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Welcome to Badgett's Coffee eJournal
"All the Coffee That's Fit to Print"T
Issue No. 44 July 13, 2001

In This Issue:

1. Welcome
2. Some Words from Our Sponsors
3. Bellissimo Coffee Business Consulting and Start-up Service
4. A Daily Dose of Wisdom from the Rebbe
5. World Coffee Price Crisis "
6. Coffee Prices in Sharp Fall
7. Readers' Comments
8. New Coffee Breed Threatens Farmers
9. Coffee Basics: The Vacuum Brewer
10. Links to My Friends
11. Feedback


1. Welcome

Thank you for allowing me onto your screen.

Lots of discussion about the last few issues. Thanks for your
feedback. I appreciate your taking the time to write to me (even
one message calling my journal "insipid"). I have printed some
in this issue. I don't want to bore you but I do hope you
realize that there is much more to this coffee world than most
of us usually see. It is truly a worldwide industry and I am
fascinated by its complexities. Wow, what a diversity of
opinions you have shared. Please keep it up, because we all
learn from you. If you're a new subscriber and would like some
past issues, contact me.

I welcome your input. Please share your coffee experiences with
our readers. Many of my best articles have come from non-
professional coffee folks, coffee lovers just like you who have
an interesting story to tell. Put your thoughts together and
send them to me. I'll help with editing, if you want. I'll give
credit in whatever manner you prefer.

Thinking about starting your own coffee business?
(Aren't we all?) Check out the article about Bellissimo. Visit
the website and tell Bruce and Ed that Robert says howdy.

NASCORE (North American Specialty Coffee, Tea & Beverage
Retailers' Expo) is having their trade show in September in New
Jersey. If you are going, please let me know. I would love to
meet you and thank you for subscribing. For more info, visit

Have you noticed that if you are good with computers that you
acquire friends and relatives you didn't know before? Look at
this article from ZDNET, "DO YOU MAKE THESE 10 STUPID PC
It will give you some good advice on how to handle those 10:00PM
telephone calls asking for help.

My goal with this journal is to promote good coffee. I want to
learn, educate, and entertain. I publish every other Friday via
email and readers include coffee consumers, home roasters,
coffee geeks, retailers, growers, roasters, equipment dealers,
and anyone else who shares our passion for our most wonderful
beverage. If you want to learn more about the fascinating world
of coffee, this is the place. I don't sell anything and
subscription is free.

If you want to advertise here or submit an article please
contact me for the ad rates and deadline schedule.

DISCLAIMER: All information contained here is obtained by
Badgett's Coffee eJournal from sources believed to be accurate
and reliable. Because of the possibility of human and mechanical
error as well as other factors, neither Badgett's Coffee
eJournal nor its publisher, Robert L. Badgett, is responsible
for any errors or omissions. All information is provided "as is"
without warranty of any kind.

To subscribe or unsubscribe, click here:
If you have problems with subscribing or unsubscribing, please
contact me directly.


2. Some Words From Our Sponsors

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Link to our website or call now for this exceptional price. Ask
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"The most common trait I have found in all people that are
successful is that they have conquered the temptation to give
up." Peter Lowe

3. Bellissimo Coffee Business Consulting and Start-up Service

Bellissimo is dedicated to the growth and success of the
specialty coffee industry. The focus of our consulting division
is to assist individuals in all aspects of creating new coffee
businesses and to provide counseling beneficial to existing
operations. Our worldwide client list includes Fortune 500
companies as well as American and international entrepreneurs.

Why are Bellissimo's Coffee Business Consulting Services

Bellissimo differs from most industry consultants in that we
only sell educational products and expert advice. We do not
represent, or have any contractual agreements with, coffee or
equipment companies. Our only objective is to maximize your
chances for success. We work for our clients with the same
passion as if their businesses were our own.

Many in the coffee industry call themselves consultants, but in
most cases their primary occupations are directly related to
equipment or coffee sales. Will the information that they
provide you with really be unbiased? What experience do they
possess in coffee business start-ups and operations? Are they
really qualified coffee business consultants?

Our team possesses over 30 years of combined experience in
retail business ownership, food service management, and
specialty coffee. We fully understand every aspect of creating a
coffee business and operating it successfully. This expertise is
included in our 670-page coffee start-up/operational manual,
Bean Business Basics.

We have assisted major companies in developing specialty coffee
programs nationwide. Over the past seven years, we have helped
nearly 300 individuals with the creation of their coffee
businesses and assisted numerous established operators solve
problems. We have personally owned retail coffee bar, coffee
cart, coffee drive-thru and coffee kiosk operations.

