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The latest news and views from the Bennetts team

Featuring the latest news on the coffee industry and business insight from senior members of the Bennetts team.

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THE BENNETTS MONTHLY JANUARY '22

All things Bennetts and Coffee...

Happy New Year,
 
We are back on board with our usual trading hours this week.
We hope you’re all well fed and rested after the festive period.
 
Whilst the coffee market has been a hot topic for several months, we thought we’d start you off with some feel good stories from our origin partners this year.


GROUNDS FOR HEALTH


Some of you may have heard of Grounds for Health – a not for-profit organisation that provides free women’s health treatment and screening and education programs to vulnerable communities in coffee producing regions.  Believing strongly that no woman should be allowed to die from a preventable disease, even during a global pandemic. Since 2020 the organisation has expanded to over 16 facilities and are planning to open two centres for excellence, making the program more sustainable through teaching and research.  

Despite the current ongoing pandemic, an all-time record was reached by Grounds for Health in 2021. In the past year their staff and Grounds for Health-trained local providers in Ethiopia and Kenya saw almost 23,000 women for screening, with nearly 2,000 receiving treatment.
 
This represents the most productive year that Grounds for Health has had in their 25 years of existence. Through their recent campaigns and local connections, the organisation has also been able to correct misinformation about Covid-19, while modelling and providing education around safe practices such as masking and social distancing. This has had the unexpected consequence of expanding interest and momentum of the program within each individual community!
 
On behalf of our customers, Bennetts made a donation of USD$5000.00 to this worthy charity in December. Our annual contribution to support Grounds for Health provides women's health care specifically in the Oromia region of Ethiopia. This year funding will focus on continuing to support cervical cancer prevention while integrating new screening technologies that will allow women to self-test in the privacy of their home – reducing stress on rural health centres and minimising exposure to Covid-19.
 

Photo: Women participating in Grounds for Health testing services in Ethiopia  



A WORD FROM THE CUPPING ROOM

Just before the festive break, we landed a couple of great Ethiopian lots from our partners at YCFCU.
 
One of the largest collectives on the African Continent, the Yirgacheffe Coffee Farmers’ Cooperative Union (YCFCU) is renowned for consistently providing classic cup profiles in both washed and heirloom varietals. YCFCU was formed in 2002 as an association of 22 local cooperatives, who had formerly sold exclusively to local coffee boards. Located in Gedeo, southern Ethiopia, the Union utilises over 62,000 hectares in one of the most famous growing regions of the country. On average they produce 9,000 tons of Yirgacheffe and 3,000 tons of washed Sidamo each year. The area also produces 24,000 tons of sundried coffee annually. Yirgacheffe coffee is produced in areas inter-planted with bananas which help to shade the coffee trees and are also used for local food consumption purposes.
 
Certified by Fairtrade in 2003, the major aim of the YCFCU has been to secure better prices for farmers. Their mission is to promote and support the continuing development of a sustainable coffee supply, by offering producers access to the international market and promoting social and environmentally sustainable practices.
 
Traditional Ethiopian coffee cultivation practices are still prevalent amongst YCFCU farmers. Coffee trees are managed by hand and fertilised with organic matter. Farmers choose to follow traditional cultivation practices rather than using chemical fertilisers, pesticides and herbicides.
 
Currently in stock we have two great tasting lots - the Fairtrade Organic Yirgacheffe Grade 3 Natural Process lot. Scoring 84.75 points, this cup displays sweet tropical fruits and hazelnuts which move to notes of honey and cocoa. A full coating mouthfeel carries a balanced acidity and sweet herbal finish. A fantastic lot for adding fruity notes and depth to a blend, or a as a single origin espresso.
And the Fairtrade Organic Yirgacheffe Grade 2 Washed Process, which scores a whopping 85.25 points and cups with sweet honey, lemon and black tea carry a bouquet of florals. Crisp apricot, cinnamon and caramel notes linger in the finish.
 
We loved both of these coffees on the cupping table and hope you do to. For more information about pricing and availability, please contact your Bennetts Account Manager.
 

Photo: YCFCU Mill in Addis


MARKET REPORT


Dec-21
 
The final month of 2021 brought with it some price relief on the Arabica front, as prices steadily retreated from the 10-year high reached earlier in December. So, what actually happened to bring about a 25 US cent/lb (and counting?) turnaround in the market? Well, as it turns out, not a whole lot that wasn’t happening already…
 

  


Supply-wise, we’re still in the same predicament as we were previously, as the global logistics landscape continues to be an utter basket case, and the Brazil frost/drought debacle has not magically disappeared due to a Christmas wish come true. On the Brazil situation, we really cannot know the full extent of the losses until after February, which is when the summer rains are usually over, and crop assessments can be accurately made. There are however some good rains expected across coffee-growing regions for January so far, so potential losses may at least be curbed (fingers crossed).
 
On the demand side of the ledger, Omicron seems to have finally worked its magic on consumer confidence as various nations in the Northern hemisphere entering winter are seeing a return to restrictions in order to lessen the impact of surging cases on their health systems and economies.
Still, as before, this situation will likely prove to be temporary (until the next variant, that is), so we should all be extremely cautious moving forward, as we are still operating within a coffee market expected to be in deficit for the next couple of years. We should still expect prices to be above 200 US cents/lb for the foreseeable future, albeit with much more volatility than before the Brazilian frosts hit mid-last year.  
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