April 2012

TO OUR ROASTER FRIENDS

BIG  NEWS!!!

For the first time ever, KNUTSEN COFFEES,  LTD. will have a booth at SCAA!  Come by and visit us at booth 5132!  We will be happy to talk about green coffee, but the purpose of the booth is to introduce our brand new way to brew coffee.

After more than thirty years of sourcing and importing the finest coffees in the world for specialty roasters, we have  embarked on an innovative project to make them available to consumers, one perfect cup at a time. Knutsen Coffees, Ltd. is launching filter brew single serve coffees, allowing consumers to enjoy freshly brewed coffee with ease, anywhere, anytime.

Knutsen single serve Arabica coffees are carefully selected from the world’s best coffee growing regions and expertly blended to yield a truly superior cup. The rich, round flavor in the cup has great depth of body and bright acidity on the palate while hints of berries and spice enliven the aroma.

The KNUTSEN SIGNATURE BLEND has an outstanding aroma and cup quality. It is Nitrogen flushed to stay fresh for up to eight months and is packaged in an attractive single cup package, easy to use and simple to pack and carry.

Brewing is easy. Only hot water and a cup are needed. Simply open package, tear filter end, spread cardboard “wings” over cup rim, and pour hot water through. Slow drip ensures full extraction. Each packet contains ten grams of the finest coffees on earth. Knutsen Coffees will offer Signature Blend, Jamaica Blue Mountain RSW Estates and a decaffeinated option.

Please visit us and sample Knutsen Signature Blend for yourself.  We will be brewing at the booth and giving away samples for you to try at home or in your hotel.

KNUTSEN SIGNATURE BLEND will be served at the Saturday morning coffee break at 10:15 AM.

COLOMBIA  SAN  AGUSTIN  HUILA

We want to remind everybody that not all Colombian coffees are alike.  This excellent coffee, grown in the Huila valley in the southernmost region of Colombia, is grown by a coop of small holders (families), several of whom have been winners in the Cup of Excellence.  We have been importing this coffee for more than twenty years and never had a complaint or a returned bag. It is smooth and rich in the cup and roasts very consistently and evenly.  The beans develop well from the exceptionally well prepared green, and the aroma when grinding is superb.  If you have not tried this coffee, please give us a call.

SUMATRA  MANDHELING  PWN  EXTRA BOLD

Over 35 years ago a young man stopped by the offices of B.C. Ireland Coffee on his way from Medan, Indonesia to Stanford University.  His family had sent him with a sample of Sumatra Mandheling.  We were so impressed with this coffee that we brought the first container ever  to the United States.  Now, of course everyone is familiar with the deep, syrupy body and almost chocolaty flavor of Sumatra.  Ours has been consistently the cleanest and best preparation of any we have cupped.  Now our shipper is offering SUMATRA  MANDHELING  PWN  EXTRA BOLD, the same lovely cup, but even better preparation and screen size 18 and above.  This is the ultimate Indonesian coffee, and, as far as we know, only we have it!  The cup is richer and denser than ever, the aroma is enchanting, and the finish is gently lingering.  This coffee is not inexpensive, but we never haggle with our suppliers, and it is worth every penny!

UPCOMING  GUATEMALA  COBAN

GUATEMALA COBAN is a tricky coffee to buy.  Many years the COBAN  region of Guatemala is so wet that the beans don’t develop the best flavor, and in some years it is so wet that the farmers have trouble drying it properly.  About one year in three conditions are perfect, and we get a sample from our friend Max Quirin.  This is one of those years, and we are about to get a container on the water, with arrival expected in May.  We loved the sample and look forward to receiving this luscious coffee.  When it gets here, please act quickly, as it is sure to sell out and there is a limited quantity available, as some of our customers who have loved this coffee in the past are already placing orders.

BRAZIL  DAS  FLORES  SUL  DE  MINAS (MAY ARRIVAL)

For many years we have been proud to offer the coffees of the Contini family, from their farm, VARGEM GRANDE. This year the family is rearranging ownership and needed cash, so the coffee was all sold as futures for delivery after the harvest.  We will not have any VARGEM GRANDE this year at all.  Fortunately we were introduced to another farm on the same mountain, and the coffee from  DAS FLORES is every bit as sweet and enjoyable as VARGEM GRANDE.  We were delighted with the samples, the preparation, the aroma and the cup.  This is another of those delectable coffees which show how far Brazil has come since the Brazil Specialty Coffee Association was founded twenty years ago.  It will also be in May, as will…

BRAZIL  FAZENDA  SERTAOZHINO  ORGANIC (MAY ARRIVAL)

Our good friend Mr. Alberto Baretto died last year just after the SCAA convention.  We miss him, but his widow has kept the farm going, and we are going to receive a very limited amount of this fantastic coffee in the same container with the DAS FLORES.  We have loved this coffee ever since Mr. Baretto brought the first sample to the office.  The supply has always been limited, and we always sell out quickly.  Please call if you want a little of this marvelous organic Brazil.

Best,

Erna Knutsen

My personal task this week is to get our vintage Pasquini Vietta operational for sampling.

The year was 1797. The Bank of England issued the first One Pound note, Old Ironsides was launched in Boston, Albany replaced New York City as the capitol of New York, and Mary Wollstonecraft Shelley was born in England.  In Kingston, Jamaica, Crown “Patents” were registered creating “Sherwood Forest & Eccleston Plantations”. That was just the beginning, in a country with few roads and only manpower and hand tools.

Native forest were cleared, coffee was planted, a stone building with two foot thick walls was built with hand adzed 12” x 12” hardwood beams carrying the upper floor. Inside the central portion of the 130’ long building an 18 foot diameter undershot iron waterwheel was installed as well as fermenting tanks. Power was carried via shafts, pulleys and leather belts to the processing equipment inside the lower level. The massive post and beam
construction is responsible for the fact the structure still stands today. Polished cedar floors and cathedral ceilings have the charm of old wood and show intricately pegged joinery. Nearly an acre of concrete patios remain on the hillside along with arched stone alcoves for parchment storage during drying.

It is lovely here, with the highest peaks of the Blue Mountains behind the farm and mist and rainbows drifting through the gaps in the hills.  The temperature is moderate and the trees are shaded by not only canopy but frequent afternoon clouds and morning mist.  All you can hear is the rustling of the breeze and the occasional barking of neighborhood dogs or early morning roosters.

