Types of Coffee Beans to Be Exported
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International institute of foreign trade and research CERTIFICATE BY STUDENT I Anil Shrivastava hereby certify that the project titled “Export Potential of Coffee Beans to U.K” has been undertaken under the supervision of Prof Nidhi Bajaj, towards the partial fulfillment of degree Master of Foreign Trade (integrated) It is further certified that the project complied by me is my own work and to the best of my knowledge, it does not contain any part of any work, which has been submitted for the award of degree in this university, or any other university/deemed university without proper citation. Place Indore Name: Ravi kataria Date: Roll No: MFT ( 5years) 6th SEM International institute of foreign trade and research CERTIFICATE BY THE SUPERVISION This is to certify that the project titled “Export Potential of Coffee Beans from India to U.K is a piece of research work has been by Anil Shrivastava under my guidance& supervision towards the partial fulfillment of degree of Master of foreign trade & research. I recommend that the project to be submitted to DAVV Indore. It is further certified that the project report complied by him is his own work & I recommend that the project to be submitted to DAVV Indore. Prof: Nidhi Bajaj Director/Principal (signature of project guide) (signature) Date: Date: OBJECTIVES Promoting the development of consumption and markets for all Types and forms of coffee, including in coffee producing countries; Promoting coffee quality with a view to enhancing consumer Satisfaction and benefits to producers; Promoting international cooperation on coffee matters; To study scenario of coffee beans exports. To study the export potential of coffee beans to U.K To study different types of coffee beans to be exported. To know about the major coffee producing area in India International institute of foreign trade and research METHODOLOGY I have used the secondary data for the preparation of this project. Sources of secondary data being the books, websites & search engines, report magazines & news paper articles. The conclusion of the project has been drawn out on the basis of all the secondary data collected. It is been observed that promoting Indian coffee& services as export items calls for integration effort from government, industry and educational & research institutions. International institute of foreign trade and research PREFACE The world of export and import has always been my area of interest since long time & my study at the I.I.F.T.R, Indore helped me to understand this fascinating world of international trade. Agriculture industry being my sector of interest, so I have utilized this opportunity of research project for the study of agro-based industry & its export potential in UK.Government of India has started giving incentives to the exporters to boost the export of coffee& coffee beans. Though the limitations of cost, time & non availability of primary data have been their, I have tried my level best to add most relevant data & information related to the topic. ACKNOWLEDGEMENT People rarely get the opportunity to do special work in their life • But I got this opportunity to work on the topic “Export potential of coffee beans” • For this first of all I want to thanks “Devi Ahilya Vishwa Vidhyalaya” for giving me opportunity. • I am very grateful to “Lt.col (retd) Dr.V.K Gautam” director I.I.F.T.R, for allowing me to work on this project. • Especially I am thankful to “Prof: Nidhi Bajaj faculty, I.I.F.T.R, under whose kind guidance I have completed the project & who helped me at the every stage of my project work by giving me her precious time. • I am also thankful to”Mr.Anurag Khare” library in charge, I.I.F.T.T, who allowed me to use the books during the work of my project. Anil Shrivastava MFT (5 years) 6th SEM I.I.F.T.R Chapter 1 COFFEE BEAN 1.1 INTRODUCTION A coffee bean is a seed of the coffee plant. It is the stone insidered or purple fruit of the coffee plant. The fruits, coffee cherries or coffee berries, most commonly contained two stones lying with their plant sides together. The coffee beans consist of mainly endosperm which contains 0.8-2.5% caffeine, a main reason for cultivating the plants. Coffee beans are an important export product for some countries. Structure of coffee berry & beans: 1.center cut 2. Bean (endosperm) 3. Silver skin (testa, epidermis) 4. Parchment (hull endocarp) 5. Pectin layer 6. Pulp (mesocarp) 7. Outer skin (pericrap, exocrap). ETYMOLOGY Coffee beans are botanically not beans the name derives from Arabic language (Quhwa) “ coffee” and Bunn “Berry” coffee cherries on coffee plant ( coffee Arabic) 1.2 History Of Coffee Myth has it that coffee was first discovered in or around the 9th century in Abyssinia (Ethiopia) by a young