11 renaud cuchet

11 renaud cuchet

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  Impacto de laroya sobre la cadena del café Renaud Cuchet Managing Director Efico Central America
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  TOPICS 1. THE SITUATION IN LATIN AMERICA 2. HOW COFFEE BUYERS PERCEIVE THE RUST CRISIS üQuestion # 1: “In which way does the coffee rust crisis have an impact on your company?” üQuestion # 2: “Are you making any changes in the way you buy coffee now?” üQuestion # 3: “Is the coffee leaf rust crisis in Latin America a threat for your company? Why?” 3. WHAT THE COFFEE BUYERS ARE DOING üQuestion # 4: “Is your company involved in any program to fight the coffee rust, or do you support any existing initiative?” Renaud Cuchet / Efico Central America
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  THE SITUATION IN LATIN AMERICA üMexico: 80% ofcoffee lands affected. Organic farms devastated. Sharp increase in differentials, loss of markets for Mexican coffees. Spillover effect in Guatemala, Mexican intermediaries buying, creating prices distortions and losses for Guatemalan coffee exporters. üPeru: The Central and Southern regions have suffered heavily, due to old plantations and poor husbandry. The organic production has fallen sharply. Differentials under pressure, conventional coffee not competitive and roasters are switching origins. The Northern region is doing better (younger plantations). Renaud Cuchet / Efico Central America
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  üDominican Republic: nomore coffee for exports, not enough for the internal market. Renaud Cuchet / Efico Central America ü Bolivia: coffee output cut by half. Defaults. üEl Salvador: the whole sector is in crisis. The output has fallen sharply. Wash outs, contracts not delivered. Coffee producers are cash-strapped and cannot renew their plantations.Exportershave laid-off many workers.
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  üGuatemala: production isslowly recovering, but many producers don’t have enough financial capacity to react faster. Recovery will be slow. Future will depend on New York prices. Renaud Cuchet / Efico Central America üCosta Rica: through their good husbandry, Costa Rican producers have been able to control a bigger damage. However, the rust infestation is just another blow to the country’scoffee output,which is slowly goingdown.
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  üNicaragua: reduced impact.New plantations and rust resistant varieties. However, the organic producers were affected. Renaud Cuchet / Efico Central America üHonduras: the winner in the region. They were well prepared with Catimor varieties. Massive certification of coffee areas and better agriculture practices have prevented a big rust infestation. Production on the rise again, bright outlook for the coffee sector.
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  HOW COFFEE BUYERS PERCEIVE THE RUST CRISIS üRoasters concerned aboutquality in the future, they express doubts about the cup profile of rust resistant varieties üDisruptions on the supply chain for the industry. Some can change their blends, others cannot (small operators / micro roasters tied to a specific region or Estate). üPrices go up because of less availability, roasters need to pay more but can they keep up since need to stay healthy in a very competitive environment? üRoasters worried about fungicides residues in coffee, asking a lot of information about traceability of the coffee üSmall and medium-size roasters affected by defaults in Mexico, Bolivia, Dominican Republic and Peru üRoasters not able to buy coffee in the Dominican Republic since 2014. Question # 1: “In which way does the coffee rust crisis have an impact on your company?” Renaud Cuchet / Efico Central America
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  üIf roasters arecommitted to a certain region or origin affected by rust, they need to be flexible on volume availability as output slowly recovers üRoasters turning towards certified coffee. They know that Good Agricultural Practices will enable the producers to fight the rust infestation in a more efficient way. üRoasters who work with sustainable supply chains claim they have not been affected, their suppliers use improved agriculture practices and have been able to weather the storm üSome roasters are switching origins, they are frustrated with lower quality and higher prices in rust affected countries. Question # 2: “Are you making any changes in the way you buy coffee now?” Renaud Cuchet / Efico Central America
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  üNot a threat,but a wakeup call: climate change is definitely a contributing factor to the spread of plant diseases and pests. üNot a threat, but a real concern. üThe ECF informs that the overall impact on the European market has not been significant üA big challenge for the coffee industry üRust affected trees produce flat cup coffees, weakness in the cup. Many roasters are concerned with lower qualities and customer dissatisfaction, which can turn into loss of market share. üRisk for the sustainability of the roaster’s supply chain in affected countries üLarge roasters have the capacity to switch origins üRoasters depending on organic coffees from Mexico, Peru and Bolivia are having issues with quality and availability. Faced with defaults and breach of contract with their distributors. Question # 3: “Is the coffee leaf rust crisis in Latin America a threat for your company? Why?” Renaud Cuchet / Efico Central America
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  üNot a threat,rather a good reason to purchase coffee through sustainable supply chain and to invest in training the producers. The rust incidence is much lower with certified coffee producers. Renaud Cuchet / Efico Central America üThe name of Mexico comes up a lot in our discussions about rust with our customers
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  WHAT THE COFFEE BUYERS ARE DOING üThe ECF isnot involved in programs to fight coffee leaf rust, but they participate in the Sustainable Coffee Programme (IDH –Sustainable Trade Initiative), which includes climate change in its agenda üIsolated (smaller) sustainable projects between traders, roasters and producers on topics such climate change adaptation üIntroduction of rust resistant varieties and hybrids by a few large roasters üSome roasters invest in sustainability of the coffee supply chain: they believe switching to rust resistant varieties is not the primary solution. Good husbandry is more important (fertilization, pruning, pest and disease control). Question # 4: “Is your company involved in any program to fight the coffee rust, or do you support any existing initiative?” Renaud Cuchet / Efico Central America
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  THANK YOU [email protected] www.efico.com