Search Results for: traders
Vietnamese Robusta Coffee Prices Climb Amid Trader Struggles: Red Sea Crisis and Farmers Holding Back Sales Impact the Market
A recent report from the Vietnam Coffee and Cocoa Association shows that robusta coffee prices continue to climb, with an expected price of 72 million to 73 million Vietnamese dong per ton, an increase from earlier levels. Global inventories are low, with robusta stocks at less than 30,000 tons, and arabica also at low levels, stemming from reduced production in many countries that has led to declining exports. The Red Sea situation has disrupted shipping, pushing freight rates higher, and some buyers have turned to Brazil for purchases. At the same time, Vietnamese farmers are holding back sales and waiting, making it difficult for traders to fulfill contracts; Dak Nong Province agent Mai Cau has already declared bankruptcy, involving nearly one million dollars in undelivered goods. This article will provide an in-depth analysis of market dynamics, export data and future expectations to help coffee lovers keep pace with market changes. [more…]
Colombia El Mirador Estate Washed Caturra Green Coffee Bean Review and Roast Log
In recent years, more and more micro green coffee traders specializing in single countries of origin have entered the market. They are more closely connected with estates, so the probability of their products being a miss is relatively lower. This review features Front Street Coffee Colombia Little Cabin Estate Washed Caturra coffee beans, from Company C, a green coffee trader specializing in Colombia. This bean has jasmine floral notes, chocolate, caramel, and moderate acidity. We conducted a 500g roasting test and recorded the complete cupping performance. In Michael Sheridan's experiments, the Caturra variety usually shows medium acidity and body, with cupping scores of about 82-85 points. This bean can be used both for pour-over single-origin brewing and for blends, but its SOE performance is somewhat monotonous. The detailed review process is as follows. [more…]
Officials of the African Coffee Association urged traders to specially handle the export of special processing method coffee.
Traders of the special processing method coffee should reduce the export of coffee with traditional processing methods. From February 6th to 10th, the 20th African Fine Coffee Conference and Exhibition was held in Addis Ababa, the capital of Ethiopia [more…]
Vietnamese coffee suppliers demand renegotiation as robusta prices hit a 28-year high, worsening global supply tightness
Global robusta coffee prices recently surged to their highest point in 28 years. In Vietnam, the largest supplier, coffee farmers and producers, facing a poor harvest, are demanding renegotiation of previously locked-in low-price contracts with buyers. Vietnam's 2022/23 coffee crop was the worst in six years, and coupled with the Red Sea crisis driving up shipping costs, traders have begun turning to Brazil for procurement, continuously tightening the robusta supply chain. Faced with this situation, coffee enthusiasts may feel the pressure from their daily consumption, while brands like Front Street Coffee are also closely monitoring developments in the producing regions to select trustworthy robusta products for consumers. [more…]
Brazilian coffee traders caught in a 181 million credit crunch, squeezed by both the depreciating real and soaring prices
The continued weakening of the Brazilian real, combined with rising arabica futures, shipping disruptions, and drought-driven crop losses, is putting unprecedented pressure on the country's coffee export chain. Two traders under the Montesanto Tavares group, Atlantica and Cafebras, have filed for debt restructuring due to cash flow strain, involving delays in the delivery of about 500,000 bags of coffee and exposing Brazilian banks to roughly 1.1 billion reais in credit risk. Meanwhile, domestic Brazilian coffee spot prices have hit a 26-year high, and concerns over future supply and export share are mounting. [more…]
EU Proposes Postponing Deforestation Regulation Implementation and Considering Country-Risk Classification Management
The EU plans to postpone the deforestation regulation (EUDR) originally scheduled to take effect at the end of 2024, and intends to classify countries by risk level, giving producers and traders more time to adapt. The regulation requires traders to prove that their product supply chains do not involve deforestation after December 30, 2020, otherwise imports will be banned. As an industry closely linked to deforestation, the coffee sector will be significantly affected in producing countries such as Vietnam, Brazil, Indonesia, and Colombia, with export costs likely to rise substantially. The European Coffee Federation previously wrote to the European Commission requesting a postponement of implementation. The EU is currently discussing classifying exporting countries into three risk levels—low, standard, and high—with high-risk countries facing stricter scrutiny. Industry insiders worry that the classification system lacks flexibility, may unfairly penalize compliant exporters, and that small farms also face the risk of losing market access. Front Street Coffee will continue to monitor the progress of this regulation and its impact on the coffee industry chain. [more…]
