Hello August!

As we approach this time of the year that we colloquially dub “microlot season” – we start to see more specialty lots arriving into our warehouse; and continuing on through to the end of the year. We will keep you up to date through our newsletter and social media postings on when these tasty lots arrive.
 
In the meantime, you can contact your Bennetts Account Manager for updates.

A WORD FROM THE CUPPING ROOM

This month we had an amazing coffee on the cupping table from the Eastern (Sipi) District of Uganda. An anaerobic processed natural cherry lot, cupping with high intensity, winey acidity, tropical flavours of pineapple, mandarin, papaya and lime with delicate floral notes. Finishing with a juicy texture that carries fruit punch flavours. Scoring a whopping 87.25 points we were impressed with our first delivery of this special process.
 
The name of this coffee comes from the Sipi Falls - a series of three waterfalls that lie on the edge of Mount Elgon National Park in Eastern Uganda. The areas surrounding the falls are well known for the cultivation of 'Bugisu' Arabica, the most renowned of all the Ugandan Arabicas.
 
Organically certified, this coffe has been grown and harvested as part of the Sipi Falls Coffee Project. The project was first initiated in 1999 and has grown to incorporate more than 5,000 smallholder producers who tend an area over 2000 hectares in size. Approximately 3.5 million families are linked both directly and indirectly to coffee through the Sipi Falls Project. Through training and extension services offered through the project, producers are encouraged to improve agronomic practices in order to increase yield and improve quality. Producers practice intercropping with food crops and shade trees to improve coffee quality and foster income diversification. Field officers mentor members on the effects of climate change, good agri practices, internal control systems, water recycling, community education and organic standards.
 
The coffee is grown on the slopes of Elgon mountain range in three distinct areas, namely the Mbale, Sironko, and Kapchorwa Districts, and is thus found at varying altitudes, ranging from 1300 metres in the South, climbing up to 1900 metres in the Central and Northern Districts. For this nation of farmers the cultivation of coffee has always been a major preoccupation and one of the few sources of commercial income available to rural families. Coffee growing has always remained the exclusive preserve of the smallholder, and the leading sector of the Uganda economy.
 
This coffee is a limited seasonal release, if you want to get your hands on some, please contact your Bennetts Account Manager today!

AUSTRALIAN SPECIALTY COFFEE ASSOCIATION COMPETITIONS

Last month our very own Harry Ko won the ASCA Southern Regional Brewers cup competition. Harry has been working with Bennetts for over five years in the Quality Department performing QC work on our incoming green beans; including sample roasting, screening and cupping. Over his time here, Harry has honed his tasting skills and even managed to win the National Cup Tasters comp in 2015 and 2016!
 
Harry’s secret to success is the use of the December Dripper as his brewing method to enhance the body, acidity and sweetness in the cup. He can control the brewing style being both immersion and percolation in one system. 
 
Harry is now training hard for the National comp to be held on the 18^th – 20^th of August at the Meat Market (3 Blackwood Street, North Melbourne) We wish him all the best for this round, and our fingers are crossed he can represent Australia at the World Competition to be showcased at MICE this September.

MARKET REPORT   

There was never a dull moment for international coffee prices during the month of July, even without the traditional winter talk of will-it or won’t-it frost risk in Brazil.
The “C” price plummeted at the start of the month, going from a very strong support level of around 220 US cents/lb to just above 190 US cents/lb, the lowest level since mid-September ’21. It then recovered to over 210 US cents/lb in 48hrs! The rest of the month was pretty much in the same vein, with violent intraday moves in either direction every other day it seemed.

 

And the market-related reasons behind such a volatile market? Many analysts seemed to have the same reply:
¯\_(ツ)_/¯
 
On the supply side, there weren’t any huge unexpected increases to global production estimates to result in such a dramatic shift that we could ascertain. Quite on the contrary, we are hearing about less than expected outturns in Brazil (even after the frost-related losses), which is tightening internal local prices. We’re also hearing that crop size estimates are expected to be lower year on year by different degrees across a number of origins. This notably includes Colombia, which is expected to be 12-14% down when compared to last year’s harvest.
When it comes to demand… well, that’s the big unknown, isn’t it? In the short term, roasters are running so lean that they need to cover their nearby needs, and are paying a pretty penny to do so (as evidenced by the inverted futures curve, where nearby futures contract are dearer than those further out). No one is keen to stick their neck too far out with historically high prices because there’s always the expectation prices will fall at some point, right? RIGHT?!?  

So, the prevailing strategy has been one of short-term pain, in order to avoid being caught carrying expensive coffee when prices might go down, or demand might completely collapse as a result of high global inflation and interest rates. There has been no significant long-term position being taken by the industry as a whole, because simply put, there is no long-term view of the market.

Therefore, when faced with a directionless market, the speculators and market-manipulators have been having a field day, pumping and dumping the market. Not a huge lot more to it than that.

Still, as we say not infrequently here, at Bennetts HQ, “You can’t roast fresh air!” So as much as high prices are not ideal, it’s vastly less so being caught out with no stock to roast at all. Lead times are still horrendous to our little corner of the world so roasters need to strongly consider having a well-fed pipeline, with at least 6 months’ worth of supply of major mainstays. Flexibility when it comes to short-term stop-gaps or substitutes is also highly recommendable. 

CAFESMART

Don’t forget – tomorrow, Friday 5th August is CafeSmart Day.
 
This year, CafeSmart has over 650 cafes joining across Australia, all coming together and taking action against homelessness. Here's how you can help:

Click on the StreetSmart hub here, check out the interactive map and find your local CafeSmart venue.  Head down and donate the cost of a coffee via the QR codes in store. Simple! $1 from every coffee goes towards ending homelessness across Australia. This year, with the rising cost of living and the rental crisis, many people end up sleeping in tents, caravans and in their cars, who have never sought out help before. CafeSmart small community grants are needed more than ever. All grants are announced and mapped on the StreetSmart website a few months after the event.

(If you want to help from home or are not a big coffee drinker, you can always donate online via the website)

 Happy Roasting,
The Bennetts Team