If you visit today you will see the original stone and ironwood structure and patios. No steel silos, screw elevators or drying towers mar the view. Sherwood looks the same as it did a hundred years ago. To take a virtual visit, go to Earth.Google.com and “fly” to 18.02 N, 76.614 W to see the compound and the ancient patios, or to 18.03 N, 76.604 W to see the largest field of coffee trees, “Big Level” comprising about 65 acres, with 30 acres of shade grown trees.

You can see the roof of the original building and the patios in the first location, and the rows of trees contoured to the hillside in the second. Luckily, the view is good in the latest satellite photo, as there are clouds
and mist on most days. Other planted areas are under heavier canopy and can’t be seen as coffee trees. . The trees are mostly on northwest facing slopes at an average altitude of 3900 feet. This means that the harvest is months later than at most other farms, and, like stressed Burgundy grapes with low yield, the best flavors come from coffee which has matured slowly on the tree.

In 1961 a group of 5 people bought the then neglected farm as a partnership and started renovations. It had been abandoned prior to WWII, and the coffee plantings had disappeared as forest reclaimed the old fields. New
areas were identified and planted with a mixture of Geisha and Typica varietals. Native trees were retained. It was a hard slog. All but one of the original partners soon dropped out, leaving Sherwood as a single-family owned and operated entity. It is now their only job, and they are meticulous about the care of the small amount of coffee they produce and process, as well as the coffee which comes from the small handful of other nearby owners.

We were privileged to be able to visit Sherwood Coffee Works two years ago and to see the whole processing stream as it happens. We met the couple who own and operate Sherwood as well as one of their daughters and spent two days in the mountains, on the veranda, and watching how it all works. We
also met the other two partners in the partnership arm which sells the turnout from Sherwood Works under the “RSW Estates Jamaica Blue Mountain” brand.

For many years cherry coffee was sold to Mavis Bank, the largest mill on the island. By 1999 the Sherwood mill was operating again with the help of the RSW partnership. The fermentation tank in the center of the building was restored and modern equipment and electrical power were installed. This was a deliberate choice, as the inherent quality of the coffee grown became lost when delivered to the high volume factory and mixed with coffee of
often indeterminate origin.

Their dedication and hard work has brought up to date equipment and methods but not to the detriment of quality. Cherries are processed the day they are picked, or, if delivered in the middle of the night, the morning of the next day. After the skins are removed the parchment is fermented for approximately 24 hours before being washed and rinsed. Due to the cool tanks and cover, 24 hours is the optimum time at this location.

The wet parchment is then spread on a stainless steel mesh above a squirrel cage fan where ambient temperature air at 3500 cubic feet per minute removes the surface moisture in about 24 hours. Only then is it spread on
patios—locally called “barbecues”—for sun drying which takes from 5-10 additional days. The parchment is raked every half hour during the day. In the event of rain the parchment is covered with tarps. All drying parchment is bagged and covered—every night—to avoid dew. It is then spread in the morning, after the sun has warmed the barbecues.

Parchment does not go into storage until Moisture Content (MC) is electronically measured at 11.0 – 11.5 %—for each individual lot on the barbecue—then hand shoveled into jute sacks holding 25 kilos each. Bags are
dated, labeled and stored in two climate controlled rooms held at 55 – 56 %
relative humidity and 72-75 degrees (F) by two commercial dehumidifiers as well as an air conditioning unit. Climate control is aided by the tempering effect of the thick stone walls built into the hillside over two hundred years ago.

Research in Kenya has suggested that three factors contribute to the gorgeous deep blue-green color of the beans. First, the ultra-violet radiation of sun drying is thought to enhance the color as the parchment drops from 30-20 % moisture. Second the period of rest at 11.5 % moisture allows the coffee to stabilize and maintain the perfect color. Third, it is important to stop drying and rest the coffee at 11.5 % rather than over-drying which can bleach the beans. And of course no mechanical or heated drying is ever employed. Most mechanical drying takes 14 hours and bypasses the UV enhancement, as well as the benefits of slow drying.

The dry parchment coffee is “rested” for 8 weeks and regularly rotated in its climate controlled storage at its initial 11.5 % moisture content before being hulled in 1000 kilo batches which are processed separately through the whole finishing process. Each batch takes about 5 days to complete the finishing.  Meticulous turnout dates and data are kept for each lot.

Parchment is milled when ordered by the importer in a low temperature McKinnon “Smout” brand peeler-polisher. The advantage of this machine is that it peels and polishes the beans in two passes so the temperature never goes over 89-90 degrees (F). It is then graded for size on an actual screen grader (a rarity these days) before being sorted for density on a gravity table and run through an electronic color sorter to eject off color and damaged beans.

After all of this a crew of local women further hand sorts each green bean in 5 kilo batches. Since the color sorter does not adequately detect minor insect damage or chipped or mottled beans, these ladies are the final arbiters of quality in processing.  Each batch is passed first by the senior sorter and then by the plant manager before it is ready for the barrels. Finished coffee remains in the controlled storeroom until shipment to The Coffee Industry Board for their meticulous Quality Control inspection.

As our hosts said: “Coffee processed at Sherwood Coffee Works we proudly label and sell, through RSW, as RSW Estates Jamaica Blue Mountain. Each barrel of coffee—we guarantee—has been processed as you have seen and described, with no shortcuts taken at any step”.

As we have observed ourselves, this “ultra-niche” coffee has less than 1 % undersized beans and practically zero defects. A previous Director General of the Coffee Industry Board of Jamaica has stated that RSW Estates Jamaica Blue Mountain coffee is, “…a special niche coffee within an already recognized niche.”

Our hosts suggested that the several “keys” to top quality coffee processing include: pulping the same day as reaped; 100% wet processing; 100% sun drying to 11.5%; “resting” for at least 8 weeks in controlled storage; hulling and finishing to order. In addition, speed is definitely not of the essence.  You can’t rush great coffee, the machines and people must take their time so each step is completed meticulously and thoroughly.

They have no plans to expand their production. They said their primary aims are turning out the best product they can, support the district, and make a little money in the process. “As soon as you exceed your abilities to control what you’re doing, your stress level goes up, you take shortcuts, your stress level goes up again, and things start to fall apart. Then that’s the end.”

