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 Date:
Name: Ravi kataria 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
(signature of project guide) Date:
Director/Principal
(signature)
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
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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.
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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.
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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.
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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
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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.
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From Yemen, coffee moved to Turkey. Here, coffee beans for the first time were roasted over open fires.
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The roasted beans after being crushed were boiled in water, producing a simple adaptation of the beverage that is consumed at present.
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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.
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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. Indian coffee is considered to be one of the most stimulating coffees in the world being mild in nature i.e. having a low acid content. India is the only country, which grew all of its coffee shade. India currently exports about 70% of its total coffee production to around 44 countries across the globe.
The crop year of Indian coffee lies between Octobers to September. Coffee growing regions in India can be grouped under 3 district categories, traditional areas representing the southern state of Karnataka, kerala, and Tamil nadu, & non traditional areas comprising Andhra Pradesh, orrisa in the north eastern ghats of the country. The north eastern region comprises the seven sisters, seats of Assam, Manipur, Meghalaya, Mizaram, Tripura, Nagaland and Aranachal Pradesh.
In Karnataka, Chikmagalur, coorg & Hassan are the major coffee producing districts producing around 76300 tons & 119975 tons annually of Arabica and Robusta coffee respectively.
In kerala, wyanand, travancore & Nellianpathy are the major coffee producing districts producing around 13750 to 55450 tons annually of Arabica and Robusta respectively.
In Tamil nadu, pulney, nilgiri, shevray (salen) & Anamalias (Coimbatore) producing around 14375 to 4450 tons of Arabica and Robusta respectively.
Among non-traditional areas, Andhra Pradesh, Orrisa and northeastern regions produce around 1950 to 125 tons of Arabica and Robusta respectively.
1.5 CHARACTERSTICS OF COFFEE
An appreciation of fine coffee is much like an appreciation for fine wine. The greater your knowledge, the greater the magnitude and satisfaction of your experience. Many claim to know what makes a truly great cup of coffee— but do they?. To qualify as a true connoisseur, there are at least five main elements that you must understand— acidity, body, aroma, finish and flavor. A coffee that is rich in these characteristics will most certainly please even the most discerning coffee drinker.
Acidity
Coffee’s acidity is a highly desirable quality. It is the pleasant snap, sparkle or sensation that is most often experienced toward the back of the mouth or around the edges of the tongue. Coffee’s acidity may be defined as lively, flat, dull, moderate, bright, and in many other ways. It is most often the characteristic that brings life to a
coffee’s flavor.
Body
This is most often referred to as the feeling of lightness or heaviness that is experienced in the mouth when drinking coffee (also known as texture).
Aroma
Aroma is simply the fragrance of the coffee. Oftentimes, this is referred to as the bouquet, which is actually aroma of the grounds themselves. Coffee aroma may be easily identifiable or involve a complex combination not dominated by any one fragrance in particular.
Finish
Finish describes the distinct and highly pleasant aftertaste that lingers in the mouth long after the coffee has been
swallowed.
Flavor
Flavor refers to the actual taste of the coffee. This can be straightforward or rich and complex. Factors that influence flavor include richness or fullness, complexity—a depth of flavors—and balance, a harmony of pleasurable elements.
Chapter 2
2.1 Types of Coffee Beans
First of all, coffee beans are not actually beans, but the seed of a cherry from a coffee tree. These trees grow in subtropical climates from sea level to around 6000 feet.
Harvesting Coffee Beans
Coffee is a very labor-intensive commodity. The cherries ripen at different times so they must be picked by hand. Since there are about 4000 coffee beans in a pound, 2000 cherries must be hand picked (there are two beans per cherry). The average coffee tree will produce only about 2 pounds of roasted coffee per year.
Robusta:
Robusta coffee is a lower grade of coffee that is typically grown at lower elevations. It has more of an astringent flavor and contains a higher amount of caffeine.
The Robusta trees are easier to grow and maintain. They are also more disease resistant and produce a higher yield. This type of coffee is typically used to achieve a lower price.