Bellissimo is the most highly respected company within the
specialty coffee industry as a source for high-quality, award-
winning educational and training products. We offer personal
support and the finest coffee educational materials available to
help enhance your chances for success. We have references who
will validate our credentials as qualified coffee business
consultants. The Specialty Coffee Association of America,
NASBEV, Fresh Cup Magazine, Coffee Culture Magazine (Canada) and
numerous respected companies frequently refer individuals to us
for assistance with the creation or refinement of their coffee
businesses. Client references are available upon request.

For more information please contact us at

" The things that will destroy America are prosperity at any
price, peace at any price, safety first instead of duty first,
and love of soft living and the get-rich-quick theory of life."
Theodore Roosevelt

4. A Daily Dose of Wisdom from the Rebbe
-Words and condensation by Tzvi Freeman

Be A Rock

There are times when the entire world denies the truth you know
within. There are times you must be a lion, a deer, an eagle, a
tree--but now you must be a rock.

Now you must not flinch, not in any way even acknowledge the
existence of the mighty waves that come crashing down upon you,
conspiring to grind you to sand, to sweep you away to join them
in the vast ocean.

You must be the hard, unmoving rock that lies at the essence of
your soul, the voice from beyond all this ephemeral reality,
from beyond all time and space, that says, "They are nothing.
There is none else but He."

It begins with you. And then it happens in your world: The outer
crust of facade begins to crack, the essential reality is
revealed, the storm dissipates as though it never were, and all
things begin to say, "I am not a thing. In truth, there is none
else but He."

Brought to you by

"There are no secrets to success: Don't waste time looking for
them. Success is the result of perfection, hard work, learning
from failure, loyalty to those for who you work, and
persistence." General Colin Powell

5. World Coffee Price Crisis

(reprinted from with permission of author)

I have just returned from the Tea & Coffee World Cup held in
Amsterdam (Netherlands) where I had the opportunity to speak,
and hear others' opinions on the coffee price crisis, and the
looming danger of the loss of small arabica farmers, and their
farm output to the specialty roaster community (and ultimately
the consumer) in the years to come.

There were several voices who appeared to blame Vietnam's rise
as a major producer of cheap robusta coffee as a contributing
factor to the world robusta coffee glut and subsequent low green
coffee prices. I don't question anyone's right to grow coffee
and offer it for sale. I do believe that Vietnam's output has
put significant pressure on world coffee prices. I'm also not
thrilled with their social order, political system, or the way
they repudiate their green coffee contracts whenever it suits

Karen St. Jean-Kufuor representing the Assoc. of Coffee
Producing Countries (ACPS) wanted to know why coffee companies
in the US were still getting $3.50 for a latté when coffee
prices had dropped to historic lows. She made it sound like US
companies were making fortunes while farmers starved. She spoke
about the 14 Mexicans who died in the Arizona desert the week
before while trying to enter the US illegally to find work. She
said they were displaced coffee farmers who had left their
families now without fathers and husbands because of the low
price of coffee.

Bird-Friendly or shade grown coffee was mentioned at the
conference only once. And that mention was in an aside, and it
was not positive or helpful to the cause.

At a discussion on definitions of Fairtrade, Sustainability,
shade-grown etc. the panel was asked how their cause coffee
ideas could be used to help sustain small farmers of arabica
beans. The only response came from Hans Bolscher, of Max
Havelaar (Netherlands) the originators and licensors of the
Fair-Trade idea. He said arabica farmers were not the only ones
suffering, and that farmers on large farms have lower costs of
production than those on large farms. This did not address the
question but no one else contributed a thought and the
discussion moved on.

There are some helpful signs on the horizon:

The Eastern African Fine Coffee Association (EAFCA) funded by
the World Bank and the US Government is promoting their open
auctions which they hope will support the better grade East
African arabica coffee values. Internet auctions as those held
during the past months in Brazil, Panama, and Guatemala have
illustrated that such venues can bring substantial prices to
those farmers who produce, enter and win notice in national or
regional coffee cupping and grading competitions. In addition
the EAFCA is attempting to create formal appellations for
growing regions. The first of these would be Yirgacheffe (yes
there are alternate spellings) in Ethiopia.

The SCAA has begun working on a certification system which would
both guarantee origin, and cup quality through a rating system
akin to that used by Wine Spectator Magazine. Certified and cup
graded coffees would then be offered for sale through an
internet auction system in part or whole administered by SCAA.

