Colombia & Peru Update, August 2021

As promised, we’re coming to you today with another origin and shipment update with specific focus on the current and anticipated situation in Colombia and Peru, typically our two largest and most critical sources from the Southern Hemisphere. The C Market has been a rollercoaster ride for the past 60 days, the South American harvest is as volatile as we’ve seen it with the Brazilian frosts and competition for parchment in both Colombia and Peru, and the global shipping situation showing no signs of improvement as the 2021 finish line appears on the horizon.  

Fret not. We will be flush with Peruvian coffee on all three coasts come fall as well as preparing shipments for Korea, Japan, Australia, and Europe. Colombia, Ecuador, and Rwanda will follow suit from the Southern Hemisphere harvests. Our primary objective is to get fresh coffee into your roasteries as quickly as ever.

With that said, you may have noticed that the time we would usually have opened forward booking for Colombia has passed. As we’ll delve into below, the current harvest and shipment situation in Colombia will leave all green coffee sources competing at higher prices for much smaller volumes of quality Colombia coffee. Because of that, we strongly recommend forward booking the majority of your South America volume in Peru, rather than Colombia. We will not be able to offer a substantial amount of Colombia coffee to forward book this year and the quality we’re seeing out of Peru will absolutely meet the full scope of your menu needs. In order to give you the time to outfit your single origin and blend menu accordingly, we’re extending forward book pricing through September 15. To talk through your menu with us or make a commitment, get in touch. 

Supply, Demand & the C Market

The C Market price surged 30+% in July before backing off to the $1.80/lb zone. Three frosts in Brazil have been the driving force in conjunction with dwindling green coffee stocks across both the global north and the Brazilian reserves themselves. The current Brazil crop could be down as much as 10% (roughly four million bags). Long term damage assessment is still in process, though experts forecast even heavier losses in the 2022/23 season due to these three frosts and the horrible drought situation in 2020. The extent of the damage won’t be fully known until after the first rains trigger flowering in the months ahead. It is highly likely that another market spike is tethered to those fall reports.  

Colombia 

Along with a C Market in flux, the Colombia harvest outlook also appears bleak for the upper end specialty segment. Due to an overly wet harvest season and aggressive internal competition for parchment, clean, sweet, complex 85+ coffee is incredibly difficult to come by. We expect our own purchases to be down somewhere in the neighborhood of 50% from this first semester’s harvest versus 2020. Fabian is currently vetting weekly deliveries to the Asorcafe warehouse in Inzá, Cauca and will soon move on to cup through Nariño warehouse deliveries. Our supply will be extremely limited through year-end 2021. Expect pricing in excess of $4.50/lb ex-warehouse on all of our offerings this season.  

Peru 

We are knee deep in the Peru buying season with our first eight containers headed to dry mills in Piura and Lima. Coffees from across the north—Amazonas and Cajamarca—were first-in first-out of our Lima lab this year and will therefore hit the water first, along with Cusco coffees from our primary partners at Valle Inca. With vessels scheduled for September departure, we expect our first arrivals to land in October in both New Jersey and Houston, TX. Our first Incahuasi containers hit the water in September as well.

Our strongest cooperative partners remain competitive in their respective regions, both in quality and quantity. Due to Valle Inca’s location in Yanatile and Lares, they’ve faced the most competition for parchment, but Prudencio’s history with his producer members has proven stalwart. 

Shipping & Logistics

Transporting coffee remains the specialty segment’s most critical 2021 impasse. Container availability is bleak. Vessel availability is a crap shoot and tremendously expensive. Routes have been cut down, equating to longer transship times. Covid-related port restrictions have led to container ships sitting off the coasts of their destinations for potentially multiple months.  

We elected to address the worst situation, Port of Oakland, by landing a healthy dose of our South American offerings in Houston. We will store more coffee at Dupuy Houston than prior years and will also move coffee from Port of Houston directly into The Annex. All East African offerings will land in Port of New Jersey and be railed across the country. Ensuring fresh delivery is critical to us and we’re constantly evaluating and adjusting plans to get coffees to their destination as quickly as possible.

As always, as in all things, we’re here for you—so get in touch to ask us questions, talk, or anything else you need. 

Red Fox Coffee Merchants Origin & Shipment Update: Q3 2021

Hello friends, coming to you as we enter the third quarter of 2021. We’ve put together a report on the current state of coffee affairs in the areas of the world in which we work. With the supply and shipping disruptions we’ve seen over the last year and which we know will echo into the future, we want to help keep your finger on the pulse of global coffee traffic and hopefully make your job a little easier. This report contains some details as well as some broad strokes—if anything here piques your interest or leads to more questions, we’re always here to talk, so get in touch

This quarter, we’re seeing many disruptions and complexities borne out of civil unrest, with the two most notable for our upcoming harvest and shipping season being Peru and Colombia. The other component that’s affecting global shipping operations on an extremely broad scale is the confluence of the global container shortage and widespread port and trucking slowdowns due to Covid-19. Much more on all of that below. 

Logistics, Port, & Warehouse Updates

We continue to see widespread disruptions in our supply chains as we enter the second half of 2021. Globally, ocean freight rates have skyrocketed. Routes between East Asia and the US West Coast have been the most impacted. Efforts to combat a Covid outbreak in Shenzhen, China in June caused the port of Yantian to vastly reduce its operating capacity for nearly a month, resulting in a huge backlog of shipments waiting to berth, soaring freight rates, and a further reduction in the supply of available containers for all shipping routes. There is ongoing uncertainty in bookings and volatility in transit times across the industry, and little indication that this will ease before 2022.

 Congestion at US ports has seen some mixed improvement, mostly on the East Coast where cargo is moving a little more fluidly through the NY/NJ ports. West Coast ports, which have seen a huge surge in imports this year, are still over capacity, with ongoing labor and equipment shortages contributing to congestion. The port of Oakland continues to see major delays, with boats sitting on the water waiting for a berth for up to 2-3 weeks after arrival. 

There is also a general state of congestion across the domestic trucking industry. LTL freight carriers (shipping services for relatively small loads) are dealing with massive shipping volumes alongside continuing shortages of drivers and equipment, and their networks are strained. Transit times and costs are increasing across the board. Carriers are capping the number of warehouse pickups and cutting locations out of their service maps to cope. Warehouses are struggling with inconsistent pickups, last minute cancellations, and a general backlog of shipments. We recommend that roasters plan ahead for longer transit times and higher freight costs, and encourage everyone to get their orders in the pipeline with time to spare.

On the warehouse front, we do have some positive news to share: Continental Terminals, Annex (formerly The Annex) has completed their move to a new facility in Alameda, CA. With the move complete, they are now returning to their 24 hour notice to process and ship orders, meaning pickups from the warehouse can happen a full day earlier than under their previous 48-hour turnaround. 

Supply, Demand, & The C Market 

Supply and demand have hit their most volatile moment in close to a decade, with dwindling stocks in the Global North, container shortages, reduced route availability by container carriers themselves, and a 2+ month long trade disruption in Colombia at the core of the issue.  The C market has risen sharply in the past 60 days, coming in just above $1.50/lb for the past couple weeks. While we don’t expect another rise in the immediate future, many in the trade suspect another spike later in the year around Q4. The situation is developing and no one here has a crystal ball, so we will take this as it comes (or doesn’t) down the line.

The immediate impact of the four aforementioned market dynamics has significantly affected parchment buying across South America, Colombia & Peru most acutely. The FNC, Nespresso, and other large buyers have entered producing regions with extremely high prices for ‘clean’ (sound, nondescript) coffee leading to the most competitive buying market we’ve entered ourselves in our 7+ years in business.  As the first semester harvest now enters its peak season we expect to be paying upwards of 50c/lb FOB for our offerings from Inzá & Nariño. Port closures in Buenaventura/Cartagena have trickled down to Peru in that the Colombian supply shortage has created chaotic buying across the country with prices for ‘rubbish’ (wet, unselected) parchment almost doubling from last year. At least one of the major Peruvian exporters has received US $2.6M in loans from the government helping them to incapacitate competition in certain areas of Cajamarca, San Martin, Cusco, and select other departments.  Red Fox expects to pay 20-30c/lb FOB more for certain relationships and maintain a level of price stability with others. More to come on the Peruvian state of the trade below as well as in our early August supplement.  

Peru 

On the political front, the country had a disputed presidential election, where two candidates with very different political positions clashed in June. Socialist candidate Pedro Castillo won the presidential election after clinging on to a narrow lead. On the other side, his rival Keiko Fujimori, who refused to concede, has challenged the results, claiming electoral fraud. The political situation has revealed deep gaps between voters, along economic and racial lines, as well as ideological ones. Because of the political instability and speculation regarding the new leftist government, the price of the dollar rose against the national currency during June. This only aggravated extant concerns about the country’s financial stability.

On the coffee front, harvest has already started. The price of coffee is up an estimated 85% over last year, regardless of quality and physical standards. According to comments from cooperative managers we work with, there’s an overall concern regarding what this means for coffee quality this year. The price rise stems from a combination of factors including the increase of the dollar against the national currency, the uncertainty generated by the lack of mobility of Colombian exports, the increase of the commodity price, and the instability of the political future of the country. 

Hugo Cahuapaza of Coopbam in Amazonas, Northern Peru, reports that the harvest in the lowest altitudes is already at 100%, while the middle sector has reached almost 80% and the highest zones are just getting started. The rainy season has been unusually prolonged, but producers are taking steps to achieve preset standards in coffee drying. Hugo also told us that the political and financial instability aren’t currently affecting the producers, who continue to carry out their daily activities, since they’re not used to depending on state support anyway.

Cajamarca-based Santuario manager Ismael Alarcon expects a higher production volume this season, approximately a 20% increase over last year. As in all of Peru, Cajamarca has also seen coffee prices rise, which, combined with the greater competition in the market, has led to an increase in labor costs. 

Albino Nuñez of Pangoa in Selva Central reports that business continues as usual and that harvest is at its peak right now. He and other members view the season with optimism since they’ve noticed an improvement in quality and expect an increase in the volume produced this year.  

Stay tuned for a Peru supplement in the coming months going into more detail as we get into the field and start the actual purchasing process—the situation here is developing and we’ll keep you on top of it. 

