C Market Update
Hello Stay Golden Friends!
I wanted to drop you all a note regarding the C Market price increases, the New York stock exchange for commodity coffee that affects coffee prices globally. As we all know coffee is traded as a cash crop commodity and prices fluctuate due to many factors.
The market tends to ebb and flow based on the supply levels and distribution out of several of the leading producing origins, namely Brazil, Colombia and Indonesia/South Seas. When supply out of those countries is high and there is confidence in the futures, prices go down substantially, which is where we were at for basically ALL of 2019. Brazil flooded the market with copious amounts of low priced coffees.
I don't know if anyone has read recent articles in the national media about Brazil, but there is a lot of conversation about abuses of slave labor in the worlds largest coffee market. There is some thought that since this year was a year of heavier rainfall, which in turn reduced the yield of harvest substantially, pressure may have been applied to commercial grade farms to utilize unfair labor practices. As you could presume, confidence in coffee futures is down leading into 2020 and the Brazilian supply is again in question. The last time a problem occurred in Brazil was in 2018 where coffee prices sky rocketed to $1.35 on the C Market, which was a decade long high. A link to the Reuter's article can be found here.
From January of 2019 to October 2019 we have experienced the C Market stable between $.90-1.00. As of December, 2019 it jumped to $1.39.
I wanted to share two notes regarding all this news...
When and if we source a coffee from Brazil moving forward, we will do so solely through Ally Coffee who is a very reputable and trustworthy importer. The owner of Ally Coffee is a respected Brazilian coffee farmer who has well-documented practices in fair labor and aiding the production origins in which they operate with investment to build a better future for coffee. In 2020, we are going to work closely with Ally to build a program of giving back to coffee producing countries by investing in Ecological Biodiversity. You will see us market this opportunity a lot as we truly believe the way forward for Specialty Coffee is through refreshing the land coffee is grown on and replenishing the soil with good minerals and nutrients through the planting of fruit and shade trees, which also benefits animal activity at the farm level.
At Stay Golden, we value transparency. We won't buy below an 83 point Q Grade score just to have cheap coffee! That would only hurt all of us as all our customers, staff members, friends and family will notice. We will always do our best to source low price coffees without sacrificing quality at their availability, but if you see prices creeping up, we wanted to be up front and let you know why!
If you have ANY questions about the C Market, coffee growing, purchasing, roasting or anything of the like - do not hesitate to ask! Who knows, maybe we could host educational courses with customers or staff about the ever changing world of coffee!
All the best,
Sean Stewart - Partner/Director of Coffee Roasting