THE BENNETTS MONTHLY JULY '2023
All things Bennetts and Coffee...
Welcome to the July Edition of our Coffee Newsletter! Get ready to sip, savour, and discover as we unveil the latest coffee trends, share news on some exciting arrivals, and offer a fantastic hiring opportunity. With winter in full swing, our brews are here to warm your soul and add a dash of cosiness to your mornings. Stay tuned for a caffeinated journey you will not want to miss! ROBUSTA
REPORT Is Robusta the future of coffee? This seems to be the question floating around the coffee industry as Robusta continues to rise in popularity. A new wave of Robusta enthusiasts are challenging why Arabica coffee has been favoured for so long. This report aims to provide a valuable insight into Robusta coffee, its recent trends, future projections, and why it has gained traction among consumers. Robusta is one of the most popular coffee varieties globally, representing about 40% of the world's coffee production. The Robusta coffee beans have a higher caffeine content and lower acidity than arabica beans, making them ideal for use in instant coffee and espresso blends. Robusta production has been on the rise in recent years and in 2021, Vietnam was the leading producer of Robusta coffee, accounting for more than 50% of the world's production, with other major producers including Brazil, Indonesia, and India. Consumer Interest: Over the past decade, Robusta had been considered inferior to its Arabica sister due to its ‘rubbery’ flavour notes, and a trend surged through the Australian coffee industry to promote 100% Arabica blends, creating a sudden drop in Robusta’s domestic use. Recently, however, the increased demand for this full flavoured bean has been driven by the growing popularity of espresso-based drinks. Additional to that, the COVID-19 pandemic exacerbated this shift in consumer behaviour, with more people spending time at home, with instant coffee, traditionally made from Robusta beans. This convenient and accessible home brewing method created great exposure of the Robusta flavour profile to more consumers. Australia is at the forefront of the café industry and our consumers have never been shy when it comes to trying new coffee, techniques or blends, an attribute that has benefited the Robusta coffee market. With an interest in new coffee varieties, consumers have opted to try blends that market the use of Robusta beans in the coffee. This consumer openness to changing and innovative coffee trends has helped drive the increase demand for Robusta, making it a leading trend within the coffee industry. These changes to consumer trends have piqued the interest of coffee roasters across Australia, who have started to re-introduce Robusta into their blends to focus on creating unique and bold flavours. With climate change on the rise, more and more, coffee roasters have been opting toward this climate-resilient bean. This is paired with Australia’s interest in speciality coffee, and a greater appreciation for the quality and coffee origin. Speciality and Robusta are terms that until recently, have not necessarily gone hand in hand. However, coffee roasters are sourcing high quality Robusta beans from countries such as Vietnam and India, that provide a clean but full flavour profile. Future
Projections: The future of the Robusta Coffee industry looks bright, with projections of increased global production and demand. According to a report conducted by the International Coffee Organisation, the global production of coffee is expected to grow by 1.3% annually over the next decade, with Robusta coffee accounting for a large portion of that growth. This is fantastic news for the Robusta coffee industry, as it indicates that there will be a sustained demand for Robusta in the future. As emerging markets such as China continue to grow and develop, the demand for coffee is also projected to increase by 1.9% over the same period. The projected growth in production and demand for Robusta coffee bodes well for the industry’s future, and it is likely to have a positive impact on the global coffee trade. As the demand for coffee continues to rise, Robusta will play a vital role in meeting that demand, ensuring that coffee lovers worldwide can enjoy their favourite beverages for years to come. Final Remarks: Robusta coffee is a significant player within the coffee industry, as it accounts for a substantial portion of global production. A change in consumer behaviour driven by various factors has led to a rise in its demand, for both consumers and suppliers. Although consumption of this variety is relatively low in Australia compared to other countries, a niche market for high-quality Robusta is starting to form due to the overall interest in the speciality coffee scene. Consumers are increasingly interested in the origin and quality of their coffee, and are willing to pay a premium for high quality and sustainably produced coffee. Overall, Robusta coffee is likely to continue to play a crucial role in the global coffee industry for the foreseeable future. If you are interested in being a part of the growing Robusta trend, Bennetts has you covered. We have numerous varieties ranging from coffees that provide a rich, dark, and inky cup, to coffees that can offer sweet chocolate and cocoa notes. Don’t wait until it’s too late! Please
