Welcome to the 2023 March edition of our monthly newsletter. As we transition from our summer days into the cooler autumn months, there’s no better time to savour a hot cup of coffee and explore the latest happenings in the coffee world.
 
This month we’re excited to bring you the latest in the rise of Robusta coffee, an insight into the coffee market, our plans for International Women’s Day, and a glimpse into what we’ve had on the cupping table. We hope that we can provide some valuable insight into the happenings of the coffee industry, alongside all things Bennetts.
 
So, grab a cup of your favourite brew, and join us as we explore the world of coffee.


THE RISE OF ROBUSTA 

Robusta coffee has been traditionally viewed as the less desirable cousin of Arabica coffee, due to its intense, rubbery and ‘robust ‘flavour profiles. However, in recent times there has been a growing interest in Robusta, both among coffee enthusiasts and industry professionals.  
 
Its recent rise can be attributed to a number of factors, one being an increased desire for a rich but unique cup profile. Robusta coffee offers drinkers an option to indulge in a bold coffee, quite the opposite to that of an Arabica. Combined with a higher caffeine content, it attracts those after that extra hit.
 
Another factor driving the increased interest in Robusta coffee is the changing dynamics within the coffee industry. As the demand for coffee continues to grow, there is a need for coffee producers to find new ways to meet the increasing demand. Due to the easier and more cost-effective nature of growing Robusta coffee, alongside its natural resistance to pests and diseases, it becomes an attractive alternative for producers to increase their yields and profitability, and in turn provide a cheaper commodity for roasters.  
 
The increased attention Robusta Coffee has received within the coffee industry has led to developments in new opportunities for coffee farmers and communities. Many small-scale farmers who have traditionally grown Robusta are now able to sell their beans at higher prices, thanks to an increased demand for quality Robusta beans. This in turn, has helped to improve the livelihoods of these farmers and to promote sustainable and equitable coffee production practices.
 
Bennetts has a wide variety of Robusta options available, from fully washed, to natural, and even pulped natural sundried processing. We have India Kaapi Royale, India Cherry, Indonesia Java (Semeru), Uganda Robusta and an India Kelagur Heights Speciale, that offer a wide range of cup profiles and unique components.
 
Our Ugandan Robusta offers milk chocolate, smoked cedar, leather, and walnut notes up front, combined with a heavy body and a creamy caramel and nutty finish, a Robusta delight!
 
Whereas, our India Cherry AB offers notes of cocoa, malt, walnut and hazelnuts in the front, with a full, smooth texture that leads into notes of orange and spice to finish.
 
For expressions of interest in these coffees, please contact your Account Manager or check out our website


 A WORD FROM THE CUPPING ROOM 



                                                                                                       Drying beds at the Kanyege washing station 


Last month we had the pleasure of cupping some much-anticipated Rwandan arrivals, and oh boy did they deliver!
 
We landed three different types, Karambi, Kanyege Isimbi, and Nyamyumba, grown across various regions in Rwanda. Each of these lots held a unique flavour profile that reflects the regions terroir and the farmers’ expertise in cultivation.
 
Karambi coffee is produced in the district of Nyamasheke in the western province of Rwanda, an area known for its ideal climate and fertile soil. Produced by a female led team, this coffee goes through a strict processing routine to ensure the highest quality coffee is used for the final product. It cups with a crisp strawberry acidity paired with a sticky toffee like texture. Lingering notes of hazelnut and chocolate are present in the finish.
 
The Kanyege Isimbi is grown in the Gatsibo district in the north east of Rwanda. Hand-harvested and processed, this coffee provides a unique but complex array of flavours in the final cup. Delicate notes of nectarine, honey, and mandarin are ever present, with a silky-smooth body carrying notes of soft caramel and black tea to finish this well-rounded cup.
 
Some may say you save the best for last, and the Nyamyumba varietal did not disappoint! A rich cup; grown in the Rubavu District of Rwanda, provides an inimitable experience that is second to none. Produced on nutrient-rich volcanic clay soils in the high-altitude hills of the Congo Nile trail, ensures an intricate cup profile. Honeydew melon, caramel, and milk chocolate are displayed throughout, with a rounded citric acidity combined with an abundance of floral notes to end.
 
