A presentation by Pierre E. Leblache, Founder Executive of the World Alliance of Gourmet Robustas at Tea & Coffee World Cup, Singapore, 10 October 2004.

Good Morning Ladies and Gentlemen,

It really seems like yesterday that 2 years ago, at the Kuala Lumpur Tea & Coffee World Cup of 2002, we had an exchange of views over Robustas and their evolution: At that time, all coffee futures were frightfully low, about 58 cents for arabicas, less than half that price for robustas. There was a lot of hope that things would get better, that we were at the low point of a cycle, and that millions of coffee growers all over the world would soon be able again to earn a decent living. Our opinion then was that prices would indeed improve for arabicas, and they have: Mild coffee futures now stand above 80 cents per pound, a 40 % increase over 2 years, and more importantly a level well above the production cost of many types. Unfortunately, the value of robustas has remained unchanged and it takes close to 3 pounds to reach the price of a pound of arabica.

The reasons are well known and have not changed much: Overproduction, generalized dry processing which affects quality, anonymous usage for soluble or low-end blends, lack of promotion, complete absence of recognition, all resulting in a disastrous image or worse, no image at all.

For the overwhelming majority of robustas, the future appears very bleak, as few of these causes will disappear in the coming decade. On the contrary, the overproduction of robustas will grow. For each origin which exports less or stops producing altogether, two or three are emerging as larger producers. Just in Asia, we have 5 countries, Laos, Cambodia, Bhutan, Nepal and Myanmar suddenly becoming significant robusta exporters, exactly the way Vietnam became a major player in the 1990s.

Over the past 15 years or so, there have been three occasions, in 1989, 1992 and then 2001, when this desperate situation with prices at all times lows applied not only to robustas, but to arabicas as well. Maybe there is a good side to all bad things, as 1989 was the jolt that jump-started the creation of specialty coffees, when creative and realistic producers realized that the only way to make up for unsustainably low prices was to generate premiums through quality, recognition and customer loyalty. To tell the truth, they were greatly helped by US consumers, as more and more began revolting against the idea of drinking hot black water instead of really tasteful coffee. That was a time when many coffee shops extracted 200 cups out of a pound of coffee instead of the customary 50, and the result was just that: Hot black water, actually not even that black…

Since that date, premium coffee consumers have numbered several tens of millions, the Gourmet market has exploded, over 20 origins partake in it, some with a few hundred bags, some with over a million, and over 150 types or names command premiums of 100 % or more over bulk coffees, this at the exporter level. At the consumer level, the brands are in the hundreds.

Up to the year 2000, the coffees involved were exclusively arabicas, without a single robusta even attempting to define itself as a premium type deserving recognition and exclusivity. For a starter, very few robustas were processed as washed coffees. Their appearance was therefore unappealing, a major obstacle to being considered worthy. A few countries did produce washed robustas, such as India or Uganda, but since they were exporters of arabicas as well, they considered robustas to be the poor sibling and upgrading them was usually not a priority. Then the Elk Hill Estate in south India created Raigode, a washed blue-green coffee with bold beans and zero defect, and became the Pioneer Gourmet robusta producer. Raigode was marketed as a specialty coffee, among much skepticism by the consuming sector and an understandable reluctance by importers to pay any premium over a standard Kaapi Royale. Nonetheless, it succeeded and quickly commanded prices close to those of Indian arabicas. The lots were very small but the action was duly noted, and repeated by several Indian producers. Quantities remain minimal, but this is no obstacle in the trade of Gourmet coffees: High end consumers want exclusivity, not mass marketing, and types consisting a few hundred, or even tens of bags can be successfully channeled at top prices through small specialty roasters as is the case in Italy or the United States.

In the past two years, similar initiatives to create and market quality washed robustas as premium coffees have been seized in Ecuador, Madagascar and Brazil, while more are being planned in Uganda, Cameroon, Mexico and even Guatemala. Now, the case of those 2 countries is particularly interesting: In Mexico, robustas represent maybe 8 to 10 % of the total crop, and their export was, until recently, completely forbidden. In Guatemala, robustas account for less than 1 % of the production and their existence is generally not even acknowledged. But these countries have a tradition of savoir faire and good washing, and quantity is not an issue: If just 2,000 bags of good washed Guatemalan robustas go to the specialty market instead of the soluble pit or domestic consumption, it represents a bonus of over 60,000 $ for the seller and a windfall for the producer.

