R Nagaraja Rao (on left), Executive Director, Bayar’s Coffee, with R K Krishna Kumar, Trustee of the Tata Trust.
Bengaluru :
Bayar’s Coffee, a leading coffee manufacturing company from Bengaluru, has bagged the ‘Best Roasters Platinum Award-2016’ instituted by the Coffee Board of India and the India Coffee Trust.
The award was presented for adoption of food safety standards, implementation of new technology, and for producing high quality coffee blends.
The award was given at a glittering ceremony held at Mumbai, presided over by Leena Nair, Chairperson of the Coffee Board. R K Krishna Kumar, Trustee of the Tata Trust, felicitated R Nagaraja Rao, Executive Director, Bayar’s Coffee, with the “Best Roasters Platinum Award-2016”.
Expressing his happiness over the award, Nagaraja Rao said, “We have introduced a variety of speciality coffee blends in tune with customer needs. We are happy that Bayar’s Coffee has bagged the award four times in a row. Our responsibility to provide high quality coffee to our customers has increased.”
source: http://www.thehindubusinessline.com / Business Line / Home> Companies / by Anil Urs / Bengaluru – January 27th, 2016
Coffee growers in Kodagu, Chikkamagaluru and Hassan districts are, however, apprehensive.Many want to know the measures taken to protect small and marginal farmers, who constitute 90% of growers in Karnataka.
Bengaluru :
When coffee growers in Karnataka were going through a rough patch due to labour shortage, elephant menace and unprecedented fall in prices, the Centre in November last year allowed 100 % FDI in five plantation crops: Coffee, rubber, cardamom, palm oil and olive oil. The decision, meant to rejuvenate the sector, is expected to have a huge impact on Karnataka, which accounts for 70% of India’s coffee production.
As of now, 100% FDI is allowed only in tea plantation. “Relaxed FDI norms will help coffee and cardamom growers since it is expected to bring in big overseas investors and retail giants besides enhanced technology utilization, automation, research, management and production of value-added products. Permitting foreign investment will also boost India’s coffee exports offering better prices for growers here, ” says Coffee Board chairperson Leena Nair.
Coffee growers in Kodagu, Chikkamagaluru and Hassan districts are, however, apprehensive. Many want to know the measures taken to protect small and marginal farmers, who constitute 90% of growers in Karnataka. Some coffee growers’ associations are holding talks to oppose the move as they fear small growers would be forced to sell their estates to foreign investors. Their entry may prove detrimental for small coffee planters, who may not be able to match the wages and technology of foreign players.
“The Centre should have held consultations and allayed fears before allowing FDI. But they have done in it in a hush-hush manner and kept us in the dark, making us believe that there is a hidden agenda,” says NK Pradeep, a Coffee Board member from Chikkamagaluru. Former Coffee Board vice-chairman Sannuvanda Kaverappa says a parliamentary committee that visited Chikkamagaluru last year to interact with coffee growers left in a huff. Nair allays all fears of growers saying: “The small-grower segment need not worry as enough safeguards have been provided and the Centre and the state government can always reject any FDI proposal in their segment.”
A Coffee Board executive says FDI will benefit coffee growers. The measure is expected to make the coffee industry vibrant like the tea sector, which opened gates for foreign investments in 2002. “Rather than starting a new venture, foreign investors may partner with existing plantations or trading companies. FDI will help boost developmental activities such as replanting, rejuvenation and R&D that need huge funding. It may also help in upgradation, modernization and automation of coffee-processing, curing, marketing,” he adds.
source: http//:www.retail.economictimes.indiatimes.com / ETRetail.com / Home> Industry / February 12th, 2016
The flavour of Kodagu permeated the Republic Day parade in New Delhi as Karnataka’s tableau rolled down Rajpath. The tableau `Kodagu, The Land of Coffee’ was one of the star attractions at the parade.
The tableau didn’t just grab eyeballs, it filled the chilly Delhi air with the delightful aroma of freshly brewing coffee. This was done using a gas container to blow coffee essence into the air.
The tableau was a thematic presentation of litterateur HL Nage Gowda’s Kannada literary work `Bettadinda Battalige’, which means “from the hills to your cup”.
