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ByKamal kumar

COFFEE

By Kamal Kumar

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AGENDA

Introduction Production Process Coffee Growing regions Specialty Coffee Facts & Figures Problems Recommendations

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INTRODUCTION

•Origin: Ethiopia around 800 A.D•Two species: Robusta and Arabica•Robusta more bitter, less flavor, more Caffeine (40-

50%) than Arabica•Introduced in India: 400 yrs ago (around 1500 A.D) at

Chadragiri Hills (Karnataka)

•Brazil is the largest coffee producer•India accounts for 4.5% of global coffee produce•70% of Indian Coffee exported to Europe (Italy,

Germany)

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PRODUCTION PROCESS

-Bean Production•Cultivation of Coffee Beans on Coffee plants•Picking of Beans from plants

–Bean Post-Production Process•Processing•Milling•Aging•Storage•Roasting•Crushing•Packaging

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COFFEE GROWING REGIONS

Traditional areas representing the southern states of Karnataka, Kerala and Tamil Nadu.

Non-traditional areas comprising Andhra Pradesh and Orissa in the Eastern Ghats of the country.

The North Eastern region comprising the ’Seven Sister’ states of Assam, Manipur, Meghalaya, Mizoram, Tripura, Nagaland and Arunachal Pradesh.

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STATE WISE PRODUCTION

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Planted area of Coffee in Major States/ District

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Good weather and bush condition and continued stable prices encouraged better husbandry practices have helped to regain production in Karnataka Zones. Accounting this, the crop forecast for Karnataka is placed at 79,925 MT of arabica and 139,700 MT of robusta totaling 219,625 MT. Overall, there is 6.77% increase over the previous season’s production in Karnataka with a break up of 8.89% in arabica and 5.59% in robusta.

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Kerala coffee zones also have received adequate and timely blossom and backing showers. There was no adverse effect on crop was reported in coffee growing districts of Kerala. Accounting this the post blossom estimates for the 2010-11 is placed at 65,775 MT, which is an increase of 11% (6,525 MT) over the previous 2009-10 post monsoon forecast.

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SPECIALTY COFFEES

Specialty coffees are high quality coffees that differ from normal coffee with relevance to visual quality or cup or both. Specialty Coffees are getting increasingly popular in the world coffee market

Specialty coffees are broadly classified into five categories based on their unique features

1. Decaffeinated Coffee2. Organic Coffees3. High Grown coffees4. Estate Coffee (Single Origin Coffees)5. Variety Coffee

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TYPES OF SPECIALTY COFFEE

1. Decaffeinated CoffeeCoffees with caffeine removed artificially are known as decaffeinated coffees. There is a prominent segment of consumers preferring decaf coffees owing to health consciousness.

2. Organic Coffees The coffee grown with out using chemicals and pesticides are in great demand in the developed countries because of increasing awareness on health of consumers and protection of environment.

3. High Grown coffees The coffees grown at higher elevations i.e. 4000 ft and above are known to possess a distinct flavor and acidity in cup due to slower development of beans. The coffees are of high quality with dense beans.

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CONT…

4. Estate Coffee (Single Origin Coffees)Production of good quality coffee by highlighting the special features of the estate can be classified as estate branded coffees. This may be elevation, variety, cultural practices, and special processing techniques. Estate coffees are those that originate on single form with common soils and with the distinct identity in terms of flavour and aroma characteristics. Estate coffees are generally more expensive and actually define the specialty coffee market.

5. Variety CoffeeSome of the varieties are known to possess good inherent quality due to the genetic make up of the plant. Separate processing of these varieties help in processing their intrinsic quality. 

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PROCESSING OF SPECIALTY COFFEES

Utmost attention is paid while preparing majority of the specialty coffees both at primary and secondary processing level. Primary processing:

Selective harvesting is done with special attention to careful hand picking of just ripened berries. Natural fermentation is a must for flavor development and a high standard of quality. Soaking the washed beans under fresh water over night is essential for the development of color and flavor in the bean. Slow drying is absolutely necessary under natural lights

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CONT…

Secondary processing: Grading of coffee beans at curing level

involving separation of beans according to size, shape and density followed by meticulous garbling improves the quality

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COFFEE BOARD OF INDIA

The Coffee Board of India is an autonomous body, functioning under the Ministry of Commerce and Industry, Government of India.

The Board focuses on research, development, extension, quality up gradation, market information, and the domestic and external promotion of Coffees of India.

Till 1995, the Coffee Board had a monopolistic control over the marketing of coffee in India. Since 1995, marketing of coffee is strictly a private sector activity.

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DOMESTIC CONSUMPTION

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Source: International Coffee Organization, Annual Report 2007-08

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Source: www.wikipedia.com/ CMIE/ Indiastat.com

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CLEARANCES REQUIRED

•EXPORT REGISTRATION & ISSUE OF REGISTRATION -CUM -MEMBERSHIP CERTIFICATE (RCMC)

– An exporter may, on application, register with Coffee Board as one of the members of Registered exporter of Coffee. On being registered, the applicant shall be granted a certificate of Registration & on request RCMC shall be issued which will be valid for 5 years ending 31st March of the licensing year, unless otherwise specified.

