STiR coffee and tea magazine

Volume 4, Number 5

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24 STiR tea & coffee industry international / Issue 5, 2015 (October/November) Indonesian coffee plantation All coffee photographs courtesy: Wikimedia Commons Coffee Report: Jenny Neill Canada Bakeries Versus Cafes Techonomic, a research and consulting firm based in Chicago Ill., published an infographic summarizing the findings of its Canadian Bakery & Coffee Cafe Consumer Trend Report in August. According to a press release accom- panying the infographic announcement, 77% of consumers visit coffee cafes each month, 34% visit bakery cafes as often; and 42% of consumers visit bakery cafes because they enjoy the food while 17% say the same for coffee cafes in Canada. "Cafes should highlight and continue to focus efforts on what sets them apart from others in the segment, particularly quality, a better-for-you positioning, and the overall experience," observes Kelly Weikel, director of consumer insights at Technomic. "But increased competition means they now also have to work harder at justifying price points, innovat- ing their food and beverage lineups but still meeting consumer needs for convenience." Learn more: some degree. El Niño induces warmer ocean temperatures off the west coast of South America, which could result in changes in weather patterns across the Pacific Ocean. Dry weather is one of them and lack of rain would obviously have a drastic impact on commodity crops, including coffee. El Niño is predicted to cause lack of rainfall in Indonesia in the first three months of 2016 and lack of proper irrigation facilities could affect the output in the third largest coffee producing nation. Most plantations are owned by smallholders and they are not equipped with the technical expertise or the financial strength to deal with the climatic changes that the El Niño phenomenon could bring in its wake. Production levels can go down by around 30 - 40%, if there is a period of continuous drought. Vietnamese robusta is a convenient option to the Indonesian variety. JAPAN Japan Joins ICO This summer, Japan became the eighth importing member of the International Coffee Organization (ICO), joining the European Union, Norway, Russia, Switzerland, Tunisia, Turkey, and the US. Mr Robério Oliveira Silva, executive director of the ICO, said, "Japan has one of the most vibrant and respected coffee industries in the world. We have been in talks for some time about the possibility of them joining the ICO and today I am delighted to welcome Japan as our newest member." Japan is the fourth largest coffee consumer in the world, after the US, Brazil, and Germany, with a total consumption of 7.5 million bags in calendar year 2014. Over the last four years, coffee consumption in Japan has continued to show strong growth of around 2.2% per annum. Learn more: INDIA New High for Coffee Harvest Coffee production is expected to touch a new high of 355,600 metric tons (mt) this year starting October, as there has been sufficient rain in almost all the states that grow the crop. The Coffee Board under the Ministry of Commerce has made this optimistic forecast, though the current coffee year has shown a lower figure than estimated. The coffee year runs from October to September the following year and 2014-15 production has touched a record 327,000 mt, but lower than the estimated 331,000 mt. Production of the arabica variety is estimated at 110,300 tons in 2015-16 as against 98,000 tons this year, while that of robusta is pegged at 245,300 mt as against 229,00 mt in 2014-15, as per the Coffee Board estimate. Much of the increase in the output is expected to come from the southern state of Karnataka, as "all coffee growing areas have received timely and adequate blossom and backing showers during this year," according to the Coffee Board. India produces only 4-5% of the global coffee output, but around 80% of it is exported. Russia, Italy, and Germany are the three main buyers. Tata's Specialty Transformation Tata Coffee, an integrated coffee plantation company headquartered in Bengaluru, India, is positioning itself as a specialty coffee company. In a recent press release, Tata Coffee c.e.o. Sanjiv Sarin said, "Key trends in the coffee industry point to the emergence of specialty, premium, differentiated, single origin, and farm-branded coffees occupying center-stage in the interna- tional market. So, there is an opportunity to market differentiated coffee which is distinctive in taste and appeal." Behind this move is the company's intention to take advantage of what leaders there view as a global trend: coffee lovers in India and across the world are now preferring differentiated premium coffees. INDONESIA El Niño to peak in December Indonesian coffee traders are already switching allegiance to Vietnamese robusta in anticipation of the El Niño , which is expected to peak in early December, according to Britain's Met Office. There is less rainfall in all of Asia and the dry weather could continue into the next year. The met office claims that it could well last a few more months before El Niño 's impact reduces to Green coffee seed, Shimoga, India All coffee photographs courtesy: Wikimedia Commons

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