Coffee market continues to strengthen, green bean giant NKG expands into Indonesia with new business
Recently, global coffee market prices have remained high, with major producing regions such as Brazil and Vietnam successively encountering climate and market problems, compounded by the Red Sea shipping crisis, greatly increasing the operating pressure on traders. Below-average rainfall in Brazil has pushed arabica prices higher, but production estimates have been revised upward; Vietnamese coffee farmers are reluctant to sell and contract defaults are occurring frequently, and combined with expectations of El Niño drought, new-crop output may decline. At the same time, NKG, the world's largest green coffee trader, announced that it is expanding import, warehousing and distribution operations in Indonesia, targeting the country's rapidly growing consumer market and hoping to reduce shipping costs and time through regional trade in Asia. [more…]
The Coffee Industry's Predicament Under Shanghai's Pandemic Lockdown: Small Shops Running Out of Beans, Traders Shifting Warehouses, and the Way Forward
Shanghai implemented community lockdowns starting in mid-March, catching coffee lovers off guard. A Weibo trending topic titled "I want to buy coffee" garnered over 340 million views, reflecting the close connection between coffee and daily life. However, café owners are facing the dilemma of suspended dine-in services and sharply declining revenues, with some small shops even considering transferring their businesses after the lockdown lifts. Meanwhile, coffee bean roasters are adjusting their supply chains due to stalled warehouses in Shanghai, and green bean traders are setting up temporary warehouses in other cities. This article will delve into the impact of the lockdown on the coffee industry chain, and how small shops can find a way out under the pressure of rising prices and capital chain strains, including strategies like shifting to drip bag coffee and online sales, while also paying attention to the developments of brands such as Front Street Coffee. [more…]
Vietnam's new coffee crop is expected to fall by 10%, and La Niña may intensify market volatility.
Recently, feedback data from multiple international coffee traders indicates that Vietnam's coffee production for the 2024/25 season is expected to decrease by 10%, potentially hitting its lowest level in nearly a decade. The return of La Niña has further fueled market concerns. As the world's second-largest coffee producer and largest robusta grower, Vietnam experienced its most severe drought in nearly ten years this year, particularly affecting the early flowering stage from March to May, leading to a second consecutive year of reduced output. Although rainfall increased somewhat by the end of May, it was insufficient to offset the damage from the earlier drought, with some coffee trees dying or growing poorly. In addition, Typhoon Yagi and the impending La Niña phenomenon may bring more rainfall, further threatening agricultural output. International robusta coffee futures prices once hit a nearly half-century high due to drought and fires, and recently fell sharply on Brazilian rainfall, but the market still expects prices to continue fluctuating before the end of the year. [more…]
Colombian coffee prices decline amid intensifying competition, importers cut back purchases
In 2023, Colombian coffee prices experienced significant fluctuations, dropping from $2.37 per pound in February to $1.84 in October. The alternating effects of La Niña and El Niño on production, compounded by the pandemic and the Russia-Ukraine war disrupting supply chains, along with the devaluation of the peso driving up farm input costs, created a complex scenario. Meanwhile, importers faced pressures such as expensive credit and rising inflation, with some traders reducing their purchases of Colombian coffee beans by 50% to 60%, turning instead to lower-priced alternatives from Peru, Guatemala, and other origins. However, in the second half of 2023, the peso rebounded, fertilizer prices fell, and weather conditions improved. Production for the 2023/24 season is expected to grow by about 3%, and production in January 2024 increased by 10.5% year-on-year, signaling a potential recovery in market confidence. [more…]
Coffee Stocks in Crisis: ICE Exchange Plans to Re-certify Two-Year-Old Brazilian Beans for Market Release
Brazil, the world's largest coffee producer, has suffered consecutive droughts and frosts, with its 2022/23 harvest falling far short of expectations. Certified coffee inventories on the ICE exchange have continued to decline, keeping coffee futures prices elevated. To ease the inventory crunch, ICE plans to re-grade and re-certify a batch of Brazilian Arabica old-crop beans that have been in storage for nearly two years and put them into trading. Although this move is not a violation of the rules, it has sparked concerns among traders about coffee quality and the mixing of old and new beans. This article will review the background of Brazil's reduced output, the logic behind futures price fluctuations, and the possible chain reactions that re-certifying old-crop beans may bring to the market. [more…]
