Green coffee: What's driving the increase?

The recent increase in green coffee has its roots in many factors. The situation is not likely to improve anytime soon as chains such as Starbucks and Dunkin’ Donuts are increasing the price of their retail coffee lines – in some instances by as much as 17 and 38 percent.

This is all happening while consumers are demanding higher quality coffee – and more of it – than ever before. For fast casual operators, who have made concerted efforts to improve their in-store coffee experiences, the increases couldn’t come at a worse time. Here’s a look at a few of the issues surrounding the price of beans

Over the past year, the cost of raw (green) coffee has gone from about $1.30 per pound, where it was in June 2010, to approximately $3.10. One driver of the increase has been the futures market, which has seen an uptick in investments because of an increased interest in commodities. While there were commodities investments five years ago, the volume of that interest was on a much lower scale, said Randy Layton with Boyd’s Coffee Co.

“As investors looked for ways to diversify their portfolio, they got more interested in commodities. They’re looking for better returns and diversification, and are bringing money into smaller markets,” Layton said.

The cost also is being impacted by what he calls “trader’s disposition” – when people buy and sell coffee based on their general feeling of the marketplace. It’s a buyer’s psychological approach to the market, he said. The approach, and the impact of the futures market on prices, had Starbucks CEO Howard Schultz criticizing “hedge funds, index funds and other ways to manipulate the market.”

Late last year, Schultz said he believed the increases were a direct result of “extreme speculation” rather than normal market forces. However, Starbucks itself has locked in coffee prices for the year, which also involved the purchase of coffee futures. The company also will raise the price of its bagged coffee – effective July 12 – by 17 percent in retail locations.

Supply & demand: Another aspect of the market impacting cost is supply and demand. Worldwide, a boost to the coffee market has created an imbalance as higher-end Arabica coffee is becoming less available than beans offering a lower-taste profile.

Consumers have much more sophisticated palates when it comes to their coffee preferences than in years’ past, as validated by the popularity of Starbucks and the complete overhaul of McDonald’s coffee line.

“The openings of McDonald’s McCafe, Dunkin Donuts and other quality restaurant chains have done a good job of improving quality over the past few years, and that’s putting more demand on better coffees,” Layton said. “Those guys have done a good job of improving their products. McDonald’s went up quite a bit in quality for only a very small cost increase. Starbucks is a good marketing company and they’ve built stores well and managed the business well. There’s really not a great way to get more out of their coffee profit-wise other than what they’re doing.”

The majority of coffee exported to the United States comes from about 22 countries. Layton said so far, the Boyd’s team has traveled to Costa Rica, Sumatra and East Africa, and they are heading to Brazil in two weeks.

Many of the farmers Layton has talked with said they have not capitalized on the price increases, mainly because their products went to market prior to the cost increases. However, that could change.

“This year, farmers expect to sell at the high price. So, every farmer thinks they have a pot of gold underneath their coffee tree and they’re just waiting for the right moment,” Layton said. “But they can’t sit on their coffee for too long.”While roasters also have yet to pass on their price increases, Layton believes more price hikes are around the corner.

“At some point roasters are going to say we can’t absorb this anymore,” he said. “Many folks in the industry have had to change how they do business because they can hardly afford to be in the coffee business anymore. Large or small, their credit lines are being stretched and affecting how they do business. From the farmer’s perspective, they don’t have credit to begin with, so this has really hurt them. It’s changed where coffee has come from.”

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Drinking coffee helps avoid Prostate Cancer, Study

Men should drink coffee regularly to avoid developing prostate cancer, according to a major study published Wednesday. Researchers at the Harvard School of Public Health said men who drink coffee on a daily basis are around 20 to 60 percent less likely to develop any form of the disease—with a higher intake linked to a lower risk. The men least likely to develop lethal prostate cancer were those drinking six or more cups of coffee a day, but even those drinking no more than three cups a day lowered the risk by 30 percent, the 12-year study found.

