Category Archives: Coffee News

With 400+ attendees and Cooking with Coffee, IICF 2012 leaves lasting impact

Coffee News

The India International Coffee Festival 2012, organised from January 18-20, 2012, by the India Coffee Trust, an industry body in collaboration with the Coffee Board of India to promote coffee consumption in India, at New Delhi, received good response with over 400 participants from all over the globe in attendance.

The 3-day event held for the first time in New Delhi, apart from India, recorded participation from Australia, the United Kingdom, the Netherlands, Italy, Germany, the United States, Nigeria, Kenya, Norway, Sweden, and Belgium.

The event was inaugurated by union minister for commerce Anand Sharma, with Roberio Oliveira Silva, executive director, International Coffee Organisation (ICO), as the guest of honour. The event was sponsored Cafe Coffee Day, Tata Coffee, Nestle, Hindustan Unilever Ltd and Lavazza.

At the inaugural session, Anil Bhandari, chairman, India Coffee Trust, felt that the current mission of spreading coffee consumption all over the country would be a signal success.

Jawaid Akhtar, chairman, Coffee Board of India, attributed the rise in domestic coffee consumption in the country to the efforts of each member of the coffee fraternity in India who worked in tandem to spread coffee drinking across the country.

“Over the past few years, coffee has transitioned from being a traditional beverage consumed mainly in south India, to a beverage with national presence, consumed in several forms and retail formats. Between 2003 and 2008, coffee consumption has grown in the non-south regions at 42% annually, while it has grown at 3.5% per annum in the southern states,” he added.

The Coffee Board is actively involved in the promotion of beverage in non-traditional markets and training to develop entrepreneurs supporting movement up the value chain in roasting, grinding and packaging segments by subsidy support to prospective entrepreneurs and self-help groups and collectives among others. “The Coffee Board has been nurturing coffee industry for the past seven decades through its various activities like research, extension, export and domestic promotion and allied activities aimed at supporting coffee-growers across the country,” Akhtar stated.

The event was a combination of a conference, exhibition and workshops and included a session on Cooking with Coffee, conducted by noted chef and restaurateur Mark Sayers from Australia. The workshops were aimed at providing participants and prospective coffee professionals and entrepreneurs, an enriching and interactive learning opportunity with a special focus on roasting & grinding, and different techniques of brewing, cooking with coffee and were conducted by specialised and experienced instructors.

Mark Sayers, who demonstrated his signature recipes at the event, said that in India, with its diverse culture, the country saw its people willing to experiment with food menus. Coffee, as a sipping drink, was also being welcomed as a food ingredient world over, he said.

Roberio Oliveira Silva, executive director, ICO, said, “Coffee is the second-most traded commodity in the world after oil with an estimated value of over $80 billion annually. Through ICO, the industry has enhanced bilateral and multilateral trade between the producer and consumer countries. With growing demand for coffee in emerging markets like India, the ICO is enabling countries to increase production by assisting in deploying better reproduction technologies, market diversification, linkages/integration through partnerships and investments in research and development.”

source: http://www.fnbnews.com / Top News / by Nandita Vijay, Bangalore / Saturday, January 21st, 2012

Starbucks moving forward with MoU with Tata Coffee as government notifies 100 % FDI in single brand retail

Business & Economy, Coffee News

New Delhi :
US-based coffee giant Starbucks today said it is moving forward with the memorandum of understanding (MoU) signed with Tata Coffee and hopes to make an announcement soon even as the government has notified 100 per cent FDI in single brand retail.

In an e-mailed response, John Culver, President, Starbucks (China and Asia Pacific) said: “We are moving forward with MoU (signed with Tata Coffee in 2011) discussions and planning, and hope to make an announcement soon”.

On January 10, the government allowed 100 per cent FDI in single-brand retail, paving way for global chains to have full ownership of their India operations.

The company had earlier signed an MoU with Tata Coffee for formation of a strategic alliance for sourcing of coffee beans. As per the MoU signed, the companies also agreed to explore the opportunities for opening coffee shops in India.

Culver further said: “We are excited about the great opportunities that India presents to Starbucks and look forward to offering high-quality coffee, handcrafted beverages, legendary service and the unique Starbucks experience to customers in India”.