Available Lots: 

While Peru spot coffee continues to make its way into roasters and mugs, we do still have a number of solid lots from community to producer ID available on both coasts and in DuPuy Houston. We’re cupping all lots regularly and they’re still at the top of their game.

Colombia 

The political chaos surrounding tax reform that has mired the country for the past two months appears to be nearing its end, at least for the moment. Ports have reopened as of late June, though diminished availability/routes with container carriers and the ensuing backlog of coffee in dry mills across Colombia creates an outlook of slow shipments and deliveries into fall.  

COVID-19 appears to be hitting it’s peak in Colombia at the moment recently passing 100,000 deaths due to the virus.  A dearth of vaccine availability keeps the outlook bleak for the immediate future.  

From our dry mill/export partners in Popayan: 

“Things are getting back to a certain normality and coffee flow/purchases are decent. There is congestion at the ports which will take weeks to sort and freight rates are increasing. May shipments were 0.5m bags and June has shipped 0.2million bags so far (June 14th). Differentials [countries’ standard differentiated price for clean coffee in relation to the C market] are continuing to increase due to rains having an impact on the next mid crop. We might need to reduce our production expectations to around 12m bags.

Despite the strikes having ended and the road corridors to ports being reactivated, the situation has not improved much. Ports are facing high congestion due to the increased volume now coming through from different areas. 

  • Buenaventura has been operating since mid-June, but the main problem is low availability of vessels. During May, only two vessels were available in Buenaventura and as the operation just started to normalize, the combination of limited vessels, limited trucking routes, and the backlog of coffee in the dry mills means continued delays. 
  • Cartagena’s been highly congested since the end of May because of space limitations, low storage capacity, and lack of containers. Until mid-June, the trucks were taking eight days to enter port (literally waiting in a nearby parking slot, waiting to enter the port’s installation), which caused the loss of the vessels. It also led to carriers refusing to travel to this port unless a daily stand-by rate is set to include waiting times.
  • Santa Marta is facing the same situation as Cartagena with the difference that until this week (June 21st), entry to the port is taking 12 days.
  • For all ports, the main concern now is truck availability due to the increase of inland freights and because the preference goes to transportation of imported goods (often paying four times more than usual freight), followed by lack of space in the vessels.
  • As a final comment for the logistic side, we are 85% confident that the situation will smooth out for August.”

As far as the first semester harvest itself is concerned we are hearing consistent reports of heavy competition for parchment across the country. Whereas Red Fox leveled up farmgate pricing to producers from $1.35mill pesos/carga in 2020, the FNC (National Federation of Coffee Growers of Colombia) is opening at $1.6mill pesos/carga for clean coffee now. Expect a significant increase in your Colombian coffee costs this year regardless of your source.  

Inzá, Cauca has been pummeled by late season rains as peak harvest begins at altitude. Volume expectations for the fly crop are plummeting on a weekly basis. 

From Geovanny Liscano, Producer and Asorcafe President: 

“I can tell you that internal prices are very high at the moment. Nespresso is at 1.6mill pesos per carga.”

From Danilson Oidor, Producer and Asorcafe Member: 

“It’s a strange year, we’re harvesting very little. There are a lot of rains which has led to a lack of cherry maturation.”

From Raquel Lasso, Producer and President FUDAM

“Narino is now approaching its peak season harvest at altitude. The parchment market across the department is also at a competitive high. Climate change seems to be rearing its head in ways that are clear to anyone looking. While the flowering was solid, heavy rains during the fruits’ maturation cycle caused a lot of fruit to drop from the trees prematurely. There will be immediate repercussions in the season’s yield due to this.”  

From Gildardo Chincunque, Producer and Parchment Collector, Tablon de Gomez:

“The harvest has begun but the baseline price in the region is 13,000/kilo or 1.650.000 pesos/carga [for clean coffee*].” 

*This is compared to the 1.3mill pesos/carga we opened at last year for 85+ scoring coffee.  

Rwanda 

Harvest in Rwanda is coming to an end, with high-elevation Kanzu wrapping up about a month later than washing stations at lower elevations. Rainfall and conditions were favorable for quality and volume this year, with total production in the coffee sector expected to be up 10-15% over the prior season. Competition for coffee cherry was intense, and internal prices paid to farmers increased to almost double what they were last year. 

Logistics are expected to be challenging this season. Empty containers for export are scarce and difficult to secure. Landlocked Rwanda moves all cargo by truck to the ports in Mombasa, Kenya or Dar Es Salaam, Tanzania. Travel restrictions and Covid testing requirements for truck drivers crossing the borders are slowing down the movement of coffee to port, such that what might be a five day drive under normal circumstances can now take up to three weeks.

With outbreaks surging in neighboring Uganda and DR Congo, new cases of Covid-19 in Rwanda have risen exponentially in the past weeks. The country is now recording its highest number of daily cases since the beginning of the pandemic. Access to vaccines remains low, with just under 2% of the population fully vaccinated, and there are concerns that the highly contagious delta variant will soon be widespread in the region. The Rwandan government announced new restrictions for the capital Kigali and eight other districts that go into effect July 1st, including a 6pm curfew, and the closure of schools and universities, non-essential offices, and restaurants. Travel between districts is restricted to essential services.

Available Lots:

We are currently evaluating offer samples from the first Kanzu outturns and will push to get containers moving as early as possible, in light of the expected shipping challenges. We aim to have coffee on the water in July/August for Sept/Oct availability.

Ethiopia 

Civil unrest continues to be the central theme in Ethiopia with the Tigray conflict at its core.  Restrictions against the press have made honest, relevant news hard to come by. In the midst of all of this Ethiopia held its elections for Prime Minister with many challenging the election’s fitness. Final results have yet to be announced.

As shipping season is now on its backend the trade is scrambling and struggling to find empty containers and available vessel departures for remaining shipments. Exporters scramble to allocate their final washed G1 lots which often get sold as G2 in the twilight of the shipping season. We also hear chatter on the export side of major internal market disruption due to larger exporters hiking prices to meet their contractual obligations. Akrabis (coffee traders/wet mill owners/parchment collectors) have ignored certain agreements to sell at higher market levels.

Both Kedir Jebril and the Kata Muduga Union are completely finished for the season with stock shipments and look ahead to the coming crop.  

Available Lots:

We’re well stocked with fresh washed lots from Agaro and Guji on all three coasts as well as including DuPuy Houston. Naturals from Nansebo and Bensa arrive to both California and New Jersey later this month.  

Mexico 

With the harvest completed across Mexico, almost all volume has been sold or contracted with milling being finalized on remaining parchment and final shipments moving to port by early July. Limited direct shipping routes, container/ship space availability, and frequent rollovers from most or all shipping lines have continued to slow the export and import processes, but we’ve been working with shippers to get coffees out with more fluidity and success. Rainy season has settled in across the southern growing region. After a contentious and highly anticipated election season, the country continues to struggle with containing Covid and getting the population vaccinated in a timely manner. However, most businesses are operating at full capacity and the economically important tourism sector has picked up in recent months.  

Available Lots:

Mexico arrivals continue to fly off the shelves almost as fast as we can bring them in, but we do have an array of lots in Continental NJ, and DuPuy Houston. Newly arrived at Continental, we have Familia Garcia Lopez, from Casimiro and family in the Loxicha area of the Pluma region in Southern Oaxaca, with 29 bags available. We also have a new offering this year which just arrived with 18 bags available. Coming to us from a producer group in a remote part of the Mixteca region, Garra de Jaguar is dynamic and sweet with tons of dried fruit notes.

Ecuador

Due to excessive rainfall at the beginning of the year, producers we work with are expecting a decrease in production this year in Ecuador, and particularly the Pichincha region. Arnaud Causse of Las Tolas and Terrazas del Pisque in Pichincha tells us he’s expecting a 20% decrease in production this year and a delayed peak in production as well. He also said he’ll be focusing less on natural processed coffees this year due to the lack of sun and excess humidity. In other areas of the country, such as Napo, where high amounts of rainfall are normal, there are high expectations for a great year for production and processing. 

According to media sources, about 11% of the population are vaccinated. The country still requires masking and recommends residents to stay home as much as possible. There are mobility restrictions across the country which producers expect to impact this year’s harvest.

Kenya 

From our friend Kennedy Keya at C. Dorman:

“Kenya main crop sales in the auction market ended in April. About 420,000 bags (60kg) were traded. Farmers were a happy lot with many factories paying on average equivalent of $0.70 per kg of cherry. We have been on recess for two months. Auctions resume tomorrow with only 8,000 bags on offer. It has been chilly resulting in slow parchment drying. We estimate about 160,000 bags from the fly crop this year. Auctions will be held every two weeks until volumes stabilize. The next main crop to be harvested from October is expanding well. If weather patterns don’t cause any damage we expect decent volume of the main crop, about 25,000 metric tons. 

The Covid situation is stable with new infection rates ranging from 5% to 10% daily. But again, numbers of those tested are too low. Life is picking up though many sectors of the economy are struggling, for example the tourism and hotel industries.

The port is operating at a slow pace. A big challenge is getting empty containers. Imports have been low. However, we are able to meet the shipment schedule by placing vessel bookings in advance. Some shipping lines, for example Hapag, are not accepting bookings for nearby shipments. They say their vessels are fully booked.”

Available Lots:

We have a small handful of truly superb Kenyas available on both coasts. 

Guatemala

Guatemala continues to struggle with over 1500 new Covid-19 cases reported daily. Like many countries, the majority of cases are not reported due to lack of testing, especially in rural areas. Our source in Guatemala City tells us “Covid is pretty much the same here, not getting any better.” 

Harvest has wrapped up in Guatemala. Like just about everywhere we are sourcing, there have been shipping delays, mostly due to lack of available containers.

Available Lots:

We contracted two containers this year with one going to each coast. The east coast bound container had an ETA into NJ 6/28, and has just a few bags from Santa Barbara, Huehuetenango available plus a larger lot from San Jose Poaquil in Chimaltenango. We expect to see this stripping into Continental around the second week of July.

The west coast Guatemala container has an ETA to CA of 7/6. We are continuing to see delays with containers getting picked up and stripped into The Annex, so best guess is end of July availability for these coffees including a 20 bag single producer lot from Los Arroyos in Huehuetenango. 