This is all very labor intensive and makes Sherwood Works the largest local employer. The total production of the 55 acre farm and associated local input is only about 60,000 pounds per year, and each batch of cherry is processed individually and segregated through the drying process before being stored or shipped. Due to careful and patient processing by generations of local people who are as dedicated to quality as is the family which owns the farm, a high percent is exportable.

All of the above is predicated on a more basic foundation. In our conversations with our hosts, they emphasized that if you want great coffee
you need “happy” coffee trees tended by happy farmers who are eager to ensure that the trees are properly shaded, pruned, fertilized, weeded and pampered. Between harvest and flowering you must carefully prune deadwood and fertilize the dormant trees if you want ongoing great results.

Insect control (coffee berry borer) has been done traditionally with spraying of copper based insecticides, but since this kills all insects it damages the habitat for birds. Here only biologic controls using traps employing pheromones are exploited. So although not an Organic coffee, it is grown in an environmentally friendly fashion.

If a mill buys cherry from “off the street” one has only visual inspection to ensure that no over-ripe or green cherries are included, you are not likely to know how long the cherry has sat in bags or on trucks, or how well the pickers were compensated and what their attitude toward quality was. Further, you do not know where the coffee came from unless you get your
coffee from your own plots, or those you lease from people you know and trust. Coffee processed at Sherwood Coffee Works all comes from within two miles of the Works with the single exception of one of the original contributors.

The difference in RSW Estates Jamaica Blue Mountain coffee is that the whole community prospers because the whole community is involved in
the quest for excellence. From the men raking the coffee on the patios to the
ladies who are “head sorters” and the plant manager himself, each person on the team takes pride in doing the best job possible and making sure that this is truly the best coffee in the world!

When carefully roasted and brewed the results in the cup justify the high prices charged for Jamaica Blue Mountain RSW Estates coffee and make evident the attention to detail and judgment exercised at each step, growing, harvesting, processing and storing. The delicate slightly floral aroma develops into a clear, round, “bell like” sweetness in the cup with hints of nuts and light citrus acidity.  A lingering almost buttery finish with hints
of baking spices leaves your taste buds smiling.

TO  OUR
ROASTER  FRIENDS ,

CYBER  UPDATE!

Please visit our newly updated website, www.knutsencoffees.com and let us know what you think.  We have enhanced the graphics, uploaded the newsletters from 1998 to 2011, and added our Offering List as a new page.  We will attempt to keep the newsletters current and to update the Offering List every week or two.  There is a new sign-up bug for the newsletter which puts you directly into the data base at Constant Contact, making it easier than ever to save a tree by getting this missive
electronically.

In addition we now have a presence on Twitter and a Facebook page for Knutsen Coffees, Ltd.  On Twitter we are @knutsencoffees and on Facebook we are Knutsencoffees. Please take a look at any or all of the above and let us know what you think and how we can further improve them to make them more useful.

COSTA
RICA TARRAZU  TAPARTO
“SANTA  ELENA”

We welcome the return of this old friend.  It has been a few years since we have been privileged to offer this COSTA RICA TARRAZU  TAPARTO
“SANTA  ELENA from the lovely farm of Luz Marina Trujillo. Grown between 4300 and 5000 feet, these mostly Caturra beans are hand picked by locals who earn an extra five cents per pound if they turn in more than 95% perfectly ripe cherries.  These are wet processed and dried on patios before being stored in wooden silos for a period of 90 days of resting. Volcanic soil, indigenous shade trees, and careful processing make this unusual Costa Rican Tarrazu coffee one of the sweetest  and cleanest cups we have seen from Central America.  We have  a very limited supply at this time so don’t hesitate.

SUMATRA
MANDHELING  PWN

Today we have this deep bodied, syrupy coffee in stock still, and it is still our best seller. We also have a very few bags of SUMATRA  MANDHELING
EXTRA  BOLD This is screen 19 and up, has fabulously clean preparation and is perhaps the finest Asian coffee we have ever cupped.  The price is intimidating but the quality in the cup justifies it!  If you are looking for something truly spectacular in the world of specialty coffee, please don’t
pass this one up.

JAMAICA
BLUE   MOUNTAIN  RSW ESTATES

This year’s coffee was harvested later than almost any on the island, as it is grown under shade from 3900 to 5500 feet altitude.  After sorting on both the gravity table and sorting screens it is passed through an electro-sorting machine and then triple picked by experienced local ladies. We cannot over-praise this epitome of the perfect bean.  We will be offering this exceptional coffee in barrels of 15, 30, and 70 Kilos.  Because we must give the farm lead time on what sizes to pack we ask that you let us know if you will need it later in the fall.

SELECT  WATER  PROCESS ORGANIC  DECAFS

We are pleased to be able to offer two outstanding SELECT WATER   PROCESS   ORGANIC DECAFS . The first is an ORGANIC ETHIOPIA DJIMMA DECAF, and the second is an ORGANIC HIGH GROWN MEXICAN DECAF, which is also FAIR TRADE CERTIFIED.  In addition we have a particularly well mannered SUMATRA DECAF, which, while neither ORGANIC nor FAIR TRADE CERTIFIED,  is SELECT WATER PROCESS, and makes a fine cup of coffee, for a DECAF.

PUBLIC  SERVICE
ANNOUNCEMENT

Here in San Francisco we take our carbon footprint seriously:  plastic bags have been banned, along with soda in school vending machines and happy meals at McDonalds.  While the politicians here often get justifiably criticized for wacky ideas in place of things like road maintenance and public services, we do believe that it is better to send e-mail and use electronic media than to clog the landfills with used paper.  Please let us know if you would prefer to
receive this newsletter electronically so that we can reduce our use of trees
and postal services.

Best,

Erna Knutsen

TO OUR ROASTER FRIENDS

SCAA 23RD ANNUAL CONVENTION

We saw a lot of old friends at the SCAA 23RD ANNUAL CONVENTION and made some new ones. The show itself was preceded by the two day Symposium with nearly 400 attendees. We thought it might be helpful to review some of the information from that gathering. While much of the meeting was devoted to charitable projects and sustainability along with research on both coffee and social aspects of coffee production, the first half of the first day was dedicated to information about current production, consumption and trends observed at origin.

Dr. Carlos Brando of P & A International Marketing in Brazil provided much of the following information. He may have been the most knowledgeable person at the conference on the planting and planning in the coffee world, as his company, Pinhalense, sells more coffee cultivation and processing equipment in more countries than any other.

