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Why Standards Matter The Role of the Barista

2011 SCAA Sustainability Award Finalists

Straight Shots:

THE ISSUES

ISSUE

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2010 issue no. 6

a publication of the specialty coffee association of america

a publication of the specialty coffee association of america

2010 issue no. 6

4 Welcome to The Issues Issue


Peter Giuliano Peter Giuliano has a few things he wants to tell you about the coee industry and theyre not all nice. But theyre true and important, and they could shape the future of coee for the better. Now is the time to listen and learn.

14 The Specialty Cofee Industry


Shows Initiative Worldwide
Bruce Mullins The Global Coee Quality Research Initiative (GCQRI) has ocially been launchedbut what is it? And what will do it for the future of coee? Bruce Mullins looks at how the GCQRI hopes to provide a better understanding of the science behind coee quality and quantity.

6 Why Standards Matter:

F EAT U RE S

The GFA Example


Mark Inman When non-coee organizations want to promote and celebrate specialty coee, thats a good thing. When their submission guidelines dont quite match their goal, it can create confusion for everyone, as it did during the recent Good Food Awards.

16 Cofee and Sustainability


Tracy Ging The coee industry focuses a lot about sustainabilitywhat it means, where it comes from and what the goals are. Now its time to ask the hard questions: what have we truly accomplished?

8 In Search of the Holy Grail: Mapping the


Espresso Landscape
Shanna Germain with Kyle Glanville, Tim OConnor and Carlo Odello Espresso is many things to many people, and everything to some people. Here, we pick the brains of three espresso gurus and see what they think about the drinks past, present and future.

14

18 Our Top Four: The 2011 SCAA Sustainability


Award Finalists
SCAAs Sustainability Council Every year, the Sustainability Council present the Sustainability Award to promote, encourage and honor the eorts of those doing great work in the elds of sustainability. Discover the four organizations that made this years nalist list and be inspired by their good works.

12 Important or Self-Important?
The Role and Inluence of a Barista
Tracy Ging with signicant contribution by James Homan In recent years, the industryas well as many coee drinkershave come to realize the importance of the baristas role in creating ne coee. Now that the pressures on, can they continue to succeed without giving in to selfimportance?

20 High Prices Jolt Cofee Market


Marvin G. Perez Youve probably know that coee prices have been on the rise for a while, and that theyre predicted to continue their upward trend. With that in mind, Marvin G. Perez helps us make dollars and sense of the coee commodities market.

18
in the next issue
Executive Director Ric Rhinehart ricr@scaa.org Executive Editor Tracy Ging tging@scaa.org Managing Editor Shanna Germain shanna.germain@gmail.com Art Director Tiffany Howard tiffany@tiffolio.com
The Chronicle is printed on 100% recycled paper containing 30% postconsumer waste.

22 Cafe Breve: We Ask, You Answer


Whats your passion? Where do you get your morning cup?

the Global market


2010/2011 BOARD OF DIRECTORS President, Peter Giuliano 1st Vice President, Tim OConnor 2nd Vice President, Max Quirin Secretary/Treasurer, Shawn Hamilton Directors: Marty Curtis, Nathalie Gabbay, Al Liu, Ellen Rogers, Dr. Timothy Schilling, Paul Thornton, Andi Trindle, Willem Boot Immediate Past President, Mike Ebert SCAA 330 Golden Shore, Suite 50 Long Beach, CA 90802 TEL: (562) 624-4100 FAX: (562) 624-4101 www.scaa.org
The Specialty Coffee Chronicle is published six times a year by the Specialty Coffee Association of America as a forum for discussion and information on industry-related topics and issues. The Chronicle welcomes and will consider for publication articles, columns or firsthand accounts of life in the specialty coffee industry from SCAA members. Opinions expressed in articles and letters do not necessarily represent the position of the SCAA, its members or directors.

Contributors:

Tracy Ging Peter Giuliano Bruce Mullins Mark Inman Marvin G. Perez

Copyright 2010 Specialty Coffee Chronicle. All Rights Reserved.

2 The Specialty Coffee Chronicle

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Welcome to the

ISSUES ISSUE
Peter Giuliano

here is so much that is right about Specialty Coffee. Its kind of a magical thing, when you think about it. Its a food, sure, but it offers no direct nutritional value. Instead, it feeds our souls. Its flavor is so compelling, the aroma and acidity and caffeine so invigorating, it compels millions of drinkers every day and has spawned a thriving industry of passionate, dedicated professionals.

The coffee plant is barely domesticated. Its cultivated form is almost identical to the wild coffee plants that still grow in the forests of Western Ethiopia. As such, it thrives in environments that mimic the primeval forest; and these forest-like farmswe call them shade-grown coffee plantationsare among the most environmentally positive forms of agriculture in the world.
Coffee can be an incredibly valuable form of commerce in developing countries. Its trade can be an opportunity for transparency and fair dealing between counterparts in the global north and south. As an orchard crop well suited for organic agriculture, coffee can thrive with no chemical inputs and a maximum opportunity for real sustainability. Coffee can be a food that is clean and fair, and can offer incredible benefits in flavor and healthfulness. Coffee can be all of these things, but isnt always. The specialty coffee industry emerged as a reaction to a commercial coffee industry that had allowed coffee to become flavorless, cheap and commoditized. The revolution was obvious: lets make coffee delicious. It wasnt long before the idea that coffee can be delicious fueled a series of aspirations: coffee can be sustainable! Coffee can be fair! Yes, coffee can! This sense of optimism was fueled by real examples of coffee as high-quality, sustainable food production in action: the shaded, organic coffee farm as an ecological buffer; the quality-focused co-op as a prosperous community builder; the artisan microroaster as one of the keys to transforming the food scene in a small city.
4 The Specialty Coffee Chronicle

This is the wonderful opportunity of specialty coffee. But its also a great temptation. Because these possibilities about coffee exist, its tempting to represent coffee as having achieved it all already. Its tempting to use the best-case scenario as the most representative, and to view the specialty coffee industry through slightly rosecolored glasses. We see examples of this all the time: we talk about sustainability even though we may not completely understand it; we use words like fair or transparent without being completely willing to demonstrate them; we may unwittingly exaggerate the beautiful story of a coffee we find exceptionally delicious or exciting. The truth is, although we have a great opportunity for quality and sustainability in specialty coffee, we will only achieve it by being truly honest about what we are actually achieving in coffee, and what work is still to be done. At the close of the first decade of the twenty-first century, its time to take a hard look at the aspirations we have about specialty coffee, and compare them to what weve actually delivered. I talk to lots and lots of people in Specialty Coffee every week, and

its funny: this very thought is on the mind of many of our colleagues at this very moment. It seems that everyone is taking stock, making a real assessment of what weve managed to achieve over the past decade, and being willing to address our shortcomings even as we face the challenges that the new decade will bring. This fearlessness is something that inspires me about specialty coffee, and it reminds me of the courage it took to establish the specialty coffee industry itself a generation ago. It is this sense of honest, courageous self-assessment that will drive this years Symposium, and will certainly predict the trajectory of the coming decade. Historically, it is this sort of stocktaking that immediately precedes times of great innovation, excitement and prosperity. As a colleague of mine says, You need to break down to break through. This issue of the Chronicle sets the stage for some of these discussions, which will weave their way through the Symposium and through the next decade. Im excited to take part in this honest, exciting dialogue and welcome you to do the same.

Peter Giuliano is director of coffee and co-owner of Counter Culture Coffee, a specialty coffee roasting company based in Durham, NC. He has worked with ne coffees since 1988. He is the president of the Specialty Coffee Association of America.

