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VCT: News from the Cupping Table
The latest news from Vournas Coffee Trading.
- Christmas and New Year's Holiday Closure
Vournas Coffee Trading wishes to remind everyone of our holiday schedule. We will be open from 8am-noon PST on Wednesday, December 24. On Thursday, December 25 and Friday, December 26, we will be closed.
On Thursday, January 1, we will be closed as well.
Since warehouses on both coasts will also be closed on the above dates, please plan purchases and shipments with these closures in mind. As always, we hope you are able to safely enjoy your holidays. We wish you all peace and prosperity in the coming year.
- Jamaican Blue Mountain For Sale Anyone?
The famous producers of Jamaican Blue Mountain coffees, Wallenford and Mavis Bank, are for sale. Currently, the Development Bank of Jamaica holds a 70% ownership stake in Mavis Bank, and is attempting its sale in order to recover a significant sum of money owed to it by the company. Wallenford is being packaged for divestment and sale. Jamaica exported 16,200 tons of Blue Mountain coffee last year. Wallenford and Mavis Bank accounted for nearly 50% of the total exports. Both coffee producers are owned in part by the government of Jamaica. In 2005/2006, Wallenford lost $47 million, and in 2006/2007 they lost $56 million. Income grew from $604 million to $830 million between both years, while the cost of sales and direct expenses also grew from $424 million to $521 million. Administrative expenses jumped from $138 million to $312 million. Clearly, there are alot of hands in the mix, many of which must be holding a significant amount of green (money, not beans)... I think the answers to many of your questions regarding the prices of Jamaican coffee might be reflected in several of the above sentences.
We have heard that coffee cherry will still be sold to meet demand for the 2008/2009 crop, however it is fairly well known that the crop sustained significant damage from the recent hurricanes that plowed through the island. Losses from Tropical Storm Gustav amounted to 400,000 pounds and are estimated at over $100 million alone.
If I were a betting guy, I would look for prices to move upwards for any Jamaican coffee that will available this holiday season. Please don't shoot, I am only the messenger of this Jamaican news. Feel free to talk with us about possible replacement coffees if the prices drive you to "just say no."
- Vournas Coffee Trading Blog
We have a newly launched blog that we hope will be of assistance to our roasters and people with interest in green coffee. You can find it at http://vournascoffee.blogspot.com
Let us know what you think and if you would like any specific issues addressed. Thanks for your support.
- Organic 401b - Organic Transaction Certificates
Recently we learned that our organic inspector has raised the price of issuing organic transaction certificates, and it was a significant price increase. I am left to wonder why issuing a solitary piece of paper which includes information we provide them has to cost so much? I am thinking that they are growing tired of issuing pieces of paper that are, by law, unnecessary. Maybe they are thinking if they make it so expensive the desire to obtain them will stop? In any event, in order not to lose money, Vournas Coffee Trading has raised the price of obtaining an organic transaction certificate accordingly. Remember, THEY ARE UNNECESSARY! So do not let your inspector demand them from you. You only need our organic certificate. Call us and we will assist you with information you can use to make your inspection go smoothly. Happy Roasting. - Labor Day Holiday - VCT Closed
Greetings!
Vournas Coffee Trading will be closed for Labor Day on Monday, September 1, 2008. Warehouses on both coasts will be closed as well.
We hope you are able to enjoy a day celebrating our nation's workers and all they do for our country.
- Organic 401a - Inspections and Certificates
Increasingly, we have received requests to provide transaction certificates for each organic coffee purchased from us. Generally this occurs as the roaster is being inspected for organic certification, and usually after some kind of prompting from the organic inspector. We understand each of your concerns regarding the desire to make that process go smoothly as we receive annual organic inspections of our transactions and our facilities as well.
Current USDA/NOP regulations (i.e. those laws and rules that govern the lawful status of organic products in the United States) do notrequire transaction certificates for each organic coffee. Although some other importers routinely send transaction certificates out, this is an unnecessary expense which I would imagine is accounted for somewhere... The USDA/NOP regulations only require that you provide to your inspector valid certification proving the company from which you purchased your organic product is certified organic and meets the USDA/NOP standards and requirements. In other words, Vournas Coffee Trading's organic certificate, issued by CCOF, is sufficient to meet your inspection and recordkeeping needs as proscribed by the United States National Organic Program regulations. While this might be news to you, it should not be news to your organic inspector. Keep in mind, transaction certificates are an additional form of revenue for certifying agencies such as QAI and OCIA - that is why they ask for them.
Bottom line: I will gladly provide assistance to you and/or your inspector should either desire assistance. I have spent many hours researching these specific issues with federal agencies, local and state organic inspection agencies and state health departments. Our position is supported in writing from our USDA/NOP approved inspection agency, CCOF. If you still wish to have transaction certificates despite the above info, we can gladly obtain these for you. There is a fee associated with these certificates - please call for further information.
While organic certification issues may seem as clear as an espresso, please rest assured that all of us at Vournas Coffee Trading stand behind you and will work with you and your inspection agency to ensure your inspection proceeds without difficulty or delay. Please do not hesitate to call our office and ask for me should you or your inspector wish to discuss this issue further.
- C Market Developments
As of today, the C market closed for July 08 at 136.35. Still above where we have been resting comfortably for the past years, but down a bit from the heights of the past month or two. All speculation moves - nothing firm due to physical conditions which might affect coffee pricing. Some holdouts amongst growers/exporters for outright price contracts on deliveries, but everyone is rolling with the flow.
Due to current increased prices for oil, expect higher delivery costs, both ocean freight (which has doubled in less than 2 years) and commercial trucking freight fuel surcharges for movement from our warehouse to your shop.
We are entering the Brazil frost season, although much of the coffee is currently grown North of where it could be damaged. There is always, especially with our whacky weather these days, the possibility of a freak, damaging cold event. One thing you can rest certain of: Anything close will result in the Brazilians getting the word out to cause or, shall I say help create, price fluctuations in their favor...
This will be an interesting next several months/years as the investment funds have again become entrenched in commodities. As always, we will keep you informed of changes in the market as they arise. Happy Roasting.
- Visit to the New York Mercantile Exchange
In late July 2007, Andrew and Mike made a trip to New York City for business. While there, we were able to visit the coffee trading floor at the New York Mercantile Exchange in lower Manhattan. All coffee contracts traded at the outcry are traded here. It was the second visit to the trading floor for Andrew, and the first for Mike. Andrew had visited the NY "Merc," as it is called, when it was housed at the base of