Inside Algrano Green Coffee Market Trend Report 2022Daily Coffee News by Roast Magazine

Algrano, a Swiss-based green coffee platform provider, has launched its second free report on the global coffee market.

The thoroughly researched 54-page report, written under contract by Nora Burkey of The Chain Collaborative and Elisa Criscione of Digital Coffee Future, promotes increased engagement in direct trade and long-term relationships between roasters and coffee growers.

It also calls for collective action in the coffee sector to address the decades-long period of coffee price volatility.

The full report is available here (registration by name and email address required).

For the report, researchers interviewed 54 roasters from 13 countries in Europe and 76 producers from 15 countries in Latin America, Africa and Southeast Asia. The report is also based on interviews with 26 coffee industry representatives, including independent roasters, farmers and NGO representatives.

parchment coffee

Drying parchment honey coffee. Photo from DCN file.

Algrano offers an online coffee marketplace that enables direct negotiations and contracts between coffee producers and coffee roasters, with a particular focus on single-origin specialty coffees.

The average FOB (free on board) price of green coffee paid by roasters surveyed in the 2022 report ranged from $5.03 per kilogram ($2.28 per pound) to $17.46 per kilogram ($7.91 per pound).

Notably, the report did not rely on input from large coffee trading companies, which are likely to possess a wealth of valuable market data. In fact, in a foreword, Algrano CEO Raphael Studer presented Algrano’s free report as a sort of foil to traditional market reports that could offer a “top-down” approach to information.

“We can’t overlook the fact that many buyers are still driven by the search for the ‘best deal,'” Studer wrote. “However, we see the results and trends presented here as a sign that while we as an industry have not learned from previous boom and bust cycles, the supply chain is finally recognizing the value business relationships and understands that it is the most effective risk management tool at your fingertips.

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The report explicitly explores current market conditions in the context of the current relatively high commodity price (or “C price”) for green coffee. It also discusses other major market forces over the past couple of years, such as the COVID-19 pandemic, the ongoing supply chain crisis, political instability, and freeze in Brazil.

All of these factors, the authors argue, have only reinforced the importance of strong buyer-seller relationships in the coffee sector, while underscoring the imbalance of power dynamics that continually threaten the economic viability of coffee farming.

“In addition to the current market having little to no impact on meeting living income benchmarks, it has unfortunately had little to no impact on the underlying power dynamics” , the authors wrote, referring to living income benchmarks for farmers. “Although some producers have seen their prices increase this year and have been able to hold onto their coffee to wait for a higher price, the underlying inequalities in the supply chain have, according to some, remained in place, if not worsened. “.

Find the full report here.

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