Several factors have been playing into the rise in prices internationally beyond what we have mentioned in recent newsletters. Currencies in Brazil and Indonesia have been appreciating against the dollar. Fully 60 % of Arabica coffee and 40 % of Robusta production is in countries whose currencies have gained against the dollar. Since coffee is traded around the world in dollars this means that dollar prices have to go up to provide the same value to producers.

Several speakers from Origin mentioned that they are seeing the effects of climate change on coffee crops. Warmer climates are stressing plants, raising altitudes where coffee will grow, increasing insect damage and shrinking yields. Coffee plantations cannot simply move to higher ground (which often has poorer soil), and new plantings are capital intensive and risky.

On the other side of the equation, Brazil has increased its average yield from 14 bags to 20 bags per hectare, (2.2 acres). They have done this by planting more densely, fertilizing more intensely, and introducing irrigation and better disease control. Still, labor costs, which comprise 56 % of average production cost, are up 78 % over 10 years and fertilizer costs are up 80% in the same period.

World consumption continues to increase an average of 2 to 2.5 % per year, and new production is not keeping up. Dr. Brando suggests that coffee prices need to establish a new floor in order to generate investment in increased production. While Brazil is predicted to have a “super-crop” in 2014, we should not expect to see prices drop precipitously in the next 10-18 months.
Two threats to quality coffee are emerging as the prices escalate. First, farmers don’t trust the market and are rushing to harvest quickly in order to secure high prices that they fear may not last. Some are picking only once and mixing green and overripe cherries in without discriminating. The other factor is that high prices have made coffee worth stealing and some farmers are rushing the harvest for fear that poachers may rob them at night. In spite of higher prices it is more necessary than ever to be vigilant about quality

JAMAICA BLUE MOUNTAIN RSW ESTATES

We are about to receive our next shipment of this superb coffee. Grown between 3900 and 5500 feet under shade trees and comprised of Typica and Geisha beans, this may be the most meticulously processed coffee in the world. The plantation and mill date back to 1797 (no, that’s not a typo) and have been modernized by the implementation of vigorous quality control at each step of production. Climate control and moisture monitoring are employed in the stone walled storeroom. Electro-sorting is supplemented with triple picking by experienced ladies, all this before being graded and cup tested at the Jamaica Coffee Industry Board. Please try this superb coffee which has not doubled in price since last June.

SUMATRA MANDHELING EXTRA BOLD PWN

For over thirty years we have brought in the superb SUMATRA coffees from the same supplier. From time to time we feature their excellent AGED SUMATRA MANDHELING. At this time we have a rare shipment of their SUMATRA MANDHELING EXTRA BOLD. This may well be the best Asian coffee of all time. Not only is the preparation better than most any other coffee from the region, but the exceptional bean size and deep green color hint at the depth and cleanness in the cup. We have always been fans of the deep, syrupy smoothness of SUMATRA MANDHELING coffee, but this approaches the Platonic Ideal of what coffee can be. We urge you not to wait, supply is extremely limited.

COLOMBIA HUILA SAN AGUSTIN

During the first CUP OF EXCELLENCE contest to be held in Colombia we were privileged to be on the international jury. Several coffees from the Huila valley in the south of the country were among the winners, and four of them were from farms which are incorporated in the COLOMBIA HUILA SAN AGUSTIN which we have been importing for nearly twenty years. Nestled among the surrounding mountains, the Huila valley produces coffee almost constantly throughout the year, and the cup quality and consistency are remarkable. The bold aroma and smooth, long lasting finish compliment the sweet acidity of the cup. We are pleased to offer our latest shipment of this fine Colombian coffee to you.

Please let us know if you would prefer to receive this newsletter electronically so that we can reduce our use of trees and postal services.

Best,
Erna Knutsen

TO OUR ROASTER FRIENDS

A TRADITION REVIVED

Historically, professional coffee cuppers have used silver spoons to evaluate the quality of coffee offered for purchase and upon arrival. There are many reasons for the popularity of silver spoons. Silver, element number 47 in the Periodic Table of the Elements, whose symbol is Ag, is the most thermally and electrically conductive of the elements, according to Lawrence Livermore Labs. It has been smelted and worked by humans for at least 3000 years. Because of its density, beauty, malleability and rarity it has been a store of value for almost as long.

Unlike its predecessors, bronze, lead and copper, silver doesn’t affect the flavor or aroma of beverages. Further, silver possesses antibiotic properties and kills bacteria and germs by destroying their cells. For this reason infants were often given silver spoons and teething rings which helped to prevent infections in teething mouths.

To be, “…born with a silver spoon in one’s mouth” has long been symbolic of wealth and high standing. In many middle class households in centuries gone by the single most valuable item would be the ornate heavy silver set. Likewise many an old time coffee cupper treasured his personal cupping spoon and carried it with him wherever he went.

These spoons were heavy enough to absorb some of the heat from the coffee, six to seven inches long to fit comfortably in the hand and featured a deep round bowl to transfer the coffee from the brewing vessel to the mouth without spilling. They are perfect for cupping coffee and no serious lover of fine coffee should be without one.

The cost of the precious metal has made the Sterling Silver Spoon of old exorbitantly expensive these days but we have found a solution. KNUTSEN COFFEES, LTD. has commissioned the creation of a limited edition of SILVER PLATED COFFEE CUPPING SPOONS from Sheffield, England, the famous silver manufacturing center.

These spoons, were they freely available, might sell for $ 39.95 apiece in more upscale stores but we have negotiated a special price for our customers and friends. We are offering one spoon free with a 15 ( fifteen ) bag coffee order. Yes, with your paid order for 15 bags of the finest coffees on earth we will ship you an engraved SILVER PLATED COFFEE CUPPING SPOON postage pre-paid. If you cannot use 15 bags of coffee we will offer the same spoon for $ 9.99 with a 5 (five) bag order, or, if you simply want to have or give the best traditional SILVER PLATED COFFEE CUPPING SPOON in the market today, you may purchase up to three of them for $ 19.95 apiece, post paid, while supplies last. Please call soon, offer limited to stock on hand.