Caffeine did not appear to be a factor in the research, as the 45,000 participants who reported their coffee consumption drank both caffeinated and decaffeinated coffee. The researchers said it was the antioxidants and anti-inflammatory compounds contained in coffee that affect the body's insulin levels and sex hormone levels, both of which have been linked to prostate cancer. Writing in the Journal of the National Cancer Institute, the scientists said that more research would be needed to isolate which components of coffee might be responsible.

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Why 1st in Coffee Only Carries The Best Espresso Machines

The espresso machine is a unique coffee-making machine. It specializes in producing only the perfect cup of rich, creamy and frothy Italian espresso coffee drinks. The technique used to brew espresso coffee is very specific.

An espresso machine uses a brewing method that forces hot water through ground coffee under high pressure, the water is then forced through the fine ground coffee. The pressure can be generated by a pressure pump or by steam. Pressure mounted pump espresso machines are the best because they provide the most consistent pressure at the optimal brewing temperature. The water is passed under high pressure through the freshly ground coffee which should be just below boiling point. This provides the maximum flavor and aroma for your coffee. Additionally, the high pressure applied in the process sucks out bitter oils and actually releases much less caffeine than other brewing processes do. Only a really good quality espresso machine can do all this.

To help you make the choice of which espresso machine is best for you 1st in Coffee offers only the finest professional quality espresso machines, coffee makers and coffee supplies. 1st in Coffee is really “picky” about th espresso machines they sell, so if you’re really “picky” about your espresso quality and want to find the best value on the market, contact us. At 1st in Coffee we feature the very best espresso machines, super automatics, coffee grinders, frothers and coffee makers, including Jura Capresso, Saeco, Rancilio, La Pavoni, Electra, Pasquini, Isomac, DeLongi, Francis Francis, Nespresso, Ascaso, Salvatore, Vibiemme and Cuisinart brands.

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The Coffee Mug Set

While tea is most definitely best sipped from fine china tea cups and saucers, coffee on the other hand always seems to taste better when it is served in a coffee mug, although die-hard coffee connoisseurs will be quick to point out that different types of coffee should be served in different sized coffee mugs or cups! Seeing that coffee is consumed by over 50% of the US population, approximately 60% of Australians, and millions of others around the world drink at least one mug of coffee a day, the coffee mug has become an important item in any home. In fact, mug sets are almost as essential an item to own as a china tea set, especially when serving coffee to visitors, (unless it is a formal occasion in which case a coffe cup should be used or perhaps a coffee glass.)

So What Is It That Makes a Coffee Mug Special?

The coffee mug, often the first thing clutched at when arising in the morning, is a revered item in many homes. Ranging in size anywhere from 12 ounces to 20 ounces, coffee mugs come in all kinds of shapes and sizes. There are also many different types of coffee mugs, though the most popular types are the regular porcelain coffee mug, glass coffee mugs, plastic mugs and stainless steel coffee mugs. A typical coffee mug has a large enough handle on the side to curl your fingers around, unlike a dainty teacup which must be held delicately by the handle between the thumb and two fingers. Coffee cups generally do not sit on saucers but are rather firmly set down on the table, coffee table, sideboard, computer table (this one should be a ‘no-no’) or on any relatively flat surface. I have even seen people precariously balancing their morning coffee on their bed!

For everyday use, the porcelain type is usually the cup of choice. They are great for hot coffee as the porcelain, which is usually considerably thicker than a porcelain teacup, holds heat well and keeps your coffee nice and warm while you drink it. These types of mugs are often decorative. Some are brightly colored, many have patterns or designs on the sides and it is not uncommon to find a ‘mug with a message’ sitting on someone’s desk. In fact, I am often intrigued by what I find written on coffee mugs. You can find mugs of all colors, if you are looking specifically for a black coffee mug or black and white coffee mugs you should not have too much trouble locating it. Unfortunately porcelain will break if dropped. It will also chip fairly easily, thus you do need to take care not to damage your ceramic coffee mug.