The truth is, although we have a great opportunity for

quality and prosperity and sustainability


in specialty cofee, we will only achieve it by being truly honest about what we are actually achieving in cofee, and what work is still to be done.
The Specialty Coffee Chronicle 5

WHY STANDARDS
MATTER
Mark Inman

The GFA Example


In the fall of 2010, a San Francisco-based group called The Seedling Projects organized a group of known food producers, writers, grocers, farmers and chefs to create The Good Food Awards (GFA), recognizing producers and food communities around the U.S. that create excellent beer, charcuterie, cheese, chocolate, pickles, preserves and coffee. The groups goal: to celebrate and reward foods that are delicious, authentic and responsibly produced.
In the coffee division, the standards for entry seemed, at first glance, to be rather straightforward. The groups website, www.goodfoodawards.org, defined it thus: To qualify for entry, roasters must emphasize fairness and transparency from seed to cup, and certify that their coffee beans are grown without the use of pesticides or herbicides. On first read, it seems like a thoughtful, articulate explanation of what they desire. Upon a second read, however, one who is moderately versed in sustainable agriculture and food production could easily spot a glaring problem with their standards. Aside from the squishy standard of emphasizing fairness, the larger issue is found in the statement that roasters must, certify the their coffee beans are grown without the use of pesticides or herbicides.
6 The Specialty Coffee Chronicle

The discrepancy arises because the USDAs National Organic Program (NOP), Rainforest Alliance, and SMBC Shade Certification all allow coffee to be grown with numerous naturally derived pesticides and herbicides, as listed by the Organic Materials Review Institute (OMRI.org). If an entrant were to take the GFAs requirement at face value, they would know that their certified coffees would not qualify for submission, as most certified farms employ OMRI-approved inputs. As it would also be near impossible to verify that conventional coffees were grown without the use of pesticides, that would leave only truly wild-crafted coffee as a coffee that would meet this particular standard. What was missing from the language of the award standard were the terms synthetic- or petroleum-based pesticides and herbicides, which would have been verifiable, allowing for a larger swath of coffees to participate.

During the event, coffee roasters around the country were contacted and encouraged to enter. Many of the roasters who supply to Whole Foods were encouraged to enter by Whole Foods itself. Multiple roasters who inquired deeper about the strange language of the standards have reported that the sustainability aspects of GFA were downplayed during that recruiting.The phrase,Just send your best coffee was quoted multiple times. To the shock and dismay of numerous coffee people, the list of the 22 finalists in the GFAs contained eight conventional coffees from Kenya, which has a history of promoting and supporting technified conventional agriculture, with the vast majority of Kenyan coffee farmers using significant chemical inputs annually. In addition, two finalists used coffee from the infamous Hacienda La Esmeralda, who in 2007 discussed their conventional agricultural practices and use of pesticides and herbicides on a panel at the SCAA conference in Long Beach, California. Critics of the results of the GFA voiced their concerns on Facebook, Twitter as well as on Sprudge.com. Sprudge released two stories outlining the turmoil within the GFA ranks over this ever-growing controversy. A response from the GFA only added fuel to the firestorm that was increasingly surrounding them. Despite their clear submission standards, officials from the GFA stated that the original entrants were only evaluated for their Tastiness, and that only the finalists would be vetted for their ability to adhere to their published standards.

The SCAA has been instrumental in the creation of numerous standards over its rich history. It created meaningful dialogue during the Sustainability Forums of the late 90s to early 2000s, which increased the awareness and integrity of the Shade-Grown, Fair-Trade and Organic coffee movements. The SCAAs involvement in creating standards in water quality, brewing and espresso standards has assisted our membership in further improving the quality of coffee served. As numerous SCAA members participated in the jury of the GFAs, we squandered an opportunity to assist the GFAs in creating a competition that was real and significant and free from the public relations mess they are dealing with today. As the GFAs narrow down their finalists to the top three (which are to be announced January 14th), it will be interesting to see how they correct their stumble and save what appears to be a grand, but flawed, effort. If the Seedling Projects decide to make the GFAs an annual event, it seems they should consider working in tandem with the SCAA to create a set of criteria that are well thought-out, verifiable and meaningful. Either way, the GFAs have been rich fodder for the blogging community and a learning lesson to those who have the desire to create similar events.
Mark Inman started Taylor Maid Farms in 1993 based on a passion for remarkable coee and the belief that business can be environmentally and socially progressive while remaining protable. For more than sixteen years, Mark has been a leading voice in the specialty coee industry for issues concerning sustainable agriculture, environmental stewardship, green entrepreneurship and social justice. In 2008, Mark served as President of the Specialty Coee Association of America, where he has also chaired or served on numerous committees and international task forces.

The Good Food Awards goal: to celebrate and reward foods that are delicious, authentic and responsibility produced.

Judging photos by Jenny Hiser The Specialty Coffee Chronicle 7

IN SEARCH

OF THE HOLY GRAIL


Photo by Phillip Yip www.clubantietam.com

Mapping the Espresso Landscape


Shanna Germain
Kyle Glanville

Tim OConnor

spresso. Its a drink, a lifestyle, a ritual, an addiction. Its an end-goal and a dream concoction. Its an art and a science, a measurable entity and a mystical experience. Its also full of controversy, misunderstandings, missteps and flawed logic.

To uncover some of what makes espresso such a complicated creation, we invited some of those in the know to give us their two shots worth on the magic and miracle that is espresso, and to guide us through the murky place in search of that most holiest of grails: the perfect shot. Before we begin our journey, please welcome your guides, three espresso enthusiasts who speak the language fluently and who can expound upon the history, present and future of the espresso landscape. Dont expect them to agree on everything, of courseafter all, this is dangerous territory! Kyle Glanville, director of espresso R&D for Intelligentsia Coffee. Tim OConnor, president of Pacific Espresso. Carlo Odello Carlo Odello, member of the Board and Trainer of the International Institute of Coffee Tasters and communications manager of the Italian Espresso National Institute.

8 The Specialty Coffee Chronicle

Welcome! First, lets talk a little about espressos backstory. Its a drink with a long and varied history. What can you tell us about its history in terms of specialty coffee? Has espresso always been considered part of specialty coffee, or was it a later addition to that label? Kyle: Espresso predates the notion of specialty coffee by about seventy years, but their ideological paths converged in the 80s. This is when self-identified specialty coffee roasters began to adopt espresso as a legitimate preparation method. So, no it hasnt always been considered a part of specialty coffee. In fact, for most of espressos history, it has functioned more as a colloquial language of coffee preparation, not unlike Turkish style coffee in the Middle East or Brazils Caffe Zinho. Frankly, espressos meteoric rise in Italy can be tied to rising coffee prices and poor economic conditions there. Espresso turned otherwise undrinkable coffee into a strong, sweet liqueur. A strong argument can be made that the rise of the prominence of specialty coffee and the prominence of espresso can both be attributed to Howard Schultzs efforts to globalize the phenomenon. Although plenty of other entrepreneurs were running successful espresso bars in the US, he gave the movement legs when he bought and expanded Starbucks towards the end of the 80s. Tim: I would have to say that espresso has always been a part of specialty coffee, since the roots of espresso were to produce a coffee beverage fresh for each customer. While the technical definition of specialty coffee may be limited to the bean, I do not think you can rely on that definition in the market place since the finest specialty coffee beans can be compromised in the roasting, storage or brewing practices before they are consumed. Specialty coffee in the market place must continue the complex chain of development from the blossom to beverage with attention to detail and desired result without interruption or lapse of attention. The concept of an espresso brewed for the customer has not changed, but the quality and complexity of the beverage has evolved. It continues to evolve and is a different beverage in different regions and this is one type of espresso style.Espresso in southern Italy is traditionally roasted darker and brewed shorter, while espresso in Scandinavia is brewed very long and can be much lighter roasted. While espresso was present for a long time in America, it began to flourish in the 70s and 80s. In these early days, American roasters were experimenting and learning the qualities of the beverage. Often the results were poor, producing a thin, bitter beverage that was masked with milk. In the 1980s, I would give the credit to Illy for lifting the quality of American espresso, by educating the public to the possibility of great espresso. Now that we have a vision of what is possible we can continue to explore the possibilities. Carlo: If you think about the geography of espresso, you can easily find two areas. In traditional consuming countries like Italy, France, Spain and Portugal, you cannot say espresso is specialty. Espresso is a synonym of coffee, made of a blend and served in a very traditional way. You will not hear anybody asking for an espresso in an Italian coffee shop, everybody just says caff. Regarding the history of espresso as a specialty coffee, I would say it is quite recent, I think you could date it back to the 90s. Espresso was reinvented and became the favorite way to extract great high-quality single origins. So we could say espresso was born in Italy at the end of the Second World War, when the first real espresso machine was born, and evolved into a new shape.

