THE BENNETTS MONTHLY JULY '24
All things Bennetts and Coffee...
Welcome to the July edition of the Bennetts Coffee Newsletter!
We are thrilled to bring you the latest updates and insights from the world of coffee, and we have an exciting lineup of topics to share with you.
We dive into our monthly market report focussed the current news and shifts in the industry market.
Learn about CafeSmart, a fantastic initiative making a positive impact in our communities and find out how you can get involved.
We also have updates and highlights from the 2023 Annual Fairtrade Report, showcasing the strides made towards sustainability and ethical practices in the coffee industry.
Lastly, we are eagerly preparing for our upcoming origin trip to Brazil in mid-July. Stay tuned for exclusive insights and stories from our journey as we explore the heart of coffee production.
Enjoy the read!
MARKET REPORT - MAKING A HOME ON THE RANGE.
If any of these terms in the market report are confusing, we urge you to use Investopedia to make sense of them. We have found it to be a brilliant tool when learning about all things trading, futures and currency.
NY C movements and the Brazilian Impact
Last month was the very definition of “range-bound” as the New York “C” remained firmly stuck in the 220 to 235 c/lb stretch of turf, albeit with the odd foray out, only to be swiftly knocked back like a game of expensive whack-a-mole. There is still quite a bit of volatility session to session, sure, but the upper and lower limits of the range remain largely unbroken for the time being.
Not even the July contract going into first notice day during the latter stages of June (which usually brings with it some fireworks) could manage to get the trade excited enough drive any price breakthroughs. The lack of any (serious) news regarding cold fronts coming through Brazil over the next couple weeks means prices are largely limited on the upside. Robusta prices being where they are (high), will also see limited price downside in the short to medium term. 
June 2024 NY C Graph
On the physical side, bean size continues to be of concern in Brazil. Although this has improved somewhat in recent weeks as harvest progresses, larger screens will be in lower supply than is normally expected (around 20-25% compared to the average 35% for a “regular” year). This means the price for larger screen coffees such as 17/18 will be at a premium to smaller beans this season. On the flip side, smaller sized beans such as screen 12 and 13 ‘grinder’ grades, as well as screen 14/16 will be at significant discounts compared to larger screen coffees.
Supply of mild washed coffees may too present some challenges as Colombia is also having issues with the supply of Supremos (Screen 17/18), while Peru is making some noises about there not being as much coffee as initially expected... Locally, PNG is also experiencing a very late start to their season with new crop coffees only trickling in when we should be seeing a raging torrent of coffee coming at this stage of the year. That’s not to say it won’t come at all, but the off-season will certainly be tight for our closest origin in the near term.
Robusta prices are on a bit of a holding pattern, but still up in the stratosphere with solid support at 4000 USD/T for the front month of the London Futures market. Physical remains tight, something that will not be changing significantly until Vietnam and Indonesia come back online later in the year. For now, the only relief is courtesy of Uganda and Tanzania, whose new crop coffees are now starting to ship. Brazil’s conilon crop is also coming in, but much like arabica, has been plagued with a high proportion of small beans, which means there is little in the way of screen 15 and up offers at present (for those wanting to substitute other origins such as India Cherry AB and the like). The significance of this is that not a lot will be going into the export market, as smaller screen sizes of conilons generally don’t present great cup quality.
FAIRTRADE 2023 ANNUAL REPORT HIGHLIGHTS
We are excited to share some pivotal updates from the latest Fairtrade International Annual Report for 2023. This year's report highlights significant strides in promoting sustainability, equity, and fairness across the global coffee industry and other agricultural sectors. As we delve into the key highlights, you'll discover the impactful initiatives and strategies that Fairtrade International has implemented to empower farmers and workers, ensure fair wages, and foster sustainable practices. These efforts align perfectly with our commitment at Bennetts to prioritise sustainability and quality in our coffee sourcing.
Global Strategy and Shifting Power Dynamics
Fairtrade’s global strategy for the years 2021-2025 focuses on five strategic priorities: shifting the balance of power to farmers and workers, growth and innovation, advocacy and citizen engagement, digitalisation for fairer supply chains, and enhancing system-wide innovation and efficiency. By prioritising these areas, Fairtrade aims to create a more equitable trading system that benefits all stakeholders, especially the producers at the heart of the supply chain.
Supporting Producers and Promoting Living Incomes
Fairtrade’s efforts to support producers have been robust, with training and support provided to over 1,900 producer organisations across 68 countries. These initiatives include training on Fairtrade Standards, good agricultural practices, and value addition. A significant milestone in 2023 was the first producer-led living income summit held in Abidjan, Côte d’Ivoire, where cocoa farmers discussed strategies to achieve sustainable incomes. The summit led to a joint declaration advocating for sustainable procurement practices and policies that support living incomes.
Expanding Living Income-Supporting Prices
Fairtrade has expanded its Living Income Reference Prices, now available for coffee from Ethiopia, Peru, and Nicaragua, and covering more than 758,000 Fairtrade farmers across multiple countries and products. These prices are recognised as industry standards, encouraging fairer compensation for farmers and contributing to significant income improvements. In 2023, projects demonstrated that cocoa farmers who sold at the Living Income Reference Price earned up to 22% more, showcasing the tangible benefits of these initiatives.
These highlights reflect Fairtrade International’s unwavering commitment to fostering fair trade practices, supporting producer communities, and advocating for sustainable development. The advancements made in 2023 showcase the importance of continued collaboration and innovation in achieving a more just and equitable global trade system.
We are proud to stock a range of Fairtrade Products, whether it be Cacao or Coffee from PNG or Ethiopia! If you would like to learn more about our offers, please get in touch with your Bennetts Account Manager!
UPCOMING BRAZIL TRIP
This month some of Bennetts Team will touch down in the coffee heartland of Brazil!
This year, we're diving deeper into the rich tapestry of the Brazilian coffee culture. From exploring innovative farming techniques, to new and upcoming social and sustainability initiatives, we can't wait to bring you along for the journey.
We want to hear from YOU! Is there something you've always wanted to know about coffee production in Brazil? Or are you interested in the latest harvest updates and projections for this year’s crop? Send us your questions, and we'll do our best to give you the answers straight from the source.
Stay tuned for exciting updates and behind-the-scenes glimpses of our trip. Keep an eye on our socials for real-time stories, photos, and discoveries.
Fazenda Pedra Preta (Flora), Careaçu, Minas Gerais Brazil - 2023
CAFESMART
CafeSmart is an annual coffee-led campaign that unites roasters, cafes, and coffee enthusiasts around the country to raise awareness and funds to fight homelessness and support those at risk in their local area. This campaign kicks off in less than 6 weeks and we are excited to celebrate doing good through coffee.
From the 10-16th August, 575 cafes (and counting) will be joining forces to do their bit for grassroots community services across Australia.
There are many ways you can get involved in this incredible initiative, so we are encouraging all our industry peers to sign up and be part of this coffee movement.
If you would like to learn more or register your café or roastery today, head to café smart.
| Happy Roasting, The Bennetts Team |