As it neared the VIP enclosure at the parade, Union minister DV Sadananda Gowda stood up to cheer, prompting wife Datty to join in. He was followed by minister HN Ananth Kumar and wife Tejaswini, who clapped loudly as it passed by. Eight women and two men from Kodagu danced, while a couple dressed in traditional Kodava attire walked along. Coffee plants, the harvest, grinding and mixing coffee at different levels of production, were some of the depictions.
source: http://www.timesofindia.indiatimes.com / The Times of India / News Home> City> Bangalore / TNN / January 27th, 2016
‘The Romance of Indian Coffee’ is the Indian entry to the Gourmand International (Book) Award this time
The jacket of the book ‘The Romance of Indian Coffee’ written by journalist P.T. Bopanna.
The Indian entry to the Gourmand International (Book) Award this time is on what until recently was a south Indian addiction: coffee.
With the coffee culture proliferating across India, thanks to chains like Starbucks, Barista and Café Coffee Day, the routine act of consuming the black decoction stirred in milk, as most people do, and with or without sugar – which again is a personal choice – has acquired an uber-cool image among the Gen Y.
Bengaluru-based journalist P.T. Bopanna has brought alive this unique trait in his book The Romance of Indian Coffee , now shortlisted for the Gourmand International Award, where it will vie for the top honours among coffee books from Brazil, France, China, Thailand, and the U.S., to name a few.
Hailing from Kodagu, which is the home of coffee in India, it was natural for Mr. Bopanna to feel inspired to write on the brew which has a universal appeal.
“My earlier works were Kodagu-centric, but I found a wider canvas in coffee which is also related to Kodagu,” said Mr. Bopanna.
“The book traces the history of coffee in India with interesting titbits about the brew and how its cultivation in the shade lends it a unique flavour, unlike coffee grown in the open in most other countries,” explained Mr. Bopanna, who believes that making coffee is an art. Notwithstanding the proliferation of coffee bars, the best filter coffee, he said, was still prepared in the bylanes of Chennai and elsewhere in Tamil Nadu.
The contribution of Ivor Bull, a British planter, who introduced intercropping and is a legend among the locals, has been highlighted in the book as also recipes for making coffee liqueur.
But ironically, he notes that Kodavas, who market home-grown coffee to the rest of the world and have spanned a coffee culture in India, have taken after the British and prefer tea!
There are entries from as many as 64 countries for the Gourmand awards, started in 1995 as a celebration of global cookbook and wine book publishing. The final results will be announced on May 28 at Yantai, China.
source: http://www.thehindu.com / The Hindu / Home> National> Karnataka / by R. Krishna Kumar / Mysuru – January 31st, 2016
The biggest producer in the world of mild washed arabica coffee had record production of 14.2 million 60kg. bags in 2015, the highest in the past 23 years. In December 2015, Colombia’s coffee crop grew 34% to 1.4 million bags, the highest in that month in the past 20 years. Colombian coffee production grew 83% in the past four years, from 7.7 million in 2012 to 14.2 million 60kg. bags in 2015.
“This is excellent news for all Colombian coffee growers and the result of the joint efforts of the coffee growers and the government, who were able to renew the national coffee growing industry and reposition Colombia as a main player in the international market,” said National Federation of Coffee Growers of Colombia chief executive Robert Velez Vallejo.
In line with production, the export of Colombian Coffee sustained high levels of growth. During 2015, external sales surpassed 12.7 million bags of 60 kilos, 16% more that 10.9 million 60kg. bags exported the previous year. In Decevenmber, 1.2 million of Colombian coffee bags were exported, representing 13% more than the 1.1 million bags a year earlier.
