Arabica coffee futures skyrocketed yesterday, reaching their highest levels in months. The main contract for March delivery closed at 184.70 cents, a 7.5% increase from the previous day. This surge comes ahead of a new rule that will be enforced today, which prohibits the resubmission of old coffee inventories.

Difficulties in Replenishing Stocks

The implementation of the new rule poses challenges in replenishing exchange certified stocks, which hit a 24-year low of 224,066 bags on Thursday. With the resubmission of old inventories no longer an option, the coffee market faces even greater difficulties in meeting demand.

Adverse Weather in Brazil

Adverse weather conditions in Brazil, including high temperatures, hail, and storms, have also contributed to the surge in prices. These conditions could potentially impact the development of the 2024/25 crop, further straining supply.

In a positive development, hEDGEpoint Global Markets reported that coffee production in Brazil could reach a record-breaking 74.24 million bags, surpassing the previous record set in 2020/21. The broker and analyst predict that Arabica production will reach 48.31 million bags, while Robusta output will near 26 million bags.

Natalia Gandolphi, an analyst at hEDGEpoint, explained that Robusta production in Brazil is expected to rise sharply, driven by a strong recovery in the main producing state of Espirito Santo. Despite recent dry spells and extremely high temperatures, Arabica production has been minimally affected.

Colombia’s Coffee Production Forecast

The National Coffee Growers Federation in Colombia anticipates that the country’s coffee production will be between 11.60 million and 12 million bags by the end of the 2023 calendar year. During the current October 2023 to September 2024 coffee year, Colombia is projected to produce 12.60 million bags, with the El Nino weather phenomenon negatively impacting production.

The federation has set ambitious goals, aiming for 14 million bags by the end of 2025 and 16 million bags by 2027. This includes a 20% yearly renewal of coffee plantations.

Impacts on Vietnamese Coffee Production

Futures prices also rallied in London, with the contract for January delivery ending the day at $2,611, a 3.5% increase from Wednesday. The heavy rains disrupting bean processing in key growing regions in Vietnam have had an impact on prices as well. Vietnam’s coffee production for the 2023/24 calendar year is expected to reach a four-month low due to drought earlier this year.

In November, Vietnam’s coffee exports decreased by 37.9% to 1.33 million bags. Shipments in the first eleven months of this year amounted to 23 million bags, a 12.9% decrease compared to the same period in 2022.

Olivia

In the vast and diverse world of coffee, coffee alternatives, and tea, Olivia has found her calling. As an author and a dedicated coffee and tea aficionado, her work for Cappuccino Oracle reflects her profound love and understanding of the intricate complexities found within these beverages. Olivia’s passion for the subject serves as both a catalyst for her creativity and a connection point with her audience.

Olivia’s appreciation for coffee, coffee alternatives, and tea blossomed at an early age. She discovered that these beverages invigorated her senses and stimulated her creative spirit. From the nuanced flavors of single-origin roasts to the captivating narratives intertwined with coffee, coffee alternatives, and tea trade and culture, Olivia found an unlimited source of inspiration in her daily cup.

Her love for these beverages and her talent for storytelling eventually converged at Cappuccino Oracle. As an author, Olivia’s mission is to illuminate the intricate tapestry that makes up the world of coffee, coffee alternatives, and tea. Her articles span a diverse range of topics, encompassing everything from the unique flavors of different brews to the sociocultural history intertwined with their cultivation and consumption.

A Special Occasion for Reflection

The BioCuba Fair is a unique event that serves as a platform for discussing crucial issues related to climate change, environmental protection, reforestation, and sustainable development. The second edition of the fair, taking place in Guantánamo on December 2 and 3, aims to create a bridge to the 2023 United Nations Conference on Climate Change, COP28. This year, an important Cuban delegation representing the Group of 77 + China will attend the conference.

During the fair, participants will engage in debates, seminars, workshops, and master conferences to exchange knowledge and best practices in various areas, including the value chain of coffee, cocoa, and organic products, as well as the circular economy. The event will feature speakers from different backgrounds, such as Mario Cerutti, Director of the Lavazza Foundation, Lavazza’s Senior Sustainability Manager Veronica Rossi, and the President of Lavazza Spa Giuseppe Lavazza. These experts will contribute to discussions on sustainable agroforestry production and the application of science, technology, and innovation in agroecological management.

