Like many industries, India’s coffee industry too is going through a tough time. There is a strong lull in the coffee business.

Weak demand in the European market due to slowdown, attacks by pests and erratic monsoon have impacted production and exports of coffee in calendar year 2012.

Here is a lowdown on the coffee industry and the government initiatives taken to sustain growth of the industry.

Industry

The beverages industry is one of the highest employers in India. It provides employment to over a million workers in various segments such as plantation and other ancillary activities. It is estimated that coffee producing countries consume 30% of the world’s coffee.

Among the coffee producing countries Brazil has the highest consumption of coffee with 1.1 million tonnes in 2010. The remaining 70% of the coffee produced is traded internationally.

The United States is the biggest importer of coffee with an average import of 1.27 million tonne a year in the period 2006-10, followed by Germany (5,46,000 tonne) and Japan (431,000 tonne) and the United Kingdom (184,000 tonne).

The global consumption of coffee continues to grow in the steady range of 1.5% to 2% despite the fact that green coffee prices have gone up and the increase in prices has been passed on to the consumers.

According to an estimate, the global production of coffee is estimated at 135 million bags. Thanks to such optimistic estimates, the consumption of coffee is expected to grow especially in countries such as Brazil, Russia and China.

Experts believe that consumption is rising not only in traditional coffee-drinking countries such as UK, Russia, India and Japan, but also in emerging new markets in Eastern Europe and China.

It is estimated that the instant coffee sector has a bright future due to increasing preference for instant coffee among consumers. It is believed that consumers prefer instant coffee because of the sheer uncomplicated way in which the coffee is prepared.

According to one estimate, the demand for coffee in India is expected to grow at 10.5% per annum in the 2008-13 period. This growth would be driven substantially through rising per capita income, urbane lifestyle and high appreciation among youths for the convenience of instant coffee.

In India, there are different coffee-growing regions, which produce coffee under diverse climatic conditions. And these discrete climatic conditions suit different varieties of coffees.

Mountainous regions (high-elevated) are typically suited for growing Arabicas of mild quality while those with warm humid conditions are best suited for Robustas.

Nearly 3,90,000 Harvested Area (ha) is under coffee cultivation in India. Of this, 70% are small farms of less than 10 (ha). A vast majority of coffee is grown in the three southern states of Karnataka (71%), Kerala (22%) and Tamil Nadu (5%).

According to experts, 80% of India’s Arabica coffee is grown in Karnataka at elevations of 1,000 m to 1,500 m. It can go up to 2,000 m. Robusta coffee is grown at lower elevations.

In Karnataka, a few regions where coffee is produced include Chikmagalur, Coorg, and Mysore.

On the domestic front, coffee consumption is expected to grow very fast over the next five years. This will be predominantly seen in the instant coffee segment. Private label coffees could see a rise through increasing modern trade.

Rural markets and semi urban markets are expected to drive consumption. Freeze dried coffee is expected to form a new segment in the domestic market.

Health and wellness platform being appropriated by other beverages could limit the growth in coffee consumption. New technologies in vending could also increase competition in the domestic market.

As far as tea is concerned, climate change initiatives have opened opportunities to look at alternative fuels, such as agri briquettes instead of firewood, which is fast becoming a scarce commodity. This has led to a 60% reduction in the usage of firewood in 2010-11.

According to an industry estimates, the global consumption of instant coffee has shown an annual average growth of about 6% in the last decade from 70,000 MT to 1,02,000 MT till the year 2009.

Hence, going ahead, while these concerns seem to be temporary and addressable, the future of the coffee industry looks promising, given the urbanization and transition from tea-drinking to coffee-drinking among the urban youth. Though the number of tea-drinkers seems high, those of coffee-drinkers is likely to soon catch up.

Source: Nirmal Bang’s Beyond Market

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

source: http://www.moneycontrol.com / Home> News / by Nirmal Bang’s Beyond Market / March 23rd, 2013

Following on from Gary Berry’s introduction to coffee houses in Soho, we thought we’d pick out five flavoursome coffee brands to help you wake up on those dreary Monday mornings back in the office.

Coffee has an interesting history. Now commonly associated with the New World, it was originally cultivated in Yemen and Ethiopia from as early as the 13th Century. From Ethiopia and Yemen, the drink spread to Egypt, the Middle East, Asia Minor and northern Africa. The name itself is thought to come from the Arabic qahhwat al-bun (‘wine of the bean’).

