Introduction to Coffee
Coffee is the most widespread drink in the world with approximately half-a-trillion cups consumed
every year. There are two fundamental types of coffee: espresso and regular, or non-espresso.
Espresso is the variety of coffee available in cafés and restaurants, whilst regular coffee is generally
meant for the home.
Major producers
· Nearly 70% of the world's coffee is produced by the Americas while Brazil contributes 30% and
Colombia 12% to the global production.
· Three percent of the global demand is met by Ethiopia.
The coffee industry of the world employs nearly 25 million people while approximately 5 million people
work in the coffee industry in Brazil. Brazil has in excess of 3 billion coffee plants. Ethiopia has a total
workforce of 12 million people in its coffee industry. Importing approximately 1.2 billion kg each year,
the USA is the world's chief coffee consumer. In the UK a substantial sum of money is spent on coffee
each year. Behind petroleum coffee is the world's second most important commodity. Inside 1,000
miles of the equator the entire commercial coffee is cultivated. Coffee is produced in commercial
amounts by more than 50 countries across the globe. Of all extensively produced agricultural crops,
harvesting of coffee is the least mechanized.
Highest consumption
· The highest per capita drinking of coffee in the world takes place in Ethiopia.
· In Europe, Finland has the maximum per capita coffee consumption, closely trailed by Denmark.
The three major kinds of commercially produced coffee bean are Arabica, Robusta in addition to
Liberia.
History of Coffee
Discovery of coffee took place in Eastern Africa in a region that is presently known as Ethiopia.
According to a popular legend, a goat herder called Kaldi, watched his goats behaving in a strangely
frolicsome manner after ingesting berries from a bush. Inquisitive about this occurrence, Kaldi made
an attempt to consume the berries himself. He realized that these berries provided him with a new
vigor. The news of this fruit rich in energy rapidly unfolded all through the region.
Monks learning about this remarkable fruit desiccated the berries in order that they could be shifted to
far-away monasteries. They soaked these berries in water, consumed the fruit, and gulped the liquid
to make available stimulation for a more stimulating time for prayer.
Introduction to Indian Coffee’s
The world's best shade-grown 'mild' coffees
Indian coffee is the most extraordinary of beverages, offering intriguing subtlety and stimulating
intensity. India is the only country that grows all of its coffee under shade. Typically mild and not too
acidic, these coffees possess an exotic full-bodied taste and a fine aroma.
Indian coffee has a unique historic flavour too! It all began with a long, arduous journey around four
hundred years ago... when the legendary saint Bababudan brought seven magical beans from distant
Yemen and planted them in the Chandragiri hills of Karnataka. The sensations of aroma, flavour, body
and acidity that you enjoy with each coffee experience is rooted in these mystical beginnings.
It is often said, the Indian coffee grower pours his life into the crop. Is it any wonder then that India
has consistently produced and exported a remarkable variety of high-quality coffees for over one
hundred and fifty years!
Organic Coffees in India
Organic coffee means a coffee grown under holistic agricultural production management system that
includes on farm composting of farm resources, mulching, shade regulation and eco friendly pest and
disease control measures. It completely excludes the use of agro chemicals with an aim of preserving
the environment and to obtain residue free product. However, in order to provide authenticity to the
product as organic, it has to be certified by an accredited certification agency.
Scope for organic coffee production in India:
There is a lot of scope for production of organic coffee in India, due to natural advantages existing in
cultivation of coffee, which are as follows:
Coffee is mainly grown in deep fertile jungle soil under well-defined mixed shade consisting
leguminous and non-leguminous trees.
Majority of the coffee holdings are dominated by small and tribal growers with low or zero inputs or
synthetic inputs with sustainable yields, which are ideally suited for conversion to organic farming
without any serious setbacks in yields
Majority of small and tribal holdings are following traditional farming practices such as cattle manure,
composting, manual weeding, recycling of organic wastes, which are prerequisites for organic coffee
production.
Coffee in principle is mainly grown under high degree of mixed cropping under shade with sustainable
income.