Robusta is grown at lower altitudes, 0 to 700 meters, and has a high yield per plant and high caffeine content (1.7 to 4.0%). It accounts for about 30% of world production. Robusta has stronger flavors than Arabica with a full body and a woody aftertaste that is useful in creating blends and especially useful in instant coffee.
Robusta is mainly grown in the following regions:
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Western and Central Africa (Ivory Coast, Cameroon, Uganda, Angola, etc.) Malaysia (Vietnam, Sri Lanka, Sumatra, Java, etc.) Brazil India
Arabica:
Arabica coffee is the superior grade of coffee that most people usually refer to as gourmet coffee. They contain about half of the caffeine of Robusta and have more desirable flavors and aromatic properties.
Much of the coffee grown world wide is of the Arabica species, but only a fraction meets standard set by the Specialty Coffee Association of America.
Arabica grows at higher altitudes, 1000 to 2000 meters, and while it has a lower yield and less caffeine content (0.8 to 1.4%) it is widely recognized to be superior to Robusta. Arabica accounts for about 70% of world production, although only about 10% of this yields "grand cru" beans. Arabica has a delicate acidic flavor, a refined aroma and a caramel aftertaste.
Arabica is mainly grown in the following regions:
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Central America (Mexico, Guatemala, El Salvador, Nicaragua, Costa Rica,
Panama)
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South America (Venezuela, Colombia, Ecuador, Peru, Bolivia, Paraguay,
Argentina)
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India Eastern Africa (Ethiopia, Kenya, Tanzania, Zambia, Mozambique) Papua New Guinea
2.2The Comparison between Arabica and Robusta Coffee Beans
While there are several different coffee species, two main species of coffee are cultivated today. Coffea Arabica, known as Arabica coffee, accounts for 75-80 percent of the world's production. Coffea canephor, known as Robusta coffee, accounts for about 20 percent and differs from the Arabica coffees in terms of taste. While Robusta coffee beans are more robust than the Arabica plants, but produce an inferior tasting beverage with higher caffeine content. Both the Robusta and Arabica coffee plant can grow to heights of 10 meters if not pruned, but producing countries will maintain the coffee plant at a height reasonable for easy harvesting.
Coffee Plant Growth and Development
Three to four years after the coffee is planted, sweetly smelling flowers grow in clusters in the axils of the coffee leaves. Fruit is produced only in the new tissue. The Coffea Arabica coffee plant is self-pollinating, whereas the Robusta coffee plant depends on cross-pollination. About 6-8 weeks after each coffee flower is fertilized, cell division occurs and the coffee fruit remains as a pinhead for a period that is dependent upon the climate. The ovaries will then develop into drupes in a rapid growth period that takes about 15 weeks after flowering. During this time the integument takes on the shape of the final coffee bean. After the rapid growth period the integument and parchment are fully grown and will not increase in size. The endosperm remains small until about 12 weeks after flowering. At this time it will suppress, consume, and replace the integument.
The remnants of the integument are what make up the silver skin. The endosperm will have completely filled the cavity made by the integument nineteen weeks after flowing. The endosperm is now white and moist, but will gain dry matter during the next several months. During this time the endosperm attracts more than seventy percent of the total photosynthesizes produced by the tree. The mesocarps will expand to form the sweet pulp that surrounds the coffee bean. The coffee cherry will change color from green to red about thirty to thirty-five weeks after flowing.
