So I got asked to write an article by Fresh Cup Magazine (a US coffee publication) on Ethiopian coffee and the ECX. It was in last months edition, so I thought that I would share it with you here now, I hope you enjoy

How Ethiopia is stonewalling specialty buyers by Stephen Leighton

Ethiopia is one of the finest producers of specialty coffee in the world, and it’s the original, natural home of the coffee plant. But while the country is steeped in history, it has lately also become steeped in controversy and red tape.
Coffee continues to be one of Ethiopia’s top exports, but its significance is now at an all-time low. In a contradictory development, coffee exports reached the highest-ever level in monetary terms in 2009 ($528 million), while at the same time falling to the lowest-ever share in Ethiopia’s total exports, at just 26 percent. This shows Ethiopia as the developing nation that it is, weaning itself from the dependency of coffee it has had for most of its recent history. It’s an understandable desire from the country, but the country’s move to better organize itself is having a dangerous repercussion: It’s essentially alienating the very buyers who most appreciate the country’s wondrous selection of beans.

Change for the better?
In recent years, Ethiopia’s government has done many things to try to formalize the way its exports and commodities are handled, and it has done so with items such as wheat, maize and sesame. It was only a matter of time until the country’s coffee industry jumped on board, and regulations came down in 2008.
The Ethiopian Commodity Exchange (the ECX) launched around that time to benefit and modernize the way Ethiopia was trading this valuable asset. The claim was that Ethiopia needed a change from the traditional means of trading to better support the needs of all those involved in the trading and production of coffee.
For Ethiopian coffee, 2008 was a very interesting time for a number of reasons. Firstly, there was the emergence of some very special coffees that were getting an awful lot of attention. The much-loved Idido Misty Valley and Beloya coffees, for example, both rose to prominence that year.
There was also a lot of noise made about intellectual property of coffee regions. It looked like Ethiopia and the ECX were trying to position themselves for a fight—but it turned out they had disappointing motives. Soon enough, the country started putting distance between great coffees and the specialty industry, choosing to work mainly with bigger roasters instead.

The ECX model
Here’s the layman’s version of the ECX process: A single farmer or akrabi (someone who buys coffee from small producers) is only allowed to sell his coffee through the exchange. Navigating around this system is impossible unless you are a formalized cooperative union.
Once the coffee is delivered to the ECX warehouse, the coffee is stripped of its provenance, graded by government workers using the Q System, and given a region and a marking grade. This is where things get a bit tough to follow. Washed coffees are classified Grade 1, Grade 2 or Grade 3. Naturally processed coffees (those dried with the fruit still on) are marked Grade 4 and Grade 5. This classification system gets even more complicated thanks to the fact that you can have a Grade 1 or 2 natural from southern parts of Ethiopia.
The grade relates to the cup’s profile, and because coffees are stripped of their provenance, this can lead to misleading categorizations. For example, if a Sidamo has the floral, lemon-like acidity typically found in a Yirgacheffe, it will be graded a Yirgacheffe. In general, the grade relates to quality—a Grade 1 is meant to be the best, but I have found some stunning coffees classified Grade 3.
The officials at the warehouse are the only people allowed to taste the coffee until it is bought and paid for (more about that in a moment). The details about each coffee are entered into a computer system, and shortly thereafter the coffee is offered on a trading floor that is essentially a smaller version of what you might see on Wall Street. The buyer knows if he’s buying a (supposed) Yirgacheffe or a Djimma, and he knows the grade the coffee’s been assigned by Q Grader government officials. Then he has to agree on a price for this coffee with the seller on the trading floor. Buyers can only enter the trading floor if they prove they have an account with enough money in it to buy the coffee. Once they agree on a deal, the money is transferred by the ECX from the buyer’s account to the seller’s within 48 hours.

