latest updates in the global coffee market, with insights from Colombia, the United States, and Vietnam. We'll explore crop intelligence, pricing strategies, regulatory changes, and the impact of climate on coffee production CropGPT
Colombian Coffee Federation Pricing and Market Mechanism:
- Base Market Price Guarantee: Implemented by the Colombian Coffee Federation, based on the previous day’s New York Stock Exchange closing quote, current exchange rate, and the differential premium for Colombian coffee.
- Special Coffee Programs: Additional bonuses for these programs enhance grower incentives.
- Current Pricing: The closing price for 'C' contract in New York on May 31, 2024, was 222.35 US cents per pound.
- Coffee Collection Service: Managed by coffee grower cooperatives.
- Substandard Beans Pricing: Specific rates established per point produced at the farm level.
- Regional Price Differences: Prices vary across Colombia, with differences noted at Almacaf branches.
- Detailed Pricing Strategy and Cooperative Involvement:
- Fairness and Transparency: The model incorporates international market prices, local yield quality, and destination points.
- Quality Deductions: Applied for defects identified during cupping, impacting the final payment to farmers.
- New Purchasing Assurance Mechanism:
- Introduction Date: As of May 30, 2024.
- Internal Reference Price: 1,785,000 COP for 125 kg of dry parchment coffee.
- Deductions: Vary depending on coffee cup quality with a discount table provided for reference.
United States
- Regulations Impacting Hawaiian Coffee Labeling:
- House Bill 2298: New legislation increasing the required minimum percentage of Hawaiian coffee in blends from 10% to 51%, effective July 2027.
- Brand Authenticity: Expected to enhance authenticity and influence market pricing due to reduced availability of traditional Hawaiian blends.
- Protection for Local Farmers: Aims to protect local coffee farmers and the integrity of regional branding.
- Market Impact: Potentially affects consumer choices and pricing structures.
Vietnam
- Climate and Market Effects on Coffee Production and Pricing:
- Production Forecast: Coffee output for 2023-2024 is forecast to decrease by 20% due to adverse climate effects, down to 1.47 million tonnes.
- Price Surge: Domestic prices have increased significantly.
- Export Growth: Coffee exports have risen by 5.4% in volume and 57.9% in value over the first third of the year.
- Market Growth: Notable increase in exports to Spain, demonstrating the influence of global demand on Vietnam’s coffee economy.
