Costa Rica Tarrazu3Tarrazú is a major coffee growing region in Costa Rica with a strong and well-known coffee culture. The Coope Tarrazú is the largest cooperative of a number of farms in Tarrazú which is where our newest shipment of the RFA certified coffee has come from. The word Tarrazú derives from the ancient Huetar Indian tribe that once inhabited this region. Uninterrupted water flow provided by rivers feeding into the Pacific Ocean contributes to this excellent coffee. People involved in the growing and milling process are committed to protecting the environment and preserving the rivers and scenic valleys. It is here that the Rainforest Alliance is making progress particularly with forward thinking farmers to conserve natural resources and ensure the long term economic health of forest communities. In order for a farm to achieve Rainforest Alliance certification, it must meet rigorous standards designed to protect ecosystems, safeguard the well- being of local communities and improve productivity. The Rainforest Alliance then links these farmers to the growing global community of conscientious consumers through the green frog seal.Costa Rica1

PurePodCanadian coffee distributor Club Coffee has unveiled what it calls the first entirely compostable single-serve coffee pod, called the PurPod100. Developed in partnership with the University of Guelph’s Bioproducts Discovery and Development Centre, the pods are crafted using a material made from dried coffee bean hulls that are typically discarded.

Robusta7Robusta coffee futures rallied, as supplies from Vietnam and Brazil, the first and second ranked growers respectively, tightened. Vietnam exported 158,500 tonnes of coffee in June, down 2.2% from May, according to customs data. This came in below market and government expectations, with the government seeing shipments at 160,000 tonnes.

Colombia TruckThe Colombian Coffee Federation issued a statement on the latest situation on the Truck Strike in Colombia:
“The negotiations between the government and the truckers have broken off. Unfortunately the FNC has decided that we need to get out of the market until there is a clearer picture on where negotiations are going and how quickly we can deliver the backlog.

As you have heard and seen during the past weeks, the strike situation has worsened. A strike of this magnitude creates huge disruptions across the board.  FNC has been actively taking measures to try to move as much coffee as it is possible, but as the strike worsens, the supply of truckers willing to move cargo has thinned out. There are several contingency actions by our logistics team including massive reallocation’s and reprogramming but these have all been dependent on the truckers delivering their commitments. As a result, these reallocation’s have multiplied the logistic burden dramatically. An example of a contingency action taken is organizing caravans with security escorts (from the purchasing stations to the mills as well as from the mills to the ports). Depending on road blockages as well as security concerns, these caravans are increasingly being cancelled. A cancellation forces our logistics team to reprogram the trucking (if they can get it) as well as re-book shipments among other operational activities. Most of this is not automated and it is labor consuming. Unfortunately, this has been a daily issue for an important volume of containers. As time has passed, there are fewer guarantees for the truck drivers’ safety, worsening the disruption and flow.

The government is working hard to solve the situation but as in any negotiation like this, it is complex.
Please note though that the bottleneck transcends coffee business as all goods are being affected.

If the strike ends soon (before the end of July), it will take about a month simply to recover the backlog (shipments prior to July). In this sense, by the end of August, all the shipments prior to June should be shipped out, with July partially shipped. This would leave a recovery time for the balance of July, most of August and part of September.

Please understand that this is out of our hands and we are doing our best to cope with the situation. Although we are aware of the bottlenecks that will come, we are planning to be ready for the settlement of the strike. However, given the aforementioned restrictions, we will have to work very hard to get up to speed once the strike ends as many variables are out of our control.”

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