So far this crop year, 3.5 million 60kg. bags were exported, 14% above the 3 million 60kg. bags that were sold during the same period the previous year.
source: http://www.vendingtimes.net / Vending Times / Home / Issue Date. Vol. 6, No.2,February 2016 / posted January 29th, 2016 / Emily Jed – Emily@vendingtimes.net
Chennai-based actress, model and ex-VJ Pooja Gallyot graduated from green tea to coffee last year and now is so hung up on the beverage that she is fast becoming an addict. On the other hand, Kolkata-based fashion designer Kiran Uttam Ghosh, a bona fide coffee lover, zeroes in on new cafes in the places she visits. For naturalist and wildlife conservationist Shrilekha, coffee shops present the ideal rendezvous to conduct business. It is these little tell-tale signs that have had coffee majors scent a business opportunity, even cleverly imparting magical qualities to the brew in that anything can happen over a cuppa. Truth be said, it’s a dramatic cultural switch that’s got the entire nation swaddled in its intoxicating embrace. According to the latest Technopak report, the chain café market, currently at Rs 1,820 crore, is growing at 20 per cent in value and commanding 27 per cent of the Rs 6,750 crore overall cafe market.
Were it not for pilgrim Baba Budan’s temerity in smuggling a few coffee beans into Chickmagalur, Karnataka, we might never have got introduced to this refreshing drink. This history aside, coffee seems to be edging out tea in the social circuit with cafes being the perfect place to hang out, chat or simply relax. That certainly augurs well for business, with Café Coffee Day, popularly called CCD, the biggest player in the Indian market, competing with international brands such as Starbucks, Barista and Costa Coffee, not to mention the popular local hangouts.
To date, CCD maintains its Numero Uno position having added 58 more outlets to the 1,480 it held at the beginning of 2015. CCD’s principal Coffee Day Enterprises set the stock market abuzz with the largest Initial Public Offering last year. It had fixed its public offer price at Rs 328 per share, taking the total proceeds to Rs 1,150 crore. But when the IPO closed on October 16, it was over-subscribed 1.81 times with a demand worth Rs 2,000 crore.
“Customers today are looking at a differentiated food experience along with their coffees at cafes. Which is why we have introduced a special food menu called the ‘SuperMenu’—a range of soups, sandwiches, burgers and desserts,” says a CCD spokesperson. “We have also started a home delivery service in Bengaluru as a pilot project.”
Costa Coffee entered India in 2005 when it opened outlets at Connaught Place in Delhi. Today, it has close to 100 in 11 cities across India. While a good number is present in metro cities such as Delhi, Mumbai, Chennai and Bengaluru, they’re spreading out in tier II cities such as Agra, Jaipur, Pune, Kochi, Ludhiana, Chandigarh and others. “While southern states have always had a strong culture of drinking coffee, over the past decade or so, the drink has penetrated to other parts too,” says Ashish Chanana, Chief Operating Officer, Costa Coffee.
Another chain that is fast expanding is the US-based Coffee Bean & Tea Leaf Ltd, which tied up with Pan India Solutions to start a single outlet at Select Citywalk mall in Delhi. It has grown to 32 stores in 10 cities from 11 in 2008. “We source our coffee from seven different countries,” says Dina Banerjee, CMO, Pan India Food Solutions Pvt Ltd, Mumbai.
Though all eyes are on the newest entrant, US giant Starbucks, which joined hands with Tata Coffee Ltd to set up shop in India in 2012. By 2014, it had more than 60 outlets and the end of 2015 saw it operating 78. It had also managed to clock in Rs 171.2 crore, an 80 per cent jump from previous year’s Rs 95 crore.
Coffee shops have so much become revenue models that another giant has jumped on the bandwagon.
The most telling of entries is American fastfood chain McDonald’s McCafe in the country with its first cafe being launched in Mumbai. “The concept fits in well with what the Indian customer needs. Our plan is to increase the 40-plus McCafes to 60-65 by this fiscal-end and double it within 12-18 months,” says Amit Jatia, Vice Chairman, Westlife Development, franchisee of McDonald’s in South and West India.
There’s a good reason behind the dramatic rise of coffee cafes in India. Fashion designer Ghosh spends her holidays finding new cafes and spending her time reading, sketching and dreaming there. “Cafes across the world reflect the essence of its people and place,” she says, adding that the habit of going to cafes late at night with friends has earned them the moniker, ‘the owls’.