Highs and lows
Because the ECX is often criticized, let’s highlight some of its good points. First, farmers get their money quickly. In other coffee-buying situations, unscrupulous exporters have been known to take their time to pay or sometimes don’t pay at all, giving the beginning of the chain a bum deal. Also, poor-quality coffees are sold as poor quality through the ECX, and those lower quality beans are sold for use inside Ethiopia only. That setup means the international market will not be flooded with cheap coffee that could damage the name of Ethiopia.
Finally, because all transactions go through the exchange, it’s impossible for traders to lie on export documentation about quality and prices paid. That means the government receives the proper amount of money from each transaction, which I think is important for a developing nation trying to improve the life of its people.
But the negative aspects of the ECX are severely weighing down the country’s industry. I understand that removing a coffee’s provenance helps it sell at the ECX (by helping to remove some manipulation of prices), but keeping that information secret once it’s purchased seems nonsensical to me. Separating buyers from cupping lots and forcing them to rely on the government’s Q Graders takes away one of the key elements of buying coffee: actually tasting it.
What’s more, the system adds unnecessary red tape, forms, paper and a whole heap of extra work for exporters, producers and the officials themselves. The insistence that specialty coffee is such a small part of the buying market that its needs don’t matter seems very shortsighted and almost petulant of Ethiopia. I think the road they have begun going down is pushing specialty buyers away from Ethiopia’s amazing coffees. In so doing, the country is in danger of becoming reliant on the huge firms that have controlled the New York commodity-trading market for many years—it’s these companies that have typically kept prices just above the cost of coffee production.
The anti-specialty trend has continued with the recent announcement that the country will stop using jute bags in favor of “bladders” inside containers. The bladders are essentially composed of four large bags inside a box, with the coffee blown into the bags in the container. Traditionally, these have only been used in the playground of bigger commodity buyers, and it’s another signal that Ethiopia doesn’t want exporters to sell to the specialty market. Because of their size (40,000 pounds), bladders are only practical when shipping generic mixed lots. The average micro-roaster likely cannot buy that much coffee and certainly can’t store it.
The no-jute policy was announced the week I was in Ethiopia on a buying trip. When one of the exporters told the news to my colleagues and me, we were shocked. The exporter theorized that it was a move by the government to crush the private exporter and give more power to the cooperative unions. There is a general feeling among exporters I spoke to on that trip that the main strategy of the government and ECX is to cut those private players out of the coffee chain. The government ultimately decided to withdraw the rule because of pressure from exporters, but I won’t be surprised if we see officials try to implement it again.

Survival tips
Despite all the difficulties standing in front of small buyers who want great Ehtiopian coffee, there are some ways for you to get around ECX issues such as loss of provenance and still buy effectively. Here are some tricks:
– It’s vital that you work with an importer/exporter who has people on the ground. While the provenance will still be removed, it will often possible for a savvy exporter to find out more about the coffee based on when was entered into the auction. Buyers and sellers know each other, and most local buyers know when certain washing stations delivered their goods to the ECX—it doesn’t take much sleuthing for them to then deduce some key info such as varietal, process and cup profile.
– Cooperative union coffees maintain lots of the provenance but will still be sold as a Grade 2 Yirgacheffe or a Grade 1 Sidamo. Ask whether there is any more information to be had.
– Grade 1 coffees come with more localized information and sub-region names; the government decided more details could be given out about Grade 1 coffees, even though the washing station info is stripped from them. Either way, this extra dose of info has led to an explosion of previously unheralded names like Guji, Shakiso and Borana.
As always, the cup profile remains the most important part of this process, and we can all agree the potential of Ethiopia in the flavor arena is greater than that of anywhere else. I just hope they find the desire to achieve that potential.

I was asked a couple of months ago to write an article for fresh cup magazine on barista competition. Its been a couple of months now, and desperate to get back blogging, I thought I would share.

As a roaster, writing an article about barista competitions is a somewhat unusual task. But I ask you to stay with me as we embark on this story—I promise it has a happy ending.

When I first got involved with coffee (in 2003), I remembering hearing about the strange world of barista competitions. But those events had little crossover with the demographic I was working with at the time—particularly, home users. We are a coffee roaster with a very different model to most: selling over the Internet, mostly directly to home baristas. I know many roasters sell their coffee to home baristas, but for most of them, the home barista is not their main focus and market. It is for us.

