We are officially in Autumn, with the fluctuating hot and cold days in Melbourne, we cannot decide whether to have an iced coffee or a latte!

During the month of April, there will be a number of public holiday office/warehouse closures – check out the dates below: 
 

PUBLIC HOLDAYS 
 
Please be advised our office/warehouse will be closed for the Easter Holiday on Friday 15^th April and Monday 18^th April. There will be no orders despatched on these dates. Please ensure orders are placed by 12:00pm EST on Thursday 14^th April, for despatch on Tuesday 19^th and Wednesday 20^th April.
 
Our office/warehouse will again be closed on the Anzac Day Public Holiday on Monday 25th April. Please ensure orders are placed by 12:00pm EST on Friday 22nd April, for despatch on Tuesday 26th April.
 
If you have any queries, please contact your Bennetts Account Manager, or our office on (03) 9853 0328.
The Bennetts team wishes you, your staff and your loved ones a happy and safe Easter and Anzac break.


BRAZIL UPDATE

A sequence of adverse weather events in Brazil beginning in the second half of 2020 was the main reason for one of the most intense movements in coffee prices over the last decade. Early in the second half of 2020, the La Niña event caused rains to arrive late to the coffee belt, which negatively impacted the flowering process at that time. 

The low level of rain until the end of 2020, did not contribute to favourable conditions transitioning into 2021, with drought breaking for a short time throughout the usual dry period.  In addition to this scenario was the frost events of 2021, which caused further damage to the crop and as a result created the potential for production loss for the 22/23 season. Through 2021, La Niña, rains were delayed again, impacting flowering and setting the scene for the potential loss of the upcoming crop.

Estimates on the deficit in this year’s Brazilian crop are still not clear, and there is a general lack of transparency across the coffee market data, which creates much uncertainty that generates a level of volatility in the global market.  Brazilian production estimates published across several well-known industry bodies have differed by over 11 milling bags, the final outcome won’t be known for several months.  Our monthly Market Report will continue to provide updates on the Brazilian harvest this year.
 

SPECIALTY COFFEE ASSOCIATION (SCA) EXPO 

Scott Bennett, Georgia Major and Marco Roberti from our office will be jet setting on our first international trip since 2019!
Whilst we aren’t travelling direct to the faming origins just yet, we have decided that a trip to the SCA in Boston USA is the closest we will get for the moment. At the Expo the Bennetts team will be engaging in meetings with a range of our suppliers from South and Central America, Asia and Africa. This will be a great opportunity for Bennetts to gain first-hand knowledge from our suppliers regarding the current and future crop/seasons, as well as share the challenges we have been facing in Australia with regards to our local import and transport delays.
 
You will be able to see their travel updates on our Facebook and Instagram accounts. If you happen to be over that side of the world for the Expo – come and say hi to our team!


MARKET REPORT

The big sell-off in the coffee market which started last month followed through during March, as the ‘C’ price bottomed out at just above 210 US cents/lb. It then proceeded to trade in a 10-cent range (roughly between 215 and 225 US cents/lb) as the market adjusted to the new levels.
 
So, where to now for the coffee market? Having seen the large amount of speculators’ money leaving coffee for greener pastures over the past month or so, perhaps what we’re seeing now is something closer to a “true value” for arabica? Of course, this will continue to be subject to what happens to global demand and supply, both now and in future.
 

 
With regards to supply, at the risk of sounding like a broken record…. Nothing much has changed! Save a few adjustments due to updated crop estimates, and export figures, Brazil, as well as other large washed coffee origins such as Colombia, Guatemala and Honduras will definitely yield smaller than usual crops, which will continue to be supportive of prices for the foreseeable.
 
Add to this the global logistics debacle (which frankly doesn’t look likely to be resolved any time soon), as well sustained high oil prices contributing to higher fertiliser and transport costs, and it’s hard to see prices falling substantially unless there is a massive contraction in demand.
 
And therein lies the issue… what will happen with demand? The war in Ukraine has thrown a big bag of spanners into the global consumption works, and there is a real possibility the world economy might plunge back into recession if things don’t get better soon and/or spill over to neighbouring countries. So, yes, lower coffee prices would be nice… but perhaps not at any cost. 

 
A WORD FROM THE CUPPING ROOM
 
Last week you may have seen we were squealing with excitement to announce the release of our latest experimental coffee: Bennetts’ Own Pork Barrel-Aged^TM Coffee!!!
 
Where our carefully-selected green coffee beans were aged for 6 months in freshly-emptied Victorian swine barrels along with the finest free-range cured bacon. The resulting product was an astounding coffee with intense notes of pulled BBQ pork and smoked ham hock, with a long-lasting greasy mouthfeel that will stay with you for hours. We recommended taking the roast just past first crackling for an optimal outcome.
 
We said this little piggy was going to market with limited availability and to call your account manager before someone else hogs this one-of-a-kind coffee… Unfortunately, you’ll be going wee wee wee all the way home empty-handed because this post was an April Fool’s joke! 🤣
 
On a more serious note, it’s been a slow week with quarantine inspections at the port drawing out the landing time of our most anticipated coffees…. Fingers crossed next week we will be showcasing some amazing African coffees from Tanzania, Burundi and Rwanda. You can read more about them over the coming weeks via our socials.

 Happy Roasting,
The Bennetts Team