Chanana is in agreement too. Says he: “Coffee shops have given people across all age groups—especially the young—a legitimate, safe and cool place to hang out. Youngsters can go on a date without burning a hole in their pocket. Friends can spend time together at a conveniently located place. We’re also seeing a lot of older couples taking time out to catch up with each other over a cup of coffee. At Costa, we have lots of customers who are by themselves.”
Gallyot is a big fan of Starbucks. “I have gotten used to their coffee as wherever I travelled, I came across an outlet. It’s become like a comfort drink for me,” she says. For 24-year-old MBBS student Anjali Reddy, Starbucks doubles up as a place for study. In fact, people have come to associate coffee concoctions with different times of the day. “Post-noon, the choice of beverage quickly changes to Americano and Expresso. It’s become like a lifestyle craving,” says Kazem Samandari, Chairman of L’opera, Delhi.
Besides cultivating friendships and fun, these places have become the haunt of many working people. Wildlife conservationist Shrilekha often frequents Chamiers, an upmarket café in Chennai. “As I work from home, I often meet business associates at cafeterias and I love Chamiers which while elegant has a lot of breathing space,” shares Shrilekha.
Visiting cafes has widened the horizon of Delhi-based interior designer Parull Mahajan’s social interactions. The caffeine rush helps her mind to stimulate her creativity. “I visit the two of my favourite cafes—Choko La and Starbucks—at least three-four times a week and cannot do without my standard two or three cups a day. It’s an addiction I have no intention of wearing off,” she says.
In keeping with the global trend, coffee shops have become de facto offices for consultants, entrepreneurs, and writers. “Some of our Costa outlets in Delhi, Bengaluru and Mumbai have had the privilege of hosting many start-ups, where the founders polished their business idea over several cups of coffee,” says Chanana. Work is also what takes Anitha KS, National Corporate Sales Manager at Vodafone, to Costa Coffee at the Lulu Mall in Kochi. “After meeting clients in the morning, I come here and carry on my work sipping on a cold coffee or cappuccino,” says Anitha. For his part, the outlet’s manager Anup Anand is delighted with the increased bottom line. “We have plans to open more outlets in Kochi and other cities of Kerala.” That’s significant given that Kerala is predominantly a tea-drinking state.
Coffee reigns with an aromatic fist even as south India leads in the production of coffee, with the drink dominating social interactions. Apart from the big players, there are a host of small and medium joints that gets people over for coffee and chitchat. In Bengaluru, which is the hub for rich traditional filter coffee, local brands such as Maiyas, Adigas, Shanthi Sagars, the SLVs, Hatti Kapi, Katte Kapi, Brahmin’s Coffee Bar and Coffee Board outlets are still going strong. Small joints rule the roost in Chennai too, courtesy Madras Coffee House, Leo coffee outlets (under brand Mylapore Mocha) and Kumbakonam degree coffee outlets.
Unique to the Bengaluru-Mysuru region is the ‘by-two’ coffee culture, a mini dose of coffee whose origins can be traced to some 100 years back during the literary and Independence movements. Then literary figures, freedom fighters and political leaders, with hardly any money in their pockets, gave impetus to this culture of having multiple servings of half a cup of coffee over endless discussions.
For many in the garden city, the small joints are the place to be. Marketing professional R N Prasad feels that the prominent coffee cafes are good only to conduct business with coffee being incidental. Each day, he drives some seven kilometres to have a cup of coffee at the Brahmin’s Coffee Bar. According to city historian Arun Prasad, tourists prefer the traditional filter coffee served at small joints.
In the grand theatre of coffee culture, there are the veterans—India Coffee House and Coffee Board outlets. K S Achyuthan, Kannada author and media professional, has been visiting the Coffee Board outlet near Vidhana Soudha in Bengaluru for more than 50 years. “This is a meeting point for many journalists and lawyers as well as musicians and guests who come to All India Radio. I have also seen many legislators, MPs and even celebrities in this place which has hardly changed all these years.” Kannada filmmaker and environmentalist Suresh Heblikar makes it a point to visit India Coffee House whenever he passes by the place.
The India Coffee House in Puducherry, a heritage structure, came close to being torn down in 2008 until INTACH and concerned citizens appealed against the move. With CM N Rangaswamy’s support and renovations later, it opened in mid-2014 and has begun to attract crowds. This outlet also finds a mention in Yann Martel’s Life of Pi.