What do you think makes espresso specialty? Is all espresso specialty? Is it the beans, the roast, the preparation, all of the above? What distinguishes specialty espresso from regular espresso? Kyle: Specialty coffee can vaguely be described as clean and relatively defect-free coffee. If we are to apply this definition to espresso, I guess you could define a specialty espresso as being constructed of clean green coffees, roasted without error (baking, carbonizing or underdeveloping) and prepared without channeling or over/underextraction. Of course there are other factors but those are the most essential. Sadly, even by that very loose protocol, I fear the vast majority of what is served as espresso in the world would not fit the criteria. Those are three major steps (harvest/processing, roasting and preparation) that must be executed by very skilled craftspeople intimately familiar with the variables they must control. If even one of these important pieces of the puzzle is not operating top notch, the whole chain unravels. That said, the real creation of specialty coffee lies in the husbandry and harvesting of the coffee. Every step that follows should function as an effort to preserve the innate quality of the raw ingredients. Tim: Specialty espresso must encompass the entire chain of coffee production. Not all coffee beans are suitable for the harsh and demanding extraction of an espresso. Not all espresso is specialty. My definition of specialty is that it is the highest quality. To obtain that level of quality, specialty espresso must encompass a number of characteristics. Not all specialty coffee beans can meet those demands. Some specialty coffee will be excellent in a number of brewing methods, but may fail when brewed as espresso. Regardless of the many flavors specialty espresso may have, it must also achieve these basic characteristics: body, complexity, finish, longevity, and balance. Body or mouth feel may be soft or big, velvety or creamy, but it must be more than just there or thin. Complexity means the initial flavors continue to evolve and change as the liquid crosses your palate. It is all the nuance and regional characteristics that are perceptible to the individual. Finish is the aftertaste and it must be pleasant, mid-palate and something that you enjoy lingering in your mouth. Longevity is one of the more difficult as many espressos can meet the above criteria for a few moments after brewing, but then quickly become sour and undesirable. Balance, I feel, is often forgotten lately. In the end, the espresso or espresso beverage must be satisfying to consume. While a particular espresso or style of brewing that espresso may push certain characteristics to the forefront of your experience, poor balance results in a intellectual exercise of perhaps a citrus or flower note, but not a satisfying beverage. Carlo: I am Italian and so, of course, a specialist about the traditional espresso, but I have been lucky enough to travel around the world to hold Italian Espresso Tasting classes on behalf of the International Institute of Coffee Tasters. So I had the possibility to get in touch to different cultures of espresso, which in the end are not so different. Specialty or traditional, the quality of an espresso depends first of all on the quality of the green coffee. You cannot get a great espresso out of a poor raw material. Of course the roasting is a critical point, as well as the preparation. At both these steps you can make mistakes and damage your coffee or get the best out of it. The International Institute of Coffee Tasters has been studying for years the roasting process from a sensory point of view (and also from the chemical point of view, as you can see in our book, Espresso Italiano Roasting). And in the end you have to design the blend; that is fundamental. As Italians we cannot conceive espresso without blending, that is why we do not actually have a market for single origins. Blending means, first of all, creating a composition, building up an orchestra and reaching richness and complexity in the aromatic profile. Last but not least, the barista. I think 50 percent of the success of an espresso depends on the barista.
The Specialty Coffee Chronicle 9

MAPPING THE ESPRESSO LANDSCAPE CONTINUED


What are the different styles of espresso? Is there even any agreement in the industry as to an answer to this question? Kyle: Different styles and approaches to espresso blending and preparation are proliferating rapidly. Often times colloquial generalizations are suitable, such as a Northern Italian (lighter roast, all Arabica) style or even Scandinavian (light roast, higher acidity profile) style. As you peel away the layers, the complexities of different approaches become much more apparent. Among the most progressive roasters, a seasonal approach featuring freshly harvested coffees with more intense acidity is emerging. I suspect this would be downright offensive to a daily espresso drinker in Rome, though. Old-school roasters in the U.S. tend to prefer a very dark, chocolaty espresso as well, but rarely incorporate the Robusta so often found in European espresso blends. Tim: I do not think styles have been adequately defined yet. There has always been long and short, light and dark. The industry is trying to push the possibilities. Some do it well and some not as well. We see a number of experiments online, in trade publications and between different coffee shops and baristas or barmen. Style is where the industry is struggling in my opinion. Mostly because many shops and baristas focus on narrow characteristics and have not explored the concept of balance adequately. Carlo: From 1996 to 1998, the Italian Espresso National Institute has been studying this point. Through extensive research on consumers and on coffee technicians, the Italian Espresso National Institute was able to get a scientific profile of what can be conceived as an high quality espresso. Through thousands of tastings and a statistical processing of the data, the Institute got the profile. You will see that we always have a lower and an higher limit, that is due to the regional differences in Italy. You have different espresso styles according to the regions. This profile is based on sensory analysis, is quite strong and it is tested on a regular basis. Nowadays, 43 companies are members of the Institute which certifies coffee machines, coffee blends and, of course, baristas. What are the current espresso trends out there? How is espresso evolving and where do you see it going in the future? Kyle: As I mentioned earlier, seasonality is beginning to hold greater value than consistency for many. I think were beginning to see a lot of folks branch out from the same old espresso styles, which basically varied from milk chocolate to dark chocolate. Now, you can experience explosive fruit flavors, berry, vanilla, molasses, etc, etc. Many roasters offer seasonal blends and are 100-percent transparent about what they contain. The notion of the secret recipe is starting to fade away and talented green coffee buyers are focusing their efforts on coffees they feel are suitable for espresso from East Africa and Central America. Its like a little renaissance of sorts; espresso blending was really focused on making things taste the same for, like, a hundred years. Tim: Current espresso trends focus on the choice of coffees, roast development, brewing parameters, espresso machine features and specifications, and presentation. Coffee choice is and always will be a big element in espresso. Much of the attention recently is to small lots of single origin and single farm espresso. This is a trend that I think has potential, but also great risk in that espresso can be very difficult and often needs complementary coffees from other regions to meet all the expectations of an educated consumer. Roast development seems to be trending lighter or lower roast temperatures. However, my feeling is often the roaster has underdeveloped the potential of the coffee. While this might highlight some characteristics, again it can adversely affect balance, body and complexity. Brewing parameters are a huge debate and it is really a matter of what parameters best develop all the criteria of Specialty espresso. My method is to always start with a standard when learning a new blend or offering.
10 The Specialty Coffee Chronicle

Traditionally that would be 14 to 16 grams of espresso, a double coffee filter and an extraction appropriate to the roast color, and nine bars of pressure. Shorter extractions for light roasted coffee and longer for dark roasted coffee. Brewing temperature must be between 198 and 202F. Once you know what the coffee displays under your standard, you can change one parameter at a time to learn the possibilities of the coffee. Then you must make the decisions to achieve the body, complexity, finish, longevity and balance that makes a Specialty espresso satisfying, and memorable. Carlo: Espresso has positioned itself as a trendy beverage. I would say espresso-based beverages are now very popular outside of Italy, while in Italy we still have a strong espresso consumption (90 percent is espresso, 10 percent cappuccino or latte). You actually have different national traditions. That means we are going towards wider offerings, so that everybody will find what he or she is looking for. Consumers themselves are becoming more and more careful about coffee, but need more information. It is up to the coffee industry to provide people with more information and to be fair. So the keys to success will be fair information and high quality products. What do think are the biggest espresso obstacles or misconceptions at the moment? What are the hurtles to better/great espresso or a better understanding of espresso, and how do we tackle them? Carlo: Again, I think we need more fair information. We need to tell people the truth about the real quality of the espresso they are drinking. I really appreciate coffee roasters which indicate the composition of the blend on the bag. Telling people This coffee is 100-percent Arabica is not that informative: which Arabica? And we need to give people the tools to judge their own espresso, as they do with wine. We do not need any gurus, we need technicians explaining to the men and the women in the street how to evaluate coffee in a consistent and reliable way. Kyle: The major hurtle is in changing consumer habits by way of delivering great quality. At least in the US, espresso is considered an ingredient for what is usually a much more complex and elaborate beverage. A little caffeine spike in a vanilla-steamed milk. This mentality does nothing to advance quality, as it allows operators to be lazy about quality control. Who cares about the quality of your shot when its drenched in flavors and milk? Why would you want to serve espresso that is spectacular on its own when the milky drinks are so much more expensive? By cultivating a palate for straight espresso, or at least small milk drinks, specialty operators can set themselves apart from the competition and expose their customers to a greater variety of different coffees. This also is much more engaging for the customer. If you are able to offer a few different espressos, you open up avenues to have a real dialogue with your customers about what makes great coffee. I cant emphasize enough how extraordinary the collaboration must be in order to achieve a great espresso. From the farmer, millers, exporters, importers, roasters and baristas, a massive effort must be undertaken in order to finally deliver a great espresso experience. If you are able to experience tasty espresso on a regular basis, you are unbelievably lucky. Espresso: Still just as mysterious, as complicated, and as intriguing as its ever been. But, while its a landscape fraught with perils and sinkholes, its also an amazing place to journey, especially when in the hands of good guides. And especially when the prize at the end is that holiest of grails: a fantastic shot of espresso, made from the best beans, roasted well, and served up by a knowledgeable barista. Salud!

