An INTECON presentation on the international trade of especially on C31 Mananghaya, Marvin Tan, John Constantine QueQue,, Michael Vincent Game   Most widely used/traded product ranking  2nd  5th  13 th Game   Coffee crop are?  Beans  Berries  Vegetables Game   Beethoven Prepared his coffee with how many beans?  40  50  60 Coffee History   8th C First discovery of coffee berries

 11 th C First coffee trees are cultivated

 1475 Worlds first coffee shop

 16 th C Coffee enters Coffee History   1607 Coffee introduced to the New World

 1652 First opens in England

 1672 First coffeehouse opens in Paris

 1683 First coffeehouse opens in Vienna Coffee History   1690 First to transport and cultivate coffee

 1721 First coffeehouse opens in Berlin

 1723 Coffee Plants introduced in America

 1727 Brazilian coffee seedlings are smuggled Coffee History   1750 Café Greco, opens in Rome

 1822 Prototype of the first espresso machine

 1885 Method of roasting coffee

 19 th C Kaffeeklatsch, afternoon coffee Coffee History   1905 First commercial espresso machine

 1908 Worlds first drip coffeemaker

 1920 Coffee sales boom

 1933 First automatic espresso machine Coffee History   1938 Nescafè

 1940 US imports 70% of the world coffee crop

 1945 Perfects the espresso machine

 1971 Starbucks open its first store Coffee History   1991 Network of espresso service

 1995 Coffee is the worlds most popular beverage Types of Coffee According to its Origin   American types of coffee  Arabic types of coffee  African types of coffee  Asian types of coffee  Oceanian types of coffee American Types of Coffee   Colombian Coffee  Brazilian Coffee  Costa Rica Coffee  Guatemalam Coffee  Jamaican Coffee  Nicaraguan Coffee  Peruvian Coffee  Mexican Coffee Arabic Types of Coffee   Café Mocha African Types of Coffee   Tanzanian Coffee  Kenyan Coffee  Ethiopian Coffee Asian Types of Coffee   Indian Coffee  Java Coffee  Sumatran Coffee  Celebian Coffee Oceanian Type of Coffee   Hawaiian Coffee Types of Coffee According to its Preparation  Espresso  White Coffee   Espresso with a drop of milk  Cappuccino  Coffee Chocolate  Vienna Coffee  Mocha  Affogato  American Coffee  Drip Coffee  Brewed Pot Coffee Top Ten Producers of Coffee   Brazil (2.59 million metric tons )  (0.85 million metric tons)  Colombia (0.7 million metric tons)  Indonesia (0.65 million metric tons)  Mexico (0.27 million metric tons)  India (0.27 million metric tons)  Ethiopia (0.26 million metric tons)  Guatemala (0.26 million metric tons)  Honduras (0.19 million metric tons)  Peru (0.17 million metric tons)

Sources: http://www.roastedsmell.com/coffee-of-the-world/top-10-coffee-producers http://www.tiptoptens.com/2011/05/10/top-10-coffee-producing-countries/ The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again.



Source: http://www.mapsofworld.com/world-top-ten/world-top-ten-coffee-consumer-countries.html Top Consumers for 2005   USA (1,182 '000 tonnes per annum)  Brazil (810 '000 tonnes per annum)  (566 '000 tonnes per annum)  (405 '000 tonnes per annum)  France (334 '000 tonnes per annum)  Italy (320 '000 tonnes per annum)  Spain (171 '000 tonnes per annum)  UK (126 '000 tonnes per annum)  Netherlands (111 '000 tonnes per annum)  Ethiopia (110 '000 tonnes per annum)

Source: The Economic Pocket World in Figures, 2005 (Profile, 10.99 [pounds sterling]) Top Ten Most Expensive Coffee   Luwak Coffee, Indonesia ($160)  Hacienda La Esmeralda, Boquete, Panama ( $ 104)  Island From St. Helena Coffee Company – St. Helena ( $ 79)  El Injerto – Huehuetenango, Guatemala ( $ 50)  Fazenda Santa Ines, Minas Gerais, Brazil ( $ 50)  Blue Mountain, Wallenford Estate, Jamaica ( $ 49)  Los Planes – Citala, El Salvador ( $ 40)  Hawaiian Kona Coffee ( $ 34)  Starbucks Rwanda Blue Bourbon, Gatare/Karengera, Rwanda ( $ 24)  Coffee Yauco Selecto AA, Puerto Rico ( $ 24) Coffee Crisis   Prior to 1989, coffee price were controlled

 In 1989, the ICA collapsed

 In 1992, prices decrease Coffee Crisis   Sustained low coffee price: Oversupply  1100% increase in production  Multinational Companies  Nestlé  Proctor and Gamble  Kraft  Sara Lee Coffee Crisis   Robusta Beans  Big Four  Make a great profit  Investment in growing cheap coffee  Process to be drinkable Policies to Prevent Price Crisis   Redressing the supply/demand imbalance by increasing consumption  improvement of quality on the world market  Support by donor institutions  Promote diversification  Broad based rural development  Ensure international coffee policy initiatives Positive Effects of Coffee   Health benefits (e.g. Prevent diabetes)  Help develop creative thoughts  Prevent possible drug addictions  1 cup of coffee can prevent colon cancer Negative Effects   Monopolizing which causes inequality of wealth among the supply chain  Every cup destroys 3 square centimetres of rainforest  Health Effects (e.g. Alter blood sugar, damage teeth, etc.) Economic Analysis   Heckscher-Ohlin Model  Capital intensive

 Ricardian Model  Comparative advantage of production in the “bean belt”

Kopi Luwak  • The world’s most expensive coffee, estimated to be costing 100 – 600 USD per pound. That’s the average! The more expensive variant would cost at a staggering price of 3000 USD per pound.

