OUTLINE

COFFEE AN OVERVIEW COFFEE GLOBAL PLAYERS/AGREEMENTS COFFEE GLOBAL INDUSTRY COFFEE WORLD PRICES COFFEE GLOBAL TRADE THREATS - COFFEE INDIAN COFFEE vis--vis WORLD COFFEE

 COFFEE AN OVERVIEW COFFEE GLOBAL PLAYERS/AGREEMENTS COFFEE GLOBAL INDUSTRY COFFEE WORLD PRICES COFFEE GLOBAL TRADE THREATS - COFFEE INDIAN COFFEE vis--vis WORLD COFFEE

Origins of Coffee
Coffee drinking first became popular in Yemen in the 15th century Coffee derives its name from Arabic Qahwah is the Arabic word for coffee and Turkish influence resulted in pronunciation as qahveh Italian origin? Caffe but is derived from Turkish, which derives from Arabic Qahwah is the name given to coffee in Arabic but means wine

Coffees True Origin

Coffee is not a native plant to Arabia It is a native plant of Abyssinia (Ethiopia) and can be found growing wild and cultivated From Ethiopia it was brought to Arabia and a variety of legends exist to how coffee was discovered

Coffee Facts
2nd most traded commodity in the world Top 10 coffee producing countries:
1. Brazil (31%) 2. Vietnam (15%) 3. Colombia (11%) 4. Indonesia (5%) 5. Ethiopia (5%) 6-10. India, Peru, Mexico, Guatemala, Honduras (17% total)

2 Types:
High Quality Mountain grown Arabica Lower Quality Robusta beans
Source: International Coffee Organization, 2007

Regions of Coffee Cultivation

r = robusta production, a = arabica, m = mixture

Where is Coffee Grown?

The top ten coffee producers are highlighted in yellow Brazil makes up a third of this production and is by far the largest producer in the coffee producing market The Bean Belt- bounded by the Tropics of Cancer and Capricorn, coffee is grown within the Tropics How did coffee get to all these locations?

Coffee Seedlings - Brazil

Problems in Coffee Growing

70% of the worlds coffee in grown on farms of less than ten hectares and the vast majority is grown on family plots of between one and five hectares Coffee is grown in the wide tropical and sub-tropical belt around the Equator, including some of the countries who face severe development challenges

 COFFEE AN OVERVIEW COFFEE GLOBAL PLAYERS/AGREEMENTS COFFEE GLOBAL INDUSTRY COFFEE WORLD PRICES COFFEE GLOBAL TRADE THREATS - COFFEE INDIAN COFFEE vis--vis WORLD COFFEE

COFFEE-MAJOR PLAYERS
Market is controlled by 4 coffee companies Kraft foods, Nestle, Proctor and Gamble, and Sara lee These companies produce the major coffee brands: Maxwell House, Nescafe, Folgers, and Douwe Egberts Nestl's instant coffee alone is consumed at a rate of 3,900 cups of coffee every second

International Agreements
1958: Latin American Coffee Agreement 1966: World Stocks Reach 87 Million and Brazil Has 65 1989: International Coffee Organization 1993: ACPC Withholds Coffee 1994: Drought in Minas Production Falls 1999:Brazilian Currency Devaluation

 COFFEE AN OVERVIEW COFFEE GLOBAL PLAYERS/AGREEMENTS COFFEE GLOBAL INDUSTRY COFFEE WORLD PRICES COFFEE GLOBAL TRADE THREATS - COFFEE INDIAN COFFEE vis--vis WORLD COFFEE

45 40 35 30 25 20 15 10 5 0

92 /9 3 93 /9 94 4 /9 5 95 /9 96 6 /9 7 97 /9 98 8 /9 99 9 /0 0 00 20 /01 01 20 /02 02 /0 3

Brazils Coffee Production

Arabica Robusta

16 14 12 10 8 6 4 2 0

92 /9 93 3 /9 94 4 /9 95 5 /9 96 6 /9 97 7 /9 98 8 /9 99 9 /0 00 0 20 /0 01 1 20 /0 02 2 /0 3

Vietnams Coffee Production

Production

 COFFEE AN OVERVIEW COFFEE GLOBAL PLAYERS/AGREEMENTS COFFEE GLOBAL INDUSTRY COFFEE WORLD PRICES COFFEE GLOBAL TRADE THREATS - COFFEE INDIAN COFFEE vis--vis WORLD COFFEE

COFFEE WORLD PRICES

 COFFEE AN OVERVIEW COFFEE GLOBAL PLAYERS/AGREEMENTS COFFEE GLOBAL INDUSTRY COFFEE WORLD PRICES COFFEE GLOBAL TRADE THREATS - COFFEE INDIAN COFFEE vis--vis WORLD COFFEE

 COFFEE AN OVERVIEW COFFEE GLOBAL PLAYERS/AGREEMENTS COFFEE GLOBAL INDUSTRY COFFEE WORLD PRICES COFFEE GLOBAL TRADE THREATS - COFFEE INDIAN COFFEE vis--vis WORLD COFFEE

Lower doses (20-200 mg) produce predominately positive subjective effects Increased -- well-being/happiness -- energy/active -- alertness/concentration -- desire to socialize -- motivation for work

High dietary doses (300-500 mg) produce predominately dysphonic subjective effects

Increased

-- anxiety -- nervousness -- jittery -- shaky -- bad effects

 COFFEE AN OVERVIEW COFFEE GLOBAL PLAYERS/AGREEMENTS COFFEE GLOBAL INDUSTRY COFFEE WORLD PRICES COFFEE GLOBAL TRADE THREATS TO COFFEE INDUSTRY INDIAN COFFEE vis--vis WORLD COFFEE

COFFEE - INDIA
Per capita consumption of coffee: 75 grams

Penetration of coffee
Proportion of people consuming the beverage in the last 12 months.

Up in 2005 to 62% from 59% of 2003. Instant coffee Penetration - 52% But R&G (Filter coffee) - (15%). Penetration of tea- 94%.

SPONTEOUSLY RECALLED BEVERAGES (INDIA)

COFFEE PRODUCTION IN INDIA

6th Largest Producing 4% Of The Total World Production. 1,70,000 Coffee Farms & 9,00,000 Acres Of Land Having The Coffee Trees. 90% Of The Production Comes From The Smaller Growers. Karnataka. Kerala. Tamil Nadu.

The End!