However, the 100 per cent FDI in retail comes with a sourcing clause. It will be mandatory to source at least 30 per cent from the domestic small and cottage industries which have a maximum investment in plant and machinery of USD 1 million (over Rs 5 crore).

Starbucks said at this point the company does not have anything further to add.

Starbucks is the world’s biggest coffee chain, managing over 16,000 stores, and operates in more than 50 countries.

source: http://www.articles.economictimes.indiatimes.com / ECONOMIC TIMES/ News> News By Industry> Cons. Products / PTI / January 12th, 2012

Bean Brigade

Coffee News, Coffee, Kodagu (Coorg)

In the film Casablanca, coffee is one of the things that Ingrid Bergman professes to miss the most about the city of Casablanca. Benjamin Franklin considered coffee to be one of the most valuable luxuries on the table. Black or frothy, sweet or bitter, this steaming cup has been the centre of numerous conversations, meetings and banters.

From being a traditional beverage consumed in South India, coffee has evolved into a trendy cuppa with a national presence. Keen to tap the widespread opportunities, the coffee industry in association with the Coffee Board of India will be hosting the three-day India International Coffee Festival 2012 in Delhi.

The fourth edition of the IICF will bring together the coffee fraternity. The last three editions were held in Bengaluru. “The festival will provide an opportunity for the industry to unveil outstanding coffees and blends, apart from showcasing products associated with the coffee industry,” says Anil Bhandari, president, India Coffee Trust, and member of the Coffee Board of India.
Apart from the exhibitors, workshops with coffee professionals at the IICF will aim at providing an interactive experience that deals with various aspects associated with coffee, from roasting to espresso-making and filter coffee brewing among others.

The IICF 2012 will be held from January 18 to 20 at The Lalit.

source: http://www.IndianExpress.com / Express Features Service/ Thursday, January 05th, 2012

Instant coffee exports surge on demand from Russia, East Europe

Coffee News, Coffee, Kodagu (Coorg)

New Delhi, JAN. 2:

India’s instant or soluble coffee exports have surged by about three-fourths in the past three years on rising demand from the Russian Federation, Eastern Europe, South East Asia and the US. This is mainly on account of consumers in recession-affected Russia and Eastern Europe switching over to cheaper varieties of instant coffee, mainly white or private labels from the branded ones, to cut costs.

The Russian Federation is the largest market and accounts for a third of Indian instant coffees exports. Indian coffee is sold in bulk mainly to private labels in Russia and Eastern Europe. Companies, such as CCL Products (India) Ltd and Tata Coffee Ltd, are major exporters of the instant variety to these countries.

EXPORT PERMITS

For calendar 2011, the export permits for instant coffee issued by the Coffee Board till December-end marginally fell short of the one lakh tonne mark. Total coffee exports registered a 20 per cent growth in quantum to 3.46 lakh tonnes in calendar 2011, over 2010. In rupee value terms, exports grew 63 per cent to Rs 4,859 crore for 2011 over the previous year, while in dollar terms, they were up 65 per cent at $1.05 billion.

“There is a lot of demand for the low-priced instant varieties in Russia, East Europe and Asia,” said Mr Ramesh Rajah, President, Coffee Exporters Association. “Indian companies have been aggressive in pricing their products, which has helped them expand their reach in these markets,” he added

Indian firms import a lot of low-priced raw coffee, mainly the Robusta variety from Vietnam and East Africa to re-export them after converting them into instant coffee. The import of raw coffee for re-exports has shown 18 per cent growth in 2011 at 53,440 tonnes over the previous year. Besides, capacity addition by NKG Jayanti and Vayhan Coffee in recent years has aided the exports, he added.

MARKET SHARE

However, the challenge for Indian firms is to retain their share in these markets as competition grows from Brazil and Ecquador. “With rising costs, the Indian companies will have to fight hard to maintain current level. If they manage to retain their market share, it will be a fantastic achievement,” Mr Rajah said.

India’s instant coffee exports to Russia have close to doubled in the past three years, whereas these have more than trebled to the US.