COLOMBIA SAN AGUSTIN, HUILA VALLEY

As many of you have learned there has been a shortfall in Colombia and it seems to have hit hardest at the high quality end. Premiums for top Colombia coffees have increased and more than that, there have been delays in delivery. Weather may have contributed to the shortage but many coffee farms have been for sale in recent years and prices in the last few years haven’t supported adequate planting, pruning or fertilizing.

We are pleased to announce the arrival of our latest shipment of COLOMBIA SAN AGUSTIN, HUILA VALLEY. This superb and consistent coffee comes from the southernmost growing region of Colombia, the Huila valley, where mountains on three sides keep the weather ideal for growing and harvesting fine coffee 9 months of the year. This lovely coffee is expensive but we have never had a bag rejected and we have been the exclusive importers in the United States for over 20 years.

GUATEMALA SAN MARCOS

The volcanic region of SAN MARCOS in GUATEMALA is the warmest and wettest of the eight officially designated coffee growing regions. It gets the earliest rains, the heaviest downpours and the earliest flowering of any part of the country. We have obtained a small supply of this lovely coffee to offer to our roasters. It is floral in the nose with bright acidity, good body and a lightly nutty finish. Limited availability.

COSTA RICA TARRAZU

In the real estate business there is an old aphorism which goes, “Buy real estate, they aren’t making any more of it!” Years ago some coffee traders questioned the veracity of this statement as it related to Costa Rica. As the quality of coffee grown in the Tarrazu region became more and more widely known the demand for the coffee outstripped the supply and the new plantings. Like the Antigua Valley where once there grew 50,000 bags of coffee but 300,000 were exported, the Tarrazu region seemed to be growing beyond all reason. Trucks were on the road purchasing cherry which would be milled in the department and controls were lax.

Fortunately, with the growth of the Costa Rica Specialty Coffee Association, who became the first partner of the SCAA, truth in labeling became the norm. These sweet, round, bell like coffees deserve their fame and we are pleased to be able to offer them to you.

JAVA BAYAKAOUIL PLANTATION

Coffee from the island of JAVA has a long and complicated history. Today the best of these coffees often come from three plantations, JAMPIT, BLAWAN and BAYAKAOUIL. We have judged this offering from the JAVA BAYAKAOUIL PLANTATION to be the cleanest and most flavorful in the market today. We have only a few bags on hand so don’t hesitate to call.

SCAA 23RD ANNUAL CONFERENCE IN HOUSTON APRIL 26TH –MAY 1ST

As always we will be attending the SCAA conference this year and look forward to seeing many old friends and meeting new ones. We look forward to seeing you in the hall or in the halls.

Best,
Erna Knutsen

To Our Roaster Friends

PRICES! COSTS! MARGINS!!!

We are reminded of the old Chinese curse, “MAY YOU LIVE IN INTERESTING TIMES”. No one we’ve met has successfully predicted coffee prices over the long term. Nonetheless there is a certain amount of evidence to be studied which suggests that we aren’t in for a crash any time soon. If this is true there are strategic conclusions which suggest themselves for action.

The evidence:

Last year worldwide coffee consumption is estimated at about 134 million bags, which is up 3.4% from the previous year. This year it is estimated that worldwide consumption will be about 135-136 million bags and next year should be on the high side of 137 million bags. Last year consumption outstripped production by 7 million bags. This year the estimate says production will exceed consumption by about 2 million bags. Next year consumption will exceed production by perhaps 10 million bags. This adds up to 15 million bags more consumption than production over the 3 years.

Twenty or thirty years ago there would typically be 15-20 million bags in warehouses carried over from one production year to the next with consumption at 120-124 million bags per year. Brazil consumed 10-12 million bags domestically and shipped 25-35 million bags to the rest of the world depending on climate, weather and prices. They actually burned coffee to reduce the oversupply once! Now Brazil consumes 20-21 million bags annually and is predicted to overtake the Unites States as the world’s largest consumer of coffee in the next 5 years.

Today the “visible” carryover stocks are minimal compared to historical numbers and with the anticipated draw down to cover the shortfall in production over the three year period there will be as little as six weeks coffee in world warehouses. This is less than the shipping transit time from some origins! Anyone who sells forward coffee at lower prices is risking annihilation. There may be short term swings in prices before new plantings and additional fertilizers and pruning come into play 3 or 4 years out but there will be very little diminution in the gap between fresh supply and fresh demand.

If you look back to the greatest spike in green coffee history, the great Brazil frost of ’76, you will see that prices rose above $3 per pound. At these prices consumer demand was affected and coffee consumption dropped. If you believe the US government’s measurement of inflation, generally considered to be artificially low, and adjust that price to 2011 dollars we see a price above $ 12 per pound as the equivalent. We are not suggesting that prices should or will get that high but if demand outstrips supply for any significant period the only relief valve is for prices to ascend until demand diminishes.

Coffee has historically been traded in US Dollars and still is today, as are oil and other major commodities around the world. In the last few years the Dollar has slipped not only against the Euro and the Yen but against the Brazilian Real and the currencies of other major producing countries. As we mentioned in the last letter the tendency of the government to print more currency and to inflate its way out of debt tends to decrease the value of the dollar and increase the value of goods sold for dollars. Trends in currencies, while not determinative of increasing prices are nonetheless supportive of rising prices.

The growth of the Specialty Coffee industry has had its own perverse effect. Not only are small quantities of “Ultra-niche” coffees sold at internet auctions at prices as high as $ 100.00 per pound ( a new Range Rover for 5 bags!), but increased demand for quality coffee in the developed countries, in newly developing markets (16 million more bags of coffee will be consumed this year than in 2005) and in producing countries is continuing to stretch the price gap between Arabica and Robusta coffees. Today the differential between them is near $ 1.75 per pound which is a historic high. Because quality coffee is in higher demand shortages at origin continue to put pressure on prices. One can not easily substitute Vietnamese Robusta for single estate Huehuetenango or Huila coffees.

Worldwide shortages of foods are spreading and costs for most food products whether beef, wheat, sugar, rice and food oils have been steadily increasing. For those living below the UN’s official poverty level of $ 2 per day this is a tragedy and a crisis. Food riots have broken out in some countries and are a factor in the spreading protests in the Middle East. Anyone in the restaurant business knows that government reports of near zero inflation do not correspond to the real world of buying provisions and selling meals. No chef owner is surprised to hear that price of eggs, steak, honey, lettuce or flour is up and going higher. Not only are there precious few 99 cent breakfast specials or 5 cent cups of coffee but what specials there are don’t include a beverage anymore.