Looks like the old and the new will exist side by side even as coffee aficionados seek out their happy place.
with Meera Bhardwaj, Ayesha Singh, Shevlin Sebastian, Jonathan Ananda and Suhas Yellapuntala
source: http://www.newindianexpress.com / The New Indian Express / Home> Magazine / by Sunita Raghu / January 23rd, 2016
The sixth edition of India international coffee festival 2016, programmed for three days, concluded this Saturday.
More than 60 companies are exhibited at the Coffee Expo, drawing visitors from across the globe (Photo: Pixabay)
Mumbai:
In order to boost tourism industry with the coffee sector, the central government has allowed the coffee board of India to promote coffee-tourism under flagship of Incredible India programme.
The coffee board chairman Leela Nair said that, following the Karnataka module of Coffee tourism, Ministry of tourism from the current financial year has allowed board to promote tourism with coffee industry. However, due to the delay in request from our side, government couldn’t fund us but has asked to kick-start it under incredible India programme, she added.
In this regard, the Ministry of Commerce and Industry, Chief Secretary, Rita Teaotia, who was the guest speaker, said “When you talk about coffee tourism, you provide great experience for the tourists which is also environmentally beautiful”.
Teaotia added that this would also boost the start-up in the country to partner with the existing plantations and take an advantage of this open market. She urged the young entrepreneurs of India to see coffee as the emerging markets for start-up, which has enormous opportunities.
Further speaking on the coffee tourism, President of India coffee trust, Anil Kumar Bhandari pointed out that more than international tourists, there has been steep increase in the domestic tourists from last five years.
Quoting about the start-up opportunities in coffee sector, Chief Secretary Rita Teaoita said, “If you look at the coffee industry which has number of small plantation sectors could be turned has an opportunity because you make niche product, niche branding and target and a niche market.”
Secondly, India being traditionally south states coffee-drinking area has started looking into the branding and also spreading it into the north India market the Barista and Starbucks, with this chain, somebody with well-placed product can also turned into great opportunity for start-ups, Teaoita mentioned.
“Third is, we do have specific coffee varieties coming in from different region and branding and marketing of those could turn great opportunities for the start-ups to spread”, she added.
The sixth edition of India international coffee festival 2016 that was programmed for three days, concluded on Saturday with guest speaker Ministry of Commerce and Industry, Chief Secretary, Rita Teaotia’s address on start up India campaign in coffee industry.
The festival comprises of an International Conference Exhibition for all things coffee, skill-building workshops, product launches, coffee quiz, coffee awards, and a host of other exciting activities.
The festival also served as a platform for many coffee growers, roasters, retailers, equipment suppliers, researchers and entrepreneurs. This year the festival saw as many as 500 delegates for the conference and skill building workshops.
More than 60 companies are exhibited at the Coffee Expo, drawing visitors from across the globe.
Leading brands like Hindustan UniLever, Tata Coffee, Nestle, Leo Coffee, Buhler, Kaapi Machines MK Associates, Swiss Pack, Bunn-O-Matic, Diedrich, CMA, Probat, YARA India, Rabo Bank, Eltex marketing Services, Controlmatic, etc., are exhibiting at the event.
Start-ups have completely transformed the way India consumes their Coffee be it Coffee delivery or E-commerce or Cafés or Roast & Ground Coffee sellers. IICF also played a large focus on these Start-ups.
source: http://www.deccanchronicle.com / Deccan Chronicle / Home> Business, In other news / by Vaibhav G. Bhansode, Deccan Chronicle / January 24th, 2016
The quintessential Indian grandmother tells consumers what they ought to drink and why in late entrant Tata Coffee Grand’s launch campaign
Tata Global Beverages recently entered the instant coffee market with the launch of Tata Coffee Grand. The company has backed up the launch with a high decibel multi-media campaign. The protagonist is an Indian grandmother dressed in traditional south Indian attire. However, she appears in the garb of a hip-hop artiste, complete with contemporary accessories and sunglasses. The spirited granny takes on a bunch of youngsters as she raps about ‘coffee, the way it should be’.
