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The Coffee Exporter's Guide The Coffee Exporter’s Guide THIRD EDITION USD 70 ISBN 978-92-9137-394-9 EXPORT IMPACT FOR GOOD United Nations Sales No. E.12.III.T.1 © International Trade Centre 2011 The International Trade Centre (ITC) is the joint agency of the World Trade Organization and the United Nations. A free PDF of this publication is available on ITC’s website at: Street address: ITC www.intracen.org/publications 54-56, rue de Montbrillant 1202 Geneva, Switzerland Printed copies of ITC publications can be purchased from ITC’s website: www.intracen.org/eshop and from: Postal address: ITC Palais des Nations ► United Nations Publications 1211 Geneva 10, Switzerland Sales and Marketing FSC is an independent, non-governmental, not for profi t organization 300 E 42nd Street Telephone: +41-22 730 0111 established to promote the responsible management of the world´s 9th Floor, IN-919J forests. New York, NY 10017 Fax: +41-22 733 4439 United States of America Production by Phoenix Design Aid A/S, Denmark. ISO 14001/ ISO https://unp.un.org E-mail: [email protected] 9001 certifi ed and approved CO2 neutral company. Printed on Tel: 1-800-253-9646 environmentally friendly paper (without chlorine) with vegetable-based Fax: 212-963-3489 Internet: http://www.intracen.org inks. The printed matter is recyclable. E-mail: [email protected] The Coffee Exporter's Guide THIRD EDITION Geneva 2011 ii ABSTRACT FOR TRADE INFORMATION SERVICES ID=42619 2011 SITC-071 COF International Trade Centre (ITC) The Coffee Exporter's Guide. – [3rd ed.] Geneva: ITC, 2011. xvi, 247 p. Guide providing information on trade practices relating to exporting coffee – presents an overview of the world coffee trade and markets; deals with international coffee contracts (Europe and United States), logistics, insurance, dispute resolution, futures markets, risk management and hedging, trade fi nancing, and related management issues; covers coffee quality with a special emphasis on quality control aspects; outlines new trends in the coffee trade such as electronic commerce, niche markets, organic certifi cation, fair trade labelling, and other sustainability schemes; highlights climate change and environmental issues relevant to the coffee industry; includes a list of frequently asked questions from coffee producers and the respective answers. Descriptors: Coffee, Trade Practices, Contracts, Organic Products, Certifi cation, Labelling, Climate Change, Electronic Commerce, Market Surveys, Manuals. English, French, Spanish (separate editions) ITC, Palais des Nations, 1211 Geneva 10, Switzerland (www.intracen.org) The designations employed and the presentation of material in this publication do not imply the expression of any opinion whatsoever on the part of the International Trade Centre concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. Cover design and illustration: © International Trade Centre, Kristina Golubic © International Trade Centre 2011 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, electrostatic, magnetic tape, mechanical, photocopying or otherwise, without prior permission in writing from the International Trade Centre. P246.E/DMD/SC/11-XI ISBN 978-92-9137-394-9 United Nations Sales No. E.12.III.T.1 iii FOREWORD This third edition of The Coffee Exporter’s Guide marks the 20th anniversary of this popular publication. First published as Coffee - An exporter’s guide in 1992 and subsequently updated in 2002, this practical handbook has become the world’s most extensive and authoritative publication on the international trade of coffee. With neutral, hands-on information about the mechanics of trade in green coffee, the guide addresses value chain stakeholders in both coffee-producing and coffee-importing countries. A detailed overview of the world coffee trade is accompanied by advice on marketing, contracts, logistics, insurance, arbitration, futures markets, hedging, trade credits, risk management, quality control, e-commerce and more. This new edition addresses trends which were barely apparent in the coffee industry ten years ago, such as climate change adaptation and mitigation, as well as the important role of women in the sector. It also features a more detailed comparison of the leading sustainability schemes – in addition to more established certifi cation schemes for organic production and fair trade. Over the years, this guide has been used by ITC and many others to train both newcomers and more experienced people in the coffee industry, who use the information regularly – both in daily routines and for major decisions. We wish to thank the many industry experts, companies and institutions that have contributed in various ways to the guide. We are particularly grateful for the support from the International Coffee Organization, which has shared its knowledge for all three editions of the guide, and also has cooperated with ITC in other coffee projects over the years. It is our hope that this guide, along with its companion website www.thecoffeeguide.org, will continue to serve as an essential