BeanScene – August 2019

a fraction of what farms produce. Yes,

specialty roasters will buy the specialty

grade coffee at fair prices, but farmers

still need to sell the entire crop to make

a living,” Craig says.

Fairtrade Australia and New

Zealand CEO Molly Harriss Olson

says low prices are only one part of

a “perfect storm” currently hitting

coffee production, with climate change,

decreased soil fertility, competition for

natural resources, and an ageing farming

population all clouding the future of

coffee production.

“Apart from the obvious economic

implications of low prices for coffee-

farming families, there are significant

knock-on effects,” she says. “If coffee

farmers collectively are pushed any

further into desperate circumstances,

the crop itself will suffer. The specialty

segment of the market won’t be immune

to the long-term potential impacts.”

WHY SHOULD

AUSTRALIA CARE?

Ona’s Sasa says Australia has one of

the most developed coffee scenes in the

world and exerts significant influence

globally, but it isn’t exempt from

responsibility or the flow-on effect of

the low C Market.

“We have a lot of big coffee roasters,

and people from all over the world follow

what we do in Australia,” Sasa says. “But

the Australian dollar has dropped a lot

in the last few years. Many businesses

are struggling and there’s so many cafés

in places like Melbourne. In order to go

forward, a lot of roasters think they need

to buy a cheaper product.”

Campos Coffee’s Will says as some

specialty roasters grow and are acquired

by larger companies, they can lose sight

of what makes coffee special.

“With such low prices, a lot of

companies are going back to buying

commodity coffee,” Will says.

He suggests this has led many

companies to invest in marketing over

sustainable sourcing practices.

“You’re seeing a lot of really brilliant

packaging and clever marketing coming

out now because they’re competing on

that rather than on quality and how the

coffee actually tastes,” he says. “This

also confuses the consumer, thinking

they’re supporting true specialty coffee,

but in fact they could be purchasing

commodity.”

Nomad Coffee Group’s Craig says

this type of short-term thinking poses

a severe threat to the future of the

coffee industry.

“Record low coffee prices will have an

extremely negative effect on our supply

chains in the future. We need to be very

conscious of that,” Craig says.

“I don’t think consumers especially

have any idea of the potential long-term

effect this will have on them. Farmers

have no ability to invest in their farms,

leading to a decrease in yields and

quality, and therefore less income.

Growers are then forced to replace coffee

with crops that will provide them with

better income. This means there may be

less coffee in the future and prices will

go up, but at the same time, the quality

of coffee could suffer.”

PAYING A FAIR PRICE

Some green bean traders, like Cofi-Com,

buy specialty coffee through a deeply

embedded origin network, benefiting

from feedback at every major origin.

These networks operate through field

operatives working closely with farmers

on progressive social, environmental,

and agricultural practices.

“Through these programs, farmers

know they have a market for their coffee

through us at a fair price. Knowing this

in advance, they can plan their next

ProProPrProProProoProPP oProProProooooooojecjeejecjecjecjecjjejejecjjejjejejecjjjecjjeejeejjjjejjeeeet Ot OOt Ot OOt Ot OOOOOOOOOOOOOOOrigOOOrrigrigr ininnnnnn n n nnn worn nn nworworwwwworwoworwworwworworworwwoworwworwwowwwwworworrrkkkskskskkssksksks ks kskk witwitwitwitiwitwitwitwitwithhhitiithphphph ph ph ph ph phphh pprodrodrodrodrodrodrodrodddduceuceuceuceuceuceceeucececececec rceeeeeersrsrsrsrs rs srsrsrs s totototototo toto imptoiimpimpimpimpimppppppprovrovrovrovrovvvetvvete tete tetetthehehehehehhe he he h quauquaquaquauquaquaquaquauaqquaquaquaquaquaulitlitlitlitlityyyy y yyyyyy