With the new product, Tata Coffee is eyeing the Rs 1,300 crore instant coffee market in India dominated by Hindustan Unilever’s Bru and Nestle’s Nescafe. “Strategically we have strong competition,” says Sushant Dash, regional president, India, Tata Global Beverages. “There are players that have been entrenched in the market for long. To compete against them, it was not good enough for us to be a me-too brand. To make an impact, we had to break the category norms through our product offering, packaging and communication.”
The brief to the creative agency, Mullen Lintas, was to come up with a differentiated brand and communication strategy, encompassing the product’s packaging, imagery etc. So instead of the regular browns and greens Tata Coffee Grand stands out in its blue packaging. Similarly, the television commercial (TVC) highlights the spirited and quirky side of an older generation, rather than talking directly to a younger audience.
Dash says, “Being a late entrant in the market, we needed to talk about the product, highlight the strong heritage and plantation expertise that we offer and others do not. And as we spoke to young people, we could not sound boring. At the same time, we needed an authoritative figure to talk about our product. Who better than a granny to do all this.”
He adds that the one person who enjoys maximum credibility in a family or the society at large is the grandmother. She comes with a lot of experience and wisdom. At the same time she can be wicked in her own way. She is highly opinionated and can become animated if she does not agree with someone else’s point of view. Young at heart, the granny represents wit and humour in equal measure. And, if required, she can be up to any challenge.
The company launched the Tata Grand Coffee with a 360 degree virtual reality tour where drinkers could experience the entire product journey. Also, instead of launching the brand through traditional channels, the company introduced the product online as part of an exclusive tie-up with Amazon. “In the next six to seven months our sole purpose will be to create awareness and motivate people to re-evaluate what they are drinking,” says Dash. While picking the granny as a central character, the decision swung in favour of a South Indian character because South is the coffee heartland of India. The creative heads threw in rap to add that extra ‘swagger’ to the granny’s character.
“The brief to us was simple,” says Shriram Iyer, national creative director, Mullen Lintas, “to create disruptive and differentiated communication, just like the product. Coffee, being a staple beverage in the South of India with Tamil Nadu being the unofficial expert of the beverage, we have taken the highest authority of coffee from Tamil Nadu as the ambassador for the brand.”
What makes Tata Coffee Grand a disruptive product? The company sources the coffee beans from its own plantations and the coffee has decoction crystals in it. “In terms of the execution, the key challenge for us was getting the casting of the granny right: We needed someone who, while retaining her authoritative stance, could also add oodles of ‘coolness’ to the film,” says Iyer.
Industry estimates put the budget for the campaign at Rs 20 crore. Digital media will be an integral part of the campaign. The company is using digital media to create intrigue around the protagonist. It has planned a few short films exclusively for the digital media where the granny will be seen walking into real situations unannounced and slapping people around her if she is not happy with their choice of drink. Dash likens these films to topical advertisements by Amul, which are an entertaining take on contemporary issues. Similarly, the Tata Coffee granny’s take on real-life situations will be worldly-wise.
Favourable climatic factors along with a fairly dry spell of 70 to 90 days make Kerala an ideal place to grow coffee. About 76,000 holdings of average size of 1.1 hectare symbolise Kerala a small-holder coffee state but provides livelihood to one lakh families.
Since 1976, Kerala Forest Development Corporation has been managing all coffee estates. In 1990-91, Kerala had 84,016 hectare with coffee production of 21,884 tonne accounting for 31.06% and 12.89% share respectively in India. After two decades, during 2011-12, the area declined significantly to 20.53%, whereas the production substantially increased 21.65% of that in India.
Thus, yield which was very low at 260.47 kg/ha in 1990-91 as compared to 627.42 kg/ha of national average increased substantially to 809.52 kg/ha as compared to national average of 763.73 kg/ha in 2011-12. However, productivity of the coffee in terms of bearing area in Kerala (705 kg/ha) is lower than the national average [826 kg/ha].