Early Arab mystics drunk coffee to help them communicate with god and maintain focus, and at one point the spread of the beverage was seen as such a terrible social ill the drink was considered as bad as alcohol (hence the name ‘wine of the bean’). Coffee houses were seen as places where rebellious ideas began. While coffee houses now might occasionally be jittery places, they’re probably much tamer affairs than in the dark and middle ages.

With this in mind we thought we’d add a bit of mystique and danger to your coffee drinking habits, with our brief round-up of some of the most exciting coffee brands out there.

Marley Coffee
Anecdote has it that Bob Marley wanted to return to a simpler life of farming at some point in his life. His grandmother apparently dried her own coffee beans in the sun each morning, before making herself a strong cup of the black stuff. Now Rohan Marley, and his friend Shane Whittle, have selected their own beans from Ethiopia, Central America and the Blue Mountains in Jamaica. Marley Coffee has a rich but smooth flavour, and a strong aroma.

Marley Coffee‘s One Love Organic Coffee is an organic medium roast with blueberry, cocoa and spicy notes, with an aftertaste of cherry. The Lively Up! espresso blend again has cocoa hints, but this time with the tastes of sweet caramel and candied fruits. Meanwhile the Buffalo Soldier blend is a dark, sweet roast with an earthy flavour.

Jamaica Blue Mountain Coffee
Like the Marley brand, Jamaica Blue Mountain Coffee hails from the Chepstowe area of Jamaica. Jamaica Blue Mountain Coffee is mostly Arabica Typica and is wet processed. The Coffee Industry Board of Jamaica inspects exports to make sure that the quality is top notch. Jamaica Blue Mountain coffee has a mild flavour, lacking the bitterness of some blends, and as such is one of the world’s favourites.

Cluwak
Sumatra Island in Indonesia is the home of the world’s most expensive coffee, Kopi Luwak. Cluwak is one of the key brands for this type of coffee.

‘Kopi’ means coffee in the local tongue, while the ‘Luwak’ is an animal that eats coffee beans. The Luwaks, although keen to eat the beans, can’t digest them. So when they come out the other end, the inner beans pass through, having fermented, and are gathered to make this coffee. Prices can reach almost £500 per pound for this scatalogical luxury. Vietnamese weasel coffee (a specific type) goes for up to £1,000 per pound. The Specialty Coffee Association of America, however, claims the coffee tastes bad, and there is an assumption it is bought for prestige (and for the story) rather than for taste.

Woolloomooloo Blend
Toby’s Estate’s Woolloomooloo Blend is the perfect coffee for milk lovers. Based on a monsooned Indian bean, the flavour is bold, rich and earthy. The blend is named for the estate’s first roastery and cafe on Cathedral Street, and means ‘place of plenty’ in the indigenous language. The full taste of this bean means it isn’t drowned out by the milk.

Gloria Jean’s Coffees White Russian
Another blend for the milk-lovers, this full-bodied coffee has a gentle boozy edge. The liqueur flavour is perfect for those with a taste of alcohol after a heavy weekend, but is also smooth on the palate. This smooth blend is decadent and still packs a kick.

source: http://www.sosogay.co.uk / Home> Food & Drink / by Adam Love / April 22nd, 2013

Though coffee prices continue to move in a lower range, rising demand for the robusta variety may provide some relief to exporters. High demand and the prospects of a lower crop in Vietnam, the largest producer of robusta coffee, are expected to stoke a rally in prices. Arabica prices have crashed in the world market owing to a bumper crop in Brazil.

“There is a good demand for robusta cherries. We can expect a good offtake of the variety in the next few months,” said Ramesh Rajah, president of Coffee Exporters Association of India.

However, the issue is whether India will be able to offer robusta at a competitive price. Robusta prices touched $2,139 tonne in the world market on Monday. “But right now India is offering its produce at a price which is higher by $75-100 per tonne compared to the shipments from Vietnam and Uganda. Buyers are increasingly looking for coffee from cheaper origins,” said an officer of major exporter NKG Jayanti Coffee.

Exporters are expecting higher robusta supplies and the fresh stock will enable shipments at competitive rates. Planters have forecast a lower crop for both varieties. But the robusta crop is not as bad as arabica, which is predicted to be one of the worst in the recent times due to pest attacks. On Monday, the arabica price stood at $1.35 per pound. “The harvest has been just over and we are still assessing the total output. From what we gather, it could be near to our earlier estimates of 80,000 tonne of arabica and 2 lakh tonne of robusta,” said Nishant Gurjer, chairman of the Karnataka Planters’ Association.