Yemen 

Both the ongoing Civil War and Covid issues have decimated the coffee industry. Moving coffee to port internally, loading onto passing vessels, and the larger global shipment situation have led to shipment periods of upwards of 60 days. Thankfully, the coffees we purchased this year have already landed and we have an extremely limited quantity available. 

To learn more about our work, check out our journal and follow us on Instagram @redfoxcoffeemerchants, Twitter @redfoxcoffeeSpotify, and YouTube.

Global Shipping Challenges & Planning Ahead for the Balance of 2021

Greetings from the cockpit in Oaxaca. As I’m sure many of you are now aware, the world is in the throes of a global shipping quandary. The main culprits are a physical container shortage and congested, understaffed ports across the world leading to containers left sitting at port docks. Fewer ships are running on transit lines as well, and each of these issues is further compounding the others at every step of the transit process. 

In the case of the West Coast we are seeing availability for pick up at The Annex from arrival to port of Oakland up from roughly 10-12 days to closer to 20. Ports of New Jersey, Houston and Charleston are moving at a more efficient pace, though slightly slower than pre-pandemic times. New container construction costs themselves have risen as much as 60%, and containers already in circulation are also moving slower for all the above reasons: delays leaving port, passing through interim ports, and being emptied and sent back. All of that has pushed shipping rates to recent highs—highs that we unfortunately expect to last through the year and beyond. 

We continue to place large emphasis on the work we do in the logistical center of the supply chain. We’re well aware that a tremendous measure of our value to you, our clients, is in delivering fresh coffee in the timeliest manner. We’re only as good as our last arrival into port from each and every producing origin we work in. We want you to know that our logistics crew are constantly exploring the quickest avenues to each of the warehouses we currently allocate coffee to in North America and abroad. In many instances, we are rerouting containers through different ports, or, in the case of Mexico, moving coffee by land to avoid delays and ensure your coffee’s integrity on arrival. These changes are critical for us to deliver the freshest coffee possible. 

Please feel free to reach out to me or your Red Fox rep directly with any questions or for more details—we’re here to support you in any way we can. We’re happy to talk through what this means for you specifically or more generally. 

Cheers,

Aleco

 

To learn more about our work, check out our journal and follow us on Instagram @redfoxcoffeemerchants, Twitter @redfoxcoffeeSpotify, and YouTube.

Ernesto Perez of Coatepec on Veracruz History & Mexico’s New Generation

We were lucky to get a chance to talk with Coatepec Veracruz-based producer, wet mill manager and community leader Ernesto Perez. A younger farmer who took over the family farm and mill just three years back, he’s working to guide community production into high quality specialty, tweak processing, focus on microlots, and help those around him get the best prices their work. He expanded his own wet mill at Finca Fatima into APG Coffee, a micro wet mill for the community that also offers agronomic consulting for other farmers to help rebuild soils and increase quality. Below is our conversation, lightly edited for clarity.

Aleco: Greetings from Mexico! I’m in Mexico City at the moment, Adam is in Oaxaca, and our good friend Ernesto Perez is in Veracruz.

Ernesto is an amazing coffee producer and also leader of the group APG in Coatepec, Veracruz. He’s delivering some of the most exciting coffees we’ve seen over the last couple of years. 

Joining me in Oaxaca is Adam McClellan, who runs the Mexico operation for us. He’s been down there for a couple of months now with his family and will be through the season, as will I. Lots of good things in store for all of you throughout the season as we get into shipping season. But most importantly, let’s turn it over to Adam and Ernesto and see what’s happening in Veracruz. Welcome, guys.

Ernesto: Thank you.

Adam: Thanks Aleco and thank you Ernesto for joining us. Last year was our first year buying your coffees, Ernesto, and we had a really great response in the marketplace. A lot of roasters are eagerly anticipating more coffees from you this year and asking about them again. 

As you know, Veracruz is a newer region for us—I started traveling there about three years ago and we worked with another coop on the other side of Veracruz. Last year was my first year coming to Coatepec, and I was so impressed with your operation, your vision. To me, Veracruz is really interesting, very different from the other producing regions we work in in Mexico. I’m so excited to taste some of your coffees this year and I know that you’re wrapping up harvests now.

Would you be able to start by telling us a little bit about the history of Veracruz coffee production? 

Ernesto: Thank you, Adam. Let me start by saying what I know about the history of Veracruz coffee. As many people know, no one knows for sure which was the first state where coffee was produced in Mexico. Many say it was in Oaxaca and many say it was in Chiapas and Veracruz. But we’re definitely one of the first states that had coffee in Mexico, and right now we’re one of the three most important states in coffee production in Mexico as a country. I think we produce around 30% of the coffee from Mexico.

Being one of the leading states in coffee production in Mexico, there have been many ups and downs in our history of producing coffee. Lots of big companies have been involved in coffee in Veracruz for many, many years. We’ve always been known for having good coffees, but I think the specialty coffee culture in Veracruz, like the third wave of coffee, never really landed deeply in Veracruz. I think it was because there’s many, many big companies and the culture is not picking coffee correctly. And there’s a lot of things that were really hard for me to change when I started running the family farm and working with the community on quality.

So, that’s kind of an overview of Veracruz. As you know, Veracruz is one of the highest latitudes where coffee is produced on this side of the world. We are located right next to the Gulf of Mexico, so the weather is more humid and cold in Veracruz. I think the latitude and the side of the country where we are located really helps the quality, the weather and the microclimate create the flavor that’s unique to Coatepec. It’s always super cold and misty here during the harvest season, so that’s kind of why we can grow top specialty coffees at 1200 meters above sea level.

I’m really excited to be able to explain more about Veracruz coffee, so people can come, visit, and get engaged in our coffee culture. 

Adam: Can you tell us a little about your farm and your family? I know your family’s farm is Finca Fatima, and then you also run APG Coffee, but did your family start with just farming coffee before they moved into production and things?

Ernesto: So my great grandfather, he was from Spain. He came to Veracruz because he knew how to speak English very well, so he got hired by a company, called Arbuckle Brothers in the US, and he worked as an exporter and a cupper. His history goes back to the 19th century. So, he was in coffee many, many years ago. His name was Antonio Perez Galvan, so that’s why APG is called APG.

He was the first member of our family involved in coffee, so there’s a lot of history. My grandfather didn’t really export coffee, he was dedicated to producing machinery for coffee. He built a wet mill, and that is the wet mill that I’m currently using. It was where he took his clients to show the machinery, like his exhibition room.

Later, my father started exporting coffee in the 1990s. I think it was when SCAA was founded. So Ted Lingle, who was the founder of the SCAA, came to Veracruz a couple of times. My father got awarded first place a couple of times during the 1990s. Despite that, he decided to quit coffee because there was a lot of risk, because he was more into the commodity market. So many bad things happened in those years, and he decided that it was a lot of risk and he didn’t like the business.

So he rented the mill to another company and basically, no one was really using the mill correctly. That’s when I came in and I decided to make major changes. It was not many years ago really. I’ve been working in coffee for three years now. I went to college in the US. I worked in a company in the US for a couple of years, and I decided that my passion was not working in an office. So I decided to get deeply into coffee. I got my Q graders license. I traveled to El Salvador and I got my Q processing license with Emilio Lopez.

Then I traveled here in Mexico to visit Finca Chelin and Victor Lopez in Oaxaca to learn more about coffee processing, like fermentations and things like that. And then I came back to Veracruz with a really good perspective of what specialty coffee production looks like. I made some changes to the mill to modernize it so that I could use it to lead my company to what I saw as an opportunity, which was having full traceability of coffees, truly bringing that flavor of this region and developing the flavors correctly, the sweetness and all the fruit notes that we can find in coffees in Veracruz through processing coffee with longer periods of time, longer fermentations, longer drying times, and keeping everything fully traceable.

So that’s my approach and where I see the future of coffee. That’s the vision that I have currently in APG. I want to keep growing and positioning Veracruz coffee in many places of the world again. 

Adam: Awesome, thank you. I also want to mention for anybody listening that maybe didn’t realize, what I think is interesting and different about the production model in Veracruz compared to other states in Mexico or most of Latin America is that coffee cherries are traded to wet mills rather than coffee in parchment. You drive through the Veracruz coffee country and there’s really, really large cherry processing wet mills that are owned by many different companies. Maybe some of them are cooperatively owned. But, farmers will harvest and bring down their cherry daily. It’s unique to Oaxaca and Chiapas that are two main producing regions in Mexico, where farmers are individually processing on their farms and producing parchment and selling dry parchment to mills or coops, or directly.

Do you think that model helped you make big leaps in quality development pretty quickly, that you’re able to control processing from the point of cherry delivery? And I was also wondering, how do you select which farmers you’re going to be buying from? Do they approach you, or do you seek them out? How does that work?

Ernesto: Well, after all these years, we’re really excited about coffee, because when we started the prices were low and not many people were really investing in the farms. So there’s not many players left in farming here in Veracruz. We decided to invest in our farm, and it was not many years ago. I mean, it was just a property that used to have coffee many years ago, but my father renewed the farm with new varieties, with quality varietals. And that’s when I began to know other farmers, which we’re now more than just friends, we’re kind of like family. Like, for example, [name][13:09] from Finca Las Venturas, he’s a very good friend of my family. We work with other farmers that have that vision of producing high quality coffees. And their farms are located in the highest altitudes possible that have good varietals of coffee, that now don’t just have forgotten farms.

So that’s kind of how I select the farmers that I work with. I don’t call them my farmers, we’re really partners in this deal, because it wouldn’t be possible to do this without them. It’s really teamwork, what we’re doing in Veracruz.

And I think processing coffee from the cherry to the green bean, it really helps you control and standardize the quality of the product. Because many, many things can happen throughout the process that can affect quality.