Partnering between individual farms and specialty roasters is
also a desirable effort to support small arabica farmers on an
ongoing basis.

The current crisis will eventually run its course. Some farmers
will stop farming, and consumption will continue to grow in new
markets in Eastern Europe and Asia. The markets will reverse as
supply stocks and demand equalize. The rebound will be hurtful
to the consumer, and may be severe enough to cause curtailment
of consumption due to high prices. In time again there will be
over-supply because high prices will bring new over-planting
which will in turn...well I think you get the idea. The
economic cycle of coffee is as old as world trade in the stuff.

As painful as it is all efforts to break the boom / bust coffee
price cycles have failed. Retention (growing country
governments holding stocks back from sale) has never worked in
the long run. International agreements including trade quotas,
and guaranteed minimum price floors likewise have failed to
prevent wild fluctuations. Perhaps the innovative ideas
mentioned above might be a way to help minimize, if not avoid,
violent and dangerous price fluctuations of coffee in years to

-DNS (1840Coffee)

"Every successful man I have heard of has done the best he could
with conditions as he found them, and not waited until next year
for better." Edgar Watson Howe

6. Coffee Prices in Sharp Fall
Wednesday, July 11, 2001 (The Nation)

Coffee prices have fallen to a record low in the world market,
settling at $540 per tonne on Friday.

And the world's major buyers such as Nestle were holding back on
buying supplies in the hope that the price would fall even

This 30-year record low could push an already depressed coffee
producing industry into crisis, analysts believe.

But with coffee production at 113 million bags, consumption at
103 million bags and a coffee surplus mountain of 56 million
bags (or over 3 million tonnes), buyers can afford to bide their

"It's supply and demand, pure and simple," Mark Ayling of Alan
Ridge and Breminer, the commodity trading firm told the Times.
"At the moment, it's difficult to see any reason for the price
to go up."

However, while coffee traders such as Nestle made $1 billion in
profit last year and the coffee chain Starbucks reported a 40
per cent increase in profits on 2000, poor coffee farmers in
Africa and other developing countries are threatened with ruin.

Attempts by the major coffee producers to establish a retention
scheme to hold back supplies seem to have failed and now all
eyes will be on the International Coffee Organisation talks this
September, set to come up with proposals to eliminate low-grade
coffee supplies from the market.

Traders and commodity dealers are skeptical these proposals can
succeed however, even if all within the coffee industry agree
that it is essential.

The critical issue will be over who will fund the removal of
poor quality coffee beans from the market.

Coffee farmers in Kenya, Uganda and Tanzania have all been
affected by the coffee crisis. In Uganda in particular, the
price plummet cost Kampala an estimated $190 million in lost
export revenue last year.

Meanwhile, coffee production and earnings by small-scale farmers
in Central Province went up last year compared to 1999.

An annual report by the provincial cooperatives office said
total sales went up from Sh3.354 billion in 1999 to Sh3.852
billion last year.

However, the rate of payment went down to 60 per cent, compared
to 1999's 64 per cent.

It attributed this to poor world prices that it said still

The actual amount paid to farmers last year was Sh2.294 billion
compared to Sh2.140 billion the previous year.

Farmers produced 238 million kgs of coffee last year as opposed
to only 141 million kgs produced in 1999.

The marked improvement by over 69 per cent was attributed to
favourable weather conditions.

However, last year's earnings are a far cry from what farmers
used to get five years ago.

In 1997, for example, small-scale farmers who market their
produce through cooperative societies earned Sh6.481 billion.

The report indicated that since 1991, earnings had been rising
steadily until 1997, when it started plummeting.

The rate of payment has also been going down since 1997: farmers
were paid at the rate of 79 per cent in 1997, 69 per cent in
1998, 64 per cent in 1999 and 60 per cent last year.

Mr. P. Kieke, the area cooperatives officer, said yesterday the
cost of production had also been going up.

Production is expected to rise if favorable weather conditions
prevail, he said, adding that there was very little that locals
could do to improve world prices.