contact your Bennetts Account Manager for further enquiries. MARKET REPORT NY C movements and the Brazilian Impact During June we saw the NY C market head in the favoured direction by most Australian roasters. It began the winter at 176.65 c/lb and traded sideways for the first few days before reaching a monthly high of 191.75 c/lb. The spike was largely caused by various meteorological institutions declaring a strong likelihood of El Nino occurring. The last time was in 2016 and it signifies rising global temperatures and usually brings heavy rainfall to the Americas and drought to Asia. Coffee growers in Asia are likely to be on high alert to watch for the impacts of this. On the other hand, bringing the value of the NY C market back down in the latter half of the month, was news that the Brazil harvest is looking good and weather forecasts are boding a sunny and dry July. This will aid with the harvest and limits the risk of frost, therefore increasing the supply of beans. The harvest is progressing at a strong rate with around 45% of the cherries off the trees. This is 6% higher than at the same time last year. The USDA has predicted Brazil’s coffee crop will be 66.4 million bags in 2023/24. There have been some predictions that the NY C will continue to fall but not to any great extent. Over the next few months, it could sit between 150 c/lb and 160 c/lb. It hit a low of 157.75 c/lb in June and at time of writing is 160.50 c/lb. Many roasters have taken this opportunity to buy, unsure if this will just be a quick reprieve in prices. A smaller number of roasters have held off, decreeing ‘I’m willing to wait for it, I’m not standing still, I am lying in wait’ The London Robusta market followed the same pattern, peaking and then reversing back down. It hit its highest ever level of 2,976 US$/MT on the 27th. Physical Robusta stocks remain tight and look to continue to do so for the foreseeable future. We are not likely to see much easing of Robusta prices until the Indian harvest starts to come through in December.
June 2023 NY C Graph Certified Stocks Arabica certified stock numbers ended June on close to 546,000 bags. This number is 37,000 bags down on last report. Commitment Of Traders Report As of the cut off of Tuesday 27th June the commercials remain net short at -33,129 futures lots short. This figure has nearly halved from the last report. The commercials have drastically reduced their net long to 5,406 future lots long. The reduction indicates their feeling that prices are likely to reduce further. The Wider Macroeconomic Impact The US
Dollar Index started June in a relatively strong position of 104.50, but took a
dip in the middle of the month before gaining a bit of ground towards the end.
The FED remains Hawkish with indications that another interest rate rise will
occur at the end of July. Although, it is likely the market has already
factored this in so it won’t have a huge effect. The predication is that in the
short term the US Dollar remains bullish, but in the longer terms it is going
to take a more bearish attitude. A strong US dollar is bearish for commodities,
but on the other hand weakens the AUD, making coffee more expensive for
Australian roasters. A WORD FROM THE CUPPING ROOM This month we landed some amazing microlots from our friends at Café Granja La Esperanza in Colombia. Café Granja La Esperanza specialises in the production and commercialisation of specialty coffee varietals. Over time they have successfully adapted their varietals to the ever-changing Colombian soil and climate conditions, making their profiles highly recognised and appreciated across the coffee industry worldwide, particularly for their fine Geisha varietal. Café Granja La Esperanza have been producing world-class coffees for many years, and have been desired by Australian coffee competitors in their National and International Barista and Brewers Competitions. If you are interested in getting your hands on some of the world’s best coffee, look no further, as we have a few gems in store here at Bennetts. Colombia Geisha Cerro Azul Washed Colombia Geisha Washed Las Margaritas Colombia Geisha Cerro Azul Honey Colombia Geisha Cerra Azul Natural Colombia Geisha Natural Las Margaritas Colombia Sugan Rume Natural Colombia
Tres Dragones Potosi Natural There is limited stock available, so be sure to get in quick before its too late! Please
contact your Bennetts Account Manager for further enquiries. JOIN OUR TEAM Become part of the Bennetts
Team! |