The producers across all three regions are what make these coffees so special, as individuals they are heavily invested in their farms. They have a direct focus on helping to improve their overall financial situation, with payments being deposited in zero-fee bank accounts that offer wider reaching benefits for the community. Furthermore, the sharing of knowledge surrounding agricultural processes, conservation tactics, and other farming practices are provided to help innovate and broaden the way producers think about growing coffee.
 
For expressions of interest in these coffees, please contact your Account Manager or check out our website
                                                                                 

MARKET REPORT

NY C movements and the Brazilian impact
February has seen a recovery of prices in the NY C from January, with the market opening on the 1^st at 180.85 US c/lb and making its way up to levels last seen in mid-October 2022, but it’s a long way to the top. By the end of February, it hit 186.45 US c/lb. Part of the reason for this rise was due to heavy rains in Brazil that have delayed the application of fertilisers and pesticides. Although fertilizers are likely to have a greater impact on next year’s crop, the lack of fungicide applications have caused a spike in Coffee Leaf Rust fungus, exacerbated by the heavy rainfall, which eases the transfer of the fungus between trees. Physical shortages are still causing Brazilian diffs to ride high, although they have come off a few US c/Ib since mid-January.
 
Certified Stocks
Although Arabica certified stocks are sitting reasonably steady (809,566 bags), worries persist over where the replenishment will come from as Brazil, Peru and Honduras diffs all remain high. Still, we are a way off from being back in black. Robusta certified stocks reached their lowest levels since 2016, acting as a bullish factor for the Robusta and Arabica futures market alike. Combining this information with Uganda’s low Robusta crop and Indonesia’s forecasted 10 year low for 2023/24 we are looking at a consistently bullish Robusta market. Currently Robusta certified stocks are 67,180 MT.
 
Commitment of Traders Report
Recently there have been some issues with the Commitment of Traders report that is produced weekly, so we are running a bit behind schedule with the numbers. As of Tuesday 31^st January, the Commercial participants (Comms) (large roasters, coffee importers etc) are 18, 906 future lots short. The Speculative participants (Specs) (hedge funds, investment banks etc) are 6,128 future lots short. As a general rule looking at whether the Specs are long or short is an indication of where they believe the NY C market will move in the short term. Because the Specs are 6k lots short, it could be taken that they think it will come down slightly.
 
The Wider Macroeconomic Impact
The USD is looking towards a short-term rally caused by strong US jobs data and an uptick in the 10 Year Treasury Note Yields. Money talks, and this uptick expresses confidence in the wider US economy over a longer time period. We have witnessed this rally by following the US Dollar Index (DXY) from the start of February. It began the month with an open of 102.10. This pushed upwards by the 27^th to reach to close at 105.17. As a result, we’ve seen the AUD weaken against the USD over the same time period. From an open of 0.70 to 0.67. Australian interest rates are still lagging behind US rates, 3.35% to 4.75% respectively. However, looking at a time frame between three to nine months the USD is looking bearish, which tends to have a bullish effect on commodities, including coffee.
 
On the positive side for coffee prices, we’ve seen a continued decline in shipping freight rates since March-22 which will help to balance out the rising NY C price and high diffs, which should translate as lower prices for roasters here in Australia.
 
 
 
                                                                                                   February 2023 NY C Graph 

 

INTERNATIONAL WOMEN'S DAY                              

This year’s International Women’s Coffee Alliance, International Women’s Day (IWD) theme is Embrace Equity, and is a time to reflect on what Equity means and how we can make changes to support and strengthen the coffee industry.

On the 8^th of March we celebrate the social, economic, cultural and political achievements of all women and girls but also recognise their contribution and sustainability initiatives around the world. An event for everyone to reflect on our social responsibility to take action to embrace equity in our communities and workplaces and work together towards gender equality.

International Women in Coffee Association (IWCA) Australia is a charity that we have supported for numerous years, and will continue to do so in 2023.

IWCA believe every woman has a unique and valid voice; and therefore, respect every ­one woman and her ideas equally. They demonstrate and model generosity, through supporting programs that encourage the equitable allocation of resources in the world. There will be several events hosted around Australia next week. Check their socials for event details. 

If you would like to learn more about IWCA Australia visit www.iwcaaustralia.org 

Happy Roasting,
The Bennetts Team