As we near the end of the financial year, that same old phrase of “where has the year gone” can be heard across the country…. Maybe its time for another cup of coffee…
This month we take a look at a couple of good causes supported by Bennetts and an update on what’s happening in Colombia right now.
 
But first – some housekeeping…

STOCKTAKE WAREHOUSE CLOSURE

Please be advised that will be conducting a stocktake at our warehouse on Friday 24th June 2022.
Therefore, no orders will be despatched on this day.

Orders received and processed on Thursday 23th and Friday 24th June. will be despatched on Monday 27th and Tuesday 28th June.

If you have any questions and or queries on this matter please contact your Bennetts Account Manager directly and or the Bennetts office on 03 9853 0328 or trading@hab.com.au
 

COLOMBIA UPDATE
 
In recent years, speculations on Colombia’s production were that it would increase in volume up to 15 million bags by 2023. The upcoming (2022/23) crop however, is forecast to remain unchanged at about 13 million bags of green bean (1 bag = 60 Kg). Three years of unseasonably wet weather has impacted the output of the trees, combined with a shortage of pickers through the restrictions imposed by Covid lock downs, has meant that Colombia’s production is stagnant.

Although weather conditions are expected to be normal in the second half of 2022, the upward trend of input costs, primarily fertilisers and logistics, will further hinder productivity this coming season.  The origin has become highly dependent on imported simple fertilizers (nitrogen, phosphorous, and potassium). With the Russian invasion of Ukraine strangling the the world supply of fertilisers and putting increased pressure on fertiliser prices, coffee producers in Colombia are looking for fertiliser alternatives, such as coffee subproducts, to reduce input costs for primarily nitrogenous fertilisers.

While coffee production of the current crop (2021/22) is lower than expected, future output projections remain strong due to Colombia’s replanting program, improved agronomic practices including the use of improved seeds and inputs, and high international coffee prices. The replanting program, a collaboration between Colombia’s Coffee Growers Association (Fedecafe) and the government, is supporting farmers’ transition to more productive, rust-resistant coffee varieties.

MARKET REPORT

“The reports of my death are greatly exaggerated.” – The Coffee Market, probably.
It’s been a couple of months since we last spoke of the market in any detail, and both much and nothing have happened since then. At the start of May there was what appeared to be a big sell-off across multiple commodities, which also included coffee. This was ostensibly due to a slow-down in the global economy (and hence demand) due to the war in Ukraine and high inflation across the board, among many, many other factors.

Prices seemed to be going south in a hurry, and at one point it looked like we might even venture below 200 US cents/lb for the first time since November last year. And then… someone uttered the ‘F-word’… FROST! There was a cold front going expected to go through South Minas, and with it a non-zero chance of frost damage (never mind that it was way too early in the season).

The market was jittery enough after last year’s frost event to react accordingly, and it did not disappoint as the ‘C’ rocketed up 15 US cents/lb overnight. Once the threat of frost passed without any damage having been inflicted, the market predictably retreated.
However, once that threat had passed the next threat was not far off… drought! Apparently, another dry spell is threatening the potential development of next year’s crop. This is obviously a bit more theoretical in its consequences, but it all goes to show on how much of a knife edge this market is when it comes to the balance between supply and demand. Overall, though, the price of coffee had been trending up well before last year’s frost in July (see chart), which just added to the momentum coming off the covid-induced lows.
 

At present, global arabica coffee supply is compromised not only in Brazil (which was expected), but also in Colombia  as well as major Central American origins such as Honduras and Guatemala (where the final harvest figure fell 15-20% below expectations due to climate issues and labour shortages). These factors, combined with the now ubiquitous higher transport costs and longer lead times, will continue to be supportive of coffee prices for the foreseeable future.
The only question that remains is that of demand in the face of inflationary pressure, not only in coffee, but across the board. 


TIGER CONSERVATION

Bennetts have been collaborating with WildCats Conservation Alliance since 2006 to raise over USD$33,000 for wild tiger conservation across Asia. In 2021 WildCats distributed £191,631 to nine projects across five countries. The projects focused on four subspecies of tiger, the Bengal, Indochinese, Sumatran and Amur (in addition to the Amur leopard). The projects encompassed important themes of wildlife crime deterrent and investigation, enhancing community and wildlife coexistence, species population monitoring, research, education and outreach.
As an apex predator, the tiger stands as the guardian of its range, protecting the balance of the ecosystem. WildCats dedicated work not only protects wild tigers but all the other wildlife that share their habitats. After everything humans have thrown at the wild tiger, the species is surviving!
 
