STiR coffee and tea magazine

18 STiR coffee and tea / Issue 6, 2018 (December / January 2019) Coffee Report: Dan Shryock Global Exports Set Record Global coffee exports grew to 121.8 million 60-kilo bags in 2017/18, according to the International Coffee Organization (ICO). In the 12 months ending September arabica exports totaled 70.95 million bags. Robusta exports were 39.24 million bags, compared to 38.87 during the previous harvest year. Coffee exports were up 2% compared to 2016/17. "Total shipments of all forms of coffee increased in 4 out of the 10 largest exporters," reports ICO. Consumption lags at 1.8% growth. ICO estimates production exceeded consumption by 1.59 million bags. "This surplus and the higher volume of shipments contributed to the lower prices in 2017/18," according to ICO. Monthly composite prices increased to $1.11 per pound in October. BRAZIL 2nd Coffee Producers Forum A second World Coffee Producers Forum (WCPF) will take place stage July 10-11, 2019, in Campinas, Sao Paulo, Brazil. The event will continue discussions as the industry seeks solutions to problems that threaten future coffee supplies. The program and list of speakers is still being developed, officials said. "Brazil, as the largest coffee producer [in the world], is very proud to host the second WCPF," Silas Brasileiro of the National Coffee Council of Brazil said in a statement. "The whole chain, from the farm to the cup, will continue addressing the many challenges that coffee production faces, which can only be done through constructive coopera- tion of all the links." ETHIOPIA Exports Up 5.7% Ethiopian officials report first quarter foreign trade generated $628 million and about a third of those exports were coffee. While total foreign trade was down 7.43% during the first quarter, which ended Oct. 10, Prices reversed a four-month decline Moka Express coffee pot coffee exports were up 57% compared to the same period last year, according to a report posted on the Journal du Cameroun website. Total coffee revenues reached $204 million for 59,178 tons shipped to the world market. The reports were provided by the Ministry of Trade and Industry. The country's major export items, according to the ministry, included coffee, horticulture and clothing. ITALY Moka Maker Gets Funded Bialetti Industrie S.p.A., maker of the iconic Italian Moka Express coffee pot, recently signed an agreement with Och-Ziff Capital Investments to provide as much as €40 million (US$45.3 million) and help restruc- ture the company. The signed term sheet was filed Oct. 10 and Bialetti then asked the court on Oct. 29 to approve the issuance of a first bond valued at €17 million. Bialetti is headquartered in Brescia, 100 km east of Milan. While known for the stovetop espresso pot commonly seen in Italian kitchens for decades, Bialetti also produces a variety of other housewares including electric coffee makers and espresso machines as well as cooking utensils and kitchen accessories under the Aeternum and Rondine brands. "The guidelines of the business plan include that Bialetti focuses on strengthening its positioning in the coffee business, which is continuing to grow," the company said in a statement. "Specifically, in the first half of 2018, the group grew in that sector by 13.1% in revenues relating to the sale of ground coffee capsules, and by 6.8% in sales of moka express coffee makers, taking fourth position in Italy in the capsule segment, with rising sales by value – overall – of 15%." Lavazza Acquires Mars Machines Lavazza Group, one of Italy's leading coffee manufacturing companies, has acquired the beverage division of Mars Inc. The deal, reportedly valued at $650 million, allows Lavazza to expand in the office coffee service (OCS) and vending markets in North America as well as several European markets, the company stated. Included in the acquisition were the single-serve Flavia hot drink machines and Klix beverage vending machines. Reuters reported Lavazza secured a $463 million loan to make the deal. "This acquisition fits perfectly within our international expansion strategy, the objective of strengthening key markets, as well as the pursuit of having an even closer relationship with end consumers," Lavazza c.e.o. Antonio Baravalle said in a statement. "Indeed, this acquisition strength- ens the Lavazza Group's position in OCS and vending segments, which offer considerable opportunities for growth and development." MEXICO Fundraising for Farmers A new initiative is attempting to raise $10,000 in via crowdfunding to help 10 small-scale coffee farmers in Chiapas, Mexico. The initiative, launched in early November by Oregon-based Grow Ahead, intends to generate small loans that will be directed to smallholder coffee producers who can then start organic honey production and diversify

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