We begin by knowing where the coffee comes from. We analyze the cherry and assess the quality of what we’re receiving at the mill, what percentage of ripes and unripes we have. We use technology to sort this coffee, to store it correctly, and to mill it and prepare it for export correctly. Our approach allows us to sell coffees that have a longer shelf-life. We’re also extending drying times a lot, more than most of the companies in Mexico do. We simulate drying temperature as if we were drying with the sun or under the shade. And fermentation for us is something that has existed in Veracruz for many years. We didn’t have the machines to remove mucilage before, so it would take 48 hours before to ferment coffees and get rid of the honey, the mucilage. Now, we still do the complete 48 hour fermentations, which I think creates more sweetness and a more balanced and round flavor in the cup. So, those are the factors we can control in the cherries, and I think it’s a good aggregate value for the product.

Adam: Can you talk more about your drying practices? Are you using mechanical dryers or raised beds? I know you mentioned the climate in Veracruz makes the drying one of the more challenging aspects of production there. I’d love to know more about how you’re managing all that. 

Ernesto: Well, one of the good things about Veracruz is that our seasonality is very predictable every year. The months of December, January, and February are usually extremely humid and cold. There’s always rain, and there’s always high humidity levels and high and low temperatures. So it’s really almost impossible to dry coffees with the sunlight during these months and we have to adapt to what we have.

So we use mainly mechanical dryers for the washed coffees that we process from December to February. And we always wait until March and April to process the natural and honey process coffees because we have a lot more sunlight and higher temperatures during those months. We even have to use shade to protect the coffees from the high temperatures in those months. The drastic change between the winter and spring months made us look at what we have and use technology to process all different types of coffees correctly for their needs.

Adam: Awesome, thank you. How many different producers are you working with in the region for your company, APG Coffees?

Ernesto: Of course we work with Finca Fatima, which is a farm. My neighbor, she won Cup of Excellence last year as well from her farm Finca Consolapan. We work with Jose Cienfuegos from Las Trincheras Farm. He won Cup of Excellence too. And we work with three or four other producers that are new, that we’re going to share samples with you this year. I think they have a lot to offer to the market.

So we’re currently a group of seven producers, and our approach for next year is to start growing our relationships with small farmers in higher altitude regions in order to have an economic impact on smallholder farmers. 

Aleco: That’s great. I’m just absolutely intrigued with the Mexican coffee industry right now, and specifically seeing the evolution of the industry, to see the coffee culture in the country. I think the cafe culture in Mexico City, and I’m sure elsewhere, is really bar none in producing countries. It’s really special to see what people are doing with roasting and coffee and just the general hospitality experience that they give to people.

 And there are folks like you, and we have other friends in other parts of producing regions in the country, younger generations that are kind of like the new face of the coffee industry here. Because as you said, the coffee industry was very commoditized for a long time, and also maybe an afterthought for the government in a lot of ways. But to see folks like you is really promising.

But it makes me wonder that there must be a whole new competitive landscape out there, even for you to buy cherry, to process coffees, to trade coffee locally. I’m curious what you’re seeing on that front, and what your take is in general?

Ernesto: Well, this year we had a 40% smaller harvest than last year in general, so coffee prices were super high this year compared to last year. It was much more competitive because there’s many companies that need coffee from Veracruz. But, since we work with committed partners, we didn’t have an issue with buying cherries, because, I mean, it was part of our shared plan. We are growing together, so it’s their investment. It’s not just an opportunity of the moment, we’re trying to truly build partnerships with companies like you, that you can find roasters that really appreciate the quality that we’re offering.

So as far as the cherry and the price, that’s what I don’t like about coffee — that some years we have a lot, some years we don’t have much, but it’s part of the agricultural business. That’s how it is.

Adam: What percentage of those coffees are you selling nationally? I think we’re both really interested in the national market in Mexico, and I think in some ways some of our biggest competitors here are our local roasters, which both of us think is super cool. We don’t see that in other origins. There is this whole young generation of Mexico that’s really excited about coffee because of the local roasters and the coffee bars and things like that all over the country. How does that play into your vision for selling coffee?

Ernesto: Well, that’s kind of the reason why our model has worked to improve the economic activities on the farm, because we provide immediate liquidity to the farmers. There’s a lot of people that are really into specialty coffee in Mexico, like a lot of specialty coffee bars. And there’s a lot of new, trendy things, many people getting into the specialty coffee market. But they all finance their own coffee production. They buy small quantities of coffee, and they don’t buy the inventories that they’re going to use throughout the year. So, basically the farmers have to finance these small coffee shops, and that doesn’t really work for them.

So, I really like that we’re growing, like our culture is growing, but I don’t like that the last priority of the market is to provide the financial liquidity for the farmers, which is where everything comes from. So it’s very delicate. That’s kind of my perspective of the market right now.

Adam: What would you want roasters, especially small ones who are just buying five to 15 bags of APG’s coffees, to know about how you produce coffee and the challenges you face? It must be exciting to see coffees with your name or Cienfuegos’s name on a bag in some of the top roasteries in the country? I mean, you’ve only been in this three years, and you’re already touching the top tier of the market, and we’re super excited to represent your coffees. So what are some things you want to communicate directly?

Ernesto: One thing I really want them to know is that although we don’t have many certifications, one of the things that make Veracruz coffee very special and very hard at the farm level is that we we really focus on conserving the forests that we have, all the ecosystems that we have.

I think this is something super special in Mexico. We, or most of our farms, produce all shade grown coffees. So this is a challenge of having a small production one year and a big production in the next year. But we are really aware of where we’re going in the future, and all this effort is to keep having healthy coffee production in the future, to preserve a stable environment and conserve our microclimates and stable weather. So whenever they buy a bag of coffee from us, I think they should feel that they’re really helping conserve the ecosystems here in Mexico.

Aleco: That’s fantastic. Adam and I were out in Pluma de Oaxaca, so a very different region. But I was really blown away at seeing how forested that area was and how healthy the trees were, too. I was a little surprised. I didn’t think that was necessarily how it was going to be, and really as good of shade as I’ve seen anywhere in Latin America. Very special.

Ernesto: Yeah. Sometimes it seems like you’re in Africa, in the forest. It’s incredible.

Aleco: Yeah, a little bit like Ethiopia.

Adam: Would you be able to talk a little bit about where you’re currently at in the harvest, and where the labor of the harvest comes from? Is it mostly local, or not necessarily?

Ernesto: It’s very interesting. Many people that live in Veracruz or used to live in Veracruz, they go to Mexico City for a part of the year and work in finding jobs in Mexico City. And throughout the harvest season they come back to Veracruz, and they love picking coffee. It’s a whole experience for them to come and pick coffee. But the good part of Mexico is that they have the chance to go work somewhere else throughout the rest of the year. It’s a good side of coffee production in Mexico.

About the harvest, we’re wrapping up the harvest now. I think most of our washed coffees are already done, and we’re working on the natural and special process lots, like all the crazy fermentations and honeys as well as the natural lots right now. I think these coffees that come at the end of the harvest are really special in flavor, because they went through all this time of cold weather. So I think they’re the most interesting coffees that come up.

Adam: We just have one more question. Lot separation and producer transparency is important to higher end roasters—is that something your mill is taking care of? Tell us a little bit more about how you separate lots and maintain traceability?

Ernesto: One of the major changes I’ve made in my mill is that before, producers just delivered the coffee and you would just throw the cherries into a place where everything gets mixed. Now, we’re separating every single entry of coffee by producer. We process, we ferment independently, and we dry independently, and we store the coffee independently. Every single lot has what variety it is, what time of the year it was harvested. And I think we’re doing a tremendous job at keeping traceability fully intact. It’s one of the things that is the most important for me, being traceable, fully traceable.

Adam: Excellent. Thank you so much. We, really, really value your partnership, and, for me, on a personal level, I think your vision and your execution is incredibly inspiring. I’m looking forward to tasting the coffees this year. I know that we have a lot of roasters excited for them. 

Aleco: Thank you, Ernesto. I echo Adam’s sentiments entirely. It’s a pleasure to work with you.

Ernesto: Thank you very much. And thanks to all the roasters that support this operation.

 

To learn more about our work, check out our journal and follow us on Instagram @redfoxcoffeemerchants, Twitter @redfoxcoffeeSpotify, and YouTube.

Red Fox Coffee Merchants Origin & Shipment Update: Q2 2021

Hello friends, coming to you in the second quarter of 2021. We’ve put together a report on the current state of coffee affairs in the areas of the world in which we work. Buying coffee, while never easy or uncomplicated, has become more complex than ever, and we want you to feel included, supported, and looped in as we navigate that process together. With the supply and shipping disruptions we’ve seen over the last year and which we know will echo into the future, every link in every supply chain needs to be managed more carefully than ever. We want to help keep your finger on that pulse and hopefully make your job a little easier. This report contains some details as well as some broad strokes—if anything here piques your interest or leads to more questions, we’re always here to talk, so get in touch

Logistics & Port Updates 

We continue to feel the impacts of the widespread disruptions in trade and cargo shipping brought on by the pandemic and magnified recently by the container ship the Ever Given blocking traffic through the Suez Canal. For Red Fox, the global shortage of shipping containers has made it challenging to find bookings for the fastest, most direct ocean cargo routes that we prioritize. We’ve seen higher shipping costs, more rolled and cancelled bookings across the board on all shipping lines, and big bottlenecks at US ports, particularly on the west coast, that result in delays in getting our coffees unloaded, through customs, and stocked into warehouses. Ports, warehouses, and trucking companies are facing staffing shortages due to Covid-19, causing further logistical challenges and delays. 

We push to get our Ethiopia shipments afloat as early as possible every year, and are especially glad to report that, with the majority of our containers already on the water or arriving on the east coast, Suez Canal-specific delays have only affected a couple of our later shipments from Ethiopia, some of which we have chosen to hold in Addis until bookings can be confirmed, rather than have them sit at port in Djibouti. We know that long shipping times and warehouse delays are frustrating for everyone and we will continue to bring you as much information as possible regarding ETAs, arrival times, and coffee availability as these challenging conditions continue. 

Supply, Demand, & The C Market 

After a near 2 year high of around $1.40/lb towards the end of February, the C market seems to have settled in the mid-$1.20s/lb at the time of writing (approximate 3 month moving average). As Red Fox does not trade or hedge using the C market, there was little direct effect on our US operations. However, as the C market price continued to rise during Mexico sourcing discussions, we kept that $1.40 price in mind while determining what competitive quality premiums look like right now.  While global shipping lines work to renew vessel schedules across the world’s ports, warehouse stocks of green coffee across the global north continue to dwindle per various market reports. This has led to grumblings around increased C Market volatility though we’ve yet to see any major movement to date.   