While barista competitions couldn’t be further removed from our target market, I was nonetheless approached by a young barista who hung around on the very forums that many of our customers did. Although a professional barista, he was also incredibly keen to learn from the home user and also share his knowledge and experiences. This barista was James Hoffmann, and the year was 2006.

James asked if I would work with him to build a blend for the U.K. Barista Championship. I agreed rather tentatively, not quite sure what was in it for us, but he was quite charming, and I just wanted to help him. What happened over the following months was one of the biggest surprises I have had in coffee. We sent coffee to James, and he fed us back all sorts of data that I had never had before (for instance, what temperature of the espresso machines was doing to the coffee, how small changes in the profile would highlight, or mask particular flavour components within the blend ). If something was awful, he would tell us. It’s rare to receive this kind of brutal-but-valuable feedback, but I credit James’ input with helping to solidify the foundation of our business. We roasted the coffee for James’ U.K. competition and World Barista Championship that year, and as you likely know, he came away with the big win.
To our surprise, it mattered to home users that James had used our coffee, and they were eager to try it. Although we didn’t have the exact blend available for purchase, we saw an increased interest in our coffees in general. But the real value in this process was we learned so much information about espresso, particularly what worked and what did not. As a roaster, espresso is something I enjoy preparing, but I certainly wouldn’t say I’m a competition-standard barista. By working with James, we shared our knowledge and both got better at what we did.

After this experience, Has Bean began working locally with up-and-coming baristas in the U.K. competition, continuing to learn our craft. We were (and still are) a very young roasting company, and today we still know so little about our craft. But working with baristas pushed us to learn more.

In 2009, Irish barista champion Colin Harmon approached us about using our coffee for competition, and we put together blends for him for both that year and the next one. In that second competition—the 2010 WBC in London—we used two coffees from different crops (2009 and 2010) from the same farmer. The farm was in El Salvador, and in search of more information on the farmer, I visited Team El Salvador. There I came across Federico Bolanos, owner of San Salvador’s Viva Espresso, and the trainer of El Salvador barista champion Alejandro Mendez. It turns out I had met Federico a couple years earlier while on a buying trip to El Salvador when, in need of coffee, I went to a shop located inside a shopping mall across the street from my hotel. Intrigued by the barista trophy and certificate on the shop’s counter, I began talking to Federico and his wife, Lily, and they asked if my traveling partner and I would do a run-through with them (The run through was a complete performance including drinks and the performance within the time constraints of 15 minuets we did with Federico and Lily we also talked about things that can go wrong in competition.) Of course we agreed, and we have kept in touch ever since.

But on this day in London, Federico and I became re-acquainted. It turns out the farmer was Ernesto Menéndez (from Finca La Ilusión), and he and Federico were friends. Federico also introduced me to his competitor, Alejandro Mendez, and when Alejandro made the semi-finals, we loudly cheered him on.

Following that competition, Federico and I kept in touch via email. I had already planned a trip to El Salvador for February, so I decided to add a visit to Team El Salvador to the itinerary. When I found out that I would be there two days before El Salvador’s national barista competition, I asked Federico if I could do another run-through with the team when I got there, as they had three baristas competing. Frederico’s reply: “Well, only if you send us some coffee for Alejandro,” (the other team were using the shops coffee and their own blends, but because of our relationship and friendship, Alejandro liked the idea of using an international roaster, showing the chain of coffee, and how much El Salvador coffee reaches outside of their small country) as he had wanted to try our coffee after our conversation in London.
Honored and excited, I sent him some coffee to try in anticipation of that visit, and I opted for one he knew well: Ernesto Menendez’s La Ilusión. We sent the coffee using a parcel firm (so that Alejandro would have some coffee to use and be happy with before the national competition. We found out that to send coffee to El Salvador you need all sorts of permits and imports and in most cases, customs will not allow it through.). Federico had to get import licenses and all sorts, and by the his team received the coffee, it was a few weeks old. I never for a moment thought that he would use it in his national competition, but he enjoyed our interpretation of it so much that he asked me if I could bring some when I visited for them to use in the competition.