ofof foffffff thetheethththehththhthhththeethethththethhheeheehheeeeeeiir r irir r ir rr rcofccofcofccccofcofccc fccc ffecofc fefefeefefeefeeeefeefeefeeeannnnndbndbd bd bd bddbd bbddddd bd ecoe ooomemememeeee leleslesesleslesleslelesessessrs rs rsrsrs rsrsrsrs elieelielielieliee ianteleeliantantantantantannnnntononononoonthththththhe CeCeCeCeCMaMaMaMaMarkerkerkerkerkerkerkt.ttt ImaImaIma

ge:g

Joooo

rda

ada

rda

adadada

rdardad

n Mn M

M

n M

M

n n^ nn

ntntntntntntntontnonoo

gomgomgomgomgomgomgomgomgom

m

gom

mmmmm

gomom

mo

googggg

yyyryyry

eryeryery

, OO, O, OOOOO, O, OOOOOOOOOO

aaaaaaananaaa aanananananann

ffofof

Cof

f

CoCoCoCoCoCoooCoCoCoCCCCCC

eeeeeeeeeeeefeeeeeeeefeeeee

a fraction of what farms produce. Yes,
specialty roasters will buy the specialty
grade coffee at fair prices, but farmers
still need to sell the entire crop to make
a living,” Craig says.
Fairtrade Australia and New
Zealand CEO Molly Harriss Olson
says low prices are only one part of
a “perfect storm” currently hitting
coffee production, with climate change,
decreased soil fertility, competition for
natural resources, and an ageing farming
population all clouding the future of
coffee production.
“Apart from the obvious economic
implications of low prices for coffee-
farming families, there are significant
knock-on effects,” she says. “If coffee
farmers collectively are pushed any
further into desperate circumstances,
the crop itself will suffer. The specialty
segment of the market won’t be immune
to the long-term potential impacts.”

WHY SHOULD
AUSTRALIA CARE?
Ona’s Sasa says Australia has one of
the most developed coffee scenes in the
world and exerts significant influence
globally, but it isn’t exempt from
responsibility or the flow-on effect of
the low C Market.
“We have a lot of big coffee roasters,
and people from all over the world follow
what we do in Australia,” Sasa says. “But
the Australian dollar has dropped a lot
in the last few years. Many businesses
are struggling and there’s so many cafés
in places like Melbourne. In order to go
forward, a lot of roasters think they need
to buy a cheaper product.”
Campos Coffee’s Will says as some
specialty roasters grow and are acquired
by larger companies, they can lose sight

of what makes coffee special.

“With such low prices, a lot of

companies are going back to buying

commodity coffee,” Will says.

He suggests this has led many

companies to invest in marketing over

sustainable sourcing practices.

“You’re seeing a lot of really brilliant

packaging and clever marketing coming

out now because they’re competing on

that rather than on quality and how the

coffee actually tastes,” he says. “This

also confuses the consumer, thinking

they’re supporting true specialty coffee,

but in fact they could be purchasing

commodity.”

Nomad Coffee Group’s Craig says

this type of short-term thinking poses

a severe threat to the future of the

coffee industry.

“Record low coffee prices will have an

extremely negative effect on our supply

chains in the future. We need to be very

conscious of that,” Craig says.

“I don’t think consumers especially

have any idea of the potential long-term

effect this will have on them. Farmers

have no ability to invest in their farms,

leading to a decrease in yields and

quality, and therefore less income.

Growers are then forced to replace coffee

with crops that will provide them with

better income. This means there may be

less coffee in the future and prices will

go up, but at the same time, the quality

of coffee could suffer.”

PAYING A FAIR PRICE

Some green bean traders, like Cofi-Com,

buy specialty coffee through a deeply

embedded origin network, benefiting

from feedback at every major origin.

These networks operate through field

operatives working closely with farmers

on progressive social, environmental,

and agricultural practices.

“Through these programs, farmers

know they have a market for their coffee

through us at a fair price. Knowing this

in advance, they can plan their next

t rr ii ppp uuuuu iimimimimimrororororoe t litlitlitlitt

ii eeannnn ecooommmm lililliiia ta taaa tatonononnthththheCeCCMMaMaMarkerkerkkekt.tt

g

oor

nn

oo

f

eeef