Mexico 

About 75%-80% of the harvest is currently processed and collected in the central warehouses for bulking and dry milling. The Pluma/Sierra Sur and Mixteca regions are closer to 90%, while some regions in Northern Oaxaca will continue their final round of picking/processing through the first half of April. Chiapas and Veracruz are almost 100% finished with harvest. Our lab in Oaxaca has seen the heaviest 2 week period in our Mexico sourcing history at the end of March and samples continue to arrive from producers and family clusters from new and established relationships. We’re busy cupping offers as well as early preships, bulking coffees, monitoring the dry mill, and making sure coffees are ready to make their way onto the water. April is the primary month for milling across all three states in Mexico where Red Fox sources. Our first container is milled and expected to go afloat this week and four other containers will be milled this week and next.  First arrivals will be primarily community lots from the Pluma/Sierra Sur region of Oaxaca.

There is more competition for container availability this year due to the global container shortage but the big advantage Mexico has for shipping to other North American ports is the frequency of vessels arriving and sailing (most steamship lines call to port of Veracruz every 3 days). We also plan to continue to use the port of Manzanillo on the Pacific Coast for West Coast shipments where transit time is 5 days on the water port to port. We still expect these coffees to arrive in May through June. 

Covid-19 case counts continue to be a problem across Mexico and while a vaccination program has recently begun by the government, the rollout is slow and disorganized. More wealthy Mexicans with travel visas are going to the US to get vaccinations. The government recently released data showing more accurate cases and death counts than was previously being released and were 30% higher than previously reported. Another surge in cases is expected  after the Semana Santa (Easter) holiday where many people travelled and family gatherings are very common. Most businesses are fully open, and while mask wearing is very widespread in public and on the streets, it’s less common in family social gatherings. 

Smaller, more vulnerable communities continue to publicize information and precautionary measures, but many of these precautions unfortunately aren’t up to date and don’t prevent spread effectively. Where the latest science overwhelmingly points to aerosols in gatherings in poorly ventilated areas without masks as the primary method of spread, the smaller towns still focus on hand sanitizer and spraying down the outside of clothes and cars with bleach as the way to prevent more cases entering. We hope to see better information and  realtime science reach these communities quicker in the future.   

Available Lots: Peñas Negras makes its return to the offerings of community lots out of the Pluma/Sierra Sur region, near Juquila not far from the Pacific coast, just straight up the mountain. This community is one of the first to start and finish harvest in Oaxaca and this year’s lot is very balanced and sweetness driven, showing notes of Honeycrisp apple, chocolate syrup, and fresh butter. This and other Pluma community lots in the first shipment arrive to Continental, NJ the first week of May and 2nd week of May to Annex, CA. We’ll also have coffees available by the end of May in Dupuy, Houston and Seaforth, Vancouver this year.  

Ethiopia

Harvest has officially concluded for the season, Addis warehouses are full of parchment and peak shipping period is now underway. Vertical Integration, which allows for producers to establish a price agreement with an exporter prior to the harvest season, continues to play an emerging role in the specialty sector with more direct business concluded than year’s prior. The ECX continues to receive and trade less coffee.  

The Suez Canal incident and rising fuel costs for trucks making the Addis to Djibouti run have caused massive delays for vessels leaving port.  

Covid-19 cases are increasing at extreme levels according to our network on the ground in Addis, though accurate reporting remains difficult to find. Ethiopia received 2+ million doses of AstraZeneca in March per the WHO’s initiative.  

Available Lots: We were fortunate enough to move our first dozen containers, split between Agaro & Guji, prior to the Suez debacle. Fresh crop has arrived to Port of NJ as of 3/30. We expect availability in Continental Terminals NJ in the coming week or so of both Guji and Agaro coffees. ETA’s for coffees coming into both The Annex CA and Dupuy Houston range from to mid-to-late April.  

Kenya 

Kenya is now also in peak shipping season as the main crop has now concluded. 320,000+ bags have been purchased through the auction system and direct purchases since January 1. The fly crop (Kenya’s second, smaller crop) begins later this month and will conclude late May/early June.  

Shipments are delayed per the Suez debacle with lines still unable to communicate new schedules. Some fear a backlog into or even through May. Food grade containers are also at a premium.  

Nairobi is currently in lockdown as cases are now on the rise. Our trade partners are only in their offices on a rotating, need-to-be basis. The first round of 1,000,000+ AstraZeneca vaccines arrived in Kenya early March. The government expects 3,500,000+ vaccines to be distributed across the 2021 calendar year.  

Available Lots: Our first shipment arrived to Port of NJ late February and has now been sold out.  Our 2nd shipment destined to CA maintains a mid-April ETD from Mombassa.  

Guatemala

We are hearing reports of another month of harvest in Huehuetenango. Early offers have been outstanding and we’ll see more volume this year from producers from the Santa Barbara municipality. Look for Guatemalan coffees clearing on both coasts in mid to late May.

While travel has opened up between departments, public transportation remains extremely limited. This has exacerbated the shortage of migrant pickers and harvesting continues to be a struggle in most regions.

In vaccine news, Guatemala became the third country in Latin America to start vaccinating its population through the COVAX initiative, which uses the AstraZeneca vaccine. Guatemala expects to receive a total 6.6 million doses this year to reach its goal of immunizing 20% of the population.

Available Lots: We’re currently finalizing selections for an initial container to go afloat later this month/early May.

Peru 

Even though in January 2021 the national economy showed a drop of 0.98%, Peru’s agricultural sector remained afloat and growing. For its part, the Junta Nacional de Café (National Coffee Board) hopes that this year will be strong for coffee production. They expect production to rise 18% compared to last season, and the Cajamarca, Cusco, Amazonas, and Pasco regions will benefit from it.

In mid-January, the Peruvian government declared the arrival of the second wave of Covid-19. The government established different risk levels for the country’s regions and implemented restrictions for each level. One measure ensured that people taking domestic flights from extreme risk regions must present a negative Covid test from within 72 hours before the flight, as well as foreigners entering the country. 

Added to the general political instability of 2020 was a national scandal called “vacunagate”, where it was discovered that influential figures including the former president and the health minister had secretly received free vaccines from Sinopharm months before negotiations were finalized and doses were available to the population. The news aggravated the feeling of disappointment with political leaders. Currently, a limited number of vaccines are available and the vaccination process has begun. The Peruvian government presented a National Vaccination Plan that has three phases that extend until the second half of the year. The country is also preparing to face presidential elections during April.

Available Lots: A broad range of all regions and qualities available on all three coasts (Continental NJ, Annex CA, DuPuy Houston). A rep from our team would be happy to walk you through our offerings from Peru and make recommendations.

Colombia 

Heavy rains have stunted both flowering for Colombia’s second semester harvest and maturation for the imminent mitaca fly crop across Southern Colombia. Ports from Cartagena to Buenaventura are dealing with congestion due to limited availability with primary shipping lines. Port Strikes in Brazil and Covid-19 are the main culprits. Container availability is not currently an issue.  

Geovanny Liscano reports that Asorcafe is business as usual with producers focused on maintenance in the current between-crops season.  First picking at altitude in Inzá should begin by the second half of June. 

Covid-19 cases are back on the rise. The government has put in place new travel restrictions for those traveling internally within Colombia. The first vaccines arrived in Colombia mid-February with the government maintaining their plan for 20,000,000 doses to be distributed in the 2021 calendar year.  

Available Lots: Red Fox’s North American stock is dwindling as we prepare for inbound Mexican coffee late spring. Expect fresh crop coffee from the mitaca to begin shipping late summer/early fall.  

Rwanda 

Cherry picking in Rwanda is underway, with peak harvest towards the end of March. Reports of weather and rainfall have been promising, and we are expecting good quality and volume this season. We should see offer samples in our lab in late May/early June.

Rwanda has imposed some of Africa’s toughest anti-coronavirus measures since the pandemic began, including one of the first full lockdowns on the continent in March 2020. More recently, Kigali went back into lockdown for 2 weeks in January 2021, after an increase in the number of Covid cases. Case numbers have since fallen and restrictions have been eased in the capital, though concern about new variants remains high.

Rwanda received its first Covid-19 vaccines in February of this year and has been rolling out a wider vaccination campaign in March, with doses of the Pfizer and AstraZeneca vaccines supplied through the WHO’s COVAX initiative. The government’s goal is to vaccinate 30% of its population of 12 million people this year and 60% by the end of 2022.

Available Lots: Lot selection late May/early June with a container to both East and West Coasts likely to go afloat before the end of June.

Ecuador

Ecuador’s rainfall eclipsed the summer season and there continues to be excess rainfall. It seems that summer weather is finally approaching, which could bring the harvest a bit early. The October-November flowering was abundant, but there was minimal fruit. Producers have let us know that they are optimistic about what is to come this harvest season.

Ecuador received its first Covid-19 vaccines in January 2021, but has been rolling them out slower than anticipated. The country has contracts with Covax, Pfizer, and AstraZeneca. There have been a high number of cases and deaths in the country with a majority near the large coastal city of Guayaquil. The country’s goal is to have phase 1, vaccinating 2 million people completed by the end of April 2021 and begin phase 2. For reference, there are over 17.3 million people total in the country. 

Available Lots: With only a few lingering lots left uncommitted, get in touch with your rep if you have interest in sampling any lots still on the offerlist. Sidra, Typica and Bourbon Tekisic variety separations still available.

 

To learn more about our work, check out our journal and follow us on Instagram @redfoxcoffeemerchants, Twitter @redfoxcoffeeSpotify, and YouTube.