However, in markets such as Ukraine and Finland, the Indian exports have come down in recent years.

vishwa@thehindu.co.in

source: http://www.TheHinduBusinessLine.com / Agri-Biz / by Vishwanath Kulkarni / New Delhi, January 02nd, 2012

Getting The Brew Right

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The Tata Coffee chief gets the brew right to claim the No. 2 title
RANK 2 (MID SIZE COMPANIES)

RANK:2(MID-SIZE COMPANIES)
HAMEED HUQ, MANAGING DIRECTOR, TATA COFFEE (Jagadeesh NV)

On a cool November Sunday morning, a threesome waits to tee off on the first hole at the Karnataka Golf Association course in Bangalore. Hameed Huq is convincing one of his partners, a tea drinker, to shift to coffee: the one his company makes. The 60-year-old, Assam-born managing director (MD) of Tata Coffee has spent 35 years in the coffee business. Coffee is a passion, though he admits to drinking just 3-4 cups a day. He is also a Tata Group lifer; the past 13 in Tata Coffee. “For 10 years, growth stagnated,” says Huq. “It is a commodity business, where revenues and growth are volatile.” Tata Coffee is a B2B coffee business — branded coffees are owned by Tata Global Beverages — and subject to the vagaries of the commodity cycle. When he took over as MD in 2007, the company’s revenues from the plantation business were Rs 250 crore. Production cycles were unstable, and quality was not the greatest. His first steps: stabilising the cycle, improving quality and entering the market for specialty, gourmet coffee.

“Our buyers are mostly in the US, though the former Soviet Union countries are a big export market,” he says. His clients include Costa Coffee, Starbucks and Atlantic Coffee. As environmental sustainability is a big factor in developed country markets, green coffee is an area Huq has directed the company to get into; margins are anywhere between 6 and 20 per cent, he says. He is a great believer in technology too. That is only natural; he has studied the processes in Colombia, the world’s biggest coffee exporter.

So how did his firm manage to do so well? “How do you drive a commodity business that has no consumer brand?” he asks. “You take out the volatility.” Tata Coffee, which has about 8,000 employees, bought Eight O’ Clock Coffee, the third-largest whole-bean coffee firm by volume in the US. The move has been good for the bottom line, besides giving Tata Coffee a foothold in the US, which contributes about Rs 800 crore in revenues annually. The other Rs 500 crore coming from domestic sales. Whatever Huq has done, it appears to have worked. Sales have grown three times since 2007 and the company’s market cap has grown five times.

The immediate future, however, looks a little grim. Revenues are sluggish, due to the 2008 crisis. Sales in the former Soviet Union countries do not provide high margins. “People are a problem,” adds Huq. “We still need workers, and too many are migrating out of plantations.” Tata Coffee is investing in its workers. For instance, it is ensuring that the living standards of workers and their families are at a level comparable with workers in developed countries. The next three years will be difficult. Recovery from 2008 is likely to be slow and long. If there is a 2011 European crisis, it might be longer. Huq may need to drink more than his 3-4 cups a day, and the coffee will have to be stronger.

(This story was published in Businessworld Issue Dated 26-12-2011)
source: http://www.businessworld.in / Home> Business> Corporate / by Srikanth Srinivas / December 17th, 2011

Ristretto | Tokyo Coffee

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Patrons sit and sip outside Nozy Coffee in Tokyo.
Photographs by Oliver Strand

When I tell people that I went to Tokyo to check out the coffee, I get two reactions. One is bewilderment — as if I went to Denver for the surfing. The other is fascination: those who pay attention to coffee know that Japan is the world’s third-largest importer (after the United States and Germany), with obsessive buyers who regularly land the winning bids at Cup of Excellence auctions, and that it produces the coffee gear everybody wants.

Japan’s interest in coffee isn’t a fad. Dutch traders first introduced the drink a little more than 400 years ago, but it wasn’t until the port of Kobe was pried open in 1868 that coffee became widely available. Soon it was fashionable. Tokyo’s first kissaten, or coffee shop, opened in 1888; by the 1930s there were 3,000 in the city. The supply of beans was cut off during World War II, but once it returned in the 1950s there was another coffee-shop boom. According to Masanobu Kusunoki, director of the UCC Coffee Museum in Kobe, Japan had 160,000 kissaten by the 1960s.

Today, the kissaten are disappearing, replaced by Western-style chain stores and a growing market of home brewing. Still, there are around 80,000 kissaten left in Japan, which are easy to spot in Tokyo. They’re usually small and moody, and have the feel of a bar (stools at a long counter, sunlight kept to a minimum) or a diner (vinyl booths from another decade, lace curtains in the windows). Kissaten are not built for speed — you go to one to collect your thoughts, not for a quick caffeine hit. After you sit down, a waiter shuffles over and puts an ashtray in front of you, then wanders away to give you time to light up before coming back to ask for your order.