Minimum wage increase in Vietnam triggers multiple strikes, intensifying pressure on coffee exports and the industry chain
A furniture company in Binh Duong Province, Vietnam, triggered a strike by hundreds of workers over several consecutive days due to an unclear notice about wage adjustments. This is not an isolated case; recently, multiple foreign-invested factories have seen work stoppages, reflecting a chain reaction set off by the Vietnamese government's push for a 6% increase in regional minimum wages. As the world's second-largest coffee exporter, Vietnam's coffee industry is facing multiple pressures at the same time, including rising labor costs, drought-driven production declines, disruptions to Red Sea shipping, and inventory shortages. Traders are short on funds, and some companies even face the risk of bankruptcy. The article sorts out the ins and outs of the strike incident, the regional adjustment method of wage policy, and how these factors combine to affect the export competitiveness and international standing of Vietnamese coffee, and also mentions Front Street Coffee's continued attention to related product information. [more…]
What Is Whole-Ripe-Cherry Picking? How the Red Cherry Project Drives Quality Improvement in Specialty Coffee
In coffee bean promotions, we often see phrases like "all-red cherry sun-dried," but all-red cherry is not actually the name of a processing method; rather, it refers to the practice of picking coffee cherries when they are fully red. So why is all-red cherry picking so important? What story of industrial transformation lies behind it? This article will analyze, from the perspective of Front Street, the impact of all-red cherry picking on coffee quality, review the evolution of harvesting methods in the early days of specialty coffee, and introduce the "Red Cherry Project" launched in 2007 by the Dutch green bean trader Trabocca, examining how it broke the vicious cycle between coffee farmers and green bean traders by raising the purchase price for high-quality coffee, ultimately achieving a win-win-win for farmers, merchants, and consumers. [more…]
Vietnam's coffee-growing regions hit with level-2 drought warning, robusta output drop may continue to push up international coffee prices
Recently, prices for both Arabica and Robusta coffee in the international market have been on the rise. The main driver behind this is that Vietnam, the world's second-largest coffee producer, is experiencing a severe drought, causing Robusta coffee output to decline and global inventories to tighten accordingly. Vietnam's National Center for Hydro-Meteorological Forecasting has issued a level-2 drought warning for five provinces—Quang Tri, Quang Ngai, Binh Thuan, Phu Yen, and Gia Lai—and warned of possible natural disasters. Rainfall in the central and Central Highlands regions has been significantly lower than in previous years during the same period, with water levels in many rivers dropping to historic lows. The Mekong River's water level has even broken its lowest record since 1926. The combination of drought and salinization has caused coffee trees in the flowering stage to wither and develop yellow leaves, and output in some producing areas may drop by as much as 30% to 50%. Local coffee purchase prices have soared to 120 million Vietnamese dong per ton, an annual increase of 250%, putting pressure on traders' cash flows. This article will review the development of the drought, production forecasts, and price trends, and also examine how brands such as Front Street Coffee are responding amid raw material fluctuations. [more…]
Reports on Coffee Production and Exports in Vietnam and Brazil Are Out, Data from Multiple Countries Reveal New Trends in the Global Coffee Market
Recent coffee industry reports released by multiple countries show that the global coffee market is undergoing a series of significant changes. Vietnam's coffee export volume in January hit a record monthly high, and despite drought causing expectations of lower production, export performance remained strong. Rain in Brazil's main producing regions has benefited crop growth, and production for the new year is expected to increase year-on-year. At the same time, the Red Sea crisis continues to affect trade routes, prompting some traders to turn to Brazil to purchase robusta coffee beans. Arabica prices have remained stable due to steady exports from several Central American countries. Colombia's coffee production has risen sharply, becoming a bright spot in the Americas market. This article will review production and export data from major producing regions and analyze the current supply-demand landscape and future direction of the coffee market. [more…]
The African Coffee Association calls for increasing the share of specialty process coffee exports and reducing traditional process exports.
