Mr. Ted Lingle

Ted Lingle
SCAA.Mr. Ted Lingle, the Executive Director of the Specialty Coffee Association of America (SCAA), answers some questions here about coffee and the coffee crisis. The SCAA is a non-profit trade association for the Specialty Coffee industry, one of the fastest-growing food industries in the world. Specialty Coffee — sometimes called "gourmet" or "premium" coffee — is grown in the world's most ideal coffee-producing climates and prepared according to exacting standards.

One of the SCAA's primary functions is to set the industry's standards for growing, roasting and brewing. Members of the SCAA include coffee retailers, roasters, producers, exporters and importers, as well as manufacturers of coffee equipment and related products.

How many countries are currently members of the SCAA? What is your projection for member countries in 2005?

SCAA currently has over 3,000 members in 68 countries, with the bulk of the membership concentrated in Canada and the United States. While we expect our membership to continue to grow, we anticipate the number of countries represented will remain approximately the same.

How does the SCAA go about setting the industry standards for specialty coffee?

SCAA develops its standards through the work of our Technical Standards Committee. These standards are “scientifically based and consumer driven.” While there is not unanimous or universal agreement by all countries for all standards, as some of the standards are culturally driven or biased, there is general consensus from all countries on the technical criteria for quality coffee beans and beverages.

Sustainable coffee – what is SCAA’s position on sustainability? How is SCAA helping achieve the needs of the present without compromising on the future?

Simply put SCAA’s position on sustainability: “Quality is sustainable, every thing else is not.” We view “sustainability” as a three-legged stool: (1) Economic viability; (2) Social responsibility; and (3) Environmental stewardship. In a consumer driven market place, quality is the primary driver for economic viability.

It is apparent that international cooperation between producing and consuming countries needs to be designed to assure adequate remuneration to producers while providing consumers with quality coffee at affordable prices. What are the greatest obstacles to success?

The single greatest obstacle is “tradition.” Up until the advent of the specialty coffee industry, cooperation between producers and consumers was viewed as a “competition.” When prices were high, the producers were deemed to have won; when prices were low, the consumers were deemed to have won. The specialty coffee industry views international cooperation as a “partnership,” with all parties in the supply change winning each time the supply chain is strengthened. We are now trying to promote this “new perspective” within the commercial side of the coffee trade.

The imbalance between supply and demand has traditionally affected the coffee trade. What is the SCAA‘s role in correction of this imbalance to enable international co-operation in this sphere? Looking at the future from the viewpoint of the SCAA, what are your plans to help restore the balance?

Now that SCAA has successfully established the relationship between higher quality standards and higher prices, we are working on building an “Alternative Market” where coffees produced to higher standards are traded in a transparent manner at higher prices. Higher prices are the market place’s signal to produce more of the coffees required to meet the consumer demand. It is critically important that these signals be highly visible.

How closely does the SCAA work with the ICO and specialty coffee organizations from other countries? What are the main areas of international co-operation favoured by the SCAA?

SCAA works very closely with the ICO through the Private Sector Consultative Board. Our agenda is built on two tenants: (1) Increase the value of coffees sold; and (2) Increase the volume of coffees sold. Increasing the value is Job #1. In this regard we have develop a Letter of Understanding (LOU) with a number of producer and consumer specialty coffee organizations around the world to pursue this goal. Our Website Origin Map and the World Barista Championship are examples of this cooperative effort with other specialty coffee trade associations.

The 1962 Coffee Agreement and those that succeeded until 1989 were based on an export quota system and during that period the quota system appears to have kept the coffee market stable. What do you think led to the collapse of that quota system?

The original ICA collapsed in 1989 because, like all artificially regulated markets, it led to a “two-tiered system” in which member countries were paying twice the price for coffee as non-member countries.

The SCAA posts, “Specialty Coffee has become one of the fastest growing food service markets in the world, netting $8.4 billion a year in the U.S. alone." What’s the forecast for 2005?

The forecast for 2005 is that specialty coffee sales will continue to grow at an annual pace of approximately 7% worldwide, with growth in sales in North America slowing to around 4% and growth in sales outside of North America increasing to nearly 10%.

In 2002, the UN agreed on the Millennium Objectives highlighting the international desire to reduce poverty worldwide. How does the SCAA fit into this scene?

SCAA is in the process of signing the UN resolution as a Millennium Development Partner and creating our task list of projects to complete by 2012, our 30th anniversary.

We understand that the SCAA hosts an annual Barista Championship competition – considered the “Olympics of Coffee.” Can you tell us a little about this competition?

The World Barista Championship is a joint venture between SCAA and SCAE (Specialty Coffee Association of Europe) designed to promote excellence in the preparation of espresso and espresso-based beverages. As each of the participating countries sends only one “National Champion” to represent the country, it is very much like the Olympic model, including the “passport rule,” meaning the competitor representing the country must have a valid passport (proof of citizenship) from that country. To date, the WBC has alternated between the United States and Europe (2005 WBC will be in Seattle). In 2007, the WBC will be held in Japan.

Do the statistics on the world coffee economy point to better prices in 2005?

In our view the world market is rapidly headed toward a two-tier market based on quality. The higher qualities produced in Central America, the Andean region of South America, East Africa, and select places in Asia, will see much higher coffee prices due to strong increases in consumer demand. On the other hand, the lower qualities, particularly Robusta coffees grown in Vietnam (the world’s second largest producer) will continue to see lower prices due to large increases in supply.

How would you summarize SCAA’s main projects for 2005?

In a word: “multifarious.” SCAA continues to be the “catalyst for change” in the coffee industry. Many, many stakeholders in the industry look to us for direction in making all links in the supply chain more efficient, more transparent and more effective in strengthening the relationship between the people who grow coffee and the people who drink it. “We have a long way to go and a short time to get there.”

Thank you!

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