goatherd. He noticed that his goats liked to graze upon berries that seemed to have interesting side effects! The goats jumped around seemingly full of energy and realizing that the berries must have some magical property the young goatherd took some back to the village elders. They boiled them with water and soon realized the stimulating potential of the brew. From this point on coffee plants were cultivated by man purely for their precious crop. The Ethiopians traded with the Arabs and coffee spread eastwards. The Arabs jealously guarded the coffee plant and although they traded widely across the Islamic world all beans for export were boiled to prevent any chance of transplantation. However the Dutch managed to transplant some to Java (Indonesia) in late 1600's, and this was the catalyst for the worldwide growth of coffee cultivation. In the late 17th Century coffee came to the masses of Europe and the first coffee houses opened in Italy, Austria and England. Lloyds of London and the London Stock Exchange are just two of the key institutions whose roots can be traced back to a 17th Century coffee house. By the 18th Century the French had introduced coffee cultivation to Martinique, and by the end of the century there were between 18 and 19 million coffee bushes firmly establishing Central America and South America as important coffee producers. Today coffee is grown on five continents, is consumed worldwide, and is one of the most important commodities traded on the world markets. Scientific classification: Coffee makes up the genus Coffea of the family Rubiaceae. Arabian coffee is classified as Coffea Arabic, robusta coffee as Coffea canephora, and Liberian coffee as Coffea liberica Movement of coffee • From Ethiopia coffee berries were brought to the Arabian Peninsula, and were initially grown in what at present is known as the country of Yemen. • From Yemen, coffee moved to Turkey. • Here, coffee beans for the first time were roasted over open fires. • The roasted beans after being crushed were boiled in water, producing a simple adaptation of the beverage that is consumed at present. • Coffee initially reached the European continent through Venetian trade merchants. • As soon as it arrived in Europe this new beverage attracted severe disapproval from the Catholic Church. • A large number of people were of the opinion that the pope should forbid coffee, terming it the devil’s drink. • However much to their chagrin the pope who was a coffee drinker was favorably disposed towards coffee and pronounced it as a genuinely Christian beverage. • In the 1700's, coffee entered the Americas through a French infantry captain who raised one tiny plant on its extended trip across the Atlantic. • This single plant, shifted to the Caribbean Island of Martinique, became the precursor of more than 19 million trees on the island within 50 years. • It was from this modest launch that the coffee plant made its way to the remainder of the tropical areas of South as well as Central America. 1.3 COFFEE SCENARIO OF INDIA Coffee is a beverage obtained from coffee plants fruits called cherry. The coffee plant refers to any type of tree in the genus madder family which is actually a tropical evergreen shrub that has been potential to grow 100 feet tall. Coffea Arabica & coffea Robusta are the two commonly cultivated species of caffea plant having economic significance. Robusta bean is smaller & rounder than a Arabica bean. Robusta beans produce a bitter toasting coffee with about 50% more caffea than Arabica. Arabica accounts for about 70% of the world coffee production. Robusta coffee trees represent about 30% of the world market. The coffee trees grow well in tropical region with abundant rainfall, year round warm temperature with no frost. The coffee tree needs an average tree between 17c to 23c with abundant precipitation and good soil conditions for growth. Robusta can withstand warmer temperature upto 29c and can also thrive at lower altitude than Arabica The coffee plants produce its first full crop of beans at about 5 years old and then remain productitive for about 15 years. The average coffee trees produce enough beans to make about 0.45 kg to 0.7 kg of roasted coffee per year. it takes approximately 9000 handpicked green coffee beans to make a kg of coffee. This is usually one coffee harvest per year north of equator, harvest takes place between September and March and south of the equator between April and May. 90% of the world coffee trade is in green (unroasted) coffee beans. In most countries there is a one main harvest a year. Coffee is usually shipped unroasted (green coffee) in 60 kg jute or sisal/hemp bags marked with the grade, country of origin, and method of processing 1.4 PRODUCTION SCENARIO. India is worlds 5th largest producer of coffee producing around 3 lakh tones annually.