IMPORTANT OR IMPO SELF RTAN SELF-IMPORTANT? T OR -IMP ORT ANT ?

The Role and Inluence of a Barista


By Tracy Ging with significant contribution by James Hoffmann fter the World Barista Championship (WBC) this year in London, I got to be a fly on the wall and listen in on a conversation between Oliver Strand, a columnist for The New York Times, and the six WBC finalists. It was a casual yet deeply interesting chat because the baristas were right about so many things. For one, they absolutely recognized the importance of education, citing the growing number of coffee drinkers who want to know details of where coffee comes from, how its grown, and about the science and nuance of flavor. The baristas were also very realistic about the many consumers who dont care at all and just want hot liquid served fast. Their insights were profound and practical, each demonstrating that they not only possess skill and knowledge, but the ability to orchestrate an experiencemeeting each customer at their particular level of awareness and gently leading them toward the broader possibilities. If we just had 50,000 more people like these six, specialty coffee would undoubtedly be on a whole new trajectory.
12 The Specialty Coffee Chronicle

Photos by Phillip Yip www.clubantietam.com

Having highly educated, well-trained, and genuinely inspired baristas is the goal and an important strategic consideration for the specialty coffee industry, but its an objective the industry will have to work very hard at reaching. Because, as James Hoffmann of Square Mile Coffee Roasters says, we may have put the cart before the horse on this one. I think the barista holds an incredibly important role, but one that we misjudged the balance of because their role is twofold, Hoffmann says by way of explanation. One aspect is to prepare coffee and to translate the hard work of everyone else in the chain into an enjoyable and valuable experience. This is about skill, practice and understanding of preparation techniques. But, the other role of a barista is as a salesperson, consultant, host, and curator of experience. That is about customer service. Customer service is certainly an area where specialty coffee can improve. The snarky barista has become clich, but as with most stereotypes, there is some truth behind its existence. Yet that reputation isnt entirely attributable to baristas. Hoffmann noted that much of the flak baristas have taken has not been wholly theirs, since menus, ambiance and price contributes to a persons impression of specialty coffee as well. He acknowledges that, while coffee is being prepared at a higher standard than ever before, more cynicism, disappointment and anger is also being directed at our industry and that comes down to a customer service failure. Hoffmann believes part of this failure results from the industry which, consciously or

barista is a temporary gig. We recognize their importance, but have failed to create a profession. Wages, health care, training and retention are all issues to be grappled with and addressed before baristas can take their rightful place in the spotlight of specialty coffee. Hoffmann has already pointed out that the natural next step is a focus on customer service, but that is really a step subsequent to better science and more education. He suggests a renewed focus on understanding through tasting, explaining we arent particularly good at looking at where were falling down. The bad or disappointing cups of coffee Ive had have little to do with temperature stability, or burr configuration, or pressure profiles misused, or a lack of symmetry in a rosetta. I get bad cups because either the barista is disconnected from what they preparei.e. they dont know how it tastes/should tasteor they are more focused on producing an espresso that looks a certain way, instead of directing that level of attention to the customer and what information would aid their experience. Clearly, the responsibility of customer service doesnt solely rest on the shoulders of baristas. The problem with baristas being central to a strategy is that the strategy is only partially defined. Success does not begin and end with the barista, but is achieved through a series of coordinated steps. The reality is that the role of the barista is exceptionally important and if the customer experience wasnt motive enough, it is worth considering other ways in which baristas are influencing and shaping the industry. They are its product testers, market researchers, brand enthusiasts, harshest critics, and critical-

While cofee is being prepared at a higher standard than ever before, more cynicism, disappointment and anger is also being directed at our industry and that comes down to a customer service failure. ~James Hofmann
not, sent the message that pouring complex latte art makes you more valuable as a barista than being sympathetic and aware in conversations with customers. While competitions may be partially to blame for over-emphasizing one aspect of the baristas role to the exclusion of the other, that is a minor point in comparison to the overwhelmingly positive role baristas have played in generating interest and excitement for the profession, as well as with driving trends. Barista competitions have had a bigger impact on coffee than I would have initially expected, Hoffmann muses. The winning routine, on a national and global level, certainly reorganizes priorities. Of late it seems the details of a coffees preparationfrom its harvest date, altitude or post-harvest processhave been in focus. Of course, the real challenge then is to translate that back to the customer base. In that regard, there is a lot of opportunity for specialty coffee to pick up where the competitions leave off. It is that intersectionbetween driving trends and being in a position to translate themwhich has exalted the role of the barista in the industrys eyes. Its interesting that Starbucks even goes as far as choosing very specific language in reference to their Seattle officeusing support center versus headquarters or some other more common term. That choice is a direct reflection of value, of the idea that baristas are central to the business and everything else is built up around them. SCAA reflects a similar priority, choosing to promote the barista as the focal point for consumer exchange as a strategic theme. Yet real business issues stand in between our ideals and our practices. No matter how much we value baristas, how many trophies we award, or how carefully language is crafted, for many, being a mass-makers. As Hoffmann asserts, each generation defines a new baseline for quality based on their own experiences, so well see an increasing number of people who refuse to compromise in areas that were a little grey beforebe it equipment quality, freshness, or base levels of traceability. Yet to a large degree, that dialogue isnt open, at least not as fully as it could be. Despite their connection with customers, potential influence on quality, and their stated importance, baristas are not integrated into the strategic process. One very simple way to overcome that disparity is to include them in the conversation, which we shall do this year at Symposium in a presentation and small group discussion on Engaged Baristas, Engaged Consumers, lead by James along with several other prominent baristas.
With more than 15 years of marketing experience, Tracy Ging has spent the bulk of her career in the coee industry, where she has worked on both sides of the supply-chain, developing a deep understanding of the market and the trends driving it. Tracy currently serves as Deputy Executive Director of SCAA.

For Further Information

Symposium, SCAAs executive series, will be held on April 2728, 2011 in Houston, Texas. More information is available at scaasymposium.org. Also look for Hoffmann to guest author on the SCAA blog in February, addressing where a little new thought could yield great results for the industry.
The Specialty Coffee Chronicle 13

THE

Specialty Cofee Industry

Initiative Worldwide
by Bruce Mullins

SHOWS

The Initiativedeveloped over the past 18 months by a consortium of leading specialty coffee roasters, thought-leaders and coffee agricultural researchersofficially began its operations in October as the outcome of an industry-led summit meeting convened in College Station, Texas, held under the auspices of Texas A&M University and the world-renowned Norman Borlaug Institute for International Agriculture. This unprecedented coffee congress attracted approximately 75 of the worlds leading specialty coffee growers, importers, roasters, researchers, and economists, during which participants spent two and a half days talking, listening, sharing, and taking a hard look at emerging problems within the global supply chain of quality coffees. There has never before been an attempt to look globally into the primary motivating factors for coffee quality, says Ric Rhinehart, executive director of the SCAA. Adds Dr. Tim Schilling, one of the Initiatives founders, It is unprecedented that a multi-billion dollar global industry like specialty coffee has no front-end research and development to grow and protect the supply of their raw product. Theres actually been more global research into making better kiwifruit than into making better coffee!

