Poor Farmer

By Claudia Carpenter Bloomberg News September 28, 2012 The International Coffee Organization is going ahead with plans to promote coffee consumption in developing countries as part of a global effort that almost doubled growth in demand in the past 10 years. Demand for arabica beans is already probably going to get a boost because of the increased prices of robusta, Roberio Oliveira Silva, executive director of the London-based group, told reporters in London today. Arabica beans have dropped 24 percent this year as robusta beans climbed 20 percent. “There will be an increase in arabica,” Silva said. Global coffee demand climbed an average 2.5 percent a year over the past 10 years, compared with 1.6 percent from 1990 to 1999, Silva said in a presentation dated this week for ICO meetings. The ICO wants to “decommoditize” coffee in growing countries in Africa and South America, according to Andrea Illy, chairman and chief executive officer of Trieste, Italy-based ...

Afribiz September 26, 2012 Ugandan coffee exports slumped in August Coffee shipments from Uganda, Africa’s largest exporter of the bean and the second largest African producer after Ethiopia, slumped to 233,151 60-kg bags in August, 24.5% lower than the same month last season. The drop in exports, which followed July’s season record of 306,631 bags, is the first fall in monthly volumes since April when exports dropped to a season low of 141,220 bags, 20% below the same month the previous season. However, since March every month’s exports has been lower than the previous season, and by end-August total exports for the season came to 2.8m bags, 10.7% down on last season. The decline in Ugandan coffee exports reflects the decreasing trend in the country’s Robusta output (accounting for 68.9% of coffee exports by the end of July) which is suffering from disease and the lingering impact of heavy rains in May which delayed the harvesting and drying of beans. By the end of July ...

By Richard Morgan The Wall Street Journal September 25, 2012 As far back as the race between the Chrysler Building and the Empire State Building, New York has been a city built on one-upmanship. Now that mentality has crept into the cozy demimonde of neighborhood coffee shops. Jack's Stir Brew Coffee opens a new location on Sixth Avenue at Downing Street next month, reviving bragging rights over a plaque that hangs in its original West 10th Street location: a patent by owner Jack Mazzola Jr. Unable to find a machine to produce coffee precisely the way he wanted, he created one that is true to his shop's name—it stirs coffee as it is brewing, which Mr. Mazzola says distributes flavor more evenly and robustly. And when Fair Folks Cafe opens Thursday on West Houston Street, it will offer a new kind of bragging rights: For a monthly fee of $25, patrons can become members of the coffee shop, getting free drinks daily, as well as discounts on art and design produc...

By Michael Lewis The Motley Fool September 20, 2012 Being a public company means even the boss has to answer to somebody -- the shareholders. In the past year,  Green Mountain Coffee Roasters  (Nasdaq:  GMCR     ) has been the subject of much debate. While many have lambasted the company over sketchy accounting practices and unsatisfactory management decisions, those loyal to it cite the incredible growth over the last few years -- especially for a 31-year-old company. Most of the talk has been speculation, with a few more specific arguments from people like famed investor David Einhorn. But in a recent interview with  The Wall Street Journal , Green Mountain CEO Larry Blanford answered the difficult questions and tried to explain to shareholders and the public what is going on behind the scenes of the newest kid on the coffee block. Rumble and a tumble Only a year ago, Green Mountain was trading for more than $110 per share. Now it trad...

Coffee Perks Up, With Traders Looking Ahead   By Alexandra Wexler The Wall Street Journal September 10, 2012 NEW YORK—Arabica coffee futures rallied to a five-week high Monday as investors closed out bets that prices would fall and market participants begin to look ahead to next season's crop. Brazil, the source of one-third of the world's coffee, is nearing the end of the harvest of what is expected to be a record crop of arabica. The estimated production of 50.48 million 60-kilogram (132-pound) bags of coffee beans had encouraged investors to bet that prices would fall. For the week ended Sept. 4, the managed money net-short position was 18,591 contracts, the largest net-short position since May 2007, Commerzbank said in a note. But that report, released Friday after the market closed, spooked investors into closing some of those positions, sparking Monday's rally. Arabica coffee for September delivery on the ICE Futures U.S. exchange surge...