Now, you may ask, why would the specialty market need robustas when so many arabicas are offered as Gourmet ? The answers are simple: Diversity, and the fact that a good, well processed robusta will always be superior to a mediocre arabica unevenly prepared: 15 years ago, the specialty market involved only the very best coffees, carefully picked and processed. As the market grew, it attracted a lot of greed, and many coffees which would barely pass the exchange or sell without a discount are now offered as “Gourmet”, as long as they include the magic word “Arabica”. I saw the other day a tin which contained “Fancy Gourmet Arabica Soluble…” No comment, except to add that in foodspeak, “Fancy” is an elegant word for “Fake” or “Artificial”. This is ludicrous: Not every coffee lover looks for acidity and there is nothing wrong or inferior in a zero defect carefully prepared washed robusta, which was after all the original basis for Italian espresso. The only problem is that, in these last 10 years, there have been so few of them…

Another reason for quality robustas to partake in the specialty market is their price competitiveness. As the consumer base expands, it looks for diversity not only in flavor, body or aroma, but also in price. Because of the huge differential between both varieties, Gourmet robustas can be priced at a large discount to their mild brothers and therefore contribute to the sector’s awareness and demand.

In 2002, we realized that while there were dozens of institutions, associations, organizations and forums dedicated to coffee, there was not a single one specifically dedicated to robustas, one where all members of the robusta chain could exchange ideas, discuss usage, promote quality and attempt to boost prices. This prompted us to create the World Alliance of Gourmet Robustas, a group which set to improve the fate of those robustas which can be saved and deserve a better future. More specifically, our aims have been and continue to be the following:

• To create, throughout the Gourmet sector, an awareness of the existence of another variety of specialty coffee with different, although equally distinguished qualities and characteristics, and to actively promote the few robusta Gourmet coffees already in existence.

• To advertise to every link of the specialty coffee chain the advantages of producing and selling new types that can generate substantial premiums at all levels, while maintaining a competitive price advantage.

• To develop more types in the origins which can produce them, upgrading to Gourmet standard the best washed robustas, and increasing the proportion of washed processing where feasible.

• To have as quickly as possible a significant number of specialty robusta types in workable quantities, and to exhibit them at Gourmet coffee events.

• By the year 2006, to be able to hold a event dedicated primarily to Gourmet robustas.

• To identify other producing countries capable of creating washed specialty robustas.

• To facilitate the development of robusta improvement programs through consulting in the areas of production, processing and marketing, and to publicize the consulting resources available through government agencies, NGOs, and private firms.

• To provide links between buyers and sellers in order to quickly identify sources and outlets and to accelerate a meaningful presence of robustas in the specialty market.

There are other good news, as it has been mentioned that Vietnam, the world’s major exporter of robustas, is planning to enter the Gourmet Coffee field and is looking at ways to create identifiable brands and types. Coming from such a huge producer, it means that upgrading to Gourmet status only 2 or 3% of its production, Vietnam’s market share in Gourmet coffees could quickly become the same as El Salvador’s… Quite a stir…

Asia is home to 3 of the 6 largest robusta exporters and produces about two thirds of the world’s output. More than any region, it has a lot to gain or lose not only with the price but also with the image of robustas. India has a huge potential to cash on its pioneering efforts, and those new origins I mentioned earlier, Laos, Cambodia, Bhutan, Nepal and Myanmar will only be competitive and acquire a name in the market if part of their production becomes noticeable. As the world consumes more and more Gourmet coffees, robustas constitute the largest untapped potential for their diversification.

Worldwide, the coffee scene changes and we can look at it with cautious optimism: The decision by the USA to rejoin the ICO constitutes a positive sign, but US legislators made it quite clear that they remain intent on a free market and that price regulations will not return. More than ever, the future of robusta origins lies in their own hands, and, for those who can, joining the specialty trade current constitutes the only option towards progress. The French have a way of saying “Aide toi, le Ciel t’aidera”, which means “Start running to your own help, and more will come” . This may be a good time to start.

We shall be pleased to discuss this with you in the exhibit hall, and I thank you very much for listening.