For all these reasons we don’t expect to see coffee prices collapse in the near term. Those who are holding off waiting for prices to fall are probably going to pay more for their next shipment. We are seeing continual increases in the price at origin for true quality coffee and our sources tell us that the competition for scarce crops and lots in increasing. Kenya AA coffees at the recent Nairobi Tuesday auction topped $ 9 per pound for the most highly sought lot. Admittedly there are Kenya AAs to be had for $ 4 per pound but then there are clean Robustas for $ 1.05 if price is the only consideration.

Those of us who have built reputations in the Specialty Coffee Industry over the years have not done it by being least cost vendors. We have always sought out the best and paid the prices required to offer it to our customers. There is always someone bigger who can produce an inferior product at a lower price and attempting to be the cheapest in the marketplace works better for Walmart than for Neiman Marcus. We urge all of our customers and friends to hold to the high road and to continue to sell the very best coffees in the world. They are more available than ever before and the success of chains charging $ 4 for a cup of coffee says that consumers are willing to pay for real value and quality.
That said, it is important to maintain one’s margins in any market. If your cost increases by 25 % and your selling price doesn’t you will soon find yourself without the cash to replace the coffee you just sold, especially in a climate of increasing prices. Some companies use this as an occasion to win new accounts either by holding price points or by having hedged against higher future prices. (Although the ability to do that with consistency would obviate the need to deal in real coffee; one could trade futures until one’s pile of cash was large enough and then simply drink the product) Think how the customer will feel in six months when the price protection or low-balling runs out! The resentment from such a bait and switch will far outweigh the sweetness of the temporary price reduction and the account will move again. One roaster we know confronts such challenges by suggesting to the customer that s/he ask for a two year price guarantee.

Eventually if you protect your margins higher prices will lead to a better bottom line. If the percentage of profit stays the same and the cost of goods and the selling price go up in tandem the net profit increases by roughly the same percentage as the cost. If you buy something for 3 dollars and sell it for 12, you make 9 dollars before expenses. If you pay 4 dollars and sell for 16 then this increases to 12 dollars before expenses. Aside from the transfer of wealth that higher prices bring to producing countries and those who labor in them, prices that reflect real rates of inflation yield better living conditions for all those who strive to produce and serve the world’s most popular natural fruit beverage. One of our roaster friends recently related that as payments come in for the accounts where he has raised prices he is noticing that his bank balance has been growing gratifyingly!

Best,
Erna Knutsen

To Our Roaster Friends,

Gung Hay Fat Choy!!! Since we missed the “Happy New Year” part of the calendar let us wish you Happy Year of the Hare!

PRICES, PRICES, PRICES!!!

Well, everybody blames everything on speculators these days but…

Brazil’s next crop will be about 43 million bags.  They used to export between 25 and 30 million bags but now internal consumption is between 20 and 21 million bags so they don’t have as much to export. In addition it has been more profitable to grow cattle than coffee in Brazil in recent years so plantings have decreased in the last few years. 

World consumption is up and world production has leveled off somewhat, and the “overhang” of 10 million bags which used to be in warehouses from year to year is no longer there so the market is more volatile.  That said, we have no idea whether the price will continue to go up, stay about this level for some time or fall back. We believe that something over 70 % of futures contracts are now held outside the industry ( by “speculators”) and so the needs of the roasters no longer control the direction of the market.  If I could predict the coffee “C” market I’d just get it right once or twice and retire.

Commodities have all increased in price both because of increasing demand and because governments are printing money (see 800 billion dollar bailout/stimulus) which makes money less valuable and commodities, whether gold and silver or corn and coffee, pricier.  World demand for food is increasing faster than production at this point, so prices are being pushed up, and the increasing demand for quality coffee may be boosting the high end of the market.  Certainly differentials to the “C” market have increased over the last year.

Finally I like to tell people that the best coffee in the world might cost 1.50 per cup to brew at home (RSW Estates Jamaica Blue Mountain) while a bottle of 1982 Chateau Petrus will set you back $ 2400 bucks for 8 glasses, and those only 3 ounces apiece!

BRAZIL SINAY NEVES

From the Bahia region of BRAZIL comes this lovely offering. Carefully processed and large in screen size for Brazil coffees, it is exceptionally clean in the cup, with very good body and hearty flavor elements. This fine coffee is an example of what small farmers and thoughtful

cultivation and handling can yield. We have a limited supply due to an over-order for a favored roaster.

BRAZIL VARGEM GRANDE

We have both good and bad news about this wonderful coffee which was an early winner of the Cup of Excellence and has been a staple of our BRAZIL coffees for many years. Sweet and clean on the palate and floral on the nose, this is one of our most consistent winners. The good news is that the coffee is in the warehouse and better than ever! The bad news is that due to a smaller crop and transitions in the family business there will be only one container this year. Because of the demand we are urging you to purchase this sweet aromatic BRAZIL while it lasts.

JAMAICA BLUE MOUNTAIN RSW ESTATES

We will soon be publishing an article about this unique farm and the folks who produce what is possibly the world’s most meticulously prepared coffee. From planting GEISHA varietals in the 60’s of the last century to upgraded cool air drying, gravity table and screen size sorting, electro-sorting and then hand sorting, no effort is spared to make this the best possible coffee. The GEISHA variety performs best at higher altitudes, and the main growing area at Sherwood Forest is at 5500 feet. We still have a few barrels available in 15 and 70 Kilo sizes.

SUMATRA MANDHELING PWN

For over thirty years we have been privileged to import SUMATRA MANDHELING coffee from PWN. We were the first specialty importer to bring it to the States back in the days of B.C. Ireland Coffee Company. Scrupulously prepared, PWN is one of the best looking and cupping Pacific coffees. It has always been a favorite with roasters because of the clean dense syrupy body, the crisp chocolately aroma and the smooth lingering finish. We have fresh crop in stock and ready to ship so please call for this classic bean.

WATER PROCESSED DECAF ORGANIC COFFEES

We are pleased to report that we have increased our stock of WATER PROCESSED DECAF ORGANIC COFFEES. We have in stock a selection of Costa Rica, Ethiopia Djimma, Mexican High Grown and Sumatra coffees.