A COFFEE CONGRESS CONVENES

he specialty coffee industrys Global Coffee Quality Research Initiative (GCQRI) has officially been launched, and has begun its historic multi-year journey towards a more complete understanding of the science behind coffee quality and coffee quantity.

GCQRI members in attendance focused on learning more about the expected supply-side impacts to specialty green coffees threatened by global warming (Arabica trees are genetically programmed to produce their best quality coffee in high altitude tropical environs, because of the relatively cool and moist conditions found there conditions that are projected to change over the next few decades as the worlds tropics are forecasted to heat up and dry out faster than temperate regions), compounded by demand-side impacts from global consumption expanding exponentially. Ironically, much of this is due to the success of specialty coffee roasters and retailers worldwide (according to the NCA, specialty coffee now represents 40 percent of the total U.S. market), coupled with population growth and the dramatic increase in consumption starting to be seen within the emerging economies of China, India and Brazil (the worlds greatest

14 The Specialty Coffee Chronicle

The Initiative will be administered by the Norman Borlaug Institute for International Agriculture, part of the Texas A&M System. One of the worlds leading international agricultural institutions, the Borlaug Institute has decades of experience developing and administering agricultural research programs throughout the world. The GCQRI STRONG LEADERSHIP program will build upon an existing global network of coffee research institutions and scientists working with the specialty coffee industry As an important result of Octobers meeting, an interim board of to identify, fund and implement coordinated research on key factors directorsconsisting of Brett Smith of Counter Culture Coffee, Ben limiting quality and production. Research results will be widely Pitts of Royal Cup Coffee, Ric Rhinehart of the SCAA, and chaired disseminated in all producing and consuming countries and made by Patrick Criteser of Coffee Bean Internationalwas appointed by available to all interested parties. the groups steering committee, and is now working diligently on the As an example of the incredible impact on coffee quality through development and execution of important near-term objectives such as the previously seldom seen model of collaborative research, Dr. the GCQRIs governance, incorporation, by-laws, intermediate-term Schilling recently announced that the researchers associated with funding, and review of the research ideas surfaced during the meeting. the GCQRIas an outcome of the meeting in College Stationhave One of the most important challenges facing any new non-profit like just identified the pyrazine compound responsible for the potato the GCQRI is finding an effective full-time leader to run the day-todefect often found in green, unroasted coffee beans grown in the day aspects of the business. This has been met by the interim board Great Lakes region of Africa (primarily from Rwanda and Burundi). with the announcement of the appointment of Dr. Timothy Schilling as As most roasters of specialty coffees familiar with these origins will the groups new Executive Director. Dr. Schilling is well-known to many attest, the potato defect is especially annoying because so far it has within the specialty coffee industry as the person most responsible been impossible to detect in green coffee. This defect manifests for the re-emergence of Rwanda as a coveted specialty coffee origin. itself only upon roasting, and therefore can show up even in awardDr. Schilling lived and worked in Africa for over a decade on behalf of winning coffeesadding the nasty flavor and aroma of a freshly peeled the PEARL and SPREAD programs run in association with Texas A&M russet potato into the finished cup. This research breakthrough was University, Michigan State, and The Borlaug Institute, helping rebuild made possible through a collaborative effort between Texas A&M Rwandas coffee industryliterallyfrom the ground up. As an example University, the McKnight Foundation, Iowa State University, and the of the work that Borlaug and Schilling accomplished in Rwanda, prior coffee research organizations CIRAD in France and NUR and ISAR in to 2002 there were no coffee washing stations in the entire country. Rwanda. Now, due to this GCQRI discovery, strategies to significantly By 2010, more than 180 washing stations had been designed and built. reduce the potato defects frequency in coffees from Rwanda and Nationwide, Rwandas coffee quality radically improved during the Burundi can be developed, to the relief of coffee roasters (and coffee decade, giving the world much-needed additional supplies of high connoisseurs) around the world. quality, fully-washed coffees while simultaneously giving Rwandan In reflecting on the pyrazine discovery, Dr. Schilling concludes, farmers three to four times more income from their coffee than they This type of collaborative research outcome has been common were previously making. through the years in other key agricultural commodities, but not in The GCQRI board is delighted to have hired someone of Dr. coffee. Because of the geographic, cultural, and economic divide Schillings qualifications as the groups executive director. According between farmers and consumers that is unique to this industry, to CBIs Patrick Criteser, [Dr. Schilling] has exactly the right there hasnt been any sort of wide-spread, successful attempt at combination of agricultural scientific research training, non-profit research that could benefit all the players in the game. With the executive experience, in-depth and first-hand specialty launching of the new GCQRI, however, that situation coffee knowledge, and enough enthusiasm and has the potential to be changed forever. Im energy to power a small city. The board is tremendously excited about the work that weve excited to begin this industry-transforming begun. I cant wait to find out the things If youd like to learn more venture with Dr. Schilling at the helm. that were going to discover about making Dr. Schilling and the permanent about the Initiative, signicant amounts every cup of specialty coffee even more board of directors that will be specialand how to make a lot more of informationincluding copies of the appointed in the spring will of them! presentations made at the congress in be focusing the long-term efforts of the GCQRI project College Stationmay be found on the GCQRI (affectionately known to its Bruce Mullins is vice website at www.gcqri.org. Additionally, upparticipants as The Geekery, president of Coee which about says it all) toward Culture at Coee to-the-minute news and information is being searching for scientifically Bean International posted for those who like the Global Coee validated strategies that in Portland, Oregon. Quality Research Initiative on Facebook, or are both economically and He serves on the environmentally sustainable. Coee Quality Institutes Board of are following it on Twitter at #GCQRI. Finally, The ultimate goal? Improving Trustees and Fair Trade USAs Roaster look for the GCQRI to be one of the focal the potential cup quality Advisory Council, as a Cup of Excelof coffees on the tree, while lence judge in Central America, South points at the upcoming SCAA Symposium simultaneously discovering ways America and Africa, and a Coee Corps (April 27th28th) and Expo to increase overall supplies of volunteer in Africa and South America. (April 28thMay 1st) specialty-grade green coffees. It is believed that this long-term research in Houston.
The Specialty Coffee Chronicle 15

producer of coffee, Brazil is expected to become the worlds largest consumer of coffee as well within the next few years, displacing the United States). As the coffee congress attendees learned, however, all is not gloom and doom. As an example, leaders within the U.S. wine industry decided several decades ago to pool their research resources into scientific work similar to what is envisioned by the GCQRI. As congress attendees heard, the results have been spectacular, with both anticipated and unexpected scientific discoveries related to wine grapes and vineyard strategies, many of which have dramatically improved yields and quality, resulting in todays unprecedented access to wines of stellar and consistent quality at affordable retail prices. These are exactly the dual outcomesimproving quality while simultaneously improving quantitythat the GCQRI is seeking for specialty coffee.

agenda may begin to show some initial results within three to five years, which will eventually begin helping specialty coffee roasters world-wide cope with an increasingly challenged supply chain for high-quality, washed Arabica coffee. As important dividends, the Initiatives work is eventually expected to significantly improve origin countries coffee research capacities, while also raising coffee farmers yields and incomes, strengthening vulnerable coffee-based communities around the world.

