Export Potential of Coffee by Kshitij PDF

EXPORT POTENTIAL ANALYSIS
of
COFFEE
Course Instructor:
Mr. Sudhir Chitragar
Consultant
Presentation by:
Kshitij Gautam
MBA Agri Business
PRN: 07020242018
Agenda
Coffee An Introduction
Coffee Industry Outline
Coffee Cultivation and Processing
Domestic and International Market
Top Exporters and Importers
Indias position in Coffee Market
Trade Policies Regulation
Product Standards
SWOT India and Competitor(s)
New Market Development
Future Strategies
November 1, 2008
Coffee An Introduction
Origin: Ethiopia around 800 A.D
Two species: Robusta and Arabica

Robusta more bitter, less flavour, more Caffeine (4050%) than Arabica
Introduced in India: 400 yrs ago (around 1500 A.D) at
Chadragiri Hills (Karnataka)
By: Saint Bababudan from Yemen
November 1, 2008
Source: www.commerce.nic.in
Coffee Industry Outline

2004: Top agri export for 12 countries
2005: 7th largest agri export (value basis)
2007: Prodn 291000MT (Arabica 101 KMT, Robusta 190 KMT)
2008: Targeted domestic consumption 85000 MT
Brazil is the largest coffee producer
India accounts for 4.5% of global coffee produce
Coffee industry employs 6 lakh people
70% of Indian Coffee exported to Europe (Italy, Germany)
November 1, 2008
Coffee Cultivation
Grown abundantly in
Karnataka
Kerala
Tamil Nadu
Andhra Pradesh
Orissa ( Some)
North-Eastern states
Prominent reason for this

Hilly tract (elevation)
Suitable Rainfall
November 1, 2008
Source: Coffee Board of India, Annual Report 2007-08
Coffee Cultivation
Coffee growing regions in India

can be grouped under three
distinct categories:
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.
November 1, 2008
Coffee Cultivation
Coffee production requires two processes:
Bean Production
Cultivation of Coffee Beans on Coffee plants
Picking of Beans from plants
Bean Post-Production Process
November 1, 2008
Processing
Milling
Ageing
Storage
Roasting
Crushing
Packaging
Coffee Cultivation
Bean production
o
o
o
o
o
o
o
Soil and water conservation

Shade management
Weed control
Bush management
Nutrition management
Pest management
Disease Control
November 1, 2008
Bean production
A.
Soil and Water conservation

a)
Problems related to soil conservation:

i.
ii.
b)
Prevention of soil erosion:

i.
B.
Monsoon season: Soil erosion due to sloping terrain

Post-monsoon season: Lack of moisture (i.e., drought) can adversely affect the normal growth of
coffee.
Contour planting/terracing in moderate to steep slopes
Weeding and Shade Management

a)
b)
c)
d)
Coffee is shade loving plant, shade must be regulated every year .

In early stages of establishment of plantation, cultural practices like cover digging,
scuffing, cover cropping with cowpea, horse gram etc. would be highly useful in
suppressing weed growth.
In established fields, integrated measures of weed control involving pre-monsoon
weedicide spray, mid-monsoon slash weeding and post-monsoon weedicide
spray will give satisfactory weed control.
In the case of chemical weeding, use either contact weedicide Gramoxone or
systemic weedicides like Glycel or Round Up in a rotation.
November 1, 2008
Bean processing
This is the process of converting raw bean into consumable coffee powder.
It includes following processes:
1) Processing:
Wet process
Ferment and wash method
Machine assisted wet process
Dry process
Cleaning
Drying
Semi dry process
2) Milling process
Hulling
Polishing
Cleaning and sorting
Grading
November 1, 2008
10
Bean processing
3) Aging
Decaffination
4) Storage
Permanent storage (for long duration)
Temporary storage (for short duration)
5) Roasting
Pre-roasted
Hard roasted
6) Grinding
Coarse grinding
Fine grinding
7) Packaging
November 1, 2008
11
World Coffee Map
November 1, 2008
Source: International Coffee Organisation, Annual Report 2007-08
12
Coffee Production - World
November 1, 2008
Source: www.indiastat.com
13
Coffee Production Pattern
6th rank
November 1, 2008
Source: www.wikipedia.com/ CMIE/ Indiastat.com
14
Coffee Production - % share