And the coffee? Most of what I tasted was dark and strong. Often it was a nel drip, and made with a thick cotton filter. Usually it had all the subtlety of a glass of Jack Daniel’s, which was fine. A kissaten is more about the experience than what’s in the cup.

But a few kissaten are known for the quality of the coffee and the theatricality of the presentation. One of the more regal establishments is Chatei Hatou, which occupies the low-ceilinged ground floor of a nondescript building on a side street in Shibuya.

Chatei Hatou is just a few steps away from Meiji Dori, one of the busiest arteries in Tokyo, but once inside the windowless room you lose all sense of the teeming traffic and L.E.D. billboards that turn the facades of skyscrapers into televisions. There’s classical music playing on vintage speakers, a towering flower arrangement, a wall with hundreds of cups and saucers that range from kitsch (the Beatles) to fine porcelain (Meissen). The best seats are at the bar, where you can watch members of the staff make each cup with the silent focus of a monk at prayer — it’s the posture, the breathing, the unflinching gaze as water is gently poured from a swan-neck kettle into a drip cone. The coffee is prepared with such intensity and grace that it feels as if time has stopped.

Little Nap Coffee Stand by Yoyogi Park in Tokyo.
Typically kissaten are not so hypnotizing, which could be why Japan’s new coffee generation is captivated by espresso drinks and steamed milk; the land of the rising sun is heavy into latte art.

One exception is Kayaba Coffee, a decades-old shop in a neighborhood behind Ueno Park with hilly streets and walled-in temples that was given a makeover by its stylish new owners. The kissaten is in a 100-year-old house with good midcentury touches — narrow tables and flattering lighting downstairs, tatami mats and Eames chairs on the second floor — and a clientele that ranges from post-university kids in skinny jeans to women of a certain age who have been coming to Kayaba for years. There’s coffee during the day, cocktails at night and video art on the wall.

Most of Tokyo’s notable coffee bars are found in the more fashionable neighborhoods that flank the city’s west. It’s the same story as in San Francisco, or London, or Oslo — they appear where where creative types work (Be a Good Neighbor in Sendagaya), shop (the Coffeeshop in Daikanyama) and live (Little Nap by Yoyogi Park). Some have international followings (Bear Pond Espresso in Setagaya, which was recently profiled in this column), and some soon will (Nozy Coffee in Setagaya).

Some share a storefront with another shop (No. 8 Bear Pond Espresso in Shibuya). And there are those that focus on espresso (Espresso Felice Roaster, in Zoshigaya). There are a handful of syphon bars (Cafe Obscura in Sangenjaya), and a few that put on a show (Streamer Coffee Company in Shibuya and Harajuku), while others are so elegant and pleasant that you don’t mind knowing that what’s in the cup could be better (Omotesando Koffee in Omotesando).

source: http://www.tmagazine.blogs.nytimes.com / FOOD, TRAVEL by Oliver Strand / December 16th, 2011

Freshly brewed: Premium segment fuels tea, coffee growth

Coffee News

MUMBAI:
Like many other consumer goods categories, the premium segment is clearly driving the growth of the Indian tea and coffee market as well. According to market research agency IMRB, the premium segment in tea grew faster in terms of reach and volume compared to non-premium tea this year even as instant coffee pushed the growth in the coffee market. Considering a category like tea, which has almost a hundred per cent penetration in India, consumers are now increasingly opting for value-added, flavoured offerings.

The IMRB data said premium tea grew 11% in terms of volume as opposed to a 4% growth clocked by the nonpremium segment during the January-October period this year compared to the corresponding period last year. On the other hand, instant coffee which is higher priced compared to conventional coffee, grew its volume by 9%. And as consumers upgraded, the volume of unbranded tea declined by 2% while the strong hold of regional players only increased.

“We are seeing that consumers are looking to experiment more with their daily cup of tea. This is where the value-added offerings are being lapped up by people. Tea bags have become commonplace today and niche brands are gaining traction. Expansion in the tea category is clearly coming from this segment,” said Damodar Mall, director, food strategy at Future Group, which runs the Big Bazaar stores. The growth in the tea market is being led by the bigger pack sizes unlike the instant coffee space which is largely dominated by the low unit packs. Premium tea penetration is still at 20% currently in India of an estimated Rs 8,000 crore market.