Coffee Board’s post-monsoon estimate for 2012-13 is 1,00,225 tonne of arabica and 2,15,275 tonne of robusta. Meanwhile, reports of a possible lower crop in Vietnam have raised the hopes of Indian coffee exporters. The earlier estimate was that the Vietnam crop will be at 25 million bags (of 60 kg each) but it now appears that the harvest could be still smaller. “If the Vietnam crop is low, robusta prices will move up in the world market,” said an exporter.

Such a situation augurs well for Indian coffee exporters as it will lead to better earnings. Coffee exports for this calendar year have gone up marginally because of the export of the carryover arabica stock.

source: http://www.articles.economictimes.indiatimes.com / Home> Markets /by PK Krishnamurthy, ET Bureau / March 26th, 2013

There are now a total of five stores in Delhi and six in Mumbai

Coffee house major Starbucks, which has a joint venture with the Tata Group in India, has launched its sixth store in Mumbai at the Chhatrapati Shivaji International Airport, taking its tally to 11 stores so far.

As things stand now, there are a total of five stores in Delhi and six in Mumbai, with plans afoot to ramp up this number.

Avani Davda, CEO, Tata Starbucks, says the idea of launching stores at airports, its third so far, is to provide convenient locations to consumers. “We have received an overwhelming response to our two stores at New Delhi’s IGI Airport. We hope to continue to cater to the travel channels in the country and extend our experience,” she said.

The 18,000-outlet-strong Starbucks, which operates in 60 countries, has opted to price a cup of coffee in India between Rs 80 and Rs 200, while the food, an assortment of which is on offer at its stores, is also priced in a similar bracket.

After signing a coffee roasting and sourcing deal in January 2011 with Tata Coffee, Stabucks got into a JV with Tata Global Beverages, parent of Tata Coffee, a year later, launching its first store by October 2012. Since then it has moved quickly, launching stores in Mumbai and Delhi respectively. The JV is expected to step into other cities in the near future in its drive to expand its footprint.

source: http://www.business-standard.com / Business Standard / Home> News> News / by Viveat Susan Pinto / Mumbai / April 03rd, 2013

London , MAR 19:

A daily cup of boiled Greek coffee may hold the secret to long life and good health, scientists say.

In a new study published in journal Vascular Medicine, researchers looked at the elderly inhabitants of Ikaria, the Greek island, which boasts the highest rates of longevity in the world.

Researchers who investigated cardiovascular health believe that a cup of boiled Greek coffee holds the clue to the elderly islanders’ good health.

Only 0.1 per cent of Europeans live to be over 90, yet on the Greek island of Ikaria, the figure is 1 per cent. This is recognised as one of the highest longevity rates anywhere — and the islanders tend to live out their longer lives in good health.

Gerasimos Siasos, a medical doctor and professor at the University of Athens Medical School, Greece set out with his team to find out whether the elderly population’s coffee drinking had an effect on their health.

In particular, the researchers investigated links between coffee-drinking habits and the subjects’ endothelial function.

The endothelium is a layer of cells that lines blood vessels, which is affected both by ageing and by lifestyle habits (such as smoking).

The team homed in on coffee because recent studies suggest that moderate coffee consumption may slightly reduce the risks of coronary heart disease, and that it may also have a positive impact on several aspects of endothelial health.

From a sample of 673 Ikarians aged over 65 who lived on the island permanently, the researchers randomly selected 71 men and 71 women to take part in the study.

Medical staff used health checks (for high blood pressure, diabetes, etc) and questionnaires to get more detail on the participants’ medical health, lifestyles and coffee drinking, in addition to testing their endothelial function.

The researchers investigated all types of coffee taken by participants — but interestingly more than 87 per cent of those in the study consumed boiled, Greek coffee daily.

More importantly, subjects consuming mainly boiled Greek coffee had better endothelial function than those who consumed other types of coffee.

Even in those with high blood pressure, boiled Greek coffee consumption was associated with improved endothelial function, without worrying impacts on blood pressure.

“Boiled Greek type of coffee, which is rich in polyphenols and antioxidants and contains only a moderate amount of caffeine, seems to gather benefits compared to other coffee beverages,” Siasos concluded.

source: http://www.TheHinduBusinessLine.com / Home> News> Science / by PTI / London, March 19th, 2013