Kerala accounts for 20.70% of total coffee area in India. Robusta variety having average lifespan of 60-80 years and requiring least pesticides covers 95% of planted area. For 2014-15, final estimates of total production of coffee in Kerala indicate 67,700 tonne [Arabica 2055 tonne and Robusta 65,465 tonne]. Robusta and Arabica account for 96.70% and 3.30% coffee production respectively in Kerala as against 70.03% and 29.97% respectively in India. Robusta fetches lower prices in domestic and international markets and its brewing value is comparatively lower than Arabica. Though irrigation can increase yield of Robusta by 60% to 70% small coffee growers do not provide irrigation due to high costs of sprinkler/drip irrigation system.
Planters prefer multi-cropping pattern [coffee, tea and spices] to optimally utilise resources and insulate plantation from vagaries of nature and market. A special feature of coffee plantation in Kerala is that coffee plants are grown under the shade of tall shady trees. Conducive climate, hills, greenery, flora and fauna enhance Malabar region’s attraction for tourists. Monsooned coffee is a special delicacy of the region. A less known fact about Malabar coffee is that it was discovered by accident. Wayanad region covers more than 33% of district’s coffee area and coffee is grown as a single crop as also with pepper. About 90% holdings in Wayanad region are below two hectare and are mainly owner-operated with least engagement of casual wage labour.
Marketing With the economic liberalisation in 1991, the role of the Coffee Board has been diluted and the coffee pooling system was abrogated. In 1993, the Internal Sales Quota entitled coffee growers to sell 30% of their produce in the country. Subsequently, the amended Free Sales Quota in 1994 permitted growers to sell between 70% and 100% of their coffee either domestically or internationally. And finally, amendment in 1996 allowed them the freedom to sell their produce wherever they wished. This led to the emergence of intermediaries in the trade and in absence of regulated and development authority to coordinate and provide directions for coffee marketing, the middlemen collect coffee directly from farmers at reduced price and sell to wholesalers/exporters at high price. To tide over financial difficulties, farmers are often tempted to sell coffee in advance of the harvesting season which fetches low prices.
After the withdrawal of the Coffee Board, the vacuum created has been to some extent replaced by private sector initiatives like Indian Coffee Trade Association which began auctioning on a periodic basis. There are also efforts towards online trading which is being conducted through portal commodityindia.com. However, fact is that less than 10% of coffee is sold through auctions as most small growers prefer to sell unprocessed crop directly to exporters or roasters through agents.
With the rising coffee consumers in Kerala the demand for domestic consumption is expected to rise. In this context, when international coffee chains are already planning their aggressive strategic entry in Kerala, domestic coffee chains are also expanding their businesses to capitalise the market opportunities. The latest entrants include Hilite Group of Kozhikode, Beans and Flavours, a small coffee blender from Idukki district, and Tonico. The Hilite Group is reportedly planning to establish a chain of 100 coffee shops. The domestic coffee chains have the potential to succeed and produce some global brands on account of factors like ambience, product quality and services.
However, in the coffee value chain farmers capture not more than 20% of the end value. Other intermediaries and traders (local and international) and roasters gain substantially. It is estimated that roasters alone retain about 30% of the value. Brands also play an important role in the value chain. Since it is a buyers’ market, buyers collectively put in serious efforts to reduce the value for the primary producers. Mechanisms like certification are aimed at allowing fair margins at the producer level but in reality they become counterproductive.
Government’s Support Government has initiated measures to help farmers raise coffee productivity, quality and small farms’ viability that include, among others, [i] restructuring bank loans and providing interest relief to coffee growers (a subsidy of 5% to small growers and 3% to large growers on working capital) [ii] rainfall insurance as a risk management support for coffee growers in collaboration with Agricultural Insurance Corporation [iii] in June 2010, the coffee debt relief package was implemented for the debt ridden small coffee growers with a total financial implication of Rs 241.33 crore [iv] Since April, 2003, Government of India has set up a Price Stabilization Fund aimed at providing financial relief to the growers when the prices of the commodities covered fall below a specified level [v] Investment in coffee gardens are subsidised ranging from 20% to 40% depending on the size of the holdings [vi] Coffee Board facilitates support for establishment of processing units, formation of growers’ collectives, among others.