For many, the scent of freshly brewed coffee is the first highlight of the day. Now, scientists claim to have solved the mystery of why it never tastes as good as it smells. By   Nick Collins ,   Science Correspondent The Telegraph September 8, 2012 For many it is the first highlight of the day, just when you need it most: the scent of freshly brewed coffee wafting through the house first thing in the morning. But scientists claim to have solved the mystery of why coffee never tastes as good as it smells. The act of swallowing the drink sends a burst of aroma up the back of the nose from inside the mouth, activating a “second sense of smell” in the brain that is less receptive to the flavour, causing a completely different and less satisfying sensation. In contrast, some cheeses smell revolting but taste delicious because their whiff seems more pleasant to us when passing out of the nose than in, experts explained. Speaking at the British Scienc...

Daily Mail September 9, 2012 Starbucks is to start selling 280 drink combinations from lattes to frothy cappuccinos from vending machines. The first four will appear in Sainsbury’s supermarkets next week with thousands more to follow in petrol stations, offices and airports. Traditionally, coffee shops like Starbucks have made much of the theatre of producing fresh coffee for customers, with trained barista expertly managing the grinding, steaming and frothing. It may well be difficult for the company to convince customers that it can deliver something with an equivalent taste by simply pressing a button on a vending machine. However, Starbucks said the machines will offer 100per cent Fairtrade Espresso coffee beans which are ground freshly for each drink. At the same time, fresh milk will be individually steamed and customers will be able to choose from 280 possible drink combinations. The vending machine drinks will cost £2.10 for a ‘Tall’ serving, w...

Forbes September 06, 2012 Starbucks ( SBUX ) stock has slipped lately, and it’s looking for ways to perk up. It ran a promotion on LivingSocial this week, selling $10 gift cards for $5. But the chain that pioneered a spendy coffee habit is acting like its product is too expensive, or something. This summer it agreed to sell discounted cups through Coinstar ( CSTR ) vending machines. It’s sending mobile deals to its best customers, as  (see YCharts) . And now Starbucks did a nationwide daily deal. Will consumers start to wonder how much it actually costs to produce that cup of coffee? It needs to protect that margin because investors are paying a premium for Starbucks versus the cheaper swill over at Dunkin’ ( DNKN ).

By Martinne Geller Reuters September 6, 2012 (Reuters) - LBP Manufacturing Inc, a supplier of packaging to coffee chains including Starbucks and Dunkin' Donuts, will soon sell filters for single-serve coffee, another move in the expected onslaught of competition for Green Mountain Coffee Roasters Inc. Matt Cook, president of the privately held company, said the product, called the UpShot, will launch in the fall. He declined to identify the brands that will use LBP's technology, saying it was premature. Cook said the UpShot would be recyclable and could be tailored to the needs of customers, which could range from private label manufacturers of single-serve coffee cups to other coffee brands not yet selling single-serve portions. The U.S. market for single-serve coffee is dominated by Green Mountain and its Keurig system, but the expiration this month of certain patents related to the design of its "K-Cups" has opened the door to a host of low...

By Isis Almeida Bloomberg Businessweek September 04, 2012 Global coffee production for the season ending this month will be higher than first estimated as output expands in Vietnam, the biggest grower of robusta beans, according to the International Coffee Organization. World production will total 132.7 million bags for the 2011-12 season, the London-based group said in a report e-mailed today. That compares with last month’s 131.4 million-bag forecast and 134.3 million bags a year earlier. “This revision is mostly attributable to better-than- expected levels of production in Vietnam, which is now estimated at 21 million bags, up 7.9 percent,” the ICO said. Each bag weighs 60 kilograms (132 pounds). Production of robusta, used in instant coffee and espresso, will rise to 51.5 million bags from 49 million bags a year earlier, the ICO estimated. That will boost the variety’s share of global output to almost 39 percent from 36.5 percent a year earlier, according to...

By Yi Tian and Isis Almeida Bloomberg Businessweek September 04, 2012 Arabica coffee climbed for a second session in New York on signs of limited supply from Brazil, the world’s largest producer. Cocoa and sugar slid. Farmers in Brazil are hoarding part of their production to wait for price increases, the National Coffee Council said in a report last week. The price has dropped 27 percent this year on forecasts for a bigger harvest in Brazil. “Brazilian offers remain light,” Jack Scoville, a vice president for Price Futures Group in Chicago, said today in a report. “Farmers there are not offering much, and are offering lower qualities when they offer at all.” Arabica coffee for December delivery rose 0.3 percent to close at $1.653 a pound at 1:46 p.m. on ICE Futures U.S. in New York. Earlier, the price climbed as much as 1.9 percent. Hedge funds and other large speculators held the biggest coffee net-short position, or bets on prices declines, since May 200...