According to Mr. Ashford Miriti, the Coffee Board of Kenya
general manager, the poor prices have been precipitated by a
surplus in the world market, which would take time to dispose

He said although major reforms were planned for the sector, it
would take time before any effects were felt.
(The Nation)

"Character cannot be developed in ease and quiet. Only through
experience of trial and suffering can the soul be strengthened,
ambition inspired, and success achieved." Helen Keller

7. Readers' Comments

On Thu, 05 Jul 2001 06:42:46 -0500, wrote in

"Badgett" wrote:
"Danny, I share your opinion that we should be more aware of how
our choice of which coffee we drink affects the rest of the
world. Some might say, "I don't want politics in my coffee. I
just want the best quality at the best price." Well, life is not
so simple. We all allow politics to affect our buying decisions.
I do not understand the antagonism towards the discussion of
Fair Trade. I would think that the fact that a typical coffee
farm worker makes in one day about what we pay for a specialty
coffee drink (or a pound of green coffee) would bother most
people. I have published several issues with such discussions
and each time I get readers canceling their subscriptions
because of the articles."

And I am one of them. Market forces are not so simple as the
Fair Trade model make them out to be. I wholeheartedly support
paying top dollar for high quality coffee and agree that premium
prices are warranted for growers that support their communities
and treat their workers with fairness and respect. I also agree
with those that argue that the fair trade model can cause
quality to slip if the grower gets lazy and uses fair trade
instead of quality to get more money.

The problem is what to do to translate the willingness of the
few of us to pay for quality and fairness to the rest of the
coffee market. PR may well be the only way -- to get pressure on
the major coffee companies to support fair trade like minimums.
My beef with your journal was that it had too much of a
Greenpeace-like tone to it. To me, fairness and responsibility
are one thing. An over-the-top Greenpeace like approach is
entirely different.

Mike DeZelar

From: "wayne bradley"
Subject: feedback re: "greenpeace"
Date: Saturday, June 30, 2001 7:10 PM

Hi....I'm thrilled to see the articles and letters about the
social issues surrounding coffee production. I don't mean to be
rude to other readers, but to those who would rather not deal
with the negative impacts of market forces on coffee growers,
coffee production, and ultimately the coffee we can get to
drink, I think it's past time that we all took responsibility
for the impacts our lifestyles have on the rest of the world.
I'll spare you the diatribe about global warming, pollution,
resource waste, etc. but I strongly urge people to examine what
impact their consumption has on the world. Start with coffee. We
CAN live with less negative impact...we CAN leave the world a
better place...we must start at home by examining the impact we
are having on people like those coffee growers who are being
pushed to the wall because some of us are not purchasing coffee
which pays them a livable wage.

Keep up the good work.....cheers...
Wayne Bradley, World Community Coffee.\~worldcom\

From: "Ahmed Hussain"
Subject: Re: Badgett's Coffee eJournal Issue #43 - Feed Back
Date: Saturday, June 30, 2001 6:44 PM

Dear Robert:

The discussion on Coffee "Fair Trade", Greenpeace" and "Coffee
Crisis" are all very interesting. The reply by the gentleman
from Montreal was meaningful in the sense that we can vote with
our money.

To me it seems like it is all talk and no action. Those who
support Fair trade (and green peace or who support the cause of
thousands who grow coffee), should start a campaign to boycott
purchase of coffee from the following:
Starbucks (both beans and coffee drinks)
Hillsboro brand
Chock Full of Nuts

This will help growers sell at a better price to smaller buyers.

Let us acknowledge that practical application of any boycott is
not a cut and dry solution to help coffee growers and pickers or
any other cause. The market dynamics and pricing revolves around
the traders and middle brokers.

I would like to invite all coffee lovers, Fair trade supporters
to join the boycott, and list themselves in this journal to show
their support.

Let me be the first to list towards the boycott. My boycott was
already in place for other reasons. Now it will in support of
Fair Trade and Coffee growers.
It will be very interesting to watch the response.

"Tis known by the name of perseverance in a good cause, -- and
of obstinacy in a bad one." Laurence Sterne

8. New Coffee Breed Threatens Farmers
Wednesday, June 20, 2001 (Financial Times)

A U.K development charity says the prospect of genetically
modified (GM) coffee threatens poor farmers with ruin.

The charity, Action Aid, says the new coffee would offer no
significant benefits to coffee drinkers. The technology, being
developed by a Hawaii-based company, works by making all the
coffee berries ripen at the same time.

This would cut labour costs and, Action Aid says, force small
farmers out of the market. A report by the charity, Robbing
Coffee's cradle GM coffee and its threat to poor farmers, says
70 per cent of all coffee is grown by smallholder farmers.

