STiR Tea & Coffee Industry International

Volume 5, Number 6

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22 STiR coffee and tea / Issue 6, 2016 (December/January) Coffee Report: Dan Shryock ICO Reports Coffee Deficit The 2015/16 harvest year ended with an estimated 3.3 million bag deficit, according to the International Coffee Organization (ICO). ICO recently updated its estimates and concluded production totaled about 148 million bags. Consumption, however, was estimated at 151.3 million bags leaving a global deficit. The market has plenty of coffee on hand after the surplus years of 2012/13 and 2013/14, according to the ICO report. ICO report: http://bit.ly/2eGnp4Y was theorized that increasing tempera- tures, fungi and pests would make half of the world's coffee farming land unsuitable for arabica production 2050. It further predicted wild coffee varieties such as arabica could be extinct by 2080. But the University of Exeter study suggests a "perfect storm" of bad weather and decreased use of fertilizers led the outbreak. The 2008 worldwide financial crisis and price increases led to fertilizer cutbacks, the study said. The Exeter research studied coffee plantations in Columbia where produc- tion fell by about 40% between 2008 and 2011 because of severe outbreak of coffee rust. "Farmers weren't treating coffee bushes as they normally would, and this was probably one of the factors that led to the rise in coffee leaf rust," lead author Dr. Dan Bebber told the London Telegraph. "The climate at the time was conducive to coffee leaf rust but there had been earlier periods of similar conditions when there wasn't an outbreak." COSTA RICA Costa Rica Upholds Robusta Ban Robusta coffee remains the forbidden fruit in Costa Rica. The National Coffee Congress for Costa Rica recently voted to continue a ban on robusta cultivation in order to maintain the nation's reputation for producing the higher quality arabica coffee. Growers sought to end the ban, originally put in place in 1988, as arabica production continues to decline, according to reports. More than half of the congress (Congreso Nacional Cafetalero) voted in favor of approving robusta but rules require two-thirds approval, officials said. EUROPE Finland Tops in Comsumption Coffee drinkers in France and Italy are known to consume their fair share each day. A recent study by Statista Inc. indicates those two countries do not even rank among Europe's top 5 consuming countries. Finland leads the European top 10 coffee-drinking nations for 2015, according to the report released in early October. The average Finn drinks 1,310 cups of coffee a year or more than three and a half cups a day. Neighbor Sweden was No. 2 on the list with 1,070 cups a year or nearly three cups a day. The study's next eight, in order, were Netherlands (1,004 cups a year or 2.7 cups daily), Denmark (863 or 2.3 cups daily), Germany (675 or 1.85 cups daily), Italy (658 or 1.8 cups daily), Estonia (635 or 1.74 cups daily), and Austria (623 or 1.7 cups daily). France and Portugal tied at 482 cups annually or 1.3 cups a day. Coffee drinkers in the US who reported drinking coffee the previous day, consume 3.27 cups per day on average. The per-capita average is 1.8 cups per day, according to the National Coffee Association's annual survey. INDONESIA Import Increase Expected Indonesian officials are anticipating an increase in coffee bean imports this year. Domestic production is down due to extreme weather so importers are looking to Brazil, Vietnam, and other countries for as much as 100 metric tons of coffee, according to the Association of Indonesian Coffee Exporters and Industries. That volume would represent a 43% increase in imports. Indonesia's domestic consumption continues to rise with an expanding coffee culture and a demand for robusta beans used in instant coffees. ITALY HOST Milano HOST Milano announced its 40th edition will be from Oct. 2-24, 2017 at Fiera Milano Rho. Top players from Italy and abroad, espresso, specialties and brews, high- level events and training sessions, as well as synergy with other industries like pastry and gelato, food service equip- ment, pasta and baked goods, and the large-scale retail channel contribute to the success of HOST Milano. Already 1,158 companies have reserved a space a year out from the show, with 42% of those exhibitors representing 44 different countries. The remaining 58% will bring "Made in Italy" to the trade fair. All the big names are to be fea- tured," according to organizers. The coffee and tea section of the hall is one of the flagship exhibition areas where 70% of its space is already occupied. Italy's Competitive Data research institute points out that, in 2015, sales of roasted coffee in the Ho.Re.Ca. channel grew by 1.3% in value, reaching $894 million (€844 million). Single-portion Sustainability Catalog The Sustainable Coffee Challenge, the Global Coffee Platform and the Specialty Coffee Association of America (SCAA) have joined together to create the Sustainable Coffee Catalog, an assessment of sustainability initiatives in the international coffee sector. The catalogue, released in September during the international Vision2020 workshop in London, details environ- mental efforts around the world as more than 80 stakeholders work toward establishing coffee as the world's first fully sustainable agricultural crop. The stakeholders combined now invest more than $350 million each year in sustainability programs and reach more than 350,000 farmers, the report states. See catalog: http://bit.ly/2fVCnKg Study Analyzes Rust Outbreak A new study released in October challenges another report alleging climate change could wipe out coffee crops by 2080. The new study, published by the University of Exeter, claims money is to blame for increased incidences of coffee leaf rust. The Climate Institute pointed a finger at climate change in a study released in September. In that report, it Sustainably produced coffee

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