The Year of the Tiger started on 1 February 2022 and will last until 21 January 2023.  In the last Luna Year of the Tiger (2010), leaders of the 13 tiger range countries (TRC’s) assembled at an International Tiger Summit and strategised the Global Tiger Recovery Program. They set themselves the challenge of doubling the number of wild tigers across their geographical area by the next Year of the Tiger.  This is the year the leaders plan to meet again to review progress, providing the opportunity to compile the global state of affairs and to set new aims for the next 12 years.
 
So, what has changed in the past 12 years? There is no doubt Tigers are in a better place than they were 12 years ago. Conservation is making use of new technology and is more scientifically rigorous. People are being included rather than excluded from the picture as conservation has become less “colonial”. Protection measures are systematic, data-driven and intelligence-led. Nepal and India are noted as countries where the tiger populations are increasing, however their efforts are not being replicated across all landscapes due to a lack of political will and financial investment. This lack of consistency still leaves scientists unable to provide a scientifically rigorous global population estimate.
 

 
WildCats recognise the rights of people to live safely in coexistence with tigers and aims to reduce the negative impact of conflict for both wildlife and people. To this aim WildCats continues to fund a project with an holistic approach in Nepal’s Terai Arc, the lowland hills of the Himalayas. This project focuses on the eastern section of Parsa National Park (PNP) that adjoins Chitwan National Park, a core tiger site. Building on knowledge learned from previous years surveys of habitat, wildlife and local people, a series of habitat restoration projects within the National Park have been taking place. Grassland restoration is an important part of the conservation puzzle. The Park grasslands need to support growing prey numbers for the tigers’ population to also increase. For local people, if tigers have enough food within the park, they are less likely to stray into villages and kill local livestock. To support prey and other wildlife, an artificial waterhole was also created to provide year-round access to water. Involving the local community in this restoration project was essential for its success.

Bennetts continue to support the amazing work that WildCats do in conserving the wild tiger throughout Asia. We do this by donating USD$1 from every bag of our Indian Tiger Mountain Coffee sold. Not only is this initiative a worthy cause, we think this coffee is pretty great too.
If you would like to know more about how to support this cause, contact your Bennetts Account Manager or listen to WildCats Pawcast here.


CAFESMART

Coffee for a cause - CafeSmart is now heading into its 12th year! This coffee movement unites roasters, cafes and coffee lovers to help change lives. Millions of coffees and hot brews have been enjoyed in the history of this event, raising over $1.6 million to fight homelessness and support those at risk in their local area - that’s a lot of coffee!

This year, after the height of the pandemic and devastating floods in Queensland and Northern New South Wales, donated funds will be aimed around emergency relief efforts, material aid and support for people most at risk of homelessness around CafeSmart participants’ local communities.

When is it? CafeSmart will run from Monday August 1 until Sunday August 7, 2022.

How does it work? Coffee Roasters get involved by encouraging their wholesale network to take part in the event, and/or by raising funds from their retail bean sales. Cafes activate the event at their venues during the whole week, encouraging their customers to donate the cost of a coffee via a QR code featured on stickers (to be place on coffee cups and other products), on posters and in-store signage. On Friday August 5, participating cafes will donate $1 from every coffee sold.

What do you have to do? Just sign up online. CafeSmart will provide you with recruitment or venue collateral to promote the event – such as flyers, posters and stickers, media support, and a locator on their Interactive Map so coffee lovers can find you. You will also be part of their #CafeSmart #helpyourhood social media campaign, building support and community engagement.

Where does the money go? At the end of the event, StreetSmart Australia will map donations, ensuring funds stay in the same area where they were raised. Participants and generous donors will help fund vital services tackling homelessness, such as women’s refuges, medical outreach teams and youth services, and will also aid in providing emergency relief, meals, clothes, bedding, showers and much more to those in need. To read more about the impact CafeSmart had last year, click here.

Why should you be involved? There are lots of ‘bean’efits! It’s good for business, good for team-building and good for your community. More than ever, customers want to know that the businesses they support are doing good for their community. CafeSmart has a local impact that you and your staff can be proud of.
 
By taking part in CafeSmart, you are also bringing the industry closer to the United Nations Sustainable Development Goals. The grants delivered through CafeSmart help combat poverty, hunger, social disadvantage, and gender inequality.