% Share in Production 2003
4%
4%
% Share in Production 2008
3% 3%
6%
Brazil
5%
Vietnam
5%
35%
5%
Brazil
7%
8%
26%
Indonesia
Columbia
Columbia
8%
Mexico
India
Ethiopia
17%
November 1, 2008
India
Ethiopia
9%
15%
Guatemala
13%
Vietnam
Indonesia
Mexico
11%
4%
Honduras
12%
Uganda
Source: www.wikipedia.com/ UN report 2007-08
Guatemala
Honduras
Uganda
15
Coffee Production - India
November 1, 2008
16
Area under coffee - India

Sr. No.
Size of
Holdings
(In Hectares)
Small Holdings
<2
2-4
4 - 10
Total
II
Large Holdings
III
10 - 20
20 - 40
40 - 60
60 - 80
80 - 100
Above 100
Total
Total (India)
November 1, 2008
No. of Holdings
Area under coffee
Number
% to Total
Area (in Ha)
% to Total
Share of
production
138209
26549
10717
175475
77.5
14.9
6.0
98.4
122391
67155
65386
254932
34.49
18.93
18.43
71.84
60%
1734
537
208
126
61
167
2833
178308
1.0
0.3
0.1
0.1
0.0
0.1
1.6
100.00
28808
14505
10025
9136
5863
31571
99908
354840
8.30
4.18
2.89
2.63
1.69
9.10
28.79
100.00
40%
100%
17
State wise Production - India

karnataka
District
Post Blossom Estimation

2008-09 (MT)
Post Monsoon Estimation

2007-08 (MT)
Arabica
Robusta
Total
Arabica
Robusta
Total
Chikmagalur
38,850
32,900
71,750
36,300
27,400
63,700
Kodagu
24,370
90,000
114,370
24,750
83,950
108,700
Hassan
18,050
10,000
28,050
12,900
6,275
19,175
Sub total
81,270
132,900
214,170
73,950
117,625
191,575
November 1, 2008
18

kerala
District

2008-09 (MT)

2007-08 (MT)
Arabica
Robusta
Total
Arabica
Robusta
Total
Wyanad
10
47,500
47,510
25
40,300
40,325
Travancore
815
7,000
7,815
675
6,000
6,675
Nelliampathies
600
1275
1,875
600
1400
2,000
Sub total
1,425
55,775
57,200
1,300
47,700
49,000
November 1, 2008
19

Tamil nadu
District

2008-09 (MT)

2007-08 (MT)
Arabica
Robusta
Total
Arabica
Robusta
Total
Pulneys
5,500
325
5,825
7,575
425
8,000
Nilgiris
1,875
3,325
5,200
1,675
3,175
4,850
Shevroys
(Salem)
3,050
50
3,100
3,150
3,150
Anamalais
(Coimbatore)
2,000
500
2,500
1,650
450
2,100
Sub total
12,425
4,200
16,625
14,050
4,050
18,100
November 1, 2008
20

Non traditional areas
District

2008-09 (MT)

2007-08 (MT)
Arabica
Robusta
Total
Arabica
Robusta
Total
Andhra Pradesh
& Orissa
4,800
80
4,880
3,110
65
3,175
North Eastern
Region
80
45
125
90
60
150
Sub Total
4,880
125
5,005
3,200
125
3,525
November 1, 2008
21
Total Production - India
States

2008-09 (MT)

2007-08 (MT)
Arabica
Robusta
Total
Arabica
Robusta
Total
Karnataka
81,270
132,900
214,170
73,950
117,625
191,575
Kerala
1,425
55,775
57,200
1,300
47,700
49,000
Tamil Nadu
12,425
4,200
16,625
14,050
4,050
18,100
Others
4,880
125
5,005
3,200
125
3,525
TOTAL
100,000
193,000
293,000
92,500
169,500
262,000
November 1, 2008
22
% Share of Production - India
November 1, 2008
23
% Share of Production - India
November 1, 2008
24
Coffee Export - India

