The ICO composite indicator keeps increasing. It is the 4th month in a row

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ArtOn Café is proud to publish a monthly abstract of the ICO reports. On our website we have added the graphs of the London and New York stock exchanges. The former concerns Robusta coffee, while the latter refers to Arabica coffee. We have also added an interesting banner that presents the EUR to USD exchange rate. Please visit our website to access all these details.

The following is an excerpt from the ICO market report of February 2021.

In February 2021, the ICO composite indicator continued its upward trend, averaging 119.35 US cents/lb as prices for all group indicators rose. This is the highest monthly average since October 2017 when the ICO composite indicator reached 120.01 US cents/lb. Global exports in January 2021 totaled 10.21 million bags, compared with 10.59 million bags in January 2020, and shipments in the first four months of coffee year 2020/21 increased by 3.7% to 41.88 million bags. Exports from the world’s largest coffee-producing region, South America, increased by 15.5% to 23.26 million bags as shipments from Brazil grew by 24.3% to 16.77 million bags. However, exports from the other three regions declined in October 2020 to January 2021. Shipments from Asia & Oceania decreased by 3.9% to 12.19 million bags. Africa’s exports decreased 13% to 3.81 million bags as shipments from three of the region’s five largest producers declined. Shipments from Central America & Mexico fell by 17.5% to 2.62 million bags as parts of the region were severely affected by hurricanes Iota and Eta.

Source: ICO Coffee Market Report – February 2021

Sources

ICO monthly coffee market report

Let’s fly to Hawaii and take a closer look at the Hawaiian Specialty Coffee

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Hawaii and coffee excellence

Top-scoring beans in domestic and international cupping competitions are a key element in the first-ever Isla Hawaiian Private Collection Auction, held by Alliance for Coffee Excellence in cooperation with Isla Custom Coffee (ACE, 2021). This auction contributes to raising awareness worldwide as regards the quality and diversity offered by Hawaiian coffee producers. Innovative processing methods and new planted varieties have been showcased on this occasion – and rewarded by the international judges (Tea&Coffee Trade Journal, 2021).

The role played by Isla Custom Coffee

Isla Custom Coffee has been sourcing Hawaiian specialty coffees for clients for almost a decade, and this is the reason why it has a strong network of farmers throughout the islands (ACE, 2021). Indeed, Isla Custom Coffee considers itself as an on-the-ground quality control service, developing unique coffees with trusted farmers and mills. Their Hawaiian portfolio mainly consists of coffees from Kona and Ka’u, the Big Islands’ most famous coffee districts (Isla Custom Coffees, n.d.)

The competition

The competition had 20 coffees passing to the international stage, representing seven companies from all over the world. The winning coffees announced by the Alliance for Coffee Excellence in partnership with Isla Custom Coffees are 16 in number, 12 of which are yeast-ferment processed, represent 11 farms, six processes, five varieties and two organic certified coffees (Tea&Coffee Trade Journal, 2021). Make sure you check the auctioned coffees at the next auction, which will be held on March 25th, 2021.

The winners

The winning lots showcase both innovative processing methods and traditional washed coffees. Black Rock Farm from Kona produced the most winners, with four lots, two of which were placed in the top five. The top seven coffees are all yeast fermented coffees produced by using different strains of wine yeasts, while the top 10 coffees are the result of recent planted varieties selected for cup quality (Tea&Coffee Trade Journal, 2021).
The first-place winner is a washed, yeast-fermented SL34 coffee from Kona Farm Direct which scored 88.38 points (Tea&Coffee Trade Journal, 2021). The producers are Kraig and Leslie Lee, who have been working in this field for 26 years. They process and roast their Kona coffee on the slopes of Mt. Hualalai (cf. map above). This year was their second harvest of the SL34 variety, which has proved able to give great results under the Hawaiian growing conditions. The lot was fermented with a wine-yeast strain selected to enhance the coffee’s acidity and its tropical-fruit notes. The coffee was pre-dried on a covered rooftop patio, and then transferred to a mechanical dryer designed and built by Kraig Lee (ACE, 2021).

Source: Tea&Coffee Trade Journal, 2021

The taste of Hawaiian coffee

The judges describe these coffees as extraordinary. Reportedly, these coffees outdo previous experiences of Hawaiian coffee, as they literally delight your senses. In terms of flavour, these coffees are characterised by a complex fruity character, with juicy stone fruit and tangy tropical fruit notes. Nut flavours, notably of Macadamia nuts, blend with the fruity notes, resulting in a sweet and transparent taste and scent (Tea&Coffee Trade Journal, 2021) that will be unforgettable for tourists and for all coffee lovers.

Kona coffee: throwback to the 90s

The 90s were a critical time for the Hawaiian coffee industry, as Kona coffee counterfeiting and market crashes occurred during those years (Hawaii Department of Agriculture – Agriculture Development Division, 2006). In fact, in the 80s the demand for Kona coffee was growing in the specialty niche market, and so was its price. Moreover, there was no Kona coffee federal trademark. The combination of these conditions resulted in the spread of counterfeit products, namely the sale of inexpensive, imported coffees under the name of Kona. This phenomenon had several economic effects. First of all, counterfeiting created a considerable price pressure. Secondly, due to the presence on the market of counterfeit coffee, real Kona coffee could not be easily sold at a competitive price matching that of counterfeit products. When later the Kona coffee which had been accumulated was offloaded, a market crash resulted.