Coffee Industry in India
According to latest ICO monthly report, world consumption in 2006 is estimated at 117.93 mn bags
compared with 116.06 mn bags. While ICO member countries' domestic consumption in 2006 is
estimated at little over 31 mn bags, the importing countries consumption is estimated at 86.84 mn
bags. European Community's consumption is higher at 85.75mn bags compared with 38.97mn bags in
2005.
India accounts for about 4.5 percent of world coffee production and the industry provides employment
to 6 lakh people. Among the coffee growing states, Karnataka accounts for 70 percent of country's
total coffee production followed by Kerala (22 percent) and Tamil Nadu (7 percent). Europe accounts
for about 70 percent of India's total coffee exports. Of this again, 70 percent is shipped via Suez
Canal. Major Indian coffee importing countries include Italy, Germany, Russian federation, Spain,
Belgium, Slovenia, US, Japan, Greece, Netherlands and France.
Players Profile
The corporate presence in coffee plantations is negligible, although it is high in the end product
market. There are only few major integrated coffee players in India. TCL, which is the largest coffee
plantation company in India, contributes a mere 2 per cent to the country's total coffee production.
This is the result of the significant presence of non-corporate planters. Bulk of the coffee bean
production comes from a large number of small farmers. While Nestlé India Ltd and HUL are the other
major players in the organised coffee industry they do not own plantations.
Domestic Consumption
After being stagnant in the 1990s at 50-55 million kg, coffee consumption in the country started
growing in the current decade. CRISIL Research forecasts coffee consumption in India to be 94.8 and
101.0 million kg in crop years 2008-09 and 2009-10, respectively. Coffee consumption is likely to
grow at a CAGR of 6.5 per cent over the next 2 years due to spread of the coffee drinking habit in
non-traditional regions, growing café culture and increasing share of instant coffee in total coffee
consumption (manufacturing 1 kg of instant coffee requires 2.5 kg of coffee beans, while
manufacturing 1 kg of filter coffee requires 1.25 kg of coffee beans).
The Coffee Board, supported by the International Coffee Organization (IOC), is now placing greater
emphasis on boosting domestic coffee consumption through generic promotions, projecting coffee as a
healthy drink.
The key variables used to forecast coffee demand are:
Coffee drinking population base
Per capita consumption of coffee
Coffee drinking population base - CRISIL Research defines the coffee drinking population as population
in the age group of 10 years and above. Per capita consumption of coffee - CRISIL Research defines
the per capita coffee consumption as the total coffee consumption divided by the coffee drinking
population.
Population in the age group of 10 years and above has grown at a CAGR of 1.99 per cent during 2002-
2007. Population growth in this age group is expected to slow down to a CAGR of 1.91 per cent during
2008-2012.
CRISIL Research expects per capita consumption, which rose at a CAGR of 3.5 per cent between 2002
and 2007, to increase at a CAGR of 4.5 per cent during 2008-2012.
India: Export highlights (2006-07)
Volume wise, the permits issued for coffee exports in fiscal 2006-07 is the highest ever (2,58,546
tonnes) surpassing the previous best of 2,46,908 tonne of actual exports in 2000-01.
The total export volume of 2,58,546 tonne, includes 29052 tonne of re-exports.
The permits issued for re-exports in 2006-07 compared to 34813 MTs of actual re-exports in 2005-06
(less by 5761 tonne or 16 per cent)
The unit value realization for all types of coffees exported in green bean equivalent in 2006-07 is Rs
79895 per tonne and is the highest for the past eight years i.e. since 1999-2000.
As on date, confirmation of exports in 2006-07 is for 221421 tonne for which foreign exchange
earnings realized is $ 395.04 million or Rs.1769 crore. Export earnings in fiscal 2006-07 is the highest
for the past 8 years i.e. since 1999-2000.The total export earnings will cross Rs.2000 crore for 2006-
07.
Italy, Russian Federation and Germany are the top three importing countries of coffee from India in
2006-07. Belgium emerged as the fourth biggest importer of coffee from India for the first time.
