Coffee Outlook 2007 - Vietnam, movers, shakers and concerns of the buyers

Yes, Coffee Outlook 2007 looks good. We have people from all over the world there to talk prices, understand what Vietnam brings to the coffee industry table and to get a feel for the issues on hand.

I sense that roasters are getting worried, its becoming a supplier's world where those with physical supply will rule the roost.

On one hand - since 2002 lows, we are very happy for the farmers, but on the other hand you can't help but feel for the roasters whose margins are slowly being eroded. I wonder how brand value measures up in this scenario.

There is some pressure for sustainable development (so as to avoid the "crisis in a cup" scenario as painted by Oxfam in the early 2000s), but lots of pressure for producers to produce more!

Fact is - labour, fertilizers, land and more are rising costs...expect the bottom line levels to rise. This suggests prices will not see 2002 levels ever again.

But...are there deals in the background to pre-finance new crops and also develop a dedicated supply as conditions to such arangements...should buyers start behaving the same way as steel, iron ore and other industrial commodities where there is a lot of emphasis on maintaining a strategic interest and hence supply and availability?

We have heard all this before...and given the US Dollar's depreciation in the last year or so.
Is coffee also a victim of the energy age?
- fertiliser costs up
- coffee is not the best crop to plant - there are others
- the property boom in ASia means higher land costs and possibly higher labour costs

Should we look at Africa again? Does Africa want coffee?

Lets see what they say at Coffee Outlook 2007...and also pay attention to some of the banter duing breaks, during the parties and during the less formal meetings we have during the week.

SeaTrans - we're proud of it!!

Just back from Shanghai and am very pleased with the way everything went! We felt that everyone enjoyed it...was nice to see rooms full at the end of the conference and during the afternoons...all in all we are happy and now look forward to crafting the next event for 2008, perhaps even take the idea and build other similar platforms for exchange in commodities and in shipping.

My thoughts now move to coffee...must get ready for Vietnam.