April Newsletter
It’s late April, certified stocks are under 3.9 million bags, some coffees are in the supply pipelines, but most are in hands of producers or hanging on the trees very far from here. Consumption is steadily growing worldwide.
Consumption growth is supported by ages teen through advanced in the consuming countries. Now the same happens in so many producing countries like Brazil, Colombia, Guatemala, Mexico and Ethiopia.
It will take a much longer and deeper economic crisis to draw people away from the warm and comforting daily cups of coffee, consumers might migrate from a high priced ticket to a lower one but the trend will remain positive, for a long time yet.
On the other hand, higher green coffee prices could have a greater impact in coffee consumption than the economic crises. We may have to pay attention to the supply issue on the short term.
The SCAA Conference and Exhibition in Atlanta just ended and again, for us and the Ipanema Coffees, it was a very productive and successful venue. It was great to see so many company owners, buyers and executive level decision makers walking the floor, times demand such high level of interest and participation.
Our “Ipanema Fazenda Capoeirinha” finished top 7 coffees at the Rain Forest Alliance Coffee Cupping Competition. This same coffee is available for June arrival on our new 22 lb easy to carry vacuum and nytrogenated carton boxes “Ipanema Reserve”. Please contact us in case your are interested.
Ipanema also launched for September 09 onward arrivals: the Natural preparation “Ipanema Bossa Nova”, the Pulped Natural “Ipanema Nativa” and the Ipanema “Bourbon Selection”.
Our Quality Directors,Hector Posada, from Colombia, and Hector Gonzalez,from Guatemala, attended by invitation of the SCAA. They volunteered as judges to the SCAA Coffee of the year Competition. Posada and Gonzales are “Q” graders and work at Wolthers Vittrup & Associates in these countries.
From Nucoffee, we saw a lot visitors to their booth with requests for samples on the coffees we are carrying in Oakland, both are outstanding Brazilian regional coffees, one from the Cerrado/MG and the second from Alta Paulista/Piraju. Please inform if you need any additional information or samples.
From Colombia, we learned that the internal prices have reached + 69 FOB UGQ’s on prompt shipment, when available. The Mitaca crop is expected to be about 15% smaller. Local inventories are record low and the excess rains in past months have promoted higher “Broca” spread.
The FNC announced in April a program that will compensate producers for better quality with higher prices. This a great step towards quality and more coffee in the future.
The marked seems to have toped in Colombia: the exporters are working on a back to back format and the arrival of new Mitaca coffees should ease future differentials on a progressive manner. The stone in our shoe now is the nationwide truckers strike which started yesterday. Further delays may have a strong impact on prices.
From Guatemala, we are seeing prices at + 40 to + 45 FOB for SHB’s EP. Most shippers are covered and the harvest is at its end. There are still a few remaining higher zones harvesting coffee but in general, the flow of incoming lots is very small now.
Christian Wolthers
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