Counterfeiting operations concerning Kona coffee became known to the public in 1996 because of a fraud indictment of a coffee dealer based in California (Hawaii Department of Agriculture – Agriculture Development Division, 2006). The chief suspect, Michael Norton, 48, in a telephone conversation taped by law-enforcement agents said ”All right, so it’s true we created a nonexistent demand and filled it with a nonexistent product”. Mr. Norton basically filled sacks marked ”Kona coffee from Hawaii”, a product that sells for as much $9.75 a pound wholesale, with inferior-grade Panamanian beans that typically sell for $1.80 a pound. He was indicted by a Federal grand jury in Oakland on charges of money laundering and fraud (Golden, 1996). Do you remember that?

Bibliography

ACE. (2021). Private Collection Auction with Isla Custom Coffees Hawaiian Specialty Coffee. Retrieved February 26, 2021, from https://allianceforcoffeeexcellence.org/isla-custom-coffees-2021-auction/

Golden, T. (1996). Supplier Is Accused of Selling Cheap Coffee as Top Grade. The New York Times. Retrieved from https://www.nytimes.com/1996/11/13/us/supplier-is-accused-of-selling-cheap-coffee-as-top-grade.html

Hawaii Department of Agriculture – Agriculture Development Division. (2006). Hawaii’s Coffee Industry. Structural Change and Its Effects on Farm Operations. Retrieved from https://hdoa.hawaii.gov/wp-content/uploads/2013/01/Coffee-industry-structural-change-FINAL.pdf

Isla Custom Coffees. (n.d.). Isla Custom Coffees. Retrieved February 26, 2021, from https://www.islacoffees.com/

Tea&Coffee Trade Journal. (2021). ACE announces winners of first Isla Hawaii auction. Retrieved from https://www.teaandcoffee.net/news/26461/ace-announces-winners-of-first-isla-hawaii-auction/

Interview with one of the owners of Orgánico Nevada, a high-altitude coffee plantation located in Colombia

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We at ArtOn Café have had the opportunity to interview our friend Mr. Mauro Zucca, one of the owners of the Orgánico Nevada plantation. In this article you will find the main elements concerning the Orgánico Nevada company and its activity in the coffee sector.

Colombia: a strategic hub

The Orgánico Nevada plantation is located in Sierra Nevada de Santa Maria, Colombia. Its strategic location is beneficial both economically and from the point of view of coffee quality. The latter we shall discuss in the following paragraph, but here we shall focus on the former. Colombia can be considered as a hub, since it benefits from incentives concerning exportation in the international markets. Colombia has successful deals with several countries such as China, the US and Europe. That is why Colombia can be defined as a strategic hub both in the economic field and in the high-quality coffee sector.

Orgánico Nevada: high-quality coffee

Orgánico Nevada’s coffee is 100% Arabica, in the Caturra, Típica, Tabi and Castillo varieties. The plantations are located at 1,400 meters above sea level, and enjoy the unique microclimate possessed by the Sierra Nevada of Santa Maria, with its average temperature of 20° C, moderate winds and abundant rain. The combination of favourable climate conditions and the valorisation of local traditions results in a very high-quality product for a demanding market that looks for a complete gourmet coffee experience, in which taste and aroma offer the chance to treat yourself to a cup of coffee rich in nutritional values. Please find here a schematic description of the product line offered by Orgánico Nevada.

Coffee Excelso Premium Export, Origin Sierra Nevada de Santa Marta

  • Coffee height over the 1.400 m.o.s.l
  • Grain or ground
  • Toasted medium or high
  • Coffee in green bean
  • +80 SCA
  • Mesh retained on 16
  • Certification: Designation of origin Sierra Nevada de Santa Marta, Colombia

Premium Organic Coffee, Origin Sierra Nevada de Santa Marta

  • Coffee height over the 1.400 m.o.s.l
  • Grain or ground
  • Toasted medium or high
  • Coffee in green bean
  • +80 SCA
  • Mesh retained on 16
  • Certification: Designation of origin Sierra Nevada de Santa Marta Colombia, USDA, JAS and BIO organic certification for Europe

Special Organic Coffee, Origin Santander, Estate Coffee

  • Coffee height over the 1.400 m.o.s.l
  • Grain or ground
  • Toasted medium or high
  • Coffee in green bean
  • +85 – 86 SCA
  • Mesh retained on 16
  • Coffee of single origin (Estate Coffee)
  • Certification: Designation of origin Santander Colombia, USDA, JAS and BIO organic certification for Europe

 

Eco-friendly attitude

The company is attentive not only to the final result, but also to the preservation of the environment. That is why the packaging used by Orgánico Nevada is eco-friendly. The bags, which are decorated by a web designer who works with the company, are made of kraft paper, and the coffee capsules are biodegradable. Moreover, the company operates with Fair Trade and has obtained two BIO organic certifications for the European market.

Safeguarding local traditions

Orgánico Nevada aims at valorising and safeguarding local traditions. The company collaborates with the native community, who use ancient artisanal techniques in coffee production. The harvesting system is manual, and it is done in harmony with the cycles of nature and history. Therefore the production process – which is slow and high-quality – preserves and enhances the best characteristics of an ancestral organic coffee.

Sources

Orgánico Nevada website (accessed on 19th of February 2021)

Interview with Mr. Mauro Zucca, one of the owners of the Orgánico Nevada plantation