India exports majority of
its coffee to EU
More than 75% of coffee
is exported to EU
About 25% of the total

coffee export is to Italy.
November 1, 2008
25
Coffee Export (volume) - India
November 1, 2008
26
Coffee Export (value) - India
November 1, 2008
27
Coffee Export - World
November 1, 2008
Source: International Coffee Organisation
28
% share of export - India
November 1, 2008
29
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%
November 1, 2008
30
November 1, 2008
31
November 1, 2008
32
Importing Destinations - India

Volume Basis
November 1, 2008
Value Received
33
Importing Destinations - India
November 1, 2008
34
Coffee consumption - India
November 1, 2008
35
Coffee consumption - World
November 1, 2008
36
Coffee consumption - EU
November 1, 2008
37
Importing Destinations - World
November 1, 2008
38
Importing Destinations - EU
November 1, 2008
39
Logistics
Consignments are sent by Sea route

Major importer Italy
Shipments go to Hamburg (Germany)
Proper packaging in air tight containers.
General purpose 20 feet containers are used.
Shipments to Africa, USA and Other
destinations also go by Sea route.
November 1, 2008
40
Coffee Bags Stacked in Ship
November 1, 2008
Source: Transport Information Services, Germany
41
Bags Stacked in Containers
November 1, 2008
42
Spoilage due to bad storage

Moisture Droplets
November 1, 2008
43
Logistics
Hamburg is the main trading point.
Consignments are distributed to other EU
nations from Hamburg.
Consignments for African Countries reach UAE
port, which is the trading point.
Legal documentation is required.
Air route is not used.
November 1, 2008
44
Supply Chain
November 1, 2008
Source: nestleindia.com
45
Economics of coffee
DOMESTIC COST OF PRODUCTION
o
o
o
o
o
o
Cost of production for 1 acre land area

P2P spacing 8 feet x 8 feet
Trees per acre (avg.) = 647
Avg. yield of cherries = 4.5-5 Tonnes/ acre
Avg. bean obtained per acre = 2.5 Tonnes
Operating costs are as follows:
November 1, 2008
Production cost
Harvesting & PHT cost
Processing & Packaging cost
Marketing & Exporting cost
46
Economics of coffee
Operating Cost per acre
(A) Production Cost (Rs.)
1. Land preparation
a) Labour cost @ Rs.100/ mandays
b) Equipment cost @ Rs. 200/ hr.
400
1,600
2. Propagating material cost
500
3. Fertilizer cost
800
4. Herbicide/ Chemical cost
500
5. Irrigation cost @ Rs.250/ hr. for 10 hrs.
2,500
6. Pruning cost @ Rs. 150/manday for 4 days
1,200
7. Picking cost @ Rs. 200/ manday for 4 days
1,600
8. Miscellaneous cost
1,500
9. TOTAL COST OF PRODUCTION

November 1, 2008
10,600
47
Economics of coffee
Per unit Production Cost (Coffee Beans)
Avg. Production per acre
Avg. Production cost per acre
Unit Cost of production (Rs./kg)
November 1, 2008
2,600 kg
Rs. 10,600
Rs. 4.07
48
Economics of coffee
Avg. Operating Cost per unit production (Rs./kg)
A. Production Cost
4.07
B. Harvesting + Post Harvesting Cost
15.00
C. Processing + Packaging Cost
25.00
D. Marketing + Exporting Cost
30.00
TOTAL COST INCURRED (per kg)

Avg. PRICE IN AUGUST 2008 (per kg)
Profit
74.00*
110.00*
36*
% Profit over Cost Incurred
48.64 %*
* = figures with *mark are subject to change as per market conditions
November 1, 2008
49
Economics of coffee
FREIGHT CHARGES
o The freight charges are dependent upon the destination
o
Different Service providers charges different rates depending upon

the size and frequency of the consignment
o According to UPS Service guide :

o EU comes under Zone 4 of Exporting destinations
o United States comes under Zone 5
o Australia comes in Zone 3
o African Nations comes under Zone 7
November 1, 2008
Source: UPS Rate and Service Guide, 31st December 2007
50
Economics of coffee
International Pricing
Governed by ICO indicator