WE are late with our BEST WISHES FOR THE HOLIDAYS but want to be sure to thank our customers and friends for making last year the best ever for KNUTSEN COFFEES, LTD. Your trust and confidence in us and the joy of selling the best coffees in the world make this the best job in the world. We hope that you have a prosperous and happy 2011, and that we are able to offer you ever better and more satisfying beans. ROAST AND DRINK THE VERY BEST!

Best,

Erna Knutsen

TO OUR ROASTER FRIENDS

GUATEMALA COBAN!

GUATEMALA has been on the forefront of Specialty Coffee for many years. ANACAFE, the quasi governmental national coffee association of GUATEMALA has been a firm and early supporter of the SCAA and was the first to publish colorful and informative brochures differentiating the coffee growing regions within the country and the cup characteristics associated with each.

One of these regions, COBAN, is difficult to reach much of the year. The weather approaches rain forest conditions, the roads are often impassable, and we fly in during gaps in the “climate”. The coffee is also affected by these conditions, and varies significantly from year to year. In bad years our exporter doesn’t even offer us samples. In good years he saves us the best of the crop. Those of you who follow Central American coffees know that the weather has been capricious lately, and the crop sizes have been disappointing.

All of that said, we have just received a small chop of the best GUATEMALA COBAN we have drunk in many seasons! We cupped it, we rhapsodized, we fought for the remaining sample to drink on the weekend. Sweet aromas with a hint of cinnamon are followed by deep rich chocolate and caramel in the cup. A smooth lingering finish dances on the palate as this lovely brew teases the senses. It is not inexpensive, but this truly world class coffee deserves every word of the praise we are sure you will heap on it.

PAPUA NEW GUINEA AROKARA AA

We have always loved great PAPUA NEW GUINEA coffees, but the geography and political stability of the country are often challenges difficult to overcome in the search for quality. Planted many years ago in SR 28 and SR 34 varieties developed in the third decade of the last century, the higher grown of these coffees have earned a formidable reputation. The infra-structure sometimes makes it tricky to get them to market in prime condition, and the continuing financial perils and management turnovers make consistency an issue here.

Nonetheless we are happy to be able to announce that a new lot of PAPUA NEW GUINEA AROKARA AA is in-store, and is a fine exemplar of the best of these lively hard bean coffees. Please call for a sample.

JAMAICA BLUE MOUNTAIN RSW ESTATES # 1 AND # 2(& PEABERRIES)

The JAMAICA BLUE MOUNTAIN RSW ESTATES is in the warehouse! Most of it has already been sold, but we need to let you know that if you want this superb “SUPER-NICHE COFFEE we need to know almost immediately. The mill is working every day, and the last days of harvesting are close by. The British and Japanese importers are competing with us for what there is of the rest of the crop, and we have to let the owner know by the 4th of July what coffee and sizes we will want later in the year. We can offer 15, 30, and 70 Kilo barrels of lovely JAMAICA BLUE MOUNTAIN RSW ESTATES # 1 AND # 2(& PEABERRIES) Please let us know SOON what you will need so we can be sure to have the coffee packed in the proper sized barrels in Jamaica.

MYTH BUSTING! In the past in many origin countries a numerical system has been used for grading coffees which has become quite misleading. In most cases these are measurements of size, not quality. We have sometimes purchased Kenya AB coffees, for instance, which have cupped better than the AAs from the same Cooperative. In the case of Jamaica Blue Mountain RSW Estates # 2, the coffee is subjected to the same inspection, cup testing & physical analysis as the # 1, but is, on average, 1/64th of an inch smaller in screen size. While the flavor and aroma are exactly the same, and the care in preparation equal ( the grading is only done after the coffee has been washed, fermented, dried, sorted, rested and milled ), the price is $ 1.50 per pound less.

SUMATRA MANDHELING BLUE TAWAR

For many years ( more than we sometimes like to recall ) we have been the principal importer of MANDHELING SUMATRA PWN, and it has become our best selling coffee out of all the origins we carry. Like other agricultural crops, coffee is somewhat seasonal in availability, and some customers like one flavor profile more than another. We are always cupping fresh samples, and occasionally come across an “orphan” lot of an exceptional coffee. In this case we found a small chop of SUMATRA MANDHELING BLUE TAWAR that a European exporter had not yet sold in a local warehouse. This coffee showed such clean but lighter, slightly less intense flavor that we decided to snatch it up. We have only sampled a few customers with it, but already half of it has flown out the door. Please investigate this intriguing offering while it lasts.

ORGANIC COFFEES

It occurred to us that we have an adjustment to make to our offering list. We segregate coffees by class, e.g. ORGANIC, FAIR TRADE, etc. This may cause some of our customers who are not necessarily interested in FAIR TRADE coffees to pass over this category without noticing that most of these coffees are also ORGANIC! If you need ORGANIC coffees, please glance at these as well. In a future version we will try to make sure they appear in both categories so no one will miss them.

TECHNOLOGY, PROGRESS & KCLTD

We are pleased with our new electronic version of this newsletter, and your response has been encouraging. We have learned that due to the absence of the logistics of the printer and the post office it is much more efficient as a delivery method. Two things: please be sure to add us to your “approved” e-mail list, however that works, and please subscribe to the e-mail version if you are getting this by “snail mail”. We will continue to print and mail our missives to those of you who request it, but some of the small lots may well be sold out before the printed version arrives, and most of our respondents seem to prefer this new method of transmission. Please don’t hesitate to let us know what you think, and what you like or dislike about it.

Best,
Erna Knutsen

TO OUR ROASTER FRIENDS

SCAA CONVENTION

We were delighted to see so many friends, old and new, at the 22nd SCAA convention in Anaheim! Scary to think that this is the 22nd one we’ve attended now, but gratifying to see how the organization has grown, and to feel the enthusiasm of the 8000 attendees for quality coffee. The symposium was an interesting collection of discussions among industry leaders, and a demo of several of the cutting edge “single serving” methods and equipment. Questions remain as to whether customers will wish to trade “custom brewing” for speed of service, but certainly whether fad or future these are attracting notice. On the down side, Charbucks boasted about their new varietal instant coffee and Green Mountain has bought Keurig, in an attempt to control the vertically integrated delivery of single cups in the home, from plantation to consumer. They have 8 million machines in consumers’ hands, so it is worth keeping track of this attempt to monopolize distribution by one of the country’s more successful large roasters.