training and knowledge-sharing tool to advance the interests of producers, exporters and those who support them in coffee-producing countries around the world. Patricia Francis Executive Director International Trade Centre v ACKNOWLEDGEMENTS Hein Jan van Hilten is the principal author of this guide as well as the previous editions from 1992 and 2002. He has spent some 50 years in the coffee industry, fi rst as an exporter in East Africa and subsequently as an independent Coffee Development Consultant in numerous producing countries. Currently he serves on the Executive Board of the 4C Association, a mainstream sustainability initiative for the coffee industry, and moderates www.thecoffeeguide.org, ITC’s electronic version of this guide. The guide was made possible through the valuable contributions of expertise, experience and time by the people, companies and organizations below, whose assistance is acknowledged with thanks and appreciation. Paul J. Fisher was also co-author of the 2002 edition of the guide. He has served many years in the coffee trading and roasting sectors. In recognition of his contribution to the industry, including his role in development of the widely used eCOPS™ (Electronic Commodity Operations Processing System), he was elected an Honorary Life Member of the Green Coffee Association (GCA) in 2011 and remains active in GCA affairs in an advisory capacity. Michael A. Wheeler served many years as Executive Director of the Specialty Coffee Association of Europe, He contributed extensively to both this and the 2002 edition of this guide. At the International Coffee Organization he currently serves as Overseas Representative for the Papua New Guinea Coffee Industry Corporation and has chaired a number of committees at ICO. Beatriz M. Wagner is a former Class A member of the Coffee, Sugar and Cocoa Exchange in New York and was a contributor also to the 2002 edition of the guide. Mrs. Wagner continues to lecture and consult on soft commodity trading issues. She is also co-author of ITC’s guide on cocoa trade. Gerd Uitbeijerse is a Master Mariner and former Senior Cargo Care Expert with leading shipping lines. He remains actively involved in cargo care matters through the Global Cargo Consultancy Management enterprise in the Netherlands. Sunalini Menon is founder and CEO of Coffeelab Pvt. Ltd. in Bangalore, India. She is an internationally recognized coffee cupper and has contributed extensively to the chapters dealing with coffee quality, especially robusta. Captain Reinhard Diegner has many years experience in commodity marine insurance, physical risk management and loss assessment, primarily from many years with a leading fi rm of underwriting agents in Germany. Michael P. Flynn is a past Chairman of the European Coffee Federation’s Contracts Committee. Currently he acts as an adviser to the Committee and has contributed extensively on issues related to contracts and arbitration. Joost Pierrot has many years experience in the fi eld of organics and contributed to the guide’s sections on sustainability issues. He works as an Organic Development Consultant and has contributed to other publications in ITC. Roel Vaessen is Secretary-General of the European Coffee Federation and serves on many industry bodies. He has contributed extensively on European Union issues as food safety and cargo security rules. Morten Scholer, Senior Market Development Adviser in ITC, was responsible for overall management, coordination and strategic direction of the work in ITC. ITC also wishes to thank the following industry personalities and organizations who over the years have contributed to the different editions of the Coffee Guide, especially so Abba Bayer who contributed extensively to the 1992 edition and who today is an Honorary Life Member of the Green Coffee Association in the United States. Special thanks are also due to the International Coffee Organization in London for its unstinting assistance with information on coffee statistics and related matters for all three editions. vi Individual contributors Peter Baker, Romeo S. Barbara, Maurice Blanc, Carlos H.J. Brando, Ivan Carvalho, Renaud Cuchet, Robin Dand, Frans Douqué, Norbert Douqué, Reinier Douqué, Pablo Dubois, Stephen Dunn, Dick Engelsma, Gerrit van Elst, John Eustace, Massimiliano (Max) Fabian, Judith Ganes Chase, M.P.H. Gathaara, Bernard Gaud, Gordon S. Gillett, Daniele Giovannucci, Michael C. Glenister, Gabriel Cadena Gomez, Jeremy Haggar, Jos Harmsen, Hidetaka Hayashi, Clive A. van Hilten, Patrick F. Installé, Birthe Thode Jacobsen, Phyllis Johnson, Rebecca L. Johnson, Sipke W. de Jong, Alexander Kasterine, Paul Katzeff, Soren Knudsen, Paula A. Koelemij, Karl Kofl er, Surendra Kotecha, David Landais, Ted Lingle, Kerstin Linne, Sandy McAlpine, Jan Meijer, Kerry Muir, Robert F. Nelson, Henry Ngabirano, Kif Nguyen, Doan Trieu Nhan, Ronald J. Onzima, Luis Norberto Pascoal, Alain Pittet, R. Price Peterson, Gloria Inés Puerta Quintero, Paul Rice, Mike Ritchie, Elodie Robin, David Roche, Aimee Russillo, Josefa Sacko, Jasper P.
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