The permits for export of Indian coffee alone in 2006-07 is 229495 tonne compared to 168161 tonne
in 2005-06 (Actual exports = 165230 tonnes
Global Scenario
Coffee:
The importance of coffee in the world economy cannot be overstated. It is one of the most Valuable
primary products in world trade, in many years second in value only to oil as a source of foreign
exchange to developing countries. Its cultivation, processing, trading, transportation and marketing
provide employment for millions of people worldwide. Coffee is crucial to the economies and politics of
many developing countries; for many of the world's Least Developed Countries, exports of coffee
account for a substantial part of their foreign exchange earnings in some cases over 80%. Coffee is a
traded commodity on major futures and commodity exchanges, most importantly in London and New
York.
World Coffee Exports in 2007/08 down from 2006/07 due to drop in supplies.
World Production of coffee in 2007/08 is forecast at 118.9 million bags (60 Kilograms or 132.276
pounds), down 12.5 million bags, or 9 percent from the revised 2006/07 levels. Most of the reduction
is attributed to Brazil, where coffee production in 2007/08 is forecast at 36.2million bags, versus 46.7
million bags in 2007/08, down 930000 bags from the previous year. The significant reduction in
production is a consequence of expected lower yields in the Arabic-production regions; a result of the
biennial production cycle.
Vietnam’s coffee production for 2007/08 is forecast to decline 5 percent or 930000 bags, to 17.7
million bags due to expected dryer conditions. Vietnam’s exports of coffee a significant portion of
coffee production. As a result in the drop in coffee supply in 2007/08, Vietnam’s exports of coffee are
forecast at 16.8 million bags, drop from preliminary estimate of 17.6 million bags during 2006/07.
Vietnam currently exports coffee to 70 Countries. Germany is consistently the largest market for
Vietnam’s coffee, followed closely by United States.
Columbia’s coffee production in 2007/08 is expected to increase from the previous year by 200000
bags, to 12.4 million bags. The growth in production is mainly the result of a tree renovation program
and expanded planted areas of coffee in the southern region of Colombia. It was developed between
1998 and 2004, under FEDECAFE, which brought around 400000 hectors. FEDECAFE is now planning
the second coffee tree renovation program over the next five years and is expected to renew
approximately 60000 hectors per year. It is the estimated that at the end of program in 2013,
Columbia will add another 3 million bags to total annual coffee production.
Mexico’s coffee production during 2007/08 is forecast at 4.5 millions 60-kilograms bags, an increase of
7 percent over last year. This increase assumes favorable weather and ample moisture in production
areas. However, early reports from producers from around the country, not just in coffee-production
areas, are citing highly variable, and somewhat unfavorable weather so far this year. The Mexican
coffee sector is in the first year of 10-years plan to stimulate domestic coffee consumption, and de-
emphasize efforts to sell on international markets. Currently 70% of Mexican coffee is exported and
30% is consumed domestically. Industry leaders have set a goal of reversing these numbers, with
70% of Mexican coffee to be consumed domestically and 30% to be directed to the export market.
United States coffee stocks at the end of April 2007 totaled 5.8 million bags, up 41,821 bags from the
March 31, 2007, level
India is the third largest supplier of coffee in Asia. The country has increased its share of world coffee
supplies from 3.3 per cent in 1996 to 4.1 percent in 2007. Also, its coffee supplies have registered a
CAGR of 3.2 per cent during the period. The country's share of global coffee exports in the past 10
years has ranged between 3.0-4.7 per cent, peaking to 4.7 per cent in 1997. In 2005, India's exports
accounted for 4.1 per cent of global coffee exports, declining to 3.1 per cent in 2006
Current Scenario across the Globe:
Fair Trade Coffee:
The United States consumes one-fifth of all the world's coffee, making it the largest consumer in the
world. But few Americans realize that agriculture workers in the coffee industry often toil in what can
be described as "sweatshops in the fields." Many small coffee farmers receive prices for their coffee
that are less than the costs of production, forcing them into a cycle of poverty and debt. Coffee prices
have plummeted and are currently around $.60-$.70 per pound. "With world market prices as low as
they are right now, we see that a lot of farmers cannot maintain their families and their land anymore.