•ISSUE OF EXPORT PERMITS & CERTIFICATE OF ORIGIN- Coffee Board issues Export permits under Rule 44(2) Coffee

Act 1942 amended from time to time along with Certificate of Origins to the registered exporter of coffee against application, for coffee export

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• FURNISHING POST-SHIPMENT DOCUMENTS – The registered exporter shall submit the post-shipment

documents on export of coffee against each export permits obtained by them. The post-shipment documents viz., copies of export permits, bill of lading with on Board Date Seal and certificate of origin duly endorsed by the concerned Customs Authorities, along with other details viz FOB value etc, shall be submitted to the Coffee Board within 45 days from the date of issue of export permits.

•INTIMATION REGARDING CHANGE IN CONSTITUTION– In case of change in ownership, constitution, name or

address of an exporter shall be intimated voluntarily within one month from the date of such change.

(Source: Coffee Board of India)

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EXPORTING DESTINATIONS - INDIA

India exports to more than 50 destinations

EU - 65-70% Major importer for Indian Coffee– Italy USA - 1.7% African nations - 7-10%

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 Sl No DestinationQuantity (In MT)

% to TotalUnit Value Rs/Tonne

1 ITALY 50802 25.85 108431

2RUSSIAN FEDERATION

16123 8.20 122337

3 GERMANY 14649 7.45 1232904 BELGIUM 9673 4.92 1058325 SPAIN 8556 4.35 972316 UKRAINE 5445 2.77 1399367 FINLAND 5292 2.69 1307528 JORDAN 5187 2.64 1123519 CROATIA 4819 2.45 9686910 SLOVANIA 4715 2.40 9545511 GREECE 4614 2.35 9751412 SWITZERLAND 3813 1.94 13065413 FRANCE 3784 1.93 11194114 MALAYSIA 3730 1.90 10340215 KUWAIT 3536 1.80 12825716 AUSTRALIA 3140 1.60 11791317 PORTUGAL 2898 1.47

Exports of Coffee from India by Countries FY 2008/2009

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18 HUNGARY 2774 1.41 11805419 ISRAEL 2745 1.40 10258320 SINGAPORE 2566 1.31 11792921 EGYPT 2566 1.31 9397522 ALGERIA 2448 1.25 94367

23NETHERLANDS

2106 1.07 115885

24 U.S.A. 1948 0.99 13498525 LIBYA 1913 0.97 9202926 SAUDI ARABIA 1738 0.88 138437

27UNITED ARAB EMIRATES

1716 0.87 139997

28 JAPAN 1679 0.85 13806229 TAIWAN 1361 0.69 10986330 POLAND 1336 0.68 110802

31UNITED KINGDOM

1285 0.65 131621

32 LATVIA 1241 0.63 13768633 TURKEY 1206 0.61 12582934 CANADA 1158 0.59 10759935 SYRIA 1150 0.59 10971836 ROMANIA 972 0.49 9764437 AUSTRIA 870 0.44 93726

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38CHINA,PEOPLES R/O

821 0.42 107190

39 NORWAY 794 0.40 114097

40 TUNISIA 721 0.37 104177

41 VIETNAM 628 0.32 107241

42SULTANATE OF OMAN

598 0.30 108954

43 INDONESIA 572 0.29 135188

44 MYANMAR 548 0.28 110628

45  OTHERS  6297 3.20 138695

  TOTAL 196531 100.00 114594

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VOLUME BASIS

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ISSUES India 1. There is a need to promote the

consumption of coffee in producing countries of the region including China and India in particular, which are potentially large markets. Also, countries such as Russia are large potential markets for coffee.

2. It is suggested that a consortium of Asian/Pacific countries be developed to share knowledge, technologies and coffee planting materials.

3. India supports the idea to reduce costs of Organic coffee certification via a regional mechanism for supporting in-country certification. A set of international standards need to be developed specifically for Organic coffee.

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4. There is a need for technical assistance aimed at sustainable coffee production in India.

5. India needs to address the issues of environmental controls of coffee wastes arising from processing and develop practical measure to address the problem.

6. There is a need to evaluate the semi-washed Robustas and Arabicas with a view to improving quality and reducing environmental problems associated with wastes and water.

7. There is a need for more cupping laboratories to help focus research and production on cup quality in coffee varieties and processing and handling methods

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BAGS STACKED IN CONTAINERS

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SPOILAGE DUE TO BAD STORAGE

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RECOMMENDATIONS

Establishment of Export Promotion Council for Coffee

Government Regulation in Quality Testing and Processing

Duty Free Import for Processing Equipments Extensive Marketing and Promotional Activities Sponsoring Trade Fairs and Global Coffee Summits Attractive and Durable packaging Regular Market Survey for Customer Satisfaction

and Preferences

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REFERENCES

www.ico.org www.indiacoffee.org www.commerce.gov.in

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THANK YOU…

A lot can happen over a coffee

Nw go nd hav ur coffee