I agreed, of course … and the rest, as they say, is history. Alejandro won his national competition, and then preparation began for the WBC at Bogota. We had a couple more attempts at importing coffee into El Salvador for practice, and for feedback at altitude (, the Viva espresso team went outside the city to practice working with the coffee at altitude and fed this information back to us.) This helped enormously with the four other people who used our coffee in Bogota (in rest time for coffee and potential roast profiles to get the best out of the coffee at altitude), but also taught me something new about my coffee and the effects of altitude.

For Bogota, I brought 50 pounds worth of coffee in my luggage—some of which was for Alejandro. He did rather well using the natural and the washed coffee from La Ilusión that I roasted. And Ernesto himself was there to help, as he made the trip to be part of the back-room team. At one point during the day of the finals, the barista, producer and roaster polished and cleaned together at one of the back tables. It was a very special moment that will stay with me forever.

So what does the roaster get out of barista competitions? Experience and knowledge from the practitioners at the very top of their game. It’s so valuable to me as a roaster learning my craft. It has given me very special moments like the one with Alejandro and Ernesto that will always stay with me. But the best part is that I have a raft of friends all around the world—even in San Salvador.

Another Varietal post this time on the much love SL 28 which is commonly found in Africa and primarily in Kenya, although lots of work is being done in other countries to see how this varietal might work, in different circumstances and climates.

I’ve found it quite hard to find out lots about this, so if any clever people want to add, please drop me an email, as I’d love to know more.

Varietal: SL28

Related to: Bourbon

Origin: Kenya

Grows best at: 1000meters or above

Type: Bourbon hybrid

Prevalent in: Kenya

Predominant Colour: Red

Fruit size: Medium

Leaf Characteristics: Large

Botany: Heirloom

A hybrid of Bourbon and heirloom Ethiopian varietals developed by the Scottish Labs (during colonial years) which did lots work on varietals in the 1930′s. Very typical of Kenya where it was introduced although there have been lots of experimental plantings in central south amercia, by those wanting to experiment.

Fairly open to leaf rust and pest, its not a high yielding plant. But the quality of the cup is often high, and some of the most treasured cups.

Links: Bourbon

Like busses I’ve waited for a great peaberry (not ignoring the Indian Peaberry Bold) and two have come along. The new Bolivian San Ignacio and the nearly here (well here just not got the profile nailed yet) Brazil Fazenda Aranquan Pulped Natural Peaberry which will be sorted in the next few days.

There was a time where peaberry coffee beans were considered inferior and a rejected defect. In the main this was due to the size and an unappealing difference between Peaberries and regular beans. Then there was a time when peaberry’s became highly treasured and something that was desired. And then some normality hit the market and now there are some good peaberrys and some bad, and this is widely accepted as the norm now.

Exactly what are Peaberry’s?

Coffee cherries are the fruit of the coffee tree, and inside each cherry are two seeds, more commonly referred to as beans. A peaberry is nothing more than a bean without a partner. Peaberries occur in all varietals in every coffee growing region and normally anywhere from 4%-10% of coffee cherries harbour a single, smaller, fused bean.

There are some varietals that have been breed for there peaberry, and on my trip to Brazil I came across one that is called Acuan that produces 45% peaberry.

Peaberries typically develop on the ends of the branches. No one really knows why, but one theory is that an outermost blossom is more exposed to the wind and weather and may lose a pistil.

There is a theory that because Peaberries are smaller, all the flavours are concentrated in the one seed. Maybe, but on the other hand the flower and cherry are at a disadvantage to produce only one seed and this may also be a negative in the cup.

But you know what, some peaberry’s I have had have been amazing, some others not so amazing, just like some regular coffee can be average and amazing. But one thing is for sure they are different and have the ability to be very special. I remember one kenyan coffee from a few years ago that was truly amazing. This years offering of the Bolivian San Ingacio and the soon to Come Brazil Fazenda Aranquan peaberry thats around the corner. Special coffees, I know you will be enjoying

Roasting peaberry’s takes a bit more skill than your average bean. Because of the shape size and density more care is needed in the profile stage. They can easily roast on the outside quicker than on the inside. A slower more developing roats I have found best with these coffees.