2.3 MAJOR GRADES OF COFFEE BEANS
A. Arabica Coffee
Arabica Coffee I. Washed Arabica - 'Plantation'
1. Plantation PB 2. Plantation A 3. Plantation B 4. Plantation C 5. Plantation Blacks 6. Plantation Bits 7. Plantation Bulk
II. Unwashed Arabica - 'Arabica Cherry'
1. Arabica Cherry PB 2. Arabica Cherry AB 3. Arabica Cherry C 4. Arabica Cherry Blacks/Browns 5. Arabica Cherry Bits 6. Arabica Cherry Bulk
B .ROBUSTA COFFEE
I. Washed Robusta 'Robusta Parchment'
1. Robusta Plantation PB 2. Robusta Plantation AB 3. Robusta Plantation C 4. Robusta Plantation Blacks/Browns 5. Robusta Plantation Bits 6. Robusta Plantation Bulk
II. Unwashed Robusta 'Robusta Cherry'
1. Robusta Cherry PB 2. Robusta Cherry AB 3. Robusta Cherry C 4. Robusta Cherry Blacks/Browns 5. Robusta Cherry Bits 6. Robusta Cherry Bulk
III. Monsooned Coffees
A. Arabica Monsooned Coffee
1. Monsooned Malabar AA 2. Monsooned Basanally 3. Monsooned Arabica Triage B. Robusta Monsooned Coffee
1. Monsooned Robusta 'AA' 2. Monsooned Robusta Triage
IV. Instant Coffee V. Ground Coffee VI. Roasted Seeds VII. Specialty Coffee
1. Monsooned Coffee 2. My sore Nuggets EB (Extra Bold) 3. Robusta Kaapi Royal
SPECIALITY COFFEE IN INDIA
Introduction
Specialty coffees are high quality coffees that differ from normal coffee with relevance to visual quality or cup or both. Specialty Coffees are getting increasingly popular in the world coffee market. Specialty coffees are broadly classified into five categories based on their unique features:
VARITIES
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Monsooned coffee
Monsooned coffee has a story to tell. The "Monsooning" of coffee first happened quite by accident in the deep of sailing ships - a shipload of coffee bound for Europe acquired a mellow yet unique taste en route, with the coffee beans 'swelling' due to the moisture in the air. A new kind of coffee was born - Monsooned Coffee.
Even today, India offers the same golden quality Monsooned Coffee. Prepared by the unique natural elements of yester years and the special process of today, the Monsooned Coffee still has the monsooned flavor, mellow taste and golden look. Consumers in Scandinavian countries love it for its special co lour and flavors.
Main grades:
Monsooned Malabar AA Monsooned Basanally Monsooned Robusta AA
My sore Nuggets Extra Bold
This coffee is a premium coffee that represents the best quality coffee from India. The beans are very large, uniform blush green in co lour with a clean polished appearance. In cup, the coffee exhibits full aroma, medium to good body, good acidity and fine flavor with a hint of spice
Arabica Plantation Coffee (Washed coffee) grown in the My sore, Coorg, Biligiris and Shevaroys regions.
Robusta Kaapi Royal
This coffee is prepared from Robusta Parchment AB from the regions of my sore, Coorg, Wynad, Shevaroys, Pulneys and Barbabudans.
The beans appear to be bold, round with pointed ends and gray to bluish gray in co lour. This cup ensures full body, soft, smooth and mellow flavor.
WHY SPECIALITY COFFEE?
Today, consumers around the world demand the best coffee. Planters in producing countries are now developing finer strains of coffee to the custom-requirement of the gourmet coffee drinker.
In essence, over the years, coffee is no longer a humble bean of indistinct origin. Coffee today, is better valued as Specialty coffee. "Specialty'' spelt in the true-blue American manner!
Specialty coffee is distinguished by its clear origin, distinction made by careful cultivation practices, careful routine of plucking, special processing and of course, special branding and special handling and appearance thereafter.
Consumers have come to appreciate gourmet coffees in their discerning cups; As a result, specialty coffees fetch better prices, attract premiums and attract custom. These coffees have a personality, aura, craving, and branding of their own. Specialty branding that brings in the bigger bucks for the grower!
IMPORTANT VARITIES
Kent: Kent’s is the earliest variety of Arabica, selected by an English planter of the same name during the 1920s. This variety remained popular with the planting community till the 1940s, because it was less susceptible to rust. Today, it is grown in a few areas but it is still known for its exceptional cup quality.