Futures price at New York Commodity Exchange
Prices expressed in US cents per lb
Types of prices:
Daily Prices
Average Weekly Prices
Monthly Prices
Average Monthly Prices
Annual Prices
November 1, 2008
Source: ICO, Annual Report 2007-08
51
International Pricing
November 1, 2008
52
International Price Trend

International Price Curve (US cents/lb)
154.2
151.15
146.05
114.86
87.07
89.46
52.01
45.08
y1965
y1970
November 1, 2008
123.55
65.41
y1975
y1980
y1985
y1990
y1995
y2000
y2005
y2008
53
International Price Trend

Decadal Price Trend (US cent/lb)
146.05
151.15
123.55
114.86
65.41
2.74 times
45.08
y1965
November 1, 2008
y1975
y1985
y1995
y2005
y2008
54
Country-wise Coffee Price (2007)
November 1, 2008
55
Country-wise Coffee Price (2007)
November 1, 2008
56
October Coffee Price (ICO indicator)
November 1, 2008
Source: International Coffee Organisation website/ www.ico.org
57
Top Exporting Countries

BASIS OF SHORT LISTING
o Total Production for year 2007-08

o Total Export for year 2007
o % of total quantity exported worldwide
(000 bags of 60 kg each)
November 1, 2008
58
Top 12 Exporting Countries

Country
Rank
BRAZIL
(Units in 000 bags of 60kg each in 2007-08)
Exported Qty.
Produced Qty.
28088
36070
VIETNAM
17936
23500
COLOMBIA
11300
12400
INDONESIA
4149
6446
GUATEMALA
3725
4000
HONDURAS
3312
3833
INDIA
3259
4850
MEXICO
2912
4500
PERU
2879
3015
UGANDA
10
2693
2750
ETHIOPIA
11
2604
5733
COSTA RICA
12
1363
1882
November 1, 2008
59
Top Exporters from India

SL.NO.
NAME AND ADDRESS
TELEPHONE
Nestle India Ltd., No.60/62, New Timber Yard Layout, Stage1, Mysore Road, Bangalore.
080-30610575
Allanasons Ltd., 4, J.A. Allana Road, G.P.O. Box No.997, Colaba, Mumbai - 400 001
022-2874455
Allanasons Ltd., 26/3-3, Sankey Road, Cross, P.B.No.105,Bangalore-52
080-22267007
080-22261234
Hindustan Lever Ltd., Brook Fields, P.B.3777, Marathahalli Post,Bangalore-37
080-28475021
Amalgamated Bean Coffee Trading Ltd., 1, Raheja Chambers, 12, Museum Road, Bangalore
080-25589581
080-25580394
Tata Coffee Ltd., " Brigade Point", No. 57, Railway Parallel Road, Kumara Park West, Bglre
080-23560695
Tata Coffee Ltd., 201, Oxford Plaza, 9-1-129/1, Sarojini Devi Road, Secundarabad - 500 003.
040-7705892
040-7705893
Ramesh Exports Ltd., 4405/5, High Point IV Palace Road,Bangalore -560 001.email
080 - 22253520
080 - 22251427
ITC Ltd., 31, Sarojini Devi Road, Secunderabad - 500 003, Andhra Pradesh
040-27801914
Cholas Spices Private Ltd, S.F.No.: 193/2, 12/2,Periyathotam, Vellaikinnar P.O. Coimbatore29
422-2647881
Madhu Jayanti International Ltd., P.B.No.511, 39, Cunningham Road Cross, Bangalore-52
080-51235801
10
Olam Exports (India)) Ltd., # 1103, "Ashwini" ,13th Cross, Indiranagar 2nd Stage, Bangalore
November 1, 2008
Source: Coffee Board of India
080-51153325
080-51153326
60
Trade Policy Regulations