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Studies say Coffee Lowers Risk of Prostate Cancer

A lower incidence of prostate cancer in men who drink coffee is the focus of a newly released study conducted at Harvard university. The 22-year study looked at groups of men who drink either regular or decaffeinated coffee, and from 1986 to 2008, the men were asked to report their coffee consumption. The researchers discovered that the men who drank the highest amounts of coffee on a regular basis had the lowest percentage incidence of prostate cancer, and were 60% less likely to die from the disease. According to the study, those who benefited from the decreased risk were those who drank at least six cups of coffee per day. Those who drank up to three cups per day were 30% less likely to die from prostate cancer than those who did not drink coffee at all or drank it on an irregular basis.

The researchers, however, have noted that it is not advisable for men to go out and start drinking massive amounts of coffee based on one study, and that further research will be necessary in order to come to a more validated conclusion about the complex series of factors responsible for causing prostate cancer. One thing the results of the study did not explain was why coffee might contribute to lower prostate cancer numbers. Researchers have speculated that it may have something to do with antioxidants, or with coffee’s insulin-regulating compounds.

Although this most recent study is likely to cause quite a stir amongst the male population, this is not the first time Harvard researchers have linked coffee to health benefits. In previous studies conducted at Harvard, coffee was also shown to reduce the risk of liver cancer and Parkinson’s disease, and coffee drinkers were also shown to be less likely to develop type II diabetes.

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Pay Fairtrade Forward Day gets underway

The concept of “paying it forward” involves doing a good deed for a complete stranger. But do good deeds extend to buying those strangers coffee? Well, that’s exactly what one local charity is trying to get Kiwis to do on Wednesday May 18, all in the name of Fairtrade. It’s a daily ritual for many, but buying a coffee for someone you don’t know and have never met is almost unheard of. “Pay Fairtrade Forward Day” was started by a charity that is encouraging New Zealanders to help end global poverty, it’s centred around one simple act of kindness.

“All you do is go into the café closest to you that sells fair-trade, buy the first coffee of the day – but not for yourself, for the person behind you,” says foundation founder Divya Dhar. “Walk out the door and the next person that comes in gets a free coffee. It’s up to them to pay it forward.”It is hoped the domino effect of customers paying it forward will also generate talk about the Fairtrade movement, which looks to guarantee farmers from poor and disadvantaged nations aren’t underpaid for their produce. “In doing that act of generosity you’re really helping a huge community somewhere else that you don’t even know about,” says Ms Dhar.

A visiting coffee farmer from one of those communities in Ethiopia, Tadesse Meskela, says profits from Fairtrade go directly towards improving living conditions. The price of coffee on the global markets is continuing to rise, and Ms Meskela says Fairtrade is a way of making sure growers don’t miss out on the benefits. The P3 Foundation says more than 1500 coffees were paid forward last year. It hopes to increase that, with cafes in Brazil, South Africa and Italy also taking part.

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Coffee may not raise blood pressure: Study

Good news for those who need a bit more coffee to get through their daily grind as the scientists have claimed that it may not increase your blood pressure. It's been suggested that coffee could cause high blood pressure, or hypertension, which has been linked to heart disease, strokes and shorter life expectancy.

But a new extensive study by a team from the Louisiana State University School of Public Health in New Orleans has now overturned this concern. It concluded that people who have several cups a day fare no worse than those who drink coffee less frequently.

For the study, the researchers pooled data from six old studies, covering 170,000 people, which asked participants how much coffee they drank each day and then followed them for up to 33 years.

According to their analysis, published in The American Journal of Clinical Nutrition, about one in five developed high blood pressure with the chance of diagnosis no different for people who said they drank more than five cups of a coffee a day compared with those who drank very little. But a member of the research team, Liwei Chen, said the relationship between coffee-drinking and blood pressure is complicated by the possibility that it does not work the same way for everyone.

"People with a different genetic background may react to coffee differently," she said. "For some people maybe it's safe to drink a lot of coffee, but not for other people." Blood pressure expert Lawrence Krakoff of Mount Sinai Medical Centre in New York, said: "I don't think of coffee as a risk factor for high blood pressure."

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