Robusta London Market Graph July 24'

Taking a moment to reflect on the Robusta market, in the space of just of just over 4 years of trading, Robusta has seen its lowest and highest prices ever traded. Back in April of 2020 Robusta traded 1,109 USD/MT (it was a weird time back then… after all, crude oil was trading at negative values at the time) and on the 11th of July we saw Robusta traded at 4,681 USD/MT. A stark $3,572 USD/MT gap which translates to a 162.36c/lb difference.

A quick note to finish on for the Australian coffee industry: Over the past couple of weeks or so we have seen the AUD devalue from nearly 68 cents to the USD down to 65 cents. A few factors are at play in this; lower commodity prices, weakness in the Chinese economy, and strength in the USD ahead of some of their main economic prints. This sort of movement will continue to support prices locally, even if the coffee futures markets drop.


BRIEF ORIGIN TRIP UPDATE - BRAZIL

Our recent origin trip to Brazil was a journey filled with insightful experiences and key learnings about the current state of the coffee industry. Some of our main goals for this trip were to understand the current screen size issue in Brazil, find out about the upcoming harvest expectations, the future forecasts for next year’s crop, and of course cup some new and exciting coffee developments.

Throughout our journey across Brazil's lush coffee-growing regions, we encountered a wealth of innovative practices aimed at enhancing both yield and quality. The impact of climate conditions was a recurring theme, with high temperatures and low rainfall during the growing period leading to smaller bean sizes and affecting the overall quality of the harvest. Despite these challenges, there is a strong sense of optimism for the future, bolstered by predictions of a significant increase in next year's yield as trees recover from the 2019 frost damage and benefit from improved weather conditions.

The commitment to quality was evident in the detailed harvesting and processing techniques we observed. Innovations such as controlled fermentation processes and the development of specialty lots are making substantial contributions to improving cup quality. These efforts are crucial as a significant portion of the coffee produced is destined for export, with more overseas markets favouring specialty and higher quality coffees.

Our visits to various facilities highlighted not only impressive infrastructure but also a strong focus on sustainability and social responsibility. Developments in sustainable practices and programs are becoming increasingly common, reflecting a broader commitment to reducing the carbon footprint of coffee production. Additionally, educational initiatives aimed at supporting the children of workers underscore a long-term investment in the community's future.

Cupping sessions across different regions showcased the high quality and diversity of Brazilian coffee. Standout lots demonstrated the unique flavours and characteristics that different microclimates and processing methods can yield, reinforcing Brazil's reputation as a top coffee producer. We also had the privilege of learning firsthand the difference in profiles across smaller and larger bean sizes, which we often found to be quite minor, despite what many first thought.

Overall, the trip was immensely valuable, providing deep insights that will inform our sourcing decisions moving forward. The dedication and innovative spirit we witnessed promise a bright future for the coffee industry in Brazil. These experiences have reinforced our strategic partnerships and our commitment to offering the highest quality coffee to you, our customers. The blend of tradition and innovation we observed ensures that Brazilian coffee will continue to thrive and meet the evolving demands of the global market.

We look forward to sharing more about our trip in an upcoming detailed report later in the year, alongside some more recent social posts – so stay tuned for these!