FINAL SECTOR RESULTS - SC FINAL SECTOR RESULTS - SC SPECIALTY COFFEES Reporting the final findings of the Value Chain Analyses for CBI www.marketshare-international.com 0 FINAL SECTOR RESULTS - SC Content index 1. VCA PROJECT DESCRIPTION ......................................................................... 6 Preface ........................................................................................................ 6 Project motivation ....................................................................................... 6 Project consortium ...................................................................................... 7 Project methodology ................................................................................... 7 General project process ............................................................................... 8 Project Scope .............................................................................................. 9 2. EXECUTIVE SUMMARY ...............................................................................10 Introduction .............................................................................................. 10 General findings & recommendations ........................................................ 10 Summary of sector results ......................................................................... 11 2.3.1 Exotic Fresh Fruits ............................................................................................... 11 2.3.2 Processed Specialty Coffees ................................................................................ 11 2.3.3 Natural Ingredients ............................................................................................. 12 2.3.4 Tropical & Exotic Flowers & Foliage .................................................................... 13 2.3.5 Garments ............................................................................................................. 13 2.3.6 IT Outsourcing (ITO) Services .............................................................................. 14 Ranking the stars ....................................................................................... 14 2.4.1 Sector programme recommendations ................................................................ 15 2.4.2 Sector Priority Recommendations ...................................................................... 16 3. COLOMBIA AS EXPORT COUNTRY ...............................................................17 About Colombia ........................................................................................ 17 Political & Legal ......................................................................................... 17 Colombian Economy .................................................................................. 18 Social ........................................................................................................ 18 Technology ................................................................................................ 18 Environment ............................................................................................. 19 4. EUROPE AS AN IMPORT CONTINENT ..........................................................20 1 FINAL SECTOR RESULTS - SC About Europe ............................................................................................ 20 Political & Legal ......................................................................................... 20 European Economy .................................................................................... 20 Social ........................................................................................................ 22 Technology ................................................................................................ 22 Environment ............................................................................................. 23 General European Trend & Developments ................................................. 23 5. RESULTS - SECTOR SPECIALTY COFFEES (SC) .................................................26 Introduction to the SC sector and its analysis ............................................. 26 Demand and Trends in Europe - SC............................................................. 28 5.2.1 European demand for SC .................................................................................... 28 5.2.2 European trends - SC ........................................................................................... 33 5.2.3 Legal Requirements ............................................................................................. 34 Supply and Trends in Colombia - SC............................................................ 35 5.3.1 Colombian trends - SC ......................................................................................... 35 5.3.2 Colombian supply - SC ......................................................................................... 38 5.3.3 Overview of competitors ..................................................................................... 44 5.3.4 Opportunities for the SC sector. .......................................................................... 47 5.3.5 Opportunities in markets outside Europe ........................................................... 48 Export Value Chain – Specialty Coffees ....................................................... 48 5.4.1 Specialty Coffees: Value Chain Analysis .............................................................. 49 Overview of stakeholders .......................................................................... 50 5.5.1 Stakeholders – Actors .......................................................................................... 50 5.5.2 Potential Colombian companies with interest in CBI programme ...................... 51 5.5.3 Stakeholders – Supporters .................................................................................. 51 5.5.4 Stakeholder – Influencers.................................................................................... 52 5.5.5 Main Stakeholders............................................................................................... 53 Overview of the main bottlenecks ............................................................. 54 Overview of opportunities for Value Chain Development ........................... 55 5.7.1 Opportunities SC ................................................................................................. 58 Corporate Social Responsibility .................................................................. 60 Risk assessment ........................................................................................ 62 5.9.1 External factors ................................................................................................... 63 5.9.2 Internal factors (most important sector’s bottlenecks) ...................................... 64 Conclusions and recommendations ............................................................ 64 2 FINAL SECTOR RESULTS - SC Result Chain .............................................................................................. 66 References Processed Specialty Coffees (SC) .............................................. 67 Appendix SC1 ............................................................................................ 69 Appendix SC2 ............................................................................................ 75 References - Intro chapters ........................................................................ 77 3 FINAL SECTOR RESULTS - SC This Value Chain Analysis for Colombia is executed by: MarketShare PoBox 2117 5260 CC Vught The Netherlands Contacts: Mr. Hans van de Rakt Director MarketShare-International [email protected] +31.6.28653340 Ms. Juliana Niño Manager MarketShare-Colombia [email protected] +31.6.24676179 This assignment was given by CBI - Ministry of Foreign Affairs Prinses Beatrixlaan 2 Den Haag The Netherlands 4 FINAL SECTOR RESULTS - SC ACRONYMS & ABBREVIATIONS B2B Business to Business BPO Business Process Outsourcing BSOD Business Support Organisation Development CSR Corporate Social Responsibility EEA European Economic Area. Conformed by: EU countries plus Norway, Lichtenstein, Iceland. EFF Exotic Fresh Fruits EFTA European Free Trade Association. Conformed by: Switzerland, Norway, Lichtenstein and Iceland. EU European Union FAO Food and Agriculture Organization FLO Fairtrade Labelling Organizations FNC Federación Nacional de Cafeteros (National Federation of Coffee-growers) ICA Instituto Nacional Agropecuario (National Agricultural Institute) ICO International Coffee Association ICT Information and Communication Technology IQF Individually Quick Frozen IT Information Technology ITO IT Outsourcing LAM Latin America MB Million Bags MT Metric Tones NI Natural Ingredients SC Specialty Coffee SCAE Specialty Coffee Association of Europe SME Small & Medium Enterprises T&EFF Tropical & Exotic Fresh Fruits TFF Tropical Fresh Fruits ToR Terms of Reference UTF Underutilised Tropical Fruit VCA Value Chain Analysis 5 FINAL SECTOR RESULTS - SC 1. VCA PROJECT DESCRIPTION Preface This sector report is presenting the findings of the research of MarketShare. This report is based on the Terms Of Reference (ToR) of the Value Chain Analysis for Colombia, as presented by CBI. Project motivation The Centre for the Promotion of Imports from Developing Countries