They depend on. the crop for all or part of their livelihood.
And Action Aid fears they could not services the GM plants'
introduction, which lies some years ahead. The company
developing the new technology is Integrated Coffee Technologies,

The report says ICTI's coffee has had its natural ripening
process switched off. So that the berries will ripen only when
it is switched on again after they have been sprayed with
ethylene. ActionAid describes this as an example of genetic use
restriction technologies", or GURTs a type of modification that
relics on controlling a plants normal behavior by chemical means

Its says: "GURTs increasing the profits of big companies by
making farmer; dependent on buying new seed and on chemicals
they sell that farmers need to harvest their crop, "They remove
control of farming from farmers and give it to GM seed and
chemical companies." ICTI's website says: Integrated Coffee
Technologies, Inc, specialises in applying biotechnology to
plantation beverage crops such as coffee and tea.

Our lead products are caffeine free coffee plants and controlled
ripening coffee plants. Additional products will include coffee
and tea plants with plants proved disease resistance and
tolerance of environment stresses as cold and drought. We have
exclusive licenses to two patents: one for the production of
caffeine -free beverages, and the other for controlling the
ripening process of coffee fruit."

Action Aid says the GM coffee would be suited to mechanical
strip-harvesting on large plantations, making them more
productive than small farms where the berries arc hand-picked as
they ripen naturally at an uneven rate Ethiopia depends on
traditional coffee production for almost 70 percent of its
export earnings.

The Ethiopian delegate to the UN food and agriculture
organisation is Dr Tewolde Egziabler He told Action Aid: "Small
farmers will be squeezed out of the market with GM coffee. It's
a shift from a labour intensive to a capital-intensive system,
from small farmers to large farmers."

Eve Mitchell of ActionAid told BBC News Online: "GM coffee has a
clear objective: to make large corporate -controlled Coffee
plantations more profitable." Smallholder coffee farmers who are
already suffering from low and volatile coffee prices will not
be able to compete

"In short, this technology has the potential to devastate the
lives of millions of growers through out the developing world."
ActionAid is asking supermarkets and coffee shop chains to
promise not to sell GM coffee when and if it reaches the market,
and to support small farmers by stocking fair trade coffee.

Eve Mitchell said: "The UK public have a real chance to send a
strong, clear message to the biotech industry that we don't want
this technology at the expense of farmers and their families in
thc developing world."
(Financial Times)

"The secret of success in life is for a man to be ready for his
opportunity when it comes." Benjamin Disraeli

9. Coffee Basics: The Vacuum Brewer

I am old enough to remember the vacuum brewer, but I don't. My
mother used an electric percolator during my childhood and then
graduated to the Chemex, so I was never exposed to the vac pot.
Remember high school chemistry, and how much fun the lab stuff
was? That is what the vac pot reminds me of. It's a glass
contraption that looks like a regular coffeepot on the bottom
and a glass beaker/funnel on the top. There's a tube at the
bottom of the top part that goes almost to the bottom of the
bottom part. When you watch it work you are reminded of stuff
you learned in chemistry and physics that you thought you had
forgotten, such as boiling water and changing it to gas, or
water vapor. And how the gas takes up more space when heated and
causes pressure that makes things move.

It's fun to watch and the coffee is the best. It makes coffee as
good as a press pot but there is absolutely no sediment in the
pot or in the cup. The coffee never touches anything but glass.
There is no filter, either paper or metal, to trap flavorful
oils. There is a glass filter but not what you would expect. The
glass filter is a stopper with rough sides that allow the
coffee, liquid only, to go down from the top to the bottom,
leaving the grounds behind in the top part.

For a much better discussion of the vac pot, please go to the
wonderful article by Mark Prince at:

Mark is the Coffee Geek of the coffee world. His website is Mark is a real friend to coffee folks.
I have asked his advice many times and he always is quick to
answer, even my sometimes dumb questions. Visit his website and
learn all about coffee and coffee equipment from an expert.

This article was first published Aug. 18, 2000, Issue #13.

"The only place where success comes before work is a
dictionary." Vidal Sassoon

10. Links to My Friends

Visit the links page on our website to get the latest links to
both coffee related and unrelated sites of interest. Check it
out. You might find some old friends and make some new ones.

" A dog teaches a boy fidelity, perseverance, and to turn around
three times before lying down." Robert Benchley

11. Feedback

Tell me what you think. What do you want more of..less of...what
would you change, add, or delete?

Please direct all inquiries, comments, article submissions and
suggestions to: Robert Badgett

ISSN: 1534-4614 - Library of Congress, Washington D.C., USA

This journal was made from 100% post-consumer, recycled, non-polluting, and
non-trashcan filling electrons.

(c) Copyright 2001 Robert L. Badgett. All Rights Reserved.

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