One of my new year promises to myself is to do some more varietal research. I did a few of these last year, but it died off a little. I also have a plan to add some photos to them

Here is a photo of the coffee plant before we begin

Varietal: Catuai

Related to: Yellow Caturra and Mundo Novo

Origin: Brazil

Grows best at: 800 metres or above

Type: Hybrid

Prevalent in: Brazil and Central / South America

Predominant Colour: Mainly yellow but also red.

Fruit size: Normal rounded

Leaf Characteristics: No unusual characteristics, standard size / shape.

Botany: Hybrid

Special Notes: This is a dwarf variety of plant, that doesn’t grow very high, and is its most obvious distinguisher. Selected by the instituto Agronomico in the 1950′s – 1960′s and now accounts for 50% of the coffee acreage in Brazil and is widely used in cntral america.

Catuai is a high yielding coffee plant resulting from a cross between Mundo Novo and Yellow Caturra. The fruit does not fall off the branch easily, Which helps when there is strong winds or rain or where wind breaker coverage is at a minimum. Catuai is quite susceptible to pest and disease, to a moderate level.

Links: Ouro Verde, Caturra, Mundo Novo

Examples: Brazil Biodynamic Fazenda Aranquan Catuai Washed, Honduras Finca Santa Marta Pacamara Microlot 2010-11 Organic

My good friend Grant Rattray from Mercanta our importers shared a piece of work with us a few weeks back, and I thought it so interesting I asked if he would mind me sharing it with you.

I hope you enjoy

Kenya’s coffee auction system dates back to 1934. The auctions still take place at the Nairobi Coffee Exchange and are widely considered to be most transparent distribution system for fine green coffees anywhere in the coffee world and inspired the model for the Cup of Excellence auctions.
 
Coffee growing was introduced in Kenya by the British around 1900. In the 1950, several extremely successful hybrids from Scott Laboratories were introduced and these have largely replaced the original French Bourbon stock which had been brought to Kenya from neighbouring Ethiopia. The most well-known are SL28 and SL34 and are Bourbon varieties and lend Kenya the distinctive big body and winy blackcurrant notes for which it is famed.
 
Following independence from the British in 1963, Kenya organised their coffee industry around a weekly government-run open auction system. This transparent system is establishing a pricing hierarchy based on quality with finer lots fetching higher prices. There is now increasing competition for the better-known estates and co-ops and particularly for the AA grade beans. The grades are simply a measure of bean size, not of defect tolerance. AA is screen 17/18; AB is screen 15/16 with a tolerance for 10% below screen 15.
 
Ahead of each auction, samples of each lot are distributed to the 50 or so licensed exporters – or ‘members’ – of the Nairobi Coffee Exchange where they are cupped and sent on also to their customers. In this way, Mercanta receives samples for cupping in our laboratory. We then instruct our exporter on our preferred lots. An agent then bids on behalf of the exporter at the auction to secure the necessary lots.
 
Since late 2006, some of the restrictions governing the compulsory auction platform have been relaxed. Farmers maintained that the auction system encourages the existence of a long chain of middlemen who eroded the farmers’ income. Supporters of the auction, however, claimed that the auction promoted a price discovery mechanism. The government has licensed 32 independent marketing agents who are now permitted to sell directly to foreign green coffee buyers and bypass the auction system and trade on the open market. Until then, all Kenyan coffee at the auction had been sold through three marketing agents who demanded a fee from the grower for their services. These new licensees were required to fulfill certain criteria before being awarded their license including storage standards, safety and a bank guarantee to ensure farmers are paid.
 
Today, in 2008, many of the small farmers have yet to find path to the international market though this situation is changing steadily. The auction system, however, continues to run in parallel and is open to all producers.
 
Finally, we should point out that when buying through the auction system, it can be difficult to gather detailed information on the precise provenance of the coffee. We have visited some of the estates that we know well, such as Gethumbwini, but it is not always possible to achieve complete traceability on all lots. Again, this situation is changing as the market in Kenya – both through the auction and the new licensed marketing agents – adapts to the needs and demands of the specialty coffee roaster and their customers.