LOOKING TOWARDS THE FUTURE

and CoFFEEILITy sUsTAINAb


Are we having the impact we intend?
by Tracy Ging

16 The Specialty Coffee Chronicle

ustainability has been part of the discourse in the specialty coffee industry almost from the beginning and certainly for a better part of the past two decades. Early on, with vision and leadership bordering on radical, the industry made sustainability part of its mission. The SCAA also encouraged total quality, inclusive of quality of life, quality in the cup, and quality of the environment. To achieve this, the organization outlined more than 40 supporting attributes and actions to guide its commitment to sustainabilityan inspiring but, no doubt, broad set of tasks. In 2005, the SCAA set an even more ambitious goal by signing the United Nations Global Compact, joining the fight to eradicate global poverty. Specialty Coffee was, and continues to be, determined to make a significant difference.
With sustainability firmly ingrained in the value structure, many forged aheadbuilding schools, digging wells, committing to certification programs, developing partnerships and engaging in a host of other activities. Larger players developed private standards and say what you will about those approaches, the concept of selfregulation is pretty remarkable in comparison to other industries. Specialty coffee was also among the first to embrace market-oriented labels, a handful of not-for-profit organizations emerged and have since grown considerably, and it seems nearly everyone has a project. Specialty coffee has inarguably been vocal and prolific on issues of sustainability, yet there are big, looming questions about impactare we doing good, are we doing enough, and how do we know? To some extent, those questions are unanswerable because as a collective, we simply dont know. Certainly there are exceptions within specific program and projects, but as a whole, specialty coffee has lacked strong metrics and tools to gauge its impact. In all fairness, that is a state not unique to coffee. The world has struggled with this issue, but that is changing. There is an increased focus on metrics and organizations are dedicating themselves to the task. The Committee on Sustainable Assessment (COSA), a volunteer-driven, global consortium of institutions using participatory methods, is pioneering the scientific measurement of sustainability in agriculture. Other organizations such as People 4 Earth are also developing frameworks. Also, the launch of SCAAs Sustainability Tracking and Reporting Tool (START) will bring six-figure technology to specialty coffee and profoundly address the tool side of things. It seems the industry is well poised to get a better picture of how well its doing with regard to sustainability. Regardless of the findings, I think we all know the job is not yet done. Given price trends over the last decade (with the exception of this year), relatively low market adoption of certifications (estimated at less than 10 percent according to The North American Organic Coffee Industry Report, 2010), and studies about hunger in the Coffeelands, we will likely confirm there is much, much more to do. With complete reverence for what has been accomplished, this is also an opportunity to reassess. What have we learned? How can we be better? If we really wanted to get our act together around standards, what would that look like? It is important to look at what new partnerships can be forged, examples that can be modeled, and what new goals should be established. As one example, SCAAs Sustainability Council is examining the beer industry on the heels of an announcement by British brewers, committing to reduce CO2 emissions by 17.5 percent and increase water efficiency by 11 percent by 2020. Another potential model is the wine industry, which is now studying use of certifications and addressing consumer education, trying to reduce their confusion over the plethora of choices/claims relating to sustainable wine and strengthen access to market for certified wines. And, of course, our own foray into deeper research through the Global Coffee Quality Research Initiative will likely unlock many new opportunities where sustainability is concerned. While there is cause for optimism, if for no other reason than the idea that issues as challenging and complex as these need a dose of faith, it is also important to be honest and open to the possibility that maybe specialty coffee didnt know enough about sustainability and development to engage in some of the activities it engaged in, that we set out on a very big task without a proper definition of success, that some businesses co-opted the message without making due sacrifice, that our definitions are murky, and that maybe we are in not position to suggest what a farmer needs. These are the tough questions well be addressing at this years Symposium in order toas Peter Giuliano referenced already in this issuebreak down so we can break through.

Specialty cofee has inarguably been vocal and proliic on issues of sustainability, yet there are big, looming questions about impact are we doing good, are we doing enough, and how do we know?

With more than 15 years of marketing experience, Tracy Ging has spent the bulk of her career in the coee industry, where she has worked on both sides of the supply-chain, developing a deep understanding of the market and the trends driving it. Tracy currently serves as Deputy Executive Director of SCAA.

Register Now for THE EVENT


Expo & Symposium April 28 May 1, 2011 www.scaaevent.org
The Specialty Coffee Chronicle 17

OuR TOP FOuR


THE 2011 SCAA SuSTAINABILITY AWARd FINALISTS
By SCAAs Sustainability Council
The Sustainability Council created the Sustainability Award in 2003 to promote, encourage and honor the efforts of those serving as role models in fields of sustainability. Each year, the council read about the depth and breadth of the sustainable work being done in all areas across the industry and chooses a winner from a number of incredible projects and companies from around the world. The Sustainability Council is extremely proud to showcase four extraordinary finalists for the 2011 SCAA Sustainability Award. This year, we were flooded with applications by impassioned and hard-working coffee companies from the entire supply chain. It was a difficult choice, but after much deliberation, we are delighted to bring you this years top four finalists. Be sure to check out SCAAs Facebook page and tell us which finalist you think should win. And we hope you can join us at SCAAs 23rd Annual Exposition in Houston, Texas, where the winner will be announced during the Opening Ceremonies!

CAF FEMENINO
Since the inception of Organic Products Trading Company (OPTCO)a company that imports high quality certified organic and fair trade coffeeowners Gay and Garth Smith have traveled to coffee growing communities all over the world to work with growers who are committed to organic and organic fair trade coffee production. In 2004, OPTCO, along with several other organizations, founded Caf Femenino Coffee Project, a social program for women coffee growers in rural communities around the world. Today, OPTCO is the exclusive importer of the Caf Femenino Coffee with Gay Smith serving as a lead spokesperson and advocate for the project. With determination and desire for a better future, more than 460 women coffee producers in Peru united to take a step toward achieving empowerment. This step came in the form of growing, harvesting and producing their own coffee, called Caf Femenino. In 2004, OPTCO, along with CECANOR Cooperative, PROASSA, CICAP and Cordaid, founded the Caf Femenino Coffee Project, designed to support the women in their efforts to achieve their goals. Today, the Caf Femenino Coffee Project is a social program for women coffee producers in rural communities around the world. More than 1,500 women in Bolivia, Colombia, Dominican Republic, Guatemala, Mexico and Peru are active in the project, which helps them achieve empowerment, build social and support networks, and earn incomes through the production and sale of Caf Femenino Coffee. This coffee is distributed by more than 80 roasters, all of whom pay a premium above the fair trade price, and is sold at retail locations nationwide. The success of the project initiated the creation of The Caf Femenino Foundation, which provides grants to select programs and projects that enhance the lives of women and their families in coffee growing communities around the world.

CLIMATE FRIENDLY COFFEE FARMING | A PARTNERSHIP BETWEEN EFICO, RAINFOREST ALLIANCE AND ANACAF
The Climate Friendly farming project is a pilot initiative developed by Anacaf, the Rainforest Alliance, Efico, and the Efico Foundation to research, test and promote criteria and practices that help farmers mitigate climate change and adapt to its impacts. The pilot project aims to develop a robust set of climate criteria that indicate best climate practices in coffee production and processing activities. Implementing these practices helps farmers adapt to the effects of a changing climate, reduce their greenhouse gas (GHG) emissions and increase levels of carbon stored on their farms. Practices to achieve those objectives are encouraged within the project. Key project activities include researching the climate impact of coffee farming practices; measuring carbon storage on selected farms on different levels (soil carbon, carbon in shade trees and coffee plants); testing assumptions Marta Lidia Barrios. Taken at Finca regarding best management practices to reduce Platanillo, San Rafael Pie de la Cuesta, GHG emissions; holding stakeholder workshops San Marcos, Guatemala. and consultation events; selecting criteria which describe best climate friendly practices; carrying out pilot audits of the climate module; marketing climate-friendly coffee; and creating resilience strategies among farmers, technicians and auditors. The criteria and best practices developed will be bundled as a Climate Modulea voluntary, add-on module to the existing Sustainable Agriculture Network (SAN) standard, the rigorous standard against which farms are currently audited to obtain Rainforest Alliance certification. The project builds upon existing criteria and indicators for climate-friendly farming practices and develops new ones, coordinated with and approved by the SAN Standard. The climate module will facilitate farmers implementation of practices that reduce greenhouse gas emissions, enrich on-farm carbon storage, mitigate climate change impacts on communities and ecosystems, and help farmers adapt to climate change. The pilot project was initiated in Guatemala in July 2009, with five cooperatives on the Fraijanes Plateau and one medium-sized farm in San Marcos, Guatemala. A total group of 376 coffee farmers, families and communities will benefit from this project. The pilot initiative is being disseminated to use as a model for addressing new crops (cocoa and tea) and regions with grants of the Rockefeller Foundation. Participating farms can be audited against the Climate Module to demonstrate their compliance with climate criteria and their adoption of climate-friendly practices. Climate Friendly coffee can be commercialized in a differentiated market. In the near future, climate friendly coffee and other products can be available in the market.

