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Green Coffee Harvest News August 2022

Read Algrano's market overview with a deep dive into the upcoming origins: Bolivia, Ecuador, Uganda, Tanzania and Indonesia

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Climate x Demand

With more uncertainty around the global demand for coffee, the volatility in the coffee market is getting worse. Producers are worried. A coffee price increase is being recorded across all origins because of climate change, yet the international coffee price goes up and down due to fears of inflation and economic recession.

Is the market going to be willing - and able - to absorb these prices?

August's green coffee deep dive shows how this dynamic is playing out in five different origins: Bolivia, Ecuador, Uganda, Tanzania and Indonesia.

We interviewed members of Bright Java Coffee, Catur Coffee Company, Glenmalure, Mt Elgon Agroforestry Communities Cooperative, Bushika Integrated Area Cooperative, Jumarp, Agricafé and Fapecafes about what's on their minds and what they are seeing on the ground.

Summary

  • Many samples from Brazil, Colombia and Peru are delayed because of weather conditions. Processing is taking longer in Colombia and Peru, where excessive rain makes it hard to get coffee at the right moisture level.

  • Production is down in Indonesia and Tanzania. The monsoon season was prolonged in the archipelago and the distribution of rainfall is all over the place in the African country.

  • Bolivia, Ecuador and Uganda are seeing good levels of productivity. Farmers are having to fight over pickers in Bolivia, where rural labour is scarce. In Uganda and Ecuador, good yields and high prices are attracting merchants to coffee areas, increasing competition.

"The price of a commercial grade wet-hulled Sumatra now is the same of a specialty natural last year"

Troy Kiper
Bright Java Coffee, Indonesia

 "Current prices are very high. We are likely to make a margin but not a big one. It’s a case of selling to survive."

Luke Wepukhulu
Mt Elgon Agroforestry Communities Cooperative, Uganda

Photos: Catur Coffee Company and Agricafé.

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