EL SALVADOR “ 100% BOURBON”

And that’s the VARIETAL, not the beverage from Kentucky! Several years ago we were invited to address the inaugural meeting of the Specialty Coffee Association of El Salvador in the capital, San Salvador. As part of the meeting we cupped a selection of the finest coffees then on offer with the chief cupper of the Association. With 15 curious farmers watching we went through a table of 22 different coffees, making notes silently. At the conclusion we compared notes with the local expert and agreed that there were three “Specialty Coffees” on the table, and the rest were of lesser quality in one respect or another. This in spite of the fact that El Salvador has wonderful volcanic soils, lovely shade from trees and daily cloud cover, great care in growing and processing the cherries and efficient mills and patios for sun drying.

Since that time the Association has grown and prospered, and the Cup of Excellence has come to El Salvador. There are more Specialty Coffees produced, and much more pride seems to be taken in sending the best of these to market. All of which is leading up to the fact that we have come into a small lot of “ 100% BOURBON” EL SALVADOR coffee which practically knocked us off our cupping stools! This coffee has it all! Body, Aroma, long smooth Finish, Acidity, and Balance. In addition it is layered with notes of caramel and dark chocolate. It is one of the three best coffees we have had on the table in a year, and showing beautifully in the cup right now. There are fewer than 30 bags at this point, so please don’t hesitate.

KENYA AA+ SELECTED SMALL LOTS

Over the years we have specialized in the very best lots of KENYA AA+ , often sampling from the lots coming up to auction on Tuesday the week before and then instructing our exporter to buy those lots, without discussing price. We have managed to accumulate 6 lots, running from 4 to 34 bags of the very finest coffees from this country. While they are not cheap, they are incomparable coffees, and especially valuable today. This year’s auctions have seen reduced volumes of coffee, particularly of the very finest, partly due to the situation with the rains and partly due to the somewhat chaotic conditions in Kenya in general. As a result the prices ex-auction have gone as high as $ 6.00 per pound for truly great Kenyas, as the exporters battle to buy enough to fulfill their commitments. Fortunately we bought before the crunch, and given the beauty in the cup these are relative bargains in the low $ 4 s. Please don’t let them get away, next year’s crop is forecast to be even smaller.

BRAZIL TIJUCO PRETO

For several years now we have offered the VARGEM GRANDE grown by the Contini family in the Mogiana region of Brazil. When it was offered in the Cup of Excellence it was the overall winner on its first entry. We have been the exclusive importers of this fine coffee to the US ever since. Next door, separated only by a wind-break of shade trees is the farm of TIJUCO PRETO . This coffee is handled and treated in the same expert fashion, grown to the same exacting standards by the neighboring family, and in store today, while we will have to wait for the next harvest for more VARGEM GRANDE. If you need a wonderful, flavorful BRAZIL call us for a sample.

JAMAICA BLUE MOUNTAIN RSW ESTATES # 1 AND # 2(& PEABERRIES)

From the quaintly named farm at Sherwood Forest comes the best coffee in the Blue Mountains of Jamaica. This is truly a SUPER-NICHE coffee, hand worked on 220 year old cement patios, stored under climate controlled conditions and perfectly prepared. We can offer 15, 30, and 70 Kilo barrels of lovely JAMAICA BLUE MOUNTAIN RSW ESTATES # 1 AND # 2(& PEABERRIES) This year we will have them in stock all year, beginning 2nd half May or 1st half June. Please let us know soon what you will need so we can be sure to have the coffee packed in the proper sized barrels in Jamaica.

COSTA RICA TARRAZU “ MIEL”

In our last newsletter we had offered a special price on this past crop coffee which is still showing well in the cup. Because of a glitch in our newsletter’s electronic edition not everyone got notice of the bargain, so we are extending it through June of 2010.

ETHIOPIA YRGACHEFFE

Well for those of you who are always asking, “What’s new?” we have something both new and old. For the last couple of years the political situation in Ethiopia has made the availability of coffees from that country difficult. While the struggles between the government and the exporters have gotten short shrift in the major media, it has been a topic of conversation in coffee circles for a while. We have managed to corner a small lot of this lovely, citrus scented coffee with the traditional high notes in the cup. We literally can’t say when the next shipment will arrive, so restock your inventory while it is here.

FAIR TRADE CERTIFICATION

Our purchases and offerings have always been based entirely on the quality of the coffee in the cup. It was the principle which drew us to fine coffee all those many years ago and continues to be the only standard we believe justifies premium prices and special handling and marketing to the consumer. Originally FAIR TRADE certification was more likely to indicate a coffee produced by well meaning growers under less than optimum conditions, while it may have been socially responsible it was not often SPECIALTY COFFEE in the true sense. Fortunately this has changed, and the certifiers have moved to regions which have the potential to produce coffees worthy of being called SPECIALTY.

ORGANIC COFFEES

In response to your requests we are stocking quite a variety of ORGANIC COFFEES, including several which possess FAIR TRADE or RAINFOREST CERTIFICATIONS. Rather than list all of them, which are on the offering sheet attached, we will try to feature two we think are exceptional.

ORGANIC FAIR TRADE ETHIOPIA HARRAR

One such coffee is our ORGANIC FAIR TRADE ETHIOPIA HARRAR which has the classic jammy pulchritude of the best HARRARs, as well as FAIR TRADE certification. It offers a lovely prep, intense aroma and rich satisfying finish. This is one FAIR TRADE coffee which can hold up its head with pride!

ORGANIC FAIR TRADE SHADE GROWN GUATEMALA GUAYA’B

GUATEMALA was one of the first origins to designate different growing regions around the country by name, giving further specificity of origin to its Specialty Coffees. The romantically named Huehuetenango region produces some of the best of these. Grown at an altitude from 4600 to 5500 feet, under BIRD FRIENDLY shade, our Strictly Hard Bean GUATEMALA GUAYA’B has Organic, Bird Friendly, & Fair Trade certifications, in addition to superior cup quality. The sweet, clean round cup compares to the best Antiguas, without the forwardness and aggressive acid that sometimes characterize those. Truly an outstanding coffee from a Co-op which has managed to get it right!

As always, we offer the very best coffees in the world to the most discriminating roasters in the world. We look forward to hearing from you.

Best,
Erna Knutsen