The Bennetts Monthly July '20
All things Bennetts & Coffee ...
Its official, we are now at the half way mark for what might be the most memorable (albeit not necessarily the most positive) year in our lifetimes.
We started 2020 off with devastating fires across our sunburnt country, and before recovery could take place, a global pandemic swept us off our feet. For some, the bounce back has been quick, but sadly for others, the light is still not at the end of the tunnel. However, a return of business shows us that the consumer demand for their favourite caffeinated beverage is strong! On the local front, as Victoria faces a new wave of restrictions, we have sought confirmation from our freight forwarding partners that at this stage their vehicles will still make interstate deliveries, potentially some delays may occur at border crossings, however will keep our valued customers updated on any changes to this situation, we appreciate your patience & understanding during this time.
We would like to take this opportunity to say a big thank you to all of our amazing customers. We appreciate you taking the time to talk with us, and keeping the lines of communication open, so that we can continue to support you in the same way you support us.
Over the past months, at Bennetts we have been reflecting internally on our company and working through strategies for better business practices. By now you should have noticed our new logo and branding, and you will see some more changes roll out over the coming weeks, in particular our new website and online ordering system…. we are a little bit excited!
While we count our blessings here in Australia, we are keeping a keen eye on our international friends. Civil unrest in Ethiopia caused by the death of prominent singer Hachalu Hundessa on June 29th. Mr Hundessa had been a prominent voice in anti-government protests. Widespread violence and destruction has been seen on the streets of the Oromia region, causing the government to shut down the internet in an attempt to settle information flow, which has flow on effects globally as we now have restricted communications with some of our coffee supply partners - click here for more info. We currently have a number of Ethiopian commercial and mixed microlots on the water, and anticipate these still arriving per scheduled over the forthcoming months.
As Covid is seemly sweeping though Brazil, we recently we reached out to some of our supplier partners in the Minas Gerias region, and they had the following to say about the support they find in selling their coffee globally.
“We know that situation is not easy, for us in Brazil also have been very difficult, but even this we are trying to keep stronger and healthy and help producers. They need to receive positive thinking, especially now during the harvest, when they invest a lot of money, time and this year also more risk due the Covid19. So since [you] buy coffee or even [your] kind words can help and motivate them to continue go in front.”
There was not a lot to report on the market front during the month of June, as prices for Arabica trundled along sideways in a narrow range, with solid support at 95 US cents/lb and strong upside resistance at 100 US cents/lb. Essentially, no news of note in terms of supply and demand meant the market had precious little to react to.
The only big move of note happened towards the end of the month, when we saw a huge spike in prices. This was due to some reports of cold weather and heavy rains across some areas of Brazil’s coffee-growing regions, which would potentially increase the risk of frosts occurring and therefore damage the upcoming crop.
This type of market reaction, also known as a “Weather Market” has become a common fixture during this time of the year, in which weather forecasts result in sharp market moves (in either direction). It’s not to say frosts will or will not happen; in fact, some might say we’re well overdue for a major frost event in Brazil. Nonetheless, we should expect high volatility in the Arabica market, at least until the weather starts to warm up heading into spring.
Last year, our own Tom Bennett went to Brazil to spend some time with the producers. On this trip he had the fantastic opportunity to participate in the Q-Processing Course and create a coffee through experimental fermentation based in the Mantiqueira mountains of Minas Gerais, he got to work with Farther and Son duo, Mr Sebastião and Mr Helisson Afonso da Silva Afonso, on their small farm Sítio Santa Terazinha.
Taking the day’s harvest, they washed and segregated the best cherry. From this they added farm grown mangoes, oranges, sugarcane, mint, passionfruit and cinnamon to the coffee cherries. The fermentation started at around 28 BRIX and 6.6 PH level, and was controlled at 20 degrees Celsius in airtight oxygen-free barrels (otherwise known as Carbonic Maceration). The fermentation inside the barrels lasted 96 hours and the coffee was laid to rest on drying patios protected by a greenhouse. The remaining BRIX within the coffee was 22 and a Ph level of 5.4. The coffee took three weeks to slowly dry before being rested inside grain-pro lined supersacks on the farm for several weeks.
From this project, we were able to bring just three precious bags of this hand crafted microlot to Australia. For further information on the project or to sample this unique coffee, please contact your account manager.
Shipping restrictions globally still haven’t impacted too strongly on our supply lines. We have good volumes of Guatemala, Brazil, Burundi, India, Kenya and Honduras (plus many more) in stock; across a range of commercials, premium and specialty grades.
While Fairtrade Colombians have been popular in recent months and running short, we have a great selection of East Timor, Honduras, Peru, Mexico, Ethiopia and PNG certified coffees to fill the gap. If you would like more details, feel free to contact your account manager.
The Bennetts Team