In the tea category, local brands have continued to rule the roost as they cornered another percentage point and stood at 38% of the overall market. “Regional brands are competing well as their overheads/expenses are less compared to the national brands,” said Piyush Desai, chairman & MD of Wagh Bakri, a strong regional player in the Indian tea market. Hindustan Unilever (HUL) and Tata Global Beverages (TGB), which are the two national players in the tea market, are losing ground to regional players like Wagh Bakri.

According to a recent research report by SBICAP Securities, “Local tea manufacturers like Wagh Bakri and Warren Tea in the hinterlands of India are better able to gauge the demand and cater to the regional taste more effectively than national players like TBG and HUL. Increasing distribution reach in the rural markets is becoming more expensive than in urban markets due to accessibility. Over the past two years, TGB and HUL have both lost 0.5% market share to smaller regional players.”

HUL’s Bru emerged as the single largest penetrated brand in the instant coffee market with a 10% reach driven by its growth in the household reach. Nescafe had a reach of 5% with its volumes growing at 14% during this year, according to IMRB. “The volumes in the premium segment are going up in both tea and coffee as consumers are not restraining from upgrading despite the talk of the slowdown. Instant coffee is growing very well as the in-home consumption reach has now gone up to 16% with a healthy growth rate of 7%,” said Manoj Menon, group business director at IMRB International.

HUL and TGB comprise 40% of the total consumption in India, while they handle 20% of the total tea volumes from the plantations. They sell at higher prices compared to bulk tea sold at auctions due to branding, packaging and distribution. While HUL has premium brands like Brooke Bond Lipton, TGB, an integrated beverage company, has evolved from a tea plantations company to marketing and brand focused organisation. The company has a strong portfolio of global and regional consumer brands like Tata Tea, Tetley, Eight O’Clock Coffee (EOC), Good Earth, Jemca, Grand, Vitax and Himalayan.

GROWTH SIP TEA (ALL INDIA URBAN + RURAL) Tea volume grows by 5% Premium segment grew its reach by 8% Growth driven by large packs Local brands have the highest share in the category at 38% (share grows by 1%) Unbranded tea has 33% volume share-down 2%

COFFEE (ALL INDIA URBAN + RURAL) Instant coffee driving the growth for coffee category Instant coffee has an in-home reach of 16% – growing by 7% Conventional (ground) coffee is stagnant in terms of reach For Bru, growth is coming from smaller packs but for Nescafe large packs are driving the growth Almost 87% of instant coffee volumes are from South alone

Period: Jan-Oct ’11 vs Jan-Oct ’10 Source: IMRB

source: http://www.timesofindia.indiatimes.com / Home> Business> India Business / by Samidha Sharma & Namrata Singh / TNN / December 08th, 2011

Lavazza brews big plans for India

Coffee News

The Italian coffee chain may find the going tough in an already crowded market.

To appeal to the crème-de-la crème, Italian coffee roaster Lavazza is here with a new format Espression. The first of its speciality format recently unveiled in Delhi, will be gradually extended to Bangalore and Mumbai. The company is targeting 30 such stores over the course of three years. Unlike the company’s other international retail formats like Caffe di Roma (Spain), Onda (Bulgaria) and Barista (India), with Lavazza Espression the ambition is to develop a global coffee retail brand.

In India, Lavazza Espression will continue to co-exist with Barista Lavazza and its premium extension Barista Crème. Capuano dismisses any cannibalisation with Barista’s premium format. “Unlike Crème, with Lavazza we will not adapt the taste to the Indian audience as we want to provide a truly international experience,” says Attilio Capuano, Asia and Pacific Director, Lavazza. With Espression, the offering in India will be similar to the menu in its 30 stores across the globe, and prices will be 15-20 per cent higher than Barista Lavazza. To ensure a consistency in taste, Lavazza will train staff at the Fresh & Honest (its coffee vending business acquired by Lavazza in 2007) training centre in Chennai.