We need Fair Trade now more than ever. Meanwhile coffee companies have not lowered consumer
prices but are pocketing the difference. "The drastic fall in coffee prices means, in two words, poverty
and hunger for thousands of small producers in Latin America". We believe in a total transformation of
the coffee industry, so that all coffee sold in this country should be Fair Trade Certified, or if produced
on a plantation, that workers' rights should be guaranteed and independently monitored.
Source: globalexchange.org
World's coffee shortage estimated at 8m bags between
2009-2010
· International Coffee Organisation (ICO) forecasted that the world's coffee shortage in 2009-2010
would be eight million bags due to a decrease in Brazil's coffee output.
· According to the Vietnamese Ministry of Industry and Trade's commercial information centre, the
price of Arabica in Brazil last week increased by 6.1% while that of Robusta and instant coffee rose by
4.3%. Brazilian agriculture ministry forecasted that the coffee output would decline 22% down to 36
million bags.
· Global coffee price has been continuously falling; especially the Arabica coffee price in New York has
been down 29% sharply since the end of June.
· ICO said that the world's coffee output would drop to 122-125 million bags while the demand is
predicted at 130 million bags, leading to a shortage of five million bags.
· Vietnam's Robusta price in December declined by 43% to US cent 88.21 per pound, much lower than
the peak of US cent 156.89 per pound in February.
· Most recently, ICO forecasted that Brazil's coffee output in 2009-2010 will reach 40 million bags,
lower than the current crop's 45.9 million bags while that of Colombia will be 12.5 million bags or
lower, and Vietnam's 21 million bags each year in next three-years.
· In New York, the Arabica coffee price applied on the March 2009 deadline contracts closed at US cent
109.5 per pound, rising by US cent 6.30/pound from the end of the previous week while the price of
the May 2009 deadline contracts increased to US cent 112.1/pound.
Organic Flavored Coffee Is The Choice Of Millions Of People - Find Out Why
The demand for organic flavored coffee is growing every day as more and more people discover
the benefits of this wonderful beverage. Today, this particular type of coffee is grown in more
than 30 countries besides USA.
What Is Organic Flavored Coffee? Coffee comes with its own extremely distinguished and
unique flavor. At the same time some people experimented with extra flavors and what do you
know? They found the outcome exceptionally appealing. There are still many people in the world
who would never hear of having coffee any other way but in its pure state; nonetheless, organic
flavored coffee is finding favor in most up-end cafs all over the world owing to its unusual taste.
Talking about organic flavored coffee would make you wonder how the flavor is added. The
process is very simple. The coffee beans are cleaned thoroughly and roasted, immediately after
which the flavor is added. The timing for adding the flavor should be perfect if you want to have a
great cup of flavored coffee.
Make Your Own Organic Flavored Coffee
The process is so simple, that you could do it yourself at home. Get hold of some high quality of
organic coffee. The quality of the coffee is very important because the flavor however great,
would not mask the quality of the beans and if you are working with inferior coffee, the end
product would be compromised.
Have the coffee beans roasted and just as soon as they are done add cinnamon or vanilla flavor
to it. These flavors are the best and high in demand today. Ensure that the cinnamon or vanilla is
also organic if you want to maintain the organic status of your flavored coffee.
Why Should You Go For Organic Flavored Coffee
Flavored or not is your personal choice - and you should make up your mind about it only after
tasting at least one cup of high quality flavored coffee. However, you should always try buying
organic coffee and other farm products as well. Not only organic coffee is healthier since it is
produced without the aid of any chemicals, but also such methods of cultivation promotes the
sustainability of our environment, something that is extremely critical today.
The organic farmers all over the world are out to prove wrong the belief that one cannot get high
quality or quantity of any crops grown organically. The organic coffee is one excellent example
that organic crops can and are an excellent choice both for human consumption as well as for
the environment.