INDIAN TRADE CLASSIFICATION (HS)
Effective from 1st February 2003
Heading
No
0901
November 1, 2008
HS
Code
ITC (HS)
Code
090111 09011121
Description
Unit of
Qty
Coffee, Roasted, Not Decaffeinated,

AB grade
Kg.
Source: Department of Commerce www.commerce.nic.in
61
Foreign Trade Policy 2004-09
A new scheme called Vishesh Krishi Upaj Yojana, which has been introduced to
boost the exports of fruits, vegetables, flowers, minor forest produce and their
value-added products.
Duty-free import of capital goods under the Export Promotion Capital Goods
(EPCG) scheme. Capital goods imported under EPCG for agriculture permitted to
be installed anywhere in the agri export zones.
Assistance to States for Infrastructure Development of Exports (ASIDE) funds to
be also utilized for the development of agri export zones.
Import of seeds, bulbs, tubers and planting material has been liberalized.
Export of plant portions, derivatives and extracts has been liberalized with a view
to promote exports of medicinal plants and herbal products.
The Produce Cess Laws (Abolition) Act, 2006, was notified in the Gazette of India
on 26 September 2006, in order to remove the cess on export of agricultural
products and to encourage the export of agricultural products
November 1, 2008
62
Codex Alimentarius
Codex Alimentarius for which MRLs have been set up
CODEX STAN 192-1995, Rev. 4-2003 (General)
November 1, 2008
COMMODITY
CA CODE
Coffee (Beans)
SB 716
63
Codex Standards and

WTO/ SPS Agreement
The two WTO agreements of most significance for
international food trade are the :
1. Agreement on the Application of Sanitary and
Phytosanitary Measures (commonly referred to as
the SPS Agreement)
2. Agreement on Technical Barriers to Trade (known as

the TBT Agreement).
November 1, 2008
64
Codex Standards and

WTO/ SPS Agreement
Codex standards and related texts, including on food
labelling, are relevant under the TBT Agreement.
The SPS Agreement refers to standards developed by
Codex in the following areas:
codes and guidelines of hygienic practices;

contaminants;
food additives;
methods of analysis and sampling; and
veterinary drug and pesticide residues
November 1, 2008
65
Codex Alimentarius Pesticides MPL

Codex Alimentarius Commission, prescribes limits
for various residues and contaminants in food for
human consumption.
Codex standards are established establishing

Maximum Residue Limits (MRL) for 17
agrochemicals in coffee beans.
Tolerance limits are prescribed by CODEX for
various agro-chemical residues in coffee. Codex
agrochemical MRL (ppm)
November 1, 2008
66
Codex Alimentarius Pesticides MPL

PESTICIDE
MPL (ppm)
PESTICIDE
MPL (ppm)
Aldicarb
0.1 ppm
Hexaconazole
0.05 ppm
Carbendazim
0.1 ppm
Oxamyl
0.1 ppm
Carbofuran
1.0 ppm
Permethrin
0.05 ppm
Cypermethrin
0.05 ppm
Prochloraz
0.2 ppm
Deltamethrin
2.0 ppm
Propiconazole
0.1 ppm
Disulfoton
0.2 ppm
Terbufos
0.05 ppm
Fenamiphos
0.1 ppm
Triadimenol
0.1 ppm
Flucythrinate
0.05 ppm
Triazophos
0.05 ppm
November 1, 2008
67
Policies and 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. Application for
registration may be cancelled on payment of Rs 100 towards cost of Application
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
November 1, 2008
68
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.
November 1, 2008
69
IMPORTANT CIRCULARS
QMS :The QMS or Logo scheme has been framed in order to protect the Image and
Quality of Indian Coffee in the International Market and to gain the confidence of the
overseas buyers.
The Board has framed the Quality Marking Scheme w.e.f. 24/11/2000 for issue of Logo
Certificate for export of coffee to those who voluntarily opt for the Scheme, for the
Coffee cured by the Certified Coffee Curing Works.
ICB GRADING STANDARDS

Coffee Board issues Export Permits for export of coffee only to the Specified Types and
Grades of coffee.
November 1, 2008
70
European Union Import Procedures