• Has only an estimated global production of 500 – 700kg annually.

• Why is the output so small? let’s learn about the production of kopi luwak shall we? Photo taken from http://www.realkopiluwak.com/perfect- cup/ About Kopi Luwak The Dutch connection   During the colonial times, Indonesia, being a Dutch colony, is known for it’s coffee.  However, as is in any good business practice, the plantation owners prohibited the farmer’s to drink harvested coffee.  The farmers, desperate, seeks ways to overcome this problem.

About the Civet Cat/Alamid/Luwak  • The civet cat or more specifically the Asian palm civet is an animal commonly found in the South East Asian region such as in countries like Indonesia, Philippines, and etc…

• A civet cat is a nocturnal and solitary creature, which prefers to move alone while doing it’s activities. The animal is active around 6pm to 4am .

• Prior to popularity of the luwak coffee, they were commonly treated as pests to common farmers as they feed on their Photo taken from http://www2.cedarcrest.edu/academic/bio/hale/bioT_EID/ crops . here in the Philippines, they can actually be cooked to lectures/civet.html make adobo. About the Civet Cat/Alamid/Luwak  • The civet cat is omnivore, although despite being an omnivore, the major bulk of it’s diet is feeding on fruits such as mango, rambutan and coffee berries.

• It is said that they have a natural instinct in selecting the “best” fruits out of a “bundle” of fruits.

• They primarily live in the forests, especially at places where mature fruit trees are found.

Photo taken from http://www2.cedarcrest.edu/academic/bio/hale/bioT_EID/ lectures/civet.html The production process The production process of the kopi luwak   So basically the idea is that these critters eat the coffee berries, they poop it and it’s ours for the taking.

The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again. The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again. The production process of the kopi luwak  CLEANING • Removal of the fecal matter

The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again. SORTING • Separation of the bad beans and sometimes, at some rare occasion, pebbles. The production process of the kopi luwak  WASHING • The beans collected for production is then immediately washed and air dried so that they when these beans are placed in their containers they won’t be fermenting because of the humidity.

The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again. The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again. ROASTING • The most critical step in the production process • As it affects taste, aroma and colour of the coffee. • It has to be roasted at temperatures between 220ºC–230º for approximately 21-26 minutes.

issues & challenges  • Because of the increasing demand of kopi luwak worldwide, producers are creatively finding new ways to overcome this problem. • In order to mass produce, wild civets are captured and forced into cages where they are fed handpicked coffee beans. • As shown in the video, there have been various cases of counterfeit circulation of civet coffee. • In itself it also has issues as prices increases because of the way their market structure is Photo taken from http://www.realkopiluwak.com/perfect- cup/ formed • Although, there are producers attempting to artificially produce the civet coffee, as they try to reproduce the conditions that formulate the coffee in itself Economic Analysis   Heckscher-Ohlin Model  Labor intensive- picking berries from the ground  Gravity Model  Production in Asian countries (Indonesia, Vietnam, etc.)  Exports in Asian countries (Taiwan, Korea, Japan)  Ricardian Model  Comparative advantage in the production of civet coffee references   Coffee and Health Issues. Ultimate Info . Retrieved August 09, 2011, from http://www.ultimate- coffees-info.com/coffee-and-health.html  Coffee History. Retrieved August 1, 2011, from http://www.koffeekorner.com/koffeehistory.htm  Issues in the Industry. Merchants of Green Coffee . Retrieved August 09, 2011, from http://www.merchantsofgreencoffee.com/4_About_the_Merchants/issues_in_the_industry.html  World's most expensive coffee gift to vietnam's VIPs. Vietnam Business News . Retrieved August 11, 2011, from http://vietnambusiness.asia/world%E2%80%99s -priciest -coffee -gifted -to -vietnam%E2%80%99s -vip - guests/  Fairtrade Coffee. Coffee Research Institute . Retrieved August 1, 2011, from http://www.coffeeresearch.org/politics/fairtrade.htm  Kopi Luwak Coffee Brand. Retrieved August 1, 2011, from http://hubpages.com/hub/Kopi-Luwak-Coffee- Brand  Legendee: The Legend of the Weasel. Trung Nguyen . Retrieved August 1, 2011, from http://www.trung- nguyen-online.com/legendee.html  The Coffee Crisis, Retrieved August 1, 2011, from http://www.coffeehabitat.com/2006/02/the_coffee_cris/  The Government vs The Market: Bali’s Kopi Luwak Case. Jakarta Post: Mumble of the day... . Retrieved August 1, 2011, from http://imo.thejakartapost.com/rizkioddie/2011/03/19/the-government-vs-the- market-balis-kopi-luwak-case/  Types of Coffee, Retrieved August 1, 2011, from http://botanical-online.com/typesofcoffee.htm  Warning!. Real Kopi Luwak . Retrieved August 1, 2011, from http://www.realkopiluwak.com/warning/