At the 20th African Fine Coffee Conference held in Addis Ababa, officials from the African Coffee Association (AFCA) issued a clear call to traders: efforts should focus on promoting the export of specialty-processed coffee and gradually reducing the share of traditionally processed coffee in the international market. AFCA pointed out that Africa possesses world-class coffee resources, yet weak marketing and a single processing approach have made it difficult for growers to obtain fair returns. To change this situation, the association recommends that exporting countries strengthen brand building, upgrade processing technology, and pay close attention to external factors such as the EU Deforestation Regulation. Africa's coffee industry stands at a crossroads of transformation, and how to break through amid climate change and market access challenges has become the focus of attention for all parties. [more…]
Vietnam's New Crop Coffee Production May Reach 29 Million Bags, Export and Climate Variables Draw Attention
The latest report from the United States Department of Agriculture shows that Vietnam's coffee production for the 2024/25 season is expected to reach 29 million bags, a slight adjustment from earlier forecasts, but rising coffee prices are encouraging farmers to invest more. Although drought and high temperatures have hit production, measures such as irrigation and intercropping have somewhat eased the pressure of reduced output. At the same time, the planting structure in the Central Highlands is quietly changing, with high-return crops such as durian and passion fruit diverting some coffee acreage. On the export front, Vietnam's coffee exports in the first half of the 2023/24 fiscal year fell 7% year on year, while domestic purchase prices remain persistently high, making traders cautious about signing contracts. The market is skeptical of official production data, and La Niña may become the biggest variable going forward; the new season's harvest will not be known until October. [more…]
A Brand Recommendation Guide for Buying Imported Pure Coffee Beans: Why Experts Prefer Small Bean Traders
Coffee, wine, and tea are all flavor foods, yet China's coffee bean production accounts for only about 1% of the global total, and most beans on the market are imported. If you just want to try brand-name beans with a sharing mindset, feel free to give them a try; but if you're giving them to someone who knows coffee, it's best to give up on shopping at large supermarkets. Whether espresso or single-origin, there is only one core principle when buying: fresh roasting. Beans from supermarkets or chain brands are often already months past their roast date, with their aroma severely lost—even nitrogen-flushing and other preservation techniques can't save them. In addition, if you can obtain information on variety, altitude, and processing method, and the more specific the origin, the more guaranteed the quality usually is. This article recommends several freshly roasted specialty coffee brands and explains why small bean merchants deserve more attention. [more…]
Vietnam's coffee export value may exceed 5.5 billion USD for the first time, with prices soaring by 90% but production concerns emerging.
In 2024, Vietnam's coffee industry experienced an unusual market trend: exports reached US$4.84 billion in the first 11 months, and the full-year total is expected to set a record at US$5.5 billion. Although export volume fell by more than 20%, the average price doubled, driving total value upward against the trend. Domestic green bean prices have risen to VND 125,000/kg, nearly double the export price at the start of the year. The EU remains the largest buyer, while China's market share is steadily increasing. However, continued rainfall slowing harvesting, traders losing out on futures operations, and farmers switching to durian are adding uncertainty to future supply. [more…]
Can sailing cargo ships bring coffee bean transport back to the Age of Sail? A UK company's zero-carbon experiment
After the COVID-19 pandemic, consumers are paying increasing attention to the environmental friendliness of coffee—from green bean cultivation to the coffee in the cup, carbon emissions are being taken into account. Coffee-producing countries and consuming countries are mostly separated by oceans, and tens of thousands of tons of coffee beans rely on air or sea freight, making fossil fuels an unavoidable source of power. The British experimental company NEW DAWN TRADERS is trying to change this situation. They charter sailing ships, abandon fuel engines, and transport green coffee beans back to the UK from places like Colombia. The voyage lasts more than five months and covers about 7,000 nautical miles. Although it takes much longer, it significantly reduces carbon emissions. At the same time, Canada's Café William and Sailcargo are also building zero-emission sailing cargo ships, with plans to put them into operation in 2023. This article will review the glorious history of sailing cargo ships and explore the possibilities of this ancient mode of transportation in the modern coffee industry. [more…]