18 The Specialty Coffee Chronicle

Caf Femenino membership cards, Dominican Republic

GROUNDS FOR HEALTH


Grounds for Health is a nonprofit organization based in Waterbury, Vermont. Founded in 1996, Grounds for Healths mission is to provide womens healthcare services in coffee growing communities. The connection to coffee is through their founder, Daniel C. Cox, a Vermont coffee businessman who learned that cervical cancer was the leading cause of death in women in the communities where he bought coffee. Cox also discovered that the reason for this high rate was limited access to healthcare, especially preventive care and screenings. By partnering with coffee companies, medical professionals and local coffee co-operatives, Grounds for Health works to create locally managed, sustainable and effective cervical cancer prevention and treatment programs in coffee-producing regions. They currently have programs in Mexico, Nicaragua and Tanzania. To date, Grounds for Health has provided direct services to more than 19,000 women, trained more than 270 doctors and nurses, utilized 150 volunteers, and equipped 15 rural clinics to provide early treatment. Since 2007, Grounds for Health has piloted In-country sta Dr. Annah a new approach to cervical Kichambati: By transferring skills to cancer prevention called local health professionals, Grounds Single Visit Screen and Treat, for Health helps ensure community which is based on research buy-in and long-term sustainability. initiated by the World Health Organization and funded by the Gates Foundation. This model is designed to address the challenges found in low-resource settings. The Grounds for Health model is an excellent example of best practice public/private partnership. It establishes programs in coffee growing communities only upon invitation from the coffee cooperatives themselves. The co-op leadership must demonstrate commitment to the program through community support and investment. Through local partnership and use of the Single Visit Approach, the low-resource-appropriate programs focus on innovative training and education, so more women can get back to their children, their communities, and their lives.

Coee producing families learning about bird identication in Timana

NATIONAL FEDERATION OF COFFEE GROWERS OF COLOMBIA | BIRD CENSUS


Birds are a diverse and ecologically important taxonomic group in the mountains of the Colombian Andes, a region of some of the highest biodiversity on the planet. The enormous variety of birds in coffee-producing areas is considered a natural heritage that ought to be preserved. In the last century, however, natural habitat has given way to agriculture and cattle production in most areas. Birds are beautiful and charismatic and generate interest among human communities. Developing and adopting biodiversity-friendly production systems that ensure the conservation of birdswhile at the same time providing sustainable economic well-being to the farming communitiesis a major challenge for all. Since 2004, the National Coffee Research Center (Cenicaf) has been conducting a program of periodic censuses to study birds and promote their conservation in the Colombian coffee-growing region. The program, known as the Participatory Bird Census In CoffeeProducing Areas of Colombia, brings together coffee producers, researchers and extension personnel from Colombias Coffee Federation. Coffee farmers, their families, extension personnel, and researchers collaborate to conduct bird inventories in and around coffee farms. The project includes an educational program on birds which provides information about basic ecology, conservation and research techniques to both children and adults. A variety of activities, such as games and workshops, and a series of publications, including bulletins and posters, are used to foster an interest in birds and in the protection of the natural environment around coffee farms. Because of its participatory nature, the community takes part in the selection of census sites, objectives, and emphasis of the study in each region. Results are shared and discussed with the participants, who examine their environmental significance and potential use in conservation, educational, or even marketing campaigns. In six years, 29 communities have participated in the program and conducted bird inventories in their regions. With their help, the frontier of ornithological knowledge in the Colombian Andes has been extended significantly: 448 species of birds have been recorded so far (25 percent of the total for Colombia), and more than 100,000 copies of educational bulletins and thousands of bird posters have been given away. The Participatory Bird Census Program is helping rural communities learn to look at their farming environment through the eyes of the birds. By doing so, it aims to contribute to the conservation of biodiversity, the preservation of environmental services, and sustainability in a farming environment.

We look forward to announcing the award winner in April at SCAAs Exposition, and we encourage all companies and individuals leading the way in sustainability to apply to our award. Applications open in October of every year, so stay tuned for the call for applications in the fall of 2011. Congratulations once again to our finalists and a big thank you to all those who applied and continue to work hard to make our world a more sustainable and enjoyable place to live

ADDITIONAL INFORMATION
Caf Femenino, www.cafefemenino.com. Climate Friendly Coffee Farming, trade@ eficocentram.com Natural Federation of Coffee Growers of Colombia, Jorge.Botero@cafedecolombia.com Grounds for Health, www.groundsforhealth.org. The Sustainability Award, akatona@coffeeinstitute.org
The Specialty Coffee Chronicle 19

HIGH PRICES JOLT COFFEE MARKET


By Marvin G. Perez

ising food prices are eating into corporate earnings, and the coffee industry is no exception.

FUNDAMENTALS: BRAZIL SAVIOR OR VILLAIN


Arabica coffee prices soared 77 percent in 2010 touching a 13-year high of $2.4225/lb. For 2011 the global balance may yield a deficit between 4-6 million bags, mostly of Arabicas. Inventories of washedArabicas at warehouses of the IntercontinentalExchange Inc. (ICE), are now at eleven-year lows, after dropping for 27 consecutive months. This may continue until theres a solid bounce in production, say observers. The low supplies prompted the ICE exchange late last year to include washed and semi-washed Arabica beans from Brazil to its list of grower nations for the benchmark C contract, joining origins such as Guatemala, Costa Rica and Ethiopia. The move, opposed by the Specialty Coffee Association of America, is widely expected to boost liquidity in the market when it takes effect in March 2013. Supporters say the measure will actually encourage Brazilian farmers to boost quality, easing futures shortages of premium coffees. Critics fear the country will flood the market with lower grade beans, threatening the already questioned (but recently revised) grading standards at ICE. Elsewhere, Colombias future output remains a puzzle given the countrys failure to bring up yields over the last three years to the averages above 12 million 60-kilo bags picked few years ago. In 2011, the country could harvest again less than nine million bags, a figure still subject to weather developments.

For seasoned traders paying the current price above $2.30 for a pound of Arabica beans this may not be so shocking, especially if they lived through the price spike to $3.18 a pound seen in 1997. But for younger entrepreneurs who entered the growing specialty market over the last few years, the price rally has jolted many. Are prices heading towards $4 or $5 a pound? Or will world farmers, enjoying the highest quotes in more than 13 years, start producing enough coffee to meet growing demand?

COMMODITIES UP
Rising world population and living standards have fueled demand for premium coffees among affluent young professionals in emerging markets like Brazil, India, Indonesia and China. This has been supplemented by sustained demand from North America and Europe consumers. On the supply side, erratic weather patterns, highlighted by heavy rains across major growing regions in Colombia, Central America and Indonesia, have limited coffee production. Overall, demand for raw materials is at record levels, pushing prices for everything from petroleum to basic grains. This has attracted speculative involvement in commodity markets, while a volatile dollar and the eventual Brazilian entry into the worlds elite coffee club have added intrigue, if not uncertainty, across trading desks as well.

NEW PRICE FLOOR BREWING


Arabica prices are likely to set a new price floor above historical averages of $1 and $1.10 a pound, notes Carlos Henrique Brando, a Sao Paulo-based Brazilian entrepreneur and consultant, who has worked with the International Coffee Organization to boost global demand for coffee. With currencies at key producing Arabica countries such as Brazil and Colombia strengthening sharply over the last few years, reducing returns for growers, prices had to go up to entice farmers to keep producing. The new price floor to be achieved after production grows in response to the current high prices will have to be higher, probably much higher than historical averages to account for the weaker dollar, he said.

