Thursday, 11 April 2024

What coffee varieties are good for espresso

Lets talk about what coffee varieties are generally good for espresso, not just Italian-style.

Espresso is unique: it’s brewed under high pressure (9 bar), which amplifies body, sweetness, and acidity — and exposes flaws fast.
So good espresso varieties must offer balance, body, sweetness, and aromatic complexity that can stand up to intense extraction.

☕️ 1. Key Qualities Espresso Beans Need

Before naming specific varieties, here’s what makes a bean espresso-suitable:

Low to medium acidity → avoids sour shots.
Good body → gives syrupy texture and crema.
Complex sweetness → caramel, chocolate, nuts, ripe fruit.
Stable flavor under pressure → not too delicate or floral.

🌍 2. Best Arabica Varieties for Espresso

Variety	Origin	Espresso Traits
Bourbon	Latin America, Africa	Sweet, smooth, and rich body; caramel, chocolate, almond notes. A gold standard for espresso.
Typica	Central/South America, Indonesia	Clean, balanced, mild — forms the backbone of many blends.
Caturra / Catuai	Latin America	Compact, sweet, balanced, with nutty and cocoa tones. Performs very well in espresso.
Pacamara	Central America (El Salvador, Nicaragua)	Big-bodied, syrupy, complex — ideal for single-origin espresso.
SL28 / SL34	Kenya	High sweetness, blackcurrant and citrus notes — works beautifully in lighter, modern espressos.
Castillo / Catimor	Colombia and hybrids	Sweet, full-bodied, and consistent. Good for blends needing body and chocolate.
Maragogipe (Elephant Bean)	Brazil, Nicaragua	Lower acidity, very smooth; excellent mouthfeel for espresso.
Heirloom (Ethiopian varieties)	Ethiopia	Fruity and floral; best used in light, specialty espresso with careful roasting and extraction.

💪 3. Robusta (Coffea canephora) in Espresso

While Arabica dominates specialty coffee, Robusta still has a role:

Adds crema, caffeine, and body.
Balances sweetness with bitterness.
Great for Italian-style espresso or blends for milk drinks.

Good Robusta sources:

India Kaapi Royale
Uganda Bugisu
Congo Robusta
Vietnam Fine Robusta (washed)

A blend like 80% Arabica / 20% Robusta is classic for traditional espresso.

🔬 4. Variety + Origin = Character

Espresso is more about how a variety expresses itself in a region and roast level:

Brazil Bourbon/Catuai → low acidity, nutty, chocolatey, perfect espresso base.
Colombia Caturra/Castillo → caramel, mild fruit, and clean sweetness.
Ethiopia Heirloom → complex, floral, for modern lighter espresso.
Sumatra Typica → earthy, heavy-bodied, great for depth and crema.

🧾 5. Example Espresso Approaches

Espresso Type	Example Varieties	Notes
Classic Italian	Brazil Bourbon, Colombia Typica, India Robusta	Chocolate, nutty, low acidity, dark roast.
Modern Specialty	Ethiopia Heirloom, Kenya SL28, Guatemala Caturra	Fruity, floral, medium roast, higher acidity.
Milk Espresso (Cappuccino, Latte)	Brazil Catuai, Colombia Castillo	Smooth, sweet, cuts through milk.
Single-Origin Espresso	Pacamara, SL34, Typica	Complex and syrupy.

🔧 In short:

If you like traditional espresso (brewed at 1:2 ratios) the coffees that are most suited are

1. low altitude beans (eg : Brazil)

(usually low altitude coffee has lower acidity)

2. Medium or dark roast since roasting reduces acidity.

Best all-around espresso varieties:
Bourbon, Caturra, Catuai, Typica, Pacamara, Castillo — and a touch of fine Robusta if you like classic Italian depth.

Look for Brazillian, darker roasts or blends.

Blend-based espresso (most common in cafés)

→ Brazil + Colombia + Ethiopia/Guatemala combinations

These will be fine

Brazil is the most widely used espresso-origin in the world.

Flavor: chocolate, nuts, caramel
Body: heavy, creamy
Acidity: low
Why it’s used: creates a stable, sweet base and strong crema

👉 Often forms 30–70% of espresso blends

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In comparison, a country like Colombia has a more balanced sweetness + acidity.

Colombia

Flavor: caramel, red fruit, cocoa, chocolate
Body: medium
Acidity: medium and structured
Why it’s used: adds clarity and sweetness without overpowering
👉 Best for: everyday straight espresso

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India

Flavor: spice, dark chocolate, earthy tones
Body: heavy
Acidity: low
Why it’s used: enhances crema and richness, especially in traditional Italian-style espresso blends

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Indonesia

Flavor: earthy, herbal, dark cocoa
Body: very heavy, syrupy
Acidity: low
Why it’s used: adds intensity and a lingering finish (common in robust espresso blends)

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Ethiopia

Flavor: jasmine, berries, citrus
Body: lighter
Acidity: high and vibrant... thus better for straight (non milk) espresso
Why it’s used: adds aroma and complexity (often in smaller percentages)

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Guatemala

Flavor: dark chocolate, spice, citrus
Body: medium to full
Acidity: bright but controlled... thus better for straight (non milk) espresso
Why it’s used: adds depth and “dark chocolate” espresso character

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Often these lower altitude coffees are cheaper than the high altitude , more acidic coffees.