 

Kedir Jebril Imamu & His Fabled Gogogu Forest Coffees

Central Guji is one of the coffee world’s veritable treasure chests. As the Ethiopian coffee trade has made itself over several times in the past 12 years, so has Red Fox. The advent of ECX prior to the 2009/10 harvest brought me personally to Uraga having to say goodbye to the strong relationships built over several years with privately held washing stations in Gedeb, Yirgacheffe and Bensa in Sidamo. Working through Guji’s Cooperative Union I found myself making trip after trip to Layo Tiraga in Central Uraga’s forests and eventually Yabitu Koba in the Ugo Begne forests building a pipeline for top lots to the US. The beautiful coffees in Yirgacheffe and Sidamo became an afterthought as I pushed to put this region on specialty coffee’s radar. As the Union found themselves in brutal political and financial struggles in the early years of Red Fox we branched out to working with small, independent washing station owners in the specific forests in and around Harso Larcho Torka, Bire, Gogogu, Ugo Begne, and Bere.

Enter Kedir Jebril Imamu. On the surface Kedir appears to be just another independent washing station owner from Dilla in the Gedeo Zone. His two brothers, Feku and Abdi, have coffees widely praised by the industry that Red Fox used to source and deliver in the immediate post-Union years. There is more notoriety on both of his brother’s names in the North American coffee market because they’ve been so widely traded and marketed by us and several importers post-Red Fox. But it’s the youngest brother that might just emerge as the new wave industry leader in Haro Welabu, the newly zoned Guji Woreda immediately east of Hambela Wamena and west of Uraga.  

Kedir grew up working odd jobs around Dilla, mainly construction. He eventually saved enough money to open his own coffee transportation company moving coffee from the bejewelled coffee forests surrounding Dilla—specifically Central and Northern Guji—down the mountain to major trade centers. 11 years ago, Kedir built his very own washing station, Gogogu Bekaka, in the Gogogu kebele of (formerly) Uraga, Guji. Since then Kedir has gradually increased his bandwidth with the neighboring coffee farmers growing his volume at Bekaka to roughly 2 container loads annual. 2 years ago, Kedir built his second washing station, also in the forests of Gogogu: Gogogu Wate. Production is lower annually here as Kedir continues to develop confidence from his neighboring farmers. We expect up to 200 bags available only this season.

Kedir’s the youngest of the Jebril brothers and he might just be the savviest. Kedir incorporated his own export company in 2020. That’s a big deal. Kedir will be exporting his own coffee direct to Red Fox this season. He delivered his coffee directly to ECX in Dilla for the first 7 years of Gogogu Bekaka’s existence. He worked with a private export company for the past 4 years through the country’s Vertical Integration system allowing privately held businesses to traceably purchase coffees again. Kedir wasn’t happy with this arrangement though—he knew his coffee was more valuable than the prices he was receiving for it. We bought his Gogogou coffees 2 seasons ago and plan to never let them go. This is the quintessential relationship archetype that Red Fox seeks out in Ethiopia; a small, locally held washing station with exclusive export to us in the US. Oh, and the coffee is amazing.  

GOGOGU HARVEST ‘20/‘21

The Central Guji season started in early November this year and will finish up in mid-January. Most washing stations will begin to prepare Grade 1 quality a couple of weeks into the season as the harvest picks up and ripening begins to become more dense. They’ll continue preparing Grade 1 quality through the season stopping in the final week or so as the very last fruit comes off the trees in their areas. The early and late season coffees will become Grade 2 quality. Kedir has stricter protocols. He processed the first month+ of cherry as Grade 2 and only selected the fruit from the densest ripening period of the season, Dec 10 – Jan 5, as Grade 1 this year.  His offerings from Bekaka and Wate are the purest essence of what the surrounding forests can be and are.  

Kedir’s fermentation process is extensive—he leaves freshly peeled seeds underwater for 60 hours compared to the average washing station’s 48. Coffees are then washed vigorously in elongated channels while also being selected for quality. The less dense Grade 2 quality beans are sifted off the top of the channel and taken to their own drying stations. The denser Grade 1 coffees eventually make it to a soaking tank where they’ll sit overnight removing any excess mucilage from the seed before they’re sent to the drying beds. Kedir keeps his parchment coffee covered in mesh for the first 5-6 days in order to avoid cracking and direct exposure to sunlight which can damage the integrity of the beans. After this first drying period the coffee is then opened to sunlight and left to dry for another 5-6 days before being conditioned in the storage warehouse for upwards of a month.  

Kedir paid 25-29 birr/kg for coffee cherry in the 2020/21 season. It’s important to note that the standard local price for cherry prior to last year was in the 14-20 birr/kg range for many years.  Increased competition through the Vertical Integration concept has very much increased financial viability for coffee producers across Centra/Northern Guji from Uraga to Haro Welabu to Hambela Wamena. 

THE GOODS

Even though these coffees are only a bumpy 20 minute drive from each other, the flavor profiles are uniquely distinct.  

Gogogu Bekaka: Tropical yellow fruits are the headliner here—sweet but bright, sparkly mango and ultra-ripe papaya reign supreme with lingering rosewater Turkish delight in the background.  The finish shows a more caramelized character along the lines of bruleed meringue or marshmallow. This cup profile has haunted me with memories of Yabitu Koba/Ugo Begne Forest coffees of years past for the past week. These lots will demonstrate a truly dynamic range across the flavor spectrum. So structured. Perfectly complete.  

Gogogu Wate: The Wate lots also conjured memories of coffees of yesteryear and right off the bat with their scallion-like aromatics. Scallion? Yes. Oddly enough, it’s the one single flavor attribute I seek out most in Central Guji coffees.  It’s an indication of 2 things: 1) that the coffee is mighty fresh,  2) so fresh that as the lot conditions over the course of a month or so that exact scallion character morphs into the most stunning honeysuckle/orange blossom fragrance. It sounds odd but it’s the secret sauce. Moving forward the cup profile itself in a word is electric. Key Lime.  Radiant, fresh, crisp Key Lime. Persian Lime. Kaffir Lime. Lemon Lime. All the limes. This is an effervescently refreshing coffee.  

 

To learn more about our work, check out our journal and follow us on Instagram @redfoxcoffeemerchants, Twitter @redfoxcoffeeSpotify, and YouTube.

 

Puno, Better Than Ever

Puno coffee—if you’ve had it, you know it’s unforgettable. Puno is one of the most exclusive and renowned growing regions in all of Latin America, and while we buy all the volume we can from our producing partners there, there just isn’t that much. The coffees are some of the best we taste all year not just in Peru, but in the whole world. Puno coffees have a dedicated following and are typically gone before they arrive, so we may not talk about them very often. But Puno, located in the South of Peru where Red Fox started, is a huge part of our story.

Members of what is now Red Fox had been working in neighboring Southern Peru region Cusco since 2006, but were pushed out in 2007 by a large, corrupt cooperative union that ruled the Cusco region and all the groups within with an iron fist, preventing us from buying coffee at higher prices and maintaining traceability. When we were pushed out of Cusco, we connected with trade partners in Puno and started working there in 2008, meeting producers and tasting their coffees, which were (and are) truly exceptional.

After tasting the incredibly floral offerings that come from Putina Punco at the 2008 National Cafe Y Cacao board competition, which governs coffee trade in Peru and held an annual COE-style competition and auction 10 years before the inaugural COE Peru, we met with Tibed Yujra, who was at the time the head of quality control for a large cooperative union based in Puno. During that visit, we cupped through a veritable ton of coffee with the cooperative: the ten best, they sent back to auction, and the rest, we bought. We’ve been buying Puno coffees since then.

Over time, we struggled with the cooperative union in that area, and they dealt with high turnover. Tibed left and did consulting and QC work elsewhere, and we met back up with him in Cusco after that region reopened to us, coming to work for us shortly thereafter. We discovered that the cooperative union we worked with in Puno wasn’t paying the full prices back to producers that we had promised and paid to the organization. After a few years navigating the situation in Puno as best we could and trying to get money back to the producers, Tibed left Red Fox and started his own company in Puno, helping us connect with producers and make sure they get paid the prices we promise them as well as helping them maximize the coffee’s potential. This year, we’re more excited than ever about Puno.

Puno, and specifically the subregion of the Sandia Valley where the producers we work with live, is home to some of the original Bourbon the UN brought there in the 80s in order to combat the growing coca trade. Because the UN isn’t a coffee organization, they brought Bourbon instead of the hybrids that became so ubiquitous throughout Latin America, a decision that was key to the coffee landscape as it currently exists. Most of the farmers there are smallholders, growing on an average 2.5 hectares of land.

The reason there’s so little coffee coming out of Puno each year is that despite the UN’s efforts, the coca trade has since reclaimed most of the Sandia Valley. The farmers we work with are some of the last coffee growers in the area. While some farmers are coerced into growing coca, others are understandably attracted to the faster, multiple growing seasons and higher prices coca promises. We’re excited to see Tibed organizing to make sure fair coffee profits get back to the farmers remaining in Puno and we see many good things on the horizon for this unique subregion this year and into the future.

In addition to Putina Punco, we buy coffee from Massiapo, Quiquira, and Yanahuaya, all within a relatively close vicinity within the Sandia Valley. Sandia Valley flavors are extremely dynamic, more so than any other region in Peru. The Caturra coffees in the area have a prolific combination of sweetness and acidity, with dark fruit character like both red and black currants and a crisp, apple character with both weight, sweetness, and a refreshing malic acidity like both apple and pear. When you roast them, they’re complete and balanced as well as nuanced and dynamic. That’s what the Caturra is like, but when you hit pockets of Bourbon you find coffees that come with flavors you associate strongly with East Africa: floral, complex, and intensely sweet, like honeysuckle and hard candy. They may not have the level of complexity to the acidity as Ethiopian coffees, but the dynamic of sweetness is unmatched.

 

Interested in sourcing coffee with us? Reach out at info@redfoxcoffeemerchants.comTo learn more about our work, check out our journal and follow us on Instagram @redfoxcoffeemerchants, Twitter @redfoxcoffeeSpotify, and YouTube.

First Chance To Try Finca Santa Cruz

 

Of all our new relationships in Chiapas this year, Finca Santa Cruz is one of the most exciting. Run by the innovative Pepe Arguello, the farm is already achieving widespread notoriety in just its third year running. Last year, Pepe won COE Mexico. He was willing to sell in the auction market but wanted to build something deeper, especially with the rest of his product (just as excellent, but at a more accessible quality tier), mostly made up of Bourbon, Typica, Yellow Caturra, and some Geisha. Pepe’s lots’ flavor profiles include ripe purple fruit like black currant, raisin, date, and plum, a saturated amber honey sweetness, and a complex acidity, both tartaric and malic, layered throughout. 

