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Coffee exports “steady”

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Vietnam 

Cao Duc Phat, the Vietnamese minister of agriculture and rural development, announced that Vietnamese rice and coffee exports will remain “steady” during the next 10 years as the country seeks to fine tune the commodity’s value chain and refine quality rather than increasing output. Currently, the country is the second-largest producer of robusta coffee. 
Additionally, in the face of the Vietnam dong’s two devaluations since last November, along with relatively mild increases in export volumes, it is a safe hedge against current market conditions. 
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Coffee exports soar

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India

Between January and May this year, India saw its coffee exports rise almost 50% from 86,654 tons last year to 129,815 tons. The increased exports earned US$275 million as a result, which is 42% more than from last year, according to the state-owned Coffee Board.
 The recovery could be attributed to a rebound in European orders, where nearly three fourths  of India‘s national is purchased, with Italy, Germany and Spain the EU’s largest buyers.
 

Decline forecast

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Uganda

The Uganda Coffee Development Authority (UCDA) had announced that the country may see a 17% decline in exports after yields decreased from 15,241 tons to 12,600 tons in the face of drought, which may return again later this year. UCDA has adjusted their entire next year’s export forecast accordingly. The adjusted forecast is 18% higher than last month’s exports of 10,642 tons since the harvest is gaining momentum, according to the authority’s spokesman
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“Dismal decline”

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Zimbabwe

In what could be seen as the tables being turned on Zimbabwe, it had been announced that a mere 300 tons had been produced by Zimbabwean coffee producers in 2010, a dramatic reduction compared to the 15,000 tons produced in 1990.
The European Union (EU) head of Delegation ambassador Xavier Marchal had noted in an address to coffee stakeholders at a conference, that “(It is) a sheer embarrassment, particularly for thousands of communal farmers who want to improve their livelihoods and income and become part of the prestigious world fraternity of growers.” 
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EAFCA appointments

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Ethiopia

As part of its restructuring plan, the East African Fine Coffees Association (EAFCA) board has appointed Samuel N. Kamau as acting executive director. Kamau has been serving at the EAFCA Secretariat as finance and administration manager.
 The EAFCA secretariat in Kampala, Uganda remains active and operational. With support from the Common Fund for Commodities (CFC), its regional certification and verification project has been launched. 
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Nestle sues Sara Lee

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US

Nestlé has announced plans to sue Sara Lee over alleged patent infringements of its Nespresso design by the latter’s new L’OR Espresso machine which Nestlé claims emulates the Nespresso design by having the machine use a proprietary-made pod filled with ground coffee to brew a single cup of espresso at a push of a button, according to Nestlé spokesman. Furthermore, Nestlé accused the US-based Sara Lee of exploiting its research, enabling it to develop its product at a cheaper price. 
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Roasters fined €30 mln

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The Federal Cartel Office had fined eight German coffee companies and their various subsidiaries a total of €30 million (US$35 million) for illegal price fixing. 
The agency had said that the companies -- Tchibo, J.J. Darboven, Melitta, Kraft Foods, Seeberger, Westhoff, Lavazza and Segafredo Zanetti, had met between 1997 and 2008 to jointly plan wholesale price increases and cuts among themselves to stifle competition from rivals. 
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Continuous growth for 4C

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Germany

The 4C Association, a global association working for a better coffee world, presented its annual report on the occasion of its seventh council meeting in Hamburg, Germany, documenting major achievements and growth. 
By the end of 2009, the second operational year of the association, 4C membership amounted to 129 members. This represents an increase of 30% in comparison to the previous year. 
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Green coffee habits

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UK

British newspaper The Guardian, in an article written by Mike Berners-Lee and Duncan Clark on itsGreen Living blog, outlined ways for tea and coffee drinkers to help their environment. 
Among several suggested measures, the article stated that drinkers should cut down on milk, since the carbon footprint of producing milk is surprisingly high, further exacerbated by the fact that tea or coffee drinks are comprised of two-thirds or more of milk. 
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Banrie plans 100 outlets

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Thailand

Banrie Coffee Plantation and Farm Design (Thailand) The owner and franchiser of Banrie Coffee shops, is targeting LPG gas stations across the country in an expansion effort that will see the company establishing 100 outlets by the end of 2011. The company expects to see 50 outlets up and running by the end of 2010.

Banrie Coffee, which had operated 100 coffee shops previously prior to its contract with gas station operator PTT expiring, currently operates around 20 outlets in service stations nationwide. Company president Asawin Khairatsame said that the new Banrie Coffee shops are planned for LPG gas stations and petrol stations such as Petronas, Caltex and Cosmo.

"Besides expansion by the company, we will focus more on selling our franchises to investors who are looking to run coffee shops and reach break-even point rapidly," Khairatsame said. "If Banrie Coffee wants to have a larger chain of branches nationwide, franchisees can help the company to achieve the target."

The company expects its franchise business will contribute 20% of total sales revenue on projected revenues of Bt80 million (US$2.4 million) this year.

 
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Quarter 4, 2011


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