total only 1,500 millimeters per year, predicts Gonzalez.

Poor weather predictions led the state of Huila to reduce its output estimate for next year to 1.7 million 60-kilogram bags, down from an initial projection of 2 million bags, Hector Falla, who represents producers for the province, said.

“All (information) makes us forecast that the January, February and March period is going to be really complicated,” he said.

The head of Colombia’s coffee growers’ federation recently said production for next year may total 11 million bags of 60-kilogram bags versus 9.3 million bags expected this year, give or take 5 percentage points.

Gomez believes coffee production will come near the lower target range of the federation’s target or around 8.8 million.

Other coffee producers are confident that IDEAM’s pessimistic predictions may not come true.

Javier Bohorquez, who represents 37,000 families spanning in 55 municipalities in the state of Cundinamarca, expects to collect 80 percent of next year’s 517,000 bags in the April-June harvest.

“IDEAM has historically been mistaken,” Bohorquez. “Even if it is doesn’t rain enough in the first quarter of the year, we have properly fertilized to withstand one month of no rains,” he concluded.

LESS RAIN IN SEPTEMBER

Colombia is the third biggest coffee producer in the world after Brazil and Vietnam.

According to the country’s National Coffee Research Center, known as Cenicafe, rainfall at the Paraguaicito weather station located in the municipality of Buenavista in the state of Cauca, received in September a-sixth of rains than what it gets on average for the month.

Cauca accounts for 7 percent of the country’s output.

The same situation was present in the coffee-rich municipality of Libano, in the state of Tolima, which got 70 millimeters of rains in September, compared to 220 millimeters it gets on average for that month.

Tolima weights 11.3 percent of total production, the third-heaviest weighted department in terms of production.

During the first 22 days of October, rainfall increased compared to September but that is still below average levels.

The Naranjal weather station next to Caldas’s coffee region of Chinchina, received 224 millimeters of rain in the first 22 days of October, down from an average of 288 millimeters in the same period in recent years, Cenicafe says.

UPDATE: Blaze hits coffee and tea plant

NorthJersey.com
MOONACHIE – A Sara Lee coffee and tea plant that took all night for firefighters from 18 departments to extinguish could reopen tonight or tomorrow, a company spokesman said.

The plant is waiting on borough officials’ approval to reopen, spokesman Mike Cummins said. Only one-eighth of the 110,000-square-foot building was affected, he said.

“This isn’t a situation where we have to spend too much time rebuilding the plant,” he said. “We just need to get it cleaned up and we’ll be fully operational.”

The stubborn fire was finally stamped out this morning after starting sometime after 7:30 p.m. last night. It was the fourth fire at the Empire Boulevard plant in a year.

Twelve hours after the fire began last night, firefighters were still battling pockets of fire in the coffee beans and duct work at 7:30 a.m. this morning.

“We’ve been here all night,” said Moonachie Fire Chief Justin Derevyanik. “We never left.”

The fire began in the rear of the building, erupting in heavy flames and smoke that were not visible two hours after the blaze began, but fires persisted in ducts and coffee beans.

Three firefighters were hurt, two with smoke inhalation and one with an ankle injury. The cause of the fire is under investigation.

It was the fourth fire at the plant since October 2008. Fire officials blamed the company’s coffee roasting machines for the three previous fires, the most recent of which occurred on Aug. 19. No one was injured in the earlier blazes.

The latest blaze was the worst, Derevyanik said.

“This is the worst fire in my 15 years as chief,” he said.

Last night, about two dozen employees gathered on the sidewalk outside the plant after being evacuated, several of whom said they were not authorized to speak to the press. Plant Manager Michael Sobers said several machinists were at the plant last night and all got out safely.

He did not comment on the fire this morning.

“We’re waiting to get back into the building to understand what happened,” he said.

After the August blaze, Sara Lee spokewoman Sara Matheu told The Record that the company is “working collaboratively with the Fire Department to install state-of-the- art equipment that will help alleviate issues related to spark risk during equipment changes.”

