STiR coffee and tea magazine

STiR coffee and tea 13 "Because of the different jobs, responsibilities, and social roles of women and men, they face different physical and psychological risks in the workplace, meaning different responses are needed if safety and health policies and prevention strategies are to be effective," said Ockert Dupper, ILO Vision Zero Fund's global program manager. "Our new partnership with IWCA will support joint research and give us a better understanding of the risks and hazards faced by women in the coffee sector. It will also help us ensure that interven- tions, training and campaigns are designed to take gender into account. IWCA's worldwide network will help to ensure that knowledge, tools are widely shared and so make a real difference. PROBAT's 2022 Calendar: Combining Streaming/ In-Person Events PROBAT, leaders coffee processing technology presents its event calendar for 2022 continuing with the digital formats "Heat" and "The Pop Up Series", and preparations are underway for its "Connecting Markets" symposium. The Heat and The Pop Up Series enter the second round; PROBAT established these digital formats alongside face-to-face meetings, trade shows, and events. The highlight of the Probat's 2022 event year will be its long-running Connect- ing Markets symposium on September 21-22, in its hometown of Emmerich, Germany. Leaders and executives from the international coffee industry will again share their knowledge in keynotes, think tanks, and experience sessions. Probat bundles all topics around the specialty coffee roaster scene with its The Pop Up Series. The Heat series communicates content for coffee companies in the industrial segment. With over 1,500 live viewers in 2021 and an intensive exchange with customers during the streaming events, Probat expresses that it feels supported in its digital communication strategy. The monthly planned events for 2022 will be broadcast live via YouTube, Facebook, and LinkedIn. The POP UP Series kicked off on February 24 with the first session featuring PROBAT's shop roaster trainer Daniela Nowitzki answering questions from the community and presenting the overall program for 2022. In March, the "HEAT" format debuts with a focus on industrial coffee processing and a spotlight on grinding. The dates and further information for all events and trade shows are now available on the PROBAT website under "Events": www.probat. com/en/events/. Past "HEAT" and "POP UP" events can be viewed at any time via the PRO- BAT YouTube channel www.youtube.com/ probatroasters. Coffee Hit by the Gyrations of Commodity Markets By Gordon Feller "The Climate Change Exposure Index," released in 2016 by Verisk Maplec- roft, a risk analytics firm based in the UK revealed that Africa's agriculturally dependent nations face the highest costs of climate change – and that the continent's key agro-commodities are in jeopardy. "One of the basic characteristics of a commodity is that it is uniform in quality and is lacking in product differentiation," said Tom Brady, executive director of the J.P Morgan Center for Commodities at the University of Colorado Denver Business School. "At a high level, commodities [coffee, wheat, gold, natural gas, …] are fungible [interchangeable] with no regard to who produced them. As such, many commodities have a global benchmark or price. The sale and purchase of commodities [and the formation of a benchmark price] is usually carried out through the trading of futures contracts on exchanges that standardize the quantity and minimum quality of the commodity being traded." For decades, Brady studied the constantly changing dynamics of the marketplace for global products, such as coffee. For arabica, Brady notes that the 'Coffee C' futures contract – specifi- cally, the closest month contract for delivery – listed on the Intercontinental Exchange (ICE) in New York is the global benchmark price. This contract, stipulates that one arabica futures contract is for GBP37,500 and also states the grade of beans that can be physically delivered and location to satisfy this contract 1 . It is helpful to think of arabica coffee C contract price as the "global" price for coffee, incorporating global market supply and demand conditions and outlook. Local market (or "cash market") prices which coffee growers typically receive are heavily influenced by the global bench- mark but will also incorporate local market conditions. These cash market factors may include local inventory levels, transportation capacity, fuel prices, etc. Another characteristic of commodities is that their prices can be significantly volatile relative to other asset classes such as equities and fixed income products." Volatility is a measure is dispersion of prices of an asset -- whether it's an equity share of a company, an ounce of gold, a pound of coffee – over time. Brady says that "the wider the price range from low to high either on a daily, weekly, monthly, or longer-term basis, the higher the volatility. In general, higher volatilities in commodities result from lower trading liquidity in these markets (the volume of trading is relatively lower than for equities and bonds) and because in the short-term supply and demand are relatively inelastic (it is difficult to drastically increase or decrease production and consumer tastes remain relatively fixed)." As an example, Brady posits this: "if adverse weather, such as the frost impacting Brazil last year, destroys coffee growing trees, the production from a loss can take many years [five or more] to recover" 2 . Brady is quick to point out that, "during 2021, arabica prices climbed from ~$1.20/pound in January to peak in early December at over $2.50/pound and are currently ~$2.40/pound. Over the year, coffee realized price volatility of over 36%, far exceeding that of the S&P 500 Index of (~13%) and with the broader commodity indices (ranging from 16 to nearly 25%) 3 . Higher volatility with coffee being driven from the aforementioned Brazilian frost, supply chain issues and increased global consumption (up ~1% from 2020)." 1 Brady says that, specifically, "these beans will have 50% above screen 15 and 5% below it, with a maximum of 5 quakers, free from faults, but between 9-23 full defects are permissible. Grade 3 beans are most commonly used for supermarket brands and by non-specialty coffee producers." 2 Brady notes this: "Further, many agricultural and energy commodities have seasonality which also contribute to price volatility." 3 Two other popular commodity indices are the Goldman Sachs Commodity Index (GSCI) and the Bloomberg Commodity Index (BCOM). Brady notes this: "Relative to the BCOM, the GSCI demonstrates consistently higher annualized volatility as it attributes more weight to energy commodities, >50% of the index weight (vs. ~30% for the BCOM)." Coffee Report:

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