FOOD INFLATION
The Reuters/Jefferies Continuous Commodity Index, which is comprised of 19 raw materials, from oil to sugar and cocoa, rose 13 percent in 2010. The index has bounced from losses incurred during the financial crisis of 2008, and is now trading near its historical highs, brewing inflationary pressures. The average U.S. price to buy a pound of ground coffee rose to $4.47, up 22 percent, or 80 cents a pound, from a year ago, according to recent December data from the U.S. Bureau of Labor Statistics. Starbucks Corp., Folgers Coffee and Kraft Foods are few of the companies that have raised prices several times in the last year. The food industry is planning gradual price hikes to help expand profits in 2011. But its pricing power, especially at the low end, remains limited. It doesnt help that average U.S. gas prices are inching back up above $3 a gallon, adding to the squeeze on household budgets. Shoppers are likely to be more resistant than ever to higher prices, more willing to trade off to lower priced choices and more aware of where and when these changes have to be made, wrote recently Michael Sansolo, a food analyst in Chicago, wrote recently. Todays tough competitive situation is only likely to get tougher.
20 The Specialty Coffee Chronicle

VOLATILITY
A large percentage of the commodities price gains came courtesy of a weaker dollar, which started falling in August last year after the US Federal Reserve announced further quantitative easing, including the purchase of $600 billion in US assets to inject money into the economy. The move weakened the greenback, enticing oversea buyers to procure more dollar-priced commodities. If history is any guidance, this correlation will continue in 2011. According to Bloomberg data, over the last five years, commodities have moved in the opposite direction of the dollar in 18 out of 22 quarters. Historical charts also show that big price spikes are typically followed by higher output, in a continuum cycle of price boom and busts.

REGULATION
Searching for higher returns, speculatorsincluding pension and hedge fundshave poured money into commodities in recent years, contributing to the uptrend. But according to government data, speculators actually decreased their long positions held in coffee, when prices went from 160 cents to 200 cents a pound in the second half of 2010, indicating that fundamentals, as shown by soaring cash market differentials, drove the spike. Traders will be watching closely what type of action is taken in Washington, if any, to limit speculator involvement in commodities. The Commodity Futures and Trading Commission, CFTC, is expected to address the issue in the first quarter of 2011.

GOOD NEWS
The good news is that countries such as China, Laos and Peru are growing as suppliers in the new decade. For example, China recently announced investments of $450 million in coffee to boost production of Arabica beans in the Yunnan province, hoping to boost output from the current 38,000 tons to 200,000 by 2020. According to the International Coffee Organization, 2010 earnings for coffee exporting countries will be the highest on record, above $16 billion, potentially bringing more investments to coffee farms and better crops. Top producer Brazil is expected to harvest almost 45 million bags in 2011/12, the highest output ever for an off cycle crop, the result partly attributed to better earnings. In 2012/13, the country may reap between 55 million and 60 million bags, a record crop that may ease supply shortages.
Marvin G. Perez is a business writer and consultant and has been covering world nancial markets for almost 15 years. He has been a guest speaker at CNBC Business News Channel in New York and a frequent speaker at top world commodity conferences in the U.S., Latin America and Europe. His articles have appeared on Dow Jones Newswires, where he worked for six years; on weekly nancial Barrons, The Wall Street Journal and several international newspapers as well as on online- based news outlets, including SuagrNetwork and CoeeNetwork. He can be reached at marvingperez@gmail.com.

Are prices heading towards $4 or $5 a pound? Or will world farmers, enjoying the highest quotes in more than 13 years, start producing enough cofee to meet growing demand?

Of Note
Market volatility will be explored at Symposium, bringing forward a discussion about supply and structural issues to determine what new strategies are needed. In addition, there will be a program at the Expo. Boiling Down the C: Hedging Strategies for the Future of Quality runs Friday, April 29th at 10:3011:45 am in room 362D.
The Specialty Coffee Chronicle 21

Caff Breve We Ask. You Answer.


Do you brew your own cofee every morning or frequent a favorite

cofee shop?

I used to have an employee that made me a doppio ristretto every morning and bring it to me in my office. Now I just jump on the bar make it myself. You know, us coffee people get pretty dang picky. ~Jack Groot, JPs Coffee
and Midwest Barista School, Holland, MI

I consider myself extremely lucky to be able to make wonderful coffee at home, and then go to work and make more coffee all day. Coffee at home is always special though because I always make lattes for my husband in his favourite mug, and nowadays my four-month-old daughter gets an espresso cup full of foamed milk too so she can join in! That coffee is a family ritual and tastes all the better for it. Ive even created my own blend, named after my daughter - Mirandas Blend. ~Annabel Townsend, Doctor
Coffees Caf, Darlington, UK

I love making my own each morning. The challenge of pulling a great shot each morning is something that I look forward to. ~Eric Williams, The Withered Fig I make a shot of espresso every morning. -Phillip Yip,
Oakland, CA

Both. I start my morning at home with a French press or K-cup of Tullys and then stop by a Tullys on my way to the office for a double short non! ~Tom T. OKeefe, Founder and
former head barista, Tullys

Roast (every 48 hours), grind, and then press. I like the flexibility of changing my coffee varietal based on how I feel that week or day. ~Phillip Halley, San Jose, Calif.

22 The Specialty Coffee Chronicle

What are your passions (other than cofee of course)?


Giving back. I have been asked to set up a coffee station for Dress For Success in the spring of 2011. It is a non-profit organization that provides interview suits, confidence boosts, and career development to low-income women. I will give out free coffee at this luncheon event. ~Sherry Dunbar,
Coffee Guru, Manchester, PA

After 10 years in the coffee industry I have found that passion is the operative word in describing the complete lives of most of us who choose this career path. It is rare to come across a coffee pro who doesnt throw his or herself at life with reckless fervor. Im not sure whether the coffee industry just attracts people of that creed or working with such a passion driven product hones our edge so to speak. Personally, I relish in my deep passion for anything I can make or do with my hands. I become especially passionate about things that bring other people joy. Food is my muse. I get lost in the process from beginning to end. I spend hours in farmers markets and specialty food stores hand picking ingredients, developing recipes and flavor combinations that will excite the palates of my friends and family. I plan ways to invoke nostalgia, excitement, surprise, humor and whimsy just with a simple taste. Food is a boundless palate of colors with which to paint and there is no more personal way to affect a person than creating something they consume. Food, like coffee and wine, brings people together and begets conversation. Around these things we inherently become social and this fact lends to the passion surrounding them. Without over romanticizing the point, our passion in general as coffee professionals brings us together, often to do the same things. The next time youre out enjoying your pastime I challenge you to ask around, Im willing to bet youre not the only bean slinger at the party! ~Stephen T Robertson, Blanchards Coffee, Coffee Culture
RVA, and RVA Barista Jam, Richmond, Virginia

Its about the people. My passion for the people. The most common denominator I have found yet with my colleagues in this business. ~Joseph
Robertson, JoLindas Coffee and Wine Shop & Sasquatch Coffee Roasters, Stevenson, Wash.

I am passionate about excellence in general. Whether its doing up the dishes, planting a garden, spending time with my family, or running my business, I like for things to be done with excellence in effort and enthusiasm. I wouldnt say that I am a perfectionist, but rather a life enthusiast. ~Sarah Fey, Busy Bean Espresso, Shelton, Wash. Passion is a heated word, and often accompanies things which yield beautiful and rewarding resultsas long as youre willing to sweat, bleed, and work hard for them. For the last year after discovering the Rose City Rollers of Portland, ORthe passion Ive developed for Roller Derby is immeasurable. And it has taught me more about life and success than I was prepared for. The ability to hold myself accountable for my own successes and weaknesses. The strength of body and mind to push myself farther than the last time I faced the same challenge. The power of community, and what I find I am willing to do for the things and people I love. If the word passion could appear as more than 12-point font on a computer screen, it would be throbbing, with the weight of loyalty, perseverance, love and respect. Which seems to go hand in hand with the world of coffee. So I cant help but think Im on the right life path. ~Karen DApice aka Napoleon
Blownapart, World Cup Coffee Roasters, Portland, OR
The Specialty Coffee Chronicle 23

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