El Nino to limit Indonesia’s coffee harvests


Insiders and analysts may all differ on the figures, but the market traders and industry predictors appear to be united that coffee harvests in Indonesia are likely to be down this year.

Indonesia is currently the world’s third-biggest producer of coffee.

The dip in production levels will be caused by the disruptive El Nino weather pattern, which is believed to be the strongest it’s been in nearly two decades.

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More mergers probable, says Illycafe boss


After informing attendees of the Global Coffee Forum in Milan that we could be heading towards a coffee catastrophe, Illycafe boss Andrea Illy has been suggesting that the next few years could be all about consolidation as business began to worry about tougher competition and decreasing margins.

Recently D.E. Master Blenders and Mondelez International, two of the world’s biggest coffee companies, joined forces to create Jacobs Douwe Egberts and this new conglomerated entity is expected to have a near 20% market share, second only in the industry to the Swiss giants Nestle.

Speaking to the website Agrimoney, Illy hinted that there may be other deals “cooking” that everybody bar those involved are in the dark about.

…continue reading More mergers probable, says Illycafe boss

A Shortage of Coffee Looms


Speaking at the Global Coffee Forum in Milan, Andrea Illy said that the world needs another coffee producer, of comparable size to Brazil in terms of output, in order to prevent a predicted global shortage from occurring within the next ten years.

Illy, the chairman, chief executive and all-around head honcho of Illycafe, the famous Italian coffee roasters, stated he expects there to be a shortfall of forty to fifty million bags as climate change, low prices, pests and disease lower harvests’ yields.

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Tanzanian Coffee Prices Rise in September


At the most recent coffee auction in Moshi, Tanzania, the average price of Tanzanian grown coffee rose: The cost of arabica went up by $2.23 per 50kg bag whilst the cost of robusta jumped up by $4.57 per bag.

During the auction, 21,154 bags of arabica were put forward for sale and a total of 20,331 were sold. However, this represents a slight decrease from the beginning of the month when 23,236 bags were offered.

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China: The Next Big Thing


Sales of tea in China may eclipse those of coffee by a ratio of ten to one, but the growth of the coffee sector in the country is “growing at double digit rates, and shows few signs of slowing,” according to a report from the International Coffee Organization (ICO).

Thanks to its huge size, the country has, in recent years, been primed for expansion and as such numerous domestic, continental and global chains have moved in to take advantage of an eager and emerging audience for coffee.

Any debate surrounding China’s importance to the global market has probably been kyboshed.

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Starbucks to pay the UK’s National Living Wage


Costa Coffee received a fair amount of backlash when they announced that the cost of their beverages would likely rise in the United Kingdom when the minimum wage increases.

Trying to justify their threat, CEO Andy Harrison explained that “employment costs [were] there biggest single cost.”

However, Costa have been left with egg on their face as Starbucks, one of their biggest rivals, have publicly stated that they will be embracing the National Living Wage.

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Coffee farmers wooed on the Tanzanian election trail


Could coffee be an election winner? Edward Lowassa certainly hopes so as he’s put the Tanzanian coffee industry at the heart of some recent speeches as he meanders along the campaign trail.

Speaking at a recent rally in the Misenyi township, Lowassa, a pivotal figure in the Chadema and Coalition of People’s Constitution (UKAWA) pledged that he would revamp the entire sector and equip coffee farmers with better incentives moving forwards.

…continue reading Coffee farmers wooed on the Tanzanian election trail

Starbucks to Roll Out Mobile Ordering


One story has captured the imagination and attention of the world’s coffee and technology media (if there is indeed such a thing): Starbucks’ decision to potentially kill off the queue.

After a successful trial period, the popular coffee chain announced earlier today that an update to their popular mobile application will see the introduction of an ordering form.

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