Welcome to Recap, a brief overview of recent coffee developments every two weeks from the Specialty Coffee Association.

Rabobank Group, a Dutch lender known for financing agricultural traders, joined other commodity lenders in reducing its activity following a difficult year. Usually an area of specialization, commodity financing is perceived to be riskier than other types of lending. Throughout the COVID-19 pandemic, commodity lenders experienced a high volume of frauds and defaults as shipping delays and bankruptcies impacted contracted deliveries. Other commodity lenders, like ABN Amro NV and BNP Paribas, have closed their commodity lending operations all together. Many coffee producers and producer organisations rely on these lenders for the pre-harvest financing that makes it possible to pay workers for their labor and farmers for their coffee before the product is exported and contract payments kick in. Although it is shuttering offices in London, Shanghai, and Sydney, Rabobank will continue to offer trade and commodity finance operations from Utrecht, Singapore, Hong Kong, New York, Sao Paulo, Buenos Aires, and Nairobi. 

The Hivos 2020 Coffee Barometer, released at the end of last year, suggests there is little evidence that coffee companies’ voluntary sustainability efforts have made an impact on the sector. Written by global non-governmental organizations, the Coffee Barometer has been released regularly since 2009. While the 2018 Coffee Barometer brought attention to the impact of global mergers and acquisitions on the coffee supply chain, the 2020 Coffee Barometer focuses on the impact of “voluntary sustainability standards.” Although more certified coffee is available, it’s uptake is stagnating. As a result, these standards alone will not be enough to address the wide scope of sustainability issues facing the coffee industry. The report closes by calling for a renewed sense of shared financial sustainability across collaborative initiatives with clearly articulated commitments and measurable impacts. 

Sucafina, a Swiss green coffee trading company, acquired the UK’s Complete Coffee Limited, or CCL, in early January. CCL is a known supplier of UK-based Coca-Cola-owned Costa Coffee. The acquisition is expected to expand Sucafina’s trading capacity across both conventional and specialty green coffee. CCL’s acquisition is one of many growth initiatives Sucafina has recently announced, including the creation of a new company in the Yunnan province of China, the Sucafina Specialty brand, and the opening of a new, Indonesian-based company, Sucafina Indonesia, as recently as Monday this week.

Australian-based Seven Miles Coffee Roasters has launched a new telemetry system called “Perfect Pour” across its café network. An internet connected device, called “the Flow device,” collects data from the espresso machine, comparing each shot to the programmed recipe and scoring it accordingly. A web-based dashboard then displays the scores, allowing both the baristas and Seven Miles’ trainers to identify areas for improvement and focused training. Created in partnership with Flow Technologies and Barista Technology Australia, who produce the Flow device, Seven Miles has a goal of installing the Perfect Pour in 200 cafés by the end of the year. 

If you want to dive deeper into anything you heard today, check out the links in the description of this episode. Recap will be back in two weeks’ time. Thanks for listening. 

Further Reading: 

• Rabobank Closing Commodity Lending Offices in Cost-Cutting Bid (Bloomberg)
  • What is Commodity Finance? (Trade Finance Global)
• Little Evidence Coffee Companies’ Sustainability Efforts Have Impact: Report (Reuters)
  • Hivos 2020 Coffee Barometer
• Sucafina Acquires UK Green Coffee Trader Complete Coffee Ltd. (Daily Coffee News)
  • Swiss Coffee Trader Sucafina Formalizes PT Sucafina Indonesia (Daily Coffee News)
  • Swiss Trader Sucafina Bets on China’s Growing Taste for Coffee (Bloomberg)
• Seven Miles Coffee Roasters launches telemetry system across café network (Bean Scene Mag)
  • Using Data to Help Cafés Deliver Consistently Better Coffee