Need for Focussed Attention
Action Research:
here is immediate need to mount Action Research Project to study comprehensively and understand following facts and suggest changes in policy and programme in consultation and dialogue with farmers.
[A] The reasons for coffee growers’ inability to [i] replant Arabica coffee being superior in many respects to Robusta [ii] irrigate Robusta coffee to increase yield by 60% to 70% when subsidy and bank credit is available to augment water resources [iii] upgrade quality of coffee when the Coffee Board provides support for establishing processing units, formation of growers’ collectives, etc. [iv] adopt scientific plant protection measures to control stem borer infestation [v] access services of technical staff for adopting scientific practices evolved by the regional research station to increase productivity, quality and profitability of coffee.
[B] Slow growth and development of coffee economy and impact on coffee growers’ financial status despite significant support is extended by the government and the Coffee Board in various forms.
[C] Farmers not benefitting despite the fact that the prices progressively increasing during 2004-05 to 2011-12 [i] in the international markets from 69.72 US cent/lb to 202.16 for coffee and for future trading in New York at 90.38 to 244.26 for Arabica and 34.09 to 97.25 for Robusta and [ii] in auction markets in India from Rs 72.16/kg to Rs 240.61 for Arabica and Rs 34.94 to Rs 113.99.
Enabling Measures: Following enabling measures are necessary for enhancing coffee productivity, quality, and financial viability of small farms
.Product diversification, mechanisation of specific farm operations, professional management and technical inputs, post-harvest processing, supplementary income earning opportunities to enable small growers to remain in production chain with cost- competitiveness.
.Enhancing domestic consumption to help in price stability.
.Labour and social security reforms to enhance productivity and cost-competitiveness
.To crystallise in unambiguous terms the role of the government, International Coffee Organisation, Coffee Board, trade exchanges and traders to ensure reasonable returns to small growers and their effective participation in the markets.
.Vertical integration of small producers on lines of Amul Dairy and Gujarat Milk Marketing Federation in Gujarat to enhance value for the primary producers.
.Optimum utilisation of services currently offered by the Coffee Board viz. research, extension, development, quality ‘upgradation,’ economic & market intelligence, internal & external promotion of coffee marketing and labour welfare to create visible impact on coffee farmers’ economy.
.Efficient use of subsidy schemes for replantation, water augmentation, quality ‘upgradation’ and farm mechanisation should motivate/encourage growers to replant coffee with Arabica variety, provide irrigation to Robusta coffee, reduce labour-cost and improve productivity and quality of coffee.
.Creating awareness among farmers and facilitating them to access information through media and ICT about the online trading platforms and futures markets that should help them to take informed decision for their benefits.
(The author is former deputy general manager, Bank of Baroda, Gujarat. He can be contacted at dramritpatel@yahoo.com)
source: http://www.fnbnews.com / Food & Beverage News / Home> Top News / by Dr. Amrit Patel / January 16th, 2016
Could this be the great-grandfather of Dunedin’s coffee culture?
Fished out of a landfill and rescued by Gasworks Museum volunteers, the La Pavoni Italian espresso machine may be the first imported into Dunedin.
It was understood the machine was used in George St’s Little Hut coffee bar, one of Dunedin’s first cafes, Gasworks Museum Trust board member Ann Barsby said yesterday.
It had been rescued and transferred to the museum ‘‘several years ago” but was only recently put on display. She hoped the machine could be restored, though ‘‘several” thousands of dollars could be needed.
‘‘I’m told by the Gasworks volunteers the boiler is what needs repairing, which is a complicated and expensive job.”The trust did not have the funds to carry out those repairs, though they did have the time and expertise, she said.
Mrs Barsby said she hoped the public – and perhaps Dunedin’s coffee companies – could be coaxed into contributing.
‘‘It would be splendid because it would be great if we could produce coffee using the original authentic machine.”
Mrs Barsby was interested to hear from anyone who had information on the machine’s provenance, or who was willing to contribute to fixing it.
– craig.borley@odt.co.nz
source: http://www.odt.co.nz / Otago Daily Times / Home> News> Dunedin / by Craig Borley / Friday – January 08th, 2016
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