Coffee Market Update June 2022

The Coffee Commune

By Raihaan Esat, General Manager of International Coffee Traders (ICT)

With an unpredictable market and a lower-than-expected Colombian coffee harvest, now is a great time for commercial coffee roasters to explore alternative options to save money on green beans and operations. Watch the full update here.

Green Bean Market Overview

There’s been a lot of activity in the world of coffee recently, with the International Coffee Organisation (ICO) releasing its production figures and expected crop forecasts for the next few months.

Colombia, the world’s second-largest producer of Arabica, is expected to have a slightly subdued harvest come this year’s crop season in and around September. As Colombia has traditionally been a stable in so many blends out there, this will remain a critical point for the global coffee industry – and in particular for coffee roasters around Australia who have built up a reliance on Colombian coffee.

This will push prices of solid workhorse coffees from Colombia to around $13-$15 per kilo, which is quite expensive for the current market.

Here are three potential options that can help commercial coffee roasters save money:

1. Switch to something new

Look to other alternatives, such as higher quality coffee from Papua New Guinea. This seems to be about an 80 per cent flavour match with Colombian coffee – and the remaining 20 per cent can be found through tweaking roast profiles.

The total cost savings that can be found by moving to something like this can be as much as $1-$2 per kilo.

2. Move production to a shared roasting facility

The Coffee Commune’s facility in Bowen Hills is a shared space with incredible roasting resources and equipment, saving you up to another $1-$2 per kilo.

It’s completely neutral territory so you wouldn’t be competing with any other brand – it’s simply a way of consolidating your production, and it could save you thousands of dollars.

3. Streamline your business

With all the market volatility out there, it’s hard to predict whether prices are going up or coming down. With so much unpredictability, now is a great time to streamline your business to increase productivity and efficiency.

At The Coffee Commune, we are here to help you. We – myself and Phillip Di Bella – would love to sit down with you (whether online or in person) and take a look at your numbers to see if we can find some efficiencies in your business.

Now is the time to find creative options to help you save money – because this volatility in the market is not going away any time soon.

Email us for a free feasibility study on your business.

The Coffee Commune