According to Capuano, the most critical part of the Lavazza Espression strategy is to identify the right location for the retail footprint. Upscale locations within the metros and zones like international airports will help target expatriates and Indians who are exposed to coffee culture in the West. This will be significantly different from the locations of Barista Lavazza, who is primarily targeting youth. Technopak analyst Purnendu Kumar agrees location is key for premium coffee retailers. “Such retailers who are targeting the office going crowd need to be in close proximity to where the consumer is as these people do not prefer to walk a distance to pick up a cup of coffee,” he says.

For the Turin-based company, increasing retail presence is one of the ways Lavazza is trying to establish ground in India. Today, 65 per cent of the business in India comes from its Fresh & Honest, while 45 per cent comes from Barista and Barista Creme. However, with the new format, the revenue split might get skewed towards the retail business, believes Capuano.

However, making its presence felt is not going to be easy. For one, the market is already crowded with several players expanding their presence. While Tata Global Beverages is bringing the Seattle coffee giant Starbucks to India, the ambition of homespun chain Cafe Coffee Day with a network of 1180 cafes in the country is no less ambitious. It is experimenting with upscale coffee outfits like Coffee Day Lounge and Coffee Day Square. There are international chains like Costa Coffee, The Coffee Bean & Tea Leaf, Java Coffee and Gloria Jean’s Coffee which are ramping up presence in India.

Also, Barista’s track record in India, also might leave us hesitant. For one, the company has changed hands a few times, leading to an inconsistency in management policies. Founder Amit Judge of Turner Morisson sold 65 per cent to Sterling’s promoter C Shivasankaran and the rest to the Tatas. Later, Tatas too exited the business handing over the entire ownership to the NRI businessman Shivasankaran.

“The other worrying factor is that the company shut down close to 40 Barista stores across India, perhaps because they were not doing well,” notes an industry insider who does not wish to be named. “Barista Crème too has not done well, given the differentiation from the base chain was hardly there,” he adds. So, bringing in this new format, where there is higher level differentiation could perhaps put their past behind them.

Lavazza, on its part, is serious about India. This is evident in the fact that it is setting up a new production facility in the country, which will be up and running by 2012. At an investment of 120 crore, the facility, which will be the first one outside Italy, will allow the company better margins which will translate into price advantage for the consumer. Currently, there is 100 percent import duty on green and roasted coffee.

Once the manufacturing facility is up, the plan is to develop 100 per cent Indian coffee blends which can be sold through Fresh & Honest, and later exported to other markets.

source: http://www.business-standard.com / Home> Mgmt & Mktg / by Preeti Khicha & Dilasha Seth / Bangalore, New Delhi / November 23rd, 2011

3 more ICH in Thiruvananthapuram

Coffee News

THIRUVANANTHAPURAM:
Some things endure, like the Indian Coffee House (ICH) and its grand, turbaned bearers. Tough competition from slicker, medium-sized restaurants notwithstanding, the ICH is on an expansion mode here.
In the city, the India Coffee Board Workers’ Society – which operates ICHs – is planning to open three more new outlets in the immediate future. Two are to be opened shortly, at Peroorkada and at the General Hospital. A third one will target Technopark, and will come up on the Kazhakkoottam Bypass next year.

ICH has 11 outlets in the district now, counting the ones at the Kerala Legislative Assembly, the Secretariat and the Corporation. For some time now, as part of a survival plan, ICH has been preferring highways and suburbs as locations for new outlets. Two of the newer outlets are at Venjaramood, for instance.

“We’re moving out to the highways now. If you have an ICH near a busy place such as a hospital, you get a decent crowd. But small families are patronising our outlets more and more and they prefer a place with parking space. One reason why we are moving to the highways,’’ says V T Varghese, society secretary.

Loss-making outlets are readily closed down or shifted to a more profitable location in the same region. For instance, the old outlet in Attingal town was shifted to the nearby highway the other day.
ICH has also approached the government for alternative space at Shanghumugham Beach after the much-patronised open-air restaurant in the Sports Council building was shut for renovation. But it’s feared that the ICH will not be reinstated here once renovation is over.
ICHs offer up to 60 dishes, from ‘desi’ ‘masala dosai’ and ‘vada-chutni’ to carefully-trimmed sandwiches and double omelettes. And that strange dish which only ICHs seem to offer; beef omelette. But experimenting with newer dishes is not on the cards – at least for now, says Varghese.

