coffee introduction and objective

8/8/2019 Coffee Introduction and Objective

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National Institute of Agricultural Extension Management, Hyderabad

COFFEE SUPPLY CHAIN MANAGEMENT

SUPPLY CHAIN MANAGEMENT

Submitted to:

PROF. N.P SinghSubmitted by:

GROUP 3

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22- CHINTU

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28 - KARANDE TUSHAR PREMCHAND

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ABSTRACT

A value chain is a supply chain consisting of the input suppliers, producers, processors and

buyers that bring a product from its conception to its end use. A value-chain approach to

development seeks to address the major constraints at each level of the supply chain, rather than

concentrating on just one group (e.g., producers) or on one geographical location. Constraints

often include a lack of technical,business or financial support services, a difficult regulatory

framework, poor public infrastructure (roads, telecommunications, electricity, etc.), a lack of

information about or weak connections to end markets, and/or inadequate coordination between

firms. Taking a value-chain approach is often essential to successful economic development

since micro and small enterprises and smallholder farmers will only benefit over the long term if

the industry as a whole is competitive.

Overview

Coffee is a world famous beverage and it is widely drunk in almost every part of the world. The

seeds from which this drink is made are actually seeds of the fruit borne by the coffee plant and

are called beans in trading terms. These coffee beans stand at the 3rd place in the list of legally

traded products in the world and are considered to be a very important commodity in terms of

trading.

The worlds total production of coffee is around 6 million tons and is leaded by Brazil which has

more than 30% share in the worlds total production. Vietnam and Columbia follow Brazil

regarding production respectively. The major consuming and importing countries of coffee are

y United Statesy Canaday Japan,

European countries like

y Germanyy Italyy United kingdomy Poland


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y Spain

Other than the above mentioned countries it is also imported by the African countries. The net

imports of coffee figures around 4.5 million tons. The export scenario is that the major share of

exports in the world is also held by Brazil and is followed by the other leading production

countries.

There are around 25 varities of coffee under Coffea known to the world. But two of these

varieties are very much popular and are widely used throughout the world. These are coffea

arabica and coffea canephora (or coffea robusta). Commercially too, only these types are traded

in the various commodity markets. Around 70% of the coffee production is constituted by coffea

arabica and 25% by coffea robusta.

Coffea arabica is largely produced by brazil and columbia is said to be of best quality. Some of

the popular sub-varieties of this type of coffee are Typica, Bourbon, Caturra, Mundo Novo, Tico

etc.

Coffea robusta is cultivated in the areas of West and Central Africa, Southeast Asia, South

America including Brazil. It is said to be a more economical variety of coffee as compared to the

other one as it can be grown on moist lands having low altitudes. And also it is harvested 3-4

times a year that leads to a higher production level and lower cost level.

Indian coffee market

Though India just contributes a mere 4% share in the worlds coffee contribution but still Indian

coffee is considered to be one of the most stimulating coffee in the world. India is indulged in

producing coffee that is mild in nature i.e. having a low acid content. Most of the coffee grown

in India is cultivated under shade. Indias production stands at around 3 lakh tons annually and

around 70% of the total production of coffee is exported i.e. around 210000 tons. The countries,which import coffee from India, are:

Italy

Russia

Germany

Belgium


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Spain

Slovenia

France

Finland

Algeria

India produces some specialty types of coffee also namely:

1. Monsooned coffee This coffee is very much popular in the world. Earlier when therewere less resources available for transportation, the coffee from India, in transit to

Europe, faced humidity and that turned the color of the coffee to pale yellow and the taste

also. This was the birth of a new variety i.e. the Monsooned coffee.Even today, through

out the months of monsoon, the coffee is left in an open warehouse to make itmonsooned.

2. Mysore nuggets extra bold This type of coffee have extra large beans, greenish in colorand have quite strong fragrance. Unlike the other varieties produced in India, mysore

nuggets has a good acid content.

3. Robusta Kaapi Royale - Robusta Kaapi Royale is a smooth, less acidic coffee made fromRobusta Parchment AB class of coffee. The coffee beans are round in shape and grayish

in color.

Majortrading centers of coffee

y New York (Coffee, Sugar and Cocoa Exchange)y Londony Uganday Kenyay Brazil (Brazilian Mercantile and Futures Exchange)y Singapore (Robusta coffee)

It is also traded at the Indian commodity exchanges like National Commodity & Derivatives

Exchangeltd and NationalMulti Commodity Exchange of Indialtd


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coffee introduction and objective

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