REQUIREMENTS FOR IMPORTING BY European Union
Product Classification and Tariff Nomenclature

Market for the product
Import Trade Regime
Animal Health Certificate
Plant Health Certificate
Certificate of Origin
Food Safety and Marketing Standards
Public Health Norms
Environment Protection Norms
Product Safety
Technical Standardization
Packaging
Labelling
November 1, 2008
Source: European Taric Code
71
HEALTH CONTROL OF FOODSTUFFS OF NON-ANIMAL ORIGIN

General principles and requirements of Food Law established in Regulation
(CE) No. 178/2002 (OJ L-31 01/02/2002)
General foodstuffs hygiene rules according to Regulation (EC) No. 852/2004
(OJ L-226 25/06/2004)
General conditions concerning contaminants in food
Special provisions on Genetically Modified (GM) food and Novel food of
Regulation (EC) No. 1829/2003 (OJ L-268 18/10/2003) and Regulation (EC)
No.258/97 (OJ L-43 14/02/1997)
General conditions of preparation of foodstuffs
Official control of foodstuffs
November 1, 2008
72
FREIGHT DOCUMENTS (TRANSPORT DOCUMENTATION)
Depending on the means of transport used, the following documents are

to be filled in and presented to the customs authorities of the importing
European Union (EU) Member State (MS) upon importation in order for
the goods to be cleared:
Bill of Lading
FIATA Bill of Lading
Road Waybill (CMR)
Air Waybill (AWB)
Rail Waybill (CIM)
ATA Carnet
TIR Carnet
November 1, 2008
73

PACKING LIST
The packing list (P/L) is a commercial document accompanying the commercial
invoice and the transport documents, and providing information on the imported
items and the packaging details of each shipment (weight, dimensions, handling
issues,etc.)
The data generally included are:
Information on the exporter, the importer and the transport company

Date of issue
Number of the freight invoice
Type of packaging (drum, crate, carton, box, barrel, bag, etc.)
Number of packages
Content of each package (description of the goods and number of items per package)
Marks and numbers
Net weight, gross weight and measurement of the packages
November 1, 2008
74

LABELLING FOR FOODSTUFFS
All foodstuffs marketed in the European Union (EU) must comply with EU labelling
rules, which aim at ensuring that consumers get all the essential information to make an
informed choice while purchasing their foodstuffs.
GENERAL RULES ON LABELLING

Labels of foodstuffs according to the general rules laid down by Council Directive
2000/13/EC (OJ L-109 06/05/2000) must contain the following particulars
1) Product name
2) List of Ingredients
3) Net Quantity
4) Date of Expiry
5) Conditions for storage
6) Place of origin
7) Instructions for use
8) Lot marking
November 1, 2008
75
Competitor Analysis - Brazil
Largest Producer
Largest Exporter
Price setter
Major Economic Activity
Maximum employment
November 1, 2008
76
November 1, 2008
Source: website of government of Brazil
77

Highly mechanized
Mass Production
November 1, 2008
Source: website of government of Brazil
78
SWOT - Brazil
STRENGTH
WEAKNESS
Suitable soil condition

Large man power
Industry support/ Technology
Vast area of crop/ Mechanization
No alternative
Regulated market
Lack of other skills

Non adaptability
Depletion of resources
COFFEE
OPPORTUNITY
Friendly Policies
Increasing awareness
Expanding market
Shift in Agriculture
November 1, 2008
THREAT
Political Disturbances
Natural Calamity
Insect infestation
War/ Emergency situation
79
SWOT - India
STRENGTH
Huge Man force

