STiR coffee and tea magazine

Volume 4, Number 6

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STiR tea & coffee industry international 11 Furthermore, on-trade sales are increasing faster than retail sales, with the number of café outlets in China estimated at 13,834 by the end of 2013," writes ICO. The Project Cafe South East Asia report by Allegra estimates the total number of outlets at 14,300 in 2015 with 2,040 opeing in the past year, a 14% growth rate. The South East Asian branded coffee shop market includes coffee-focused American-style chains across nine countries: China, Hong Kong, Indonesia, Malaysia, the Philippines, Singapore, Taiwan, Thailand, and Vietnam. China is the leading market, according to Allegra. Indonesia, expanded by 15% followed by Vietnam "Although the smallest market by size, Vietnam showed the third strongest percentage growth of 14%, albeit from a small base with just 230 branded coffee shops. This locally driven market is defined by the strength of Vietnam's national chains and is yet to see significant numbers of international branded chains demonstrate strong growth," according to Allegra. (see Vietnam in Transition, pg. 46) Water Scarcity in China The Wilson Center's Jennifer Turner turned heads at the annual National Coffee Association Summit with the revelation that 35% of China's water is unsafe according to the Chinese government, which estimates 300 million residents do not have ready access to potable water. "Rivers run red, green, and denim blue," explained Turner whose talk focused on the risks to China's coffee growers. Coffee is grown in the water-rich south but demand there for energy, much of it from hydroelectric projects, is "far outpacing fresh water supply," she said. "Farmers lose access to water because hydroelectic takes priority," she said. The country has already completed 87,000 dams and water diversions with a massive south-to-north water transfer project slated for completion by 2050. Growers in Yunnan Province are very excited about coffee which generates three times greater prices than tea but to fully realize its potential "China must become the most water efficient country in the world," she said. Food Safety Modernization Act The Federal Drug Administration has issued final regula- tions for exactly how the Food Safety Modernization Act (FSMA) will be implemented. The changes, while not onerous, impact day-to-day operations along the entire coffee supply chain. The new rules are the most sweeping reform in 70 years. The intent is to prevent food safety problems before they occur. Coffee importers should visit (FSMA) to review the Final Rule for Preventative Controls for Human Food with compliance dates beginning in September 2016. In the February-March issue, STiR Tea & Coffee will take a close look at FSMA implemention at coffee ports. Year-on-Year Decrease in Coffee Exports Exports for the coffee year ending September marked the first year-on-year decrease in five years, according to the International Coffee Organization (ICO). Arabica exports were down 1.9% for the year and robustas were lower by 4.9%. The only bright spot was an 11.6% increase in exports of Colombian milds. Brazil reported exporting 36.3 million bags (m.bags), up slightly from the previous coffee year. Vietnam disappointed with a 20 million bag decline, falling 19.2%. Production in Colombia has returned to pre-disease levels with 12.3 m.bags. Indonesia coffee production increased to 7.3 m.bags, and Honduras production rose to 5 m.bags. The year-end numbers led ICO to revise its forecast for 2014/15 to 143.3 m.bags, down 2.3% compared to last year. First TOTUS Awards, Hawaii The first tea competition exclusively for US growers established Hawaii as the state most noted for its tea. Winners included a tea garden in Mississippi that took first place in three non-com- mercial categories. The TOTUS (Tea of the United States) event was organized by Eva Lee and hosted at the Volcano Art Center in Volcano Village, Hawaii Island, in partnership with the Hawaii Tea Society, and in collaboration with the Big Island Resource Conservation and Development Council, Hawaii Farmers Union United, and The Kohala Center. TOTUS was co-funded by sponsors and the Hawaii County Office of Research and Development. Winners in the commercial categories include: White: Volcano Winery; grower Alex Wood; processor Volcano Winery Green: Onomea Tea Co; grower/processor Mike Longo & Rob Nunally Oolong: Volcano Tea Garden; grower/processor Mike Riley Black: Tea Hawaii; grower/processor Chiu Leong Non-commercial garden winners include: White: Finley; grower/processor Bai-Alla Finley (Hawaii Island) Green: The Great Mississippi Tea Co.; grower Jason McDonald; processor Beverly Wainwright Oolong: The Great Mississippi Tea Co; grower Jason McDonald; processor David Bromwich Black: The Great Mississippi Tea Co.; grower Jason McDonald; processor Beverly Wainwright Judges evaluate American teas NEWS

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