Pepe’s father was a well-known producer in Chiapas, and when Pepe purchased Finca Santa Cruz, he decided to build the business around specialty. With land at 1700 masl on the Triunfo Biosphere Reserve, his farming practices reflect his desire for a more precise, agronomically advanced, and conservation-focused approach: he harvests cherry according to Brix (measuring the sugar content of the fruit), ferments according to pH (the actual acidity of the fermentation), and generally seeks experimentation, growth, and collaboration. The area is biodiverse, filled with native Inga trees that also provide shade, allowing the coffee to grow in harmony with the surrounding reserve rather than in conflict with it. Pepe’s goal is to slowly increase production as well as quality and gain wider international recognition. 

While Pepe is still a small-scale farmer at 60 hectares, we’re excited to have a slightly larger lot to offer from him than what we’re usually able to get at the producer ID level (for instance, all the farmers we work with in Oaxaca are extreme smallholders averaging just 1-2 hectares). We’re able to provide a deeper commitment than what Pepe would find at the auction level and find good homes for the whole range of coffee he produces.  

Community-wise, the local workforce is integral to Finca Santa Cruz’s success in meeting demand. After the community helps harvest cherry, Pepe first floats the cherry in water, then ferments for 20-72 hours in concrete tanks depending on outside factors like weather and ambient temperature, using pH as his guide. He then dries washed parchment on raised beds with mesh covering for 17-25 days. He uses a hydrometer to measure the level of moisture in the coffee during drying. We’re excited to work together to help him customize processing for different clients and continue to invest in and improve quality. 

His practices also help inform and grow education in the surrounding farmer population. He carries on the legacy of his father and his community while advancing with the technologies of the present, producing a truly stellar product. 

 

To learn more about our work, check out our journal and follow us on Instagram @redfoxcoffeemerchants, Twitter @redfoxcoffeeSpotify, and YouTube.

Ernesto Perez & Coatepec Community Do Things Differently

 

One thing we love about growing our work in Mexico is how different the subregions are, whole origins unto themselves. We’re excited to bring some new offerings from Veracruz, an origin unique in several ways. First, a major distinction from much of Latin America: instead of buying and selling parchment, Veracruz producers buy and sell cherry, processing centrally at mills. Ernesto Perez’s Finca Fatima is both a farm and a mill, and all three of the Veracruz lots we bought this year were processed there, including of course Ernesto’s own.

 

Producing in tiny subregion Coatepec, Ernesto’s coffee, and that of his community, is special. Coatepec has some of the highest latitude coffee on the globe: just like high elevations yield slow cherry maturation due to cooler weather, Coatepec pushes the northern edge of the tropics, where cooler, slightly wetter weather and long, cool nights during the harvest slow down cherry ripening, creating an incredible density of flavor. Combined with varieties like Typica, Garnica, Marsellesa, and Caturra and meticulous processing, these coffees have notes of Meyer lemon, apricot, lush red berry, cherry, and lemongrass. 

 

A younger farmer taking over the family farm and mill, Ernesto wants to help move his community production into high quality specialty, tweak processing, focus on microlots, and help those around him make a little more money on their work. Ernesto’s coffee placed super high in 2018 and 2019 COE and was used by the 2019 Mexico barista champion. This year, he decided to expand his own wet mill into APG Coffee, a micro wet mill that other smaller farmers in Coatepec could use. APG also offers agronomic consulting for other farmers to help rebuild soils, increase quality, and overall help the community of Coatepec do their best work and make as much money as possible. This year, Ernesto’s coffee brings malic tartness of green apple, sweet spice, and rich honey. 

 

The other producers we’re featuring from Coatepec are Enrique Toss and Jose Cienfuegos. Enrique’s coffees have a super saturated dry fruit sweetness like raisin and date as well as substantial sugar browning like chocolate, candied pecan, and heavy caramel. Jose’s bring bright, juicy complexity like raspberry jam, dried strawberry, lime zest, and amber honey.

 

To learn more about our work, check out our journal and follow us on Instagram @redfoxcoffeemerchants, Twitter @redfoxcoffeeSpotify, and YouTube.

Red Fox Origin & Shipping Update: April 2020

Hi friends,

We want to give you an update on how our supply chains are looking and make sure you feel safe and looped in as things develop. We’re seeing a lot of speculation and fear out there, but our supply chains are unique and we want you to feel confident about buying coffee from Red Fox. Below is a rundown of our current shipment, harvest, and spot positions. If you have any questions or want to have a conversation about forecasting or managing your position over this volatile period, we are here to help. 

To preface, we don’t want to give you a superficial update: we want to share everything we know and make sure that you feel empowered to make decisions and communicate openly with us as we will continue to do with you. Once again, we are always, always here—please get in touch, even if you just want to check in.

Supply, Demand, & The ‘C’ Market 

Red Fox has always been able to operate outside of the scope of the C market, which is an antiquated measure of a coffee’s real value. Anything short of a massive rally would allow us to maintain continuity in our approach. 

That said, we need to be prepared for every possible outcome. We’ve seen a steady climb in the ‘C’ over the past month+ settling in just over $1.20 as trading against May comes to a close next week. The current global economic climate doesn’t necessarily lend itself to confidence on either side of the coin. The slowdown could grind demand to a halt and bring the market back down below $1. Any potential port closures, or container shortages which are a larger concern at the moment, could cause the market to rally and potentially to levels we haven’t seen in over a decade due to an eventual lack of supply.  

The indication we’ve received from our partners in Peru, Colombia and Rwanda is positive so far; the origins with their harvests on deck. They will be able to pick and process coffee business-as-usual as of now. Will Brasil be able to do the same? Will the medium to large producers in Colombia? Labor is very much an issue for the imminent harvests. We’ll keep you all apprised of the situation in the months to come.

Mexico

Update from origin: 

The Mexican government considers coffee to be a priority product, so dry mills are allowed to continue operations during the shutdown. Both of the dry mills we work with are taking all of the necessary precautions to stay safe. One of the mills we work with is operating with fewer workers. Shipping lines are accepting bookings and we expect to have the first containers afloat by the end of April and available in the US the second or third week of May. 

However, we are now getting word that several indigenous communities outside of the Oaxaca City capital, particularly in the Mixteca region, are proactively closing roads in order to prevent the spread of the virus and requiring anyone to apply for a special permission ahead of time to be on the road. This will affect a small percentage of coffee that is still stored in producers’ houses and hasn’t been brought down to the central warehouses and dry mills. We hope to see that opened up by the end of the month to be able to mill and ship the 50-75 bags we had planned to purchase from these communities that weren’t delivered yet.

Available lots:

We have a couple lots from the 2019 harvest in inventory for anyone that is looking for either a conventional or fully certified blend component. These lots are holding up well and priced to move.

Ethiopia 

Update from origin: 

Prime Minister Abiy Ahmed has been cautious with his mandates. As 80+% of the population relies on agriculture, and daily wages from it, a complete shutdown remains an impossibility. Roads to the countryside are closed to all other than trucks related directly to business. Government offices and public transport are closed officially. Large gatherings are forbidden.  Addis Ababa itself is essentially locked down.  

ECX remains open as of last week and has implemented a rotating system of buyers to maintain safe distances between people. This, coupled with the new minimum price floors instituted a couple of months ago, is causing purchases delays and the general movement of coffee between warehouses.  

Dry mills are operating at a slow clip. Shipments to Djibouti are also moving at a slower clip due to the port’s pace. 

Our dry mill and export partners are maintaining the safest, cleanest environments they at the moment, hence the slow down within.  

Available lots:

We have multiple containers of top Agaro coffees at both The Annex CA and Continental Terminals NJ SPOT now. Our final Guji, Yirgacheffe, and Sidamo shipments are somewhere between just afloat, Djibouti, and the PSS approval stage. Expect arrivals from early May through June.

Kenya

Update from origin: 

A nationwide mandated curfew is in effect from 7pm to 5am daily. The Kenyan government has effectively stopped all movement in and out of Nairobi with the exception of cargo. Coffee is still moving to Port of Mombasa which maintains a normal schedule with shipping lines. Food grade containers continue to be scarce but still obtainable.  

Available lots: 

Our Kenyan shipments have gone afloat as of two weeks ago and are due into port early May.  Our unallocated offerings will be limited. For all those that committed to forward contracts, we have you covered and samples will be available in the next couple weeks. These lots are stunning and we’re thankful to all those who committed and made it possible for us to make a return to Kenya. Anyone who is interested, get in touch ASAP.

Guatemala

Update from origin: 

Guatemala continues to be in lockdown with no civilian travel allowed between departments and curfew extended to April 20th. There are heavy fines for anyone caught without a mask. All international and domestic flights are suspended until April 30th. 

What this means is that there is a real migrant labor shortage. Certain regions like Huehuetenango, which was at peak harvest when COVID hit, are seeing as much as 20-30+% of the crop rotting on the trees for lack of pickers. Mills are running at much smaller capacity due to labor shortages as well. Though coffee is deemed an essential product and therefore allowed transit, individual communities are putting up roadblocks and not allowing any traffic through. This has slowed everything down.

Back in Guatemala City, the dry mills are operating at near normal capacity. Although there have been some minor lags with having enough shipping containers available, the coffees are mostly moving quickly once they’re milled. 

All that said, despite some pretty big obstacles this harvest, we expect to see Guatemala arriving in late May.

Available lots:

If you haven’t already, now’s the time to forward book.   

Colombia

Update from origin: 

The Colombian government has extended their strict stay-at-home mandate through April 27th as of the end of March. Coffee production, milling and exporting have been deemed essential business and exempted from the order.  

Our milling and export partners are working at a reduced 50% capacity due to curfews forcing them to go home earlier in the evening than normal.  

Transportation complications are reaching critical mass as availability decreases despite increased rates. Conditions are deteriorating for drivers as there are no longer stops to eat and to rest.  

Ports are generally open for business as usual though some have limited hours for loading and unloading to morning time.

A lack of pickers will have significant impact on the medium to large farms.  

Click here to read specific updates from groups we work with. 