Favourable soil
Suitable climate
High diversity
WEAKNESS
Unregulated
Lack of skill
Less risk takers
Adamancy
Orthodox techniques
OPPORTUNITY
Expanding Market
CSR
Advent of Technology
Increasing awareness
Better profit ratio
November 1, 2008
THREATS
Poor policies
Insect pest infestation
Emergency situations
Natural calamity
Economy Collapse
80
Top Coffee Consuming Nations
November 1, 2008
Source: www.images.google/coffee/nations.com
81
Coffee Market - Global
November 1, 2008
Source: USDA-FAS Circular FTROP 4-07, December 2007
82
Coffee Market - Global
November 1, 2008
83
New Markets for our Coffee
UK
SWEDEN
ITALY
USA
November 1, 2008
JAPAN
Source: www.images.google.com
84
Reason of selection
Market Potential
High Monetary Returns
Longevity
Country
2002
Consumption
2006
Consumption
% change as
increase
Italy
5180
5472
5.6
Sweden
1235
1306
5.7
UK
2201
2836
28.8
Japan
6875
7268
5.7
USA
18871
20299
7.5
November 1, 2008
85
New Markets Stats
November 1, 2008
Source: International Coffee Organization
86
Sweden Coffee Stat

Per Capita Per Day coffee consumption over the years
November 1, 2008
Source: website of Government of Sweden
87
Sweden Coffee Stat

Consumption in Litres per capita per annum
November 1, 2008
88
Sweden Coffee Stat
November 1, 2008
89
Future Strategies for New Market

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 and Transportation
Regular Market Survey for Customer Satisfaction and Preferences

November 1, 2008
90
Indian Coffee Export Potential

Parameters
Yes
No
Cant Say
Production of Robusta Coffee
Production of Arabica Coffee

Processing Facilities
Excellent Processing of Beans
Industrial Penetration and Regulation
Export Quality Coffee Production
Domestic Market Consumption Growth

International Market Availability
Positive growth of Global consumption
Capacity to increase Quality / Quantity
Better position than Competitors
November 1, 2008
91
Indian Coffee Balance of Export

NEGATIVES
November 1, 2008
POSITIVES
92
Reasons of Coffee Consumption
Caffeine in coffee increases alertness and reduces fatigue

Caffeine in coffee improves performance
Caffeine from drinking coffee assists endurance
Improvement in cognitive performance as well
November 1, 2008
93
November 1, 2008
94

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EXPORT POTENTIAL ANALYSIS

Two species: Robusta and Arabica

Coffee Industry Outline

Prominent reason for this

Source: Coffee Board of India, Annual Report 2007-08

Coffee growing regions in India

Non-traditional areas comprising

Source: Coffee Board of India, Annual Report 2007-08

Bean Post-Production Process

Soil and water conservation

Source: Coffee Board of India, Annual Report 2007-08

Soil and Water conservation

Problems related to soil conservation:

Prevention of soil erosion:

Monsoon season: Soil erosion due to sloping terrain

Contour planting/terracing in moderate to steep slopes

Weeding and Shade Management

Coffee is shade loving plant, shade must be regulated every year .

Source: Coffee Board of India, Annual Report 2007-08

Semi dry process

Source: Coffee Board of India, Annual Report 2007-08

Source: Coffee Board of India, Annual Report 2007-08

World Coffee Map

Source: International Coffee Organisation, Annual Report 2007-08

Coffee Production - World

Coffee Production Pattern

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

Coffee Production - % share

% Share in Production 2008

Source: www.wikipedia.com/ UN report 2007-08

Coffee Production - India

Area under coffee - India

Area under coffee

Area (in Ha)

Source: Coffee Board of India, Annual Report 2003-04

State wise Production - India

Post Blossom Estimation

Post Monsoon Estimation

Source: Coffee Board of India, Annual Report 2007-08

State wise Production - India

Post Blossom Estimation

Post Monsoon Estimation

Source: Coffee Board of India, Annual Report 2007-08

State wise Production - India

Post Blossom Estimation

Post Monsoon Estimation

Source: Coffee Board of India, Annual Report 2007-08

State wise Production - India

Post Blossom Estimation

Post Monsoon Estimation

Source: Coffee Board of India, Annual Report 2007-08

Total Production - India

Post Blossom Estimation

Post Monsoon Estimation

Source: Coffee Board of India, Annual Report 2007-08

% Share of Production - India

Source: Coffee Board of India, Annual Report 2007-08

% Share of Production - India

Source: Coffee Board of India, Annual Report 2007-08

Coffee Export - India

About 25% of the total

Source: Coffee Board of India, Annual Report 2007-08