I’m sipping a lovely cup of coffee in the London sun ☀️, and it’s taking me back to a moment last week in the office. I’d popped downstairs to grab a latte, and just ahead of me in the queue, a bit of an argument was brewing…
Customer: “How can a coffee be this expensive now? I’m just going to make it at home from now on.”
The barista: “I know! We feel the same. But all the coffeehouses are raising prices this month — we really don’t have a choice.”
I jumped in: “I know! Climate change!”
It’s not every day you hear business and human rights topics mentioned in a café queue. But it’s happening more and more, as these issues are landing right in front of consumers.
Global coffee prices are at historic highs ☕
We’ve had unusually hot weather in Brazil — the world’s largest producer of arabica beans — which has devastated crops. We’ve had severe drought in Vietnam, the world’s largest producer of robusta beans (used for instant coffee).
Add in to the mix that the EU’s deforestation law has triggered a frontloading of coffee bean purchases. And that US coffee lovers will be hit hard by 10% tariffs on imports from Brazil and Colombia, and 46% tariffs on beans from Vietnam. And the speculation in the market for coffee futures prices. And we have a perfect storm.
However, we do have a business and human rights solution. We can build resilience of coffee farmers to weather the storm - through living income, upfront investment, access to finance, and long-term contracts. Spot markets and short-term contracts just won’t cut it any longer for the storm that we’re in.
Same story if you love chocolate 🍫, sugar, tea 🍵 or oranges 🍊 (and really, who doesn’t?)
Switching gears to one of my other fave topics: the laws 📜
Germany’s CDU/CSU and SPD have just reached a coalition agreement to form a new government.
And here’s what they’ve decided on the German Supply Chain Act (LkSG): it will be repealed.
And in the meantime, the law will not be enforced at all – except in cases of severe human rights violations. The EU CSDDD will take its place, whenever that is re-negotiated. (See here, starting at line 1913 of the coalition agreement, and Google Translate may be your new best friend).
So that’s that.
Enjoy your next coffee ☕
Anna