Uniting Business, Science, and Communities

The BioCuba Fair serves as a meeting place for Cuban and foreign businessmen, international organizations, scientists, technicians, farmers and producers, students, and journalists. This diverse gathering of stakeholders highlights the importance of collaboration and knowledge sharing in achieving sustainable development and environmental protection.

Program and Event Locations

The fair will take place at La Plaza de la Revolución Mariana Grajales, the Guantánamo University of Medical Sciences, and the Guantánamo University. The complete program, including the list of speakers and event locations, can be found below.

Celebrating Women in the Forestry Economy

The BioCuba Fair is part of the larger Chocolate with Coffee Festival, now in its 7th edition. This year, the festival proudly dedicates a significant portion of its program to highlighting the exceptional role played by women in the forestry economy. By recognizing their contributions, the festival aims to inspire and empower more women to take part in sustainable practices and environmental protection.

Olivia

In the vast and diverse world of coffee, coffee alternatives, and tea, Olivia has found her calling. As an author and a dedicated coffee and tea aficionado, her work for Cappuccino Oracle reflects her profound love and understanding of the intricate complexities found within these beverages. Olivia’s passion for the subject serves as both a catalyst for her creativity and a connection point with her audience.

Olivia’s appreciation for coffee, coffee alternatives, and tea blossomed at an early age. She discovered that these beverages invigorated her senses and stimulated her creative spirit. From the nuanced flavors of single-origin roasts to the captivating narratives intertwined with coffee, coffee alternatives, and tea trade and culture, Olivia found an unlimited source of inspiration in her daily cup.

Her love for these beverages and her talent for storytelling eventually converged at Cappuccino Oracle. As an author, Olivia’s mission is to illuminate the intricate tapestry that makes up the world of coffee, coffee alternatives, and tea. Her articles span a diverse range of topics, encompassing everything from the unique flavors of different brews to the sociocultural history intertwined with their cultivation and consumption.

Investment in the Future

Swedish-based coffee roaster, Löfbergs, is experiencing a surge in sales and is planning to construct a new roasting house in Karlstad, Sweden, to accommodate the increasing demand. The family-owned company expects to grow by 30% by 2026 and believes that expanding its facilities is necessary to reach the next level.

A Family Legacy

Löfbergs, founded in Karlstad in 1906, operates in ten markets across northern Europe. While half of its sales occur in Sweden, the other half comes from export sales.

New Roasting House in Välsviken

Löfbergs currently has two roasting houses in Karlstad: one for ground coffee in central Karlstad and one for whole beans in Välsviken. The company plans to focus its activities in Karlstad at the newly inaugurated roasting house in Välsviken. This state-of-the-art facility was built with future growth in mind and has ample room for expansion to meet customers’ demands for flavor, quality, and sustainability.

Preparing for the Future

While exact details about capacity and the timeline for the move are still uncertain, Löfbergs anticipates that it will likely be about ten years before construction begins. This timeframe allows the company ample time to prepare and create a competitive and top-notch facility.

Opportunities for Development

The relocation of the coffee business from central Karlstad to Välsviken presents an opportunity for Löfbergs Fastigheter, the Löfberg family’s real estate company, to continue developing the area around the iconic coffee scraper at Bryggudden in central Karlstad. The family intends to keep the coffee scraper, which is a beloved part of the town’s landscape. The vision for the area is to maintain a strong connection to coffee, potentially as an experience center or a micro coffee roaster, ensuring that the scent of freshly roasted coffee will always linger in Karlstad.

Olivia

In the vast and diverse world of coffee, coffee alternatives, and tea, Olivia has found her calling. As an author and a dedicated coffee and tea aficionado, her work for Cappuccino Oracle reflects her profound love and understanding of the intricate complexities found within these beverages. Olivia’s passion for the subject serves as both a catalyst for her creativity and a connection point with her audience.

Olivia’s appreciation for coffee, coffee alternatives, and tea blossomed at an early age. She discovered that these beverages invigorated her senses and stimulated her creative spirit. From the nuanced flavors of single-origin roasts to the captivating narratives intertwined with coffee, coffee alternatives, and tea trade and culture, Olivia found an unlimited source of inspiration in her daily cup.

Her love for these beverages and her talent for storytelling eventually converged at Cappuccino Oracle. As an author, Olivia’s mission is to illuminate the intricate tapestry that makes up the world of coffee, coffee alternatives, and tea. Her articles span a diverse range of topics, encompassing everything from the unique flavors of different brews to the sociocultural history intertwined with their cultivation and consumption.