If you are using expensive coffees, they are often better roasted lighter, and used in pourovers or pulled in longer 1:3 or 1:4 ratios if an espresso machine is used.

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🧠 Simple rule of thumb

Straight espresso → Ethiopia, Colombia, Guatemala
Milk drinks → Brazil, India, Indonesia
Both → Colombia & Brazil (most versatile)

The quest for low acidity is the key.

Finally, remember that when brewing, higher temps (90-96c) extract more acids, while cooler water extracts fewer acids (and fewer bitters) and results in a smoother but flatter or mor muted flavour.

Wednesday, 10 April 2024

AFI -

aug 2026

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https://www.tradingview.com/symbols/ASX-AFI/financials-overview/

https://www.marketindex.com.au/asx/afi

https://stockanalysis.com/quote/asx/Afi/

https://koalagains.com/stocks/ASX/AFI

https://www.afi.com.au/top-25-1

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chart

AFI only managed to double its price in 2022 (if you bought in at the price of $4 during the 2009 GFC).

That's 13 years !!! Its now (in 2026) below $7.

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ASX:AFI (Australian Foundation Investment Company) has maintained a highly stable, low-debt profile over the last 5 years with consistent profits and an ultra-low management fee. However, its earnings and dividend growth have been modest, with the dividend payout ratio exceeding recent earnings. [1, 2, 3, 4, 5, 6]

Financial Snapshot

Profit: The full-year profit for FY2025 was $285.0 million (down from $296.4 million in FY2024). For the half-year ending December 31, 2025, the profit was $147.0 million. The profit drop was primarily due to trimmed bank holdings and lower dividends from resource companies. [1, 2, 3, 4]
Debt: AFI operates a fortress-like, debt-free balance sheet with virtually no external debt. [1]
ROE & Returns: The Return on Equity (ROE) has tracked around 3.28%. Over the past 5 years, earnings have grown by about 2.5% per year, and EPS growth has hovered around 8.6%. [1, 2, 3]
Management Expense Ratio (MER): AFI continues to offer an extremely low cost structure, with an MER of just 0.16% and no additional performance fees. [1, 2]

Dividend & Payout

AFI targets fully franked dividends that grow faster than inflation. However, in recent reporting, the dividend payout ratio has been elevated (over 100%) of earnings, partially sustained by accumulated capital gains and franking credits. You can review ongoing payout updates on the Australian Foundation Investment Company (ASX:AFI) page. [1, 2, 3, 4, 5]

5-Year Performance & Outlook

As a Listed Investment Company (LIC), AFI's performance is tied to its underlying portfolio. The total portfolio return has generally mirrored the broader market, though it can periodically lag large-cap benchmarks due to its defensive, low-turnover tilt. The company aims to provide stable, attractive total returns with a heavy emphasis on dividends. [1, 2, 3, 4, 5]

For more details on their long-term performance, you can read the latest AFIC Annual Report or check the Performance - AFIC portal.

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ASX:AFI (Australian Foundation Investment Company) and ASX:ARG (Argo Investments) are nearly identical blue-chip Listed Investment Companies (LICs) that trade neck-and-neck in performance, fees, and long-term shareholder returns. [1]

Key Metrics Comparison

Metric	ASX:AFI (AFIC)	ASX:ARG (Argo)
Share Price	~$6.60	~$9.18
Market Capitalisation	~$8.11 Billion	~$6.90 Billion
Dividend Yield	~4.02% (fully franked)	~4.19% (fully franked)
Price-to-Earnings (P/E)	~27.8x	~26.6x
Management Expense Ratio (MER)	~0.13% – 0.15%	~0.13% – 0.15%

Long-Term 10-Year Growth

AFI 10-Year Return: Delivers approximately 9.2% to 9.5% per annum (including net asset per share growth and dividends with franking credits). [1, 2]

ARG 10-Year Return: Tracks very closely at roughly 8.7% to 9.0% per annum on a total shareholder return basis.

Context: Both LICs closely track or slightly trail the broader S&P/ASX 200 Accumulation Index over decade-long horizons due to corporate tax drag and management costs, though they provide lower relative volatility. [1, 2]

Dividends & Dividend Growth

Consistency: Both companies have multi-decade track records of uninterrupted, fully franked dividend payments through various economic cycles. [1]

AFI: Holds a razor-thin historical edge for absolute dividend consistency and smoothing reserves during market downturns. [1]

ARG: Recently moved to pay dividends on a quarterly schedule rather than semi-annually, providing a more regular income stream alongside occasional listed investment company (LIC) capital gain components offering tax deductions for certain SMSFs

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