A few coffees a day keep liver disease at bay: study

WASHINGTON (AFP) – Researchers in the United States have found another good reason to go to the local espresso bar: several cups of coffee a day could halt the progression of liver disease, a study showed Wednesday.

Sufferers of chronic hepatitis C and advanced liver disease who drank three or more cups of coffee per day slashed their risk of the disease progressing by 53 percent compared to patients who drank no coffee, the study led by Neal Freedman of the US National Cancer Institute (NCI) showed.

For the study, 766 participants enrolled in the Hepatitis C Antiviral Long-Term Treatment against Cirrhosis (HALT-C) trial — all of whom had hepatitis C which had not responded to treatment with anti-viral drugs — were asked to report how many cups of coffee they drank every day.

The patients were seen every three months during the 3.8-year study and liver biopsies were taken at 1.5 and 3.5 five years to determine the progression of liver disease.

“We observed an inverse association between coffee intake and liver disease progression,” meaning patients who drank three or more cups of java were less likely to see their liver disease worsen than non-drinkers, wrote the authors of the study, which will be published in the November issue of Hepatology.

The researchers put forward several ways in which coffee intake might protect against liver disease, including by reducing the risk of type two diabetes, which has been associated with liver illness; or by reducing inflammation, which is thought to cause fibrosis and cirrhosis of the liver.

Even caffeine, the chemical that gives a cup of coffee its oomph, came under the spotlight, having been found in previous studies to inhibit liver cancer in rats.

But drinking black or green tea, which also contain caffeine, had little impact on the progression of liver disease, although there were few tea drinkers in the study.

According to the World Health Organization (WHO) three to four million people contract hepatitis C each year.

Seventy percent of cases become chronic and can cause cirrhosis or liver cancer.

Will coffee prices climb with climate change?

Coffee growers could have to move to higher altitudes — meaning higher prices but maybe tastier brews.

By Ezra Fieser — Special to GlobalPost

Published: September 14, 2009 06:30 ET

“As a scientist it pains me to say it, but the conditions for coffee growing in many of the highland areas, where the best coffee is grown, could be better for coffee in the coming years,” said Edwin Castellanos, a scientist for Guatemala’s Universidad Del Valle, who is part of a team conducting the regional study.

Governments in the region have long urged coffee growers to move to higher elevations, where finer coffee can be grown.

“The coffee grown at those altitudes could have higher yields and it’s likely that the producers will be able to take advantage in the short term by growing those high quality coffees more abundantly,” he said.

However, less land is available at those altitudes. According to Anacafe, the Guatemalan coffee-growing association, only 2.5 percent of Guatemalan land is suitable for growing coffee, producing some 495 million pounds of beans. About 150 million pounds of that coffee was grown at elevations of lower than 4,500 feet above sea level, lands that are likely to be hit by climate change.

The farmers at Santa Anita, which sits about 4,000 feet above sea level, consider the changing temperatures a serious threat to their way of life.

“If we have to pick all the coffee in October and November, we won’t have enough help because our children will still be in school,” said Mariola Cifuentes, a coffee grower in the cooperative. “And if we can’t pick the coffee, it will fall [off the plant]. And we can’t afford that.”

Cifuentes said the increase in temperatures has led to the spread of pests and of a fungus known as koleroga. As a result, the farmers — who raise Fair Trade- and organic-certified coffee — have had to spray fungicides and pesticides more frequently.

“Dealing with these changes by spraying more fungicides or pesticides, because they are organic, is already costing these farmers more,” Huerta said.

Scientists said the problem could be worse in the long-term.

Farmers could combat some of the changes in humidity and temperature by using shade trees. In some cases, the trees could be trimmed to release trapped humidity. In others, more shade trees could be planted to cut down on the sun and heat that reaches the beans, Castellanos said.

But adapting their farms to the changing climate will only last so long.

“It’s a problem of increased extremes,” Castellanos said. “Farmers in these regions will see hotter temperatures, longer periods of drought, more heavy downfalls, which can damage crops, and more storms.”