“Recently, some of our canteens began giving yellow ‘masala’ for ‘poori’ since other restaurants offer it. But the customers made such a ruckus, we immediately moved back to the beetroot-red curry.’’

source: http://www.ibnlive.in.com/ Express News Services, The New Indian Express / Thiruvanthapuram, November 23rd, 2011 /

Indian coffee planters brewing profits

Coffee News

Coonoor (Tamil Nadu) :
Indian coffee planters and exporters are brewing profits like never before due to soaring prices and growing consumption of the aromatic beverage worldwide.

Riding on surging commodity rates globally, producers of the green bean, mainly from Karnataka, and exporters are making a killing as prices in international and domestic auctions rule at historic highs on growing demand despite competition from traditional and new players.

“Indian coffee growers and exporters are on cloud nine as their Arabica and Robusta bean varieties have regained ground and are competing with the best in the world for better prices on growing demand,” a representative of the planters’ body told IANS.

A decade after cyclical highs and lows and lifting of quotas under the World Trade Organization (WTO) regime, the Indian coffee sector is at the cusp of a new era as the latest trends indicate an upward bias in global demand and prices this year too.

“The Indian coffee sector’s export performance last fiscal (2010-11) was outstanding on all counts — quantity exported, value realisation and unit value,” D. Hegde, incoming president of the United Planters’ Association of Southern India (Upasi), said on the margins of its 118th annual meet here, about 70 km from the industrial city of Coimbatore in the plains.

Though production for the coffee year 2010-11 was a tad lower at 302,000 tonnes than the estimated 308,000 tonnes – but 4.3 percent higher than 289,600 tonnes in the previous year (2009-10) – export quantity zoomed to 319,892 tonnes, posting a whopping 63 percent (123,793 tonnes) increase from 196,099 tonnes in the previous year and helping producers to reduce inventory stocks.

Similarly, for seven months from April to mid-October this year, exports were up 20 percent to 201,570 tonnes from 167,624 tonnes in 2010.

The phenomenal increase in export volumes turned into a boom as value shot up by an unprecedented 80 percent to Rs.3,724 crore in 2010-11 from Rs.2,072 crore, an increase of Rs.1,652 crore year-on-year (YoY) as a result of unit value going up 10 percent to Rs.116 per kg from Rs.106/kg in the corresponding period.

In the first seven months (April-October) this fiscal year, export value zoomed to Rs.2,738 crore from Rs.1,681 crore.

“The astonishing increase in export quantity and value augurs well for further consolidation of gains, as prices of other milds (Arabica) are more than double that of Robustas in the auctions conducted by the International Coffee Organisation (ICO),” Hegde asserted.

The upward trend in price of other milds continued to touch 280 cents per pound (lb) during January-September 2011 from 184 cents/lb in 2010, an increase of 53 percent YoY, while that of Robusta rose to 114 cents in the same period from 80 cents in 2010, up 42 percent YoY.

Prices in the domestic auctions conducted by the Indian Coffee Trade Association (ICTA) reflected a similar trend during the first eight months (Jan-Aug) of 2011, with Arabica Cherry beans sold at Rs.199 per kg as against Rs.121 per kg in 2010 and Robusta Cherry at Rs.111 per kg as against Rs.77 in 2010.

With the state-run Coffee Board estimating post-blossom production to be 322,250 tonnes, including 217,725 tonnes of Robustas and 104,525 tonnes of Arabica varieties, the prospect of demand for Indian beans is brighter as consumption in traditional and emerging markets are encouraging.

A steady rise in domestic consumption (108,000 tonnes) notwithstanding, exports constitute over 70 percent of the coffee produced in the country, mostly (98 percent) from southern India, with Karnataka accounting for 71 percent (213,780 tonnes), followed by Kerala at 22 percent (65,650 tonnes) and Tamil Nadu 5.5 percent (16,650 tonnes).

In value too, of the Rs.4,041 crore revenue generated in 2010-11, Karnataka generated Rs.3,018 crore (73 percent), Kerala Rs.693 crore (17 percent) and Tamil Nadu Rs.305 crore (7.4 percent) from exports and domestic sales.

The aromatic beans are grown in the cooler climes of the bio-diverse Western Ghats (mountain region) that straddles across the three southern states.

(Fakir Balaji can be contacted at fakir.b@ians.in)
source: http://www.twocircles.net / by Fakir Balaji > IANS / October 23rd, 2011