Available lots:

We have a diverse array of Colombia spot coffee in Continental, the Annex, and DuPuy Houston from some of our longest-standing relationships in Inza and Narino. Lots range from Producer IDs perfect for single origin menu spots to nuanced yet approachable blend-ready lots that go through the same rigorous QC process. They’re at their peak now and will hold their own for months to come—they’re a great option no matter where you’re located or what menu spots you need to fill. 

Peru

Update from origin: 

The Peruvian government declared a National Emergency beginning March 15th, 2020 with measures including a nationwide quarantine and the closure of regional and international borders. These measures are currently scheduled to continue through April 26th, though the ports and shipping lines are not affected and have been operating continuously. Initially, the only agricultural activities permitted were those related to the provision of food, but, as of April 3rd,  the government exempted all agricultural activities—including the the harvest, transport, collection and processing of coffee—from quarantine restrictions, so long as each individual obtains a certificate from their local/community authorities accrediting that they in fact work in agriculture. 

In practice most everyone in the coffee sector, including producers, day laborers, those working for cooperatives and associations, local warehouses, and dry mill operators, has been abiding by the quarantine restrictions, even though they are exempt. In some cases this is because of their own interest in preventing the spread of the virus. Another factor is the “rondas campesinas,” local peasant patrol groups that began in the late 1970s in northern Peru to protect rural communities against theft and that continue to operate autonomously in many communities across the country. The rondas (in the areas where they operate), and other rural self defense committees across Peru with similar enforcement rights, are closing local roads and prohibiting non-residents from entering to keep the virus from spreading to their communities—most of which do not have access to medical services. 

What does this mean for the Red Fox Supply Chain?

While the harvest season has begun on lower altitude farms in the north of Peru and the Selva Central, the producers we purchase coffee from are still at least a month away from the harvest. 60% of Red Fox suppliers are in Southern Peru, where the harvest begins in June at the lower altitudes, and goes through October on the highest altitude farms. Even in the North, where the harvest came early this year, the majority of the farms we are sourcing from are located at over 1600 meters above sea level and the harvest is not expected to begin until the second half of May. 

There is some concern in Peru about labor for this harvest season. Many producers rely on migrant workers to help with the harvest, and most people suspect that the regional borders will be closed well past the end of the quarantine period. We do not expect our suppliers to be particularly affected by this. Red Fox does purchase coffee from some producers who hire migrant workers, but the vast majority are smallholders whose farms are family operated. In the South of Peru, the concept of “Ayni” is common. This Andean work system practiced by Quechua and Aymara cultures is founded on the principle of reciprocity, and community members take turns helping each other to harvest and perform other farming activities rather than hiring outside help.

March and April are usually the months when our suppliers renew their Fair Trade and Organic certifications, and all of the certifiers have suspended their audits for recertification. The producer organizations we work with have been in communication with their respective certifiers to reschedule their inspections and/or renew their certifications virtually, and anticipate they will have their certifications in place by the time we begin shipping coffee in September. 

We are in regular communication with all of our core suppliers in Peru, and they share the same concerns and feelings of uncertainty that many of us do. They worry about demand, prices, financing, and contracts. We are reiterating our commitment to work together, to purchase as much coffee as we can this coming season, and to continue to pay the highest prices possible for their coffees. 

While our operations in Peru have not very been affected by this pandemic thus far, our sourcing team and our suppliers will no doubt need to be agile and creative as we navigate this coming season. 

Click here to read specific updates from groups we work with.

Available lots:

We only have a handful of lots left in NJ, but these are some of the nicest Producer ID lots we saw all harvest, many of which are from the Valle Inca group in Calca. We have some stunning lots available left in the Annex and are offering a flat palletized rate country-wide out of that warehouse to support widening your selection process. We have lots available from Cajamarca to Puno and all our major producing partner groups: Coopbam, Santuario, Valle Inca, Aromas del Valle, Pangoa, Cecovasa, Huadquina, and more.  Please get in touch if you would like support in narrowing our selection and making recommendations.

Rwanda

Update from origin: 

The government in Rwanda instituted a nationwide lockdown on March 21st, one of the earliest in East Africa. International borders are closed, except to goods and cargo, and internal travel is not permitted. Only essential shops and markets are allowed to operate. Coffee is considered an essential commodity, and washing stations and dry mills are operational with strict social distancing and sanitation measures in place. The peak of the harvest is approaching and cherry picking continues, albeit at a slower pace. Farmers have delivered less than 15% of their cherry to date meaning May will be the peak of harvest. We hope to see the first samples from Kanzu in early June. 

Available lots:

With only a bag or two uncommitted, reach out to your rep if you have interest. We may be able to work some magic, especially if you’re open to pulling from the Annex.

Ecuador

Update from origin: 

The Ecuadorian government has put in place a strict nationwide quarantine. There is no financial help at this time, except for small loans. Agricultural production has been deemed essential businesses, but cargo loads have limited movement around the country. The borders have been closed, with only the exception being cargo trucks. 

This year’s harvest hasn’t begun yet, although it is expected to begin a little earlier this year. Harvest in the Pichincha area is estimated to start in May and peak in early July, about three weeks earlier than last year. It is difficult to predict the available labor once harvest begins, but with so many left unemployed from the crisis, local leader Arnaud Causse believes there won’t be a shortage of labor. He is reporting that farms are looking good and that projects on the land are continuing as planned. 

Available lots: 

We have just a few lots and a few bags left to offer from this season’s harvest but still have some nice offerings from core producers Hernan Zuniga, Arnaud Causse, and Gilda Carrascal. 

To get in touch, email us at info@redfoxcoffeemerchants.com. We are always here and happy to help and support you in any way we can. 

Pluma de Oaxaca: An Origin Reborn

The deeper we get into the world of Mexican coffee, the more excited we get, and those of you who have tasted the coffees or met some of our producing partners know why. Right now, we’re looking at Pluma, a subregion of Oaxaca that brings with it an incredible history along with incredible coffees. Boasting the singular Pluma Hidalgo variety, an offshoot of Typica, at elevations as high as 2200 masl, Pluma coffees bring with them a wide range of flavors: distinct dried fruit notes like raisin and prune, saturated sweetness like brown sugar, richness like drinking chocolate, complex malic acidity like green apples, and even florals like amber honey and peach blossom. Even though many of these coffees are still on the water, they’re going fast—if you’re interested in picking some up, get in touch now.

Over the last few decades, Pluma’s coffee production has evolved dramatically, shifting from the hands of large estates into the hands of local smallholder farmers. Nowadays, Pluma is almost exclusively the province of smallholders with farms averaging just 1-2 hectares, but going back 80 to 100 years, the coffee production landscape looked completely different. Huge, lower-middle elevation coffee plantations ruled the territory, buying the higher-grown smallholder coffees and blending them into their own bulk, undifferentiated despite their superior quality. In the late 80s and early 90s, Pluma gained a widespread reputation for producing quality coffee. However, a combination of factors including low market pricing and coffee leaf rust (known as Roya), saw estate holders abandoning their farms and moving on to more lucrative ventures.

Once the estates were decimated, local smallholder farmers continued farming—mostly out of necessity, though their operations were no more fiscally sound than the estates had been. Pluma’s smallholders struggled to make enough to thrive and reinvest in their farms, and many have lived on the brink of giving up and following in the footsteps of the estate holders before them. Without access to a differentiated market where customers are willing to pay viable prices, there hasn’t always been a real value proposition for Pluma’s producers to keep growing coffee.

Over the last couple years, we’ve seen this start to shift. Being able to introduce these coffees to a group of buyers willing and ready to purchase them at a viable price has started to build trust in this region and reinvigorate local farmers, who are beginning to understand that their coffee is worth more than they’ve always been told. They are ready to be able to dictate their own futures and gain access to new pathways to finance and reinvest in their own success.

We could not be more excited about the future of Pluma. This year, we’ve more than doubled the amount of coffee we’re bringing in from Oaxaca, and still, almost all of it was sold out before it even made it to the States. If you’re interested in putting these coffees on your menu, get in touch now, because they’re going fast.

New Fruits You Should Try: Nariño and Inzá

If you haven’t bought Colombian coffee from us yet, the time is now. We have delicious, versatile coffees from Nariño and Inzá on both coasts that shine on the cupping table and absolutely stun at production roast levels. Just as important as their quality, Colombia is home to some of our oldest relationships, and these coffees represent the absolute best of what community leaders can do from a local to a global scale, in terms of both impact and quality.

Our relationship with Inzá-based ASORCAFE dates back to 2006, when Geovanny Liscano farmed just one hectare of land with his wife and father. The coffee was superb and the infrastructure was humble, but over time, Geovanny reinvested profits back into the land, bought surrounding plots, and built up processing infrastructure into a thing of beauty for the whole community. ASORCAFE is incredibly well-organized with a laser-focus on ethics; they don’t allow corruption in their ranks, and this value shows in the cup. The coffees they produce are some of the most complete coffees in the country, bringing to the table a succulent sweetness, a juicy, ciderlike mouthfeel, and bright, clean acidity that can be malic, pear-like, and even kiwi-like. They’re perfectly structured and essentially flawless.

In Nariño, we’ve been inspired since 2007 by FUDAM leaders Raquel and Jeremias Lasso. With soaring altitudes and ideal varieties, the quality was always stunning; even more importantly, Raquel is an innovative leader that inspires the best work from her community and gives it in return. More recently, she’s formed a group within FUDAM called Manos de Mujeres, focused on the empowerment of women growers within her community, with projects ensuring they see a fair 50% of farm profits and a goal of opening an organic fertilizer facility. Currently in the process of becoming certified Fair Trade Organic, FUDAM is a perfect example of how community investment can and should represent an investment in quality. Flavor-wise, we see Nariño as the proverbial fruit basket: the best lots run the gamut from ripe, succulent stone fruits on the yellow flesh side (peach, apricot, nectarine) to tart, refreshing white grape and Granny Smith to perfectly sweet citrus of the most coveted varieties (tangerine, satsuma, and even sweet lime).

We have a ton of history with these coffees, and we want you to as well. Flavor profiles are diverse, so get in touch and we’ll help you find the perfect coffee for your menu.