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Speculators blamed

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Vietnam

Plunging coffee prices, the lowest being paid in three years, are causing great concern for Vietnamese traders and coffee growers. Speculators ar being blamed for much of the turmoil rather than oversupply, but Vietnamese traders are also being blamed for displaying a lack of unity and professionalism by some industry observers.

"I can say for sure that the coffee price has been decreasing because of speculators squeezing the market," said Vietnam Coffee and Cocoa Association (VICOFA) chairman Luong Van Tu. "The price decrease should not be blamed on the laws of supply and demand. Speculators have been deliberately distorting market forces to make profit."

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Shipments delayed

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Vietnam

Vietnamese exporters have been accused of delaying shipments of at least 80,000 tons of coffee after London’s Liffe saw falls that caused farmers to hold off selling their coffee.

Some roasters, anxious to avoid being caught short, turned to Indonesia to fulfill their orders.

According to reports, farmers demanded London prices for their beans but exporters, claiming that there were "ample supplies", were only willing to take robusta at discounted prices, despite the harvest having been completed some months previously.

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Indo Viet committee?

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Indonesia

Indonesia and Vietnam should form a committee to jointly manage robusta coffee trading, according to Indonesian Coffee Exporters Association (AEKI) secretary Rahim Kartabrata.

"The two countries control 60% of the world robusta coffee market and this would be the only way to change the present situation where the commodity’s market price is mainly determined by a handful of fund managers at the London commodity exchange," he said. "If Indonesia and Vietnam can handle the market through joint actions, a positive sentiment will no doubt prevail in the market, and this will boost the robusta coffee price at the farmer`s level," according to Kartabrata.

 

Starbucks still No. 1

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China

A survey carried out in China, South Korea and Taiwan by market researchers from Trend Monitor has revealed that Starbucks remains the most popular coffee shop franchise in China and South Korea and second most popular in Taiwan – at least amongst the 2,775 interviewees between the ages of 20 to 40.

In China, McDonalds and UBC Coffee ranked second and third, and in Korea Dunkin Donuts and Coffee Bean followed Starbucks.

While the company scored highest for customer satisfaction in all three countries, respondents thought Starbucks’ prices were "expensive" (Korea: 88.3 %; China 87.9%; Taiwan 91.4%).

 

Yunnan exports up 35%

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China

Yunnan province in China’s southwest saw its year-on-year coffee exports rise significantly in the first five months of 2009, according to statistics released by local authorities. 19,000 tons of coffee was exported during the period, a sharp increase of 35.1%.

Tea exports also rose 26.7% to 1,886 tons, earning US$4.79 million, up 20.1% from the previous year.

 

300 for Barista Lavazza

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India

Indian coffee shop chain Barista Lavazza has announced that it plans to open another 300 outlets across India over the next three years. It is also looking to open 30 highway stores across the country.

Barista currently operates more than 230 outlets in over 30 locations domestically and has established outlets in Sri Lanka and the Middle East.

 

Rain hits production

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India

Predictions of a record coffee crop in 2010 have taken a hit as rainfall variations have affected production, according to Ramesh Rajah, president of the Coffee Exporters Association of India.

He calculates that the crop may reach 280,000 tons, 8.6% less than the 306,300 tons estimated by the Coffee Board of India in June, which said that the 2009 crop is estimated at 262,300 tons.

"Production would have met the forecast had the monsoon been normal," Rajah was quoted as saying n the Indian press. "With the variation in monsoon we’ve seen in different growing areas, output will be certainly lower." The southern state of Kerala experienced heavier-than anticipated rainfall in July while Tamil Nadu’s rainfall was "inadequate" according to Rajah.

 

Decaf tester

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US

The D+caf Test Strip is a unique new product that quickly and easily determines whether your coffee or tea is really decaf. The process is quick and simple to use, with lab accurate results. Simply contact the test strip to the beverage sample for five seconds and view the results within 30 seconds. The makers, Silver Lake Research, claim that this test strip is the first and only test that is fast, accurate, easy-to-use and cost effective.

The coffee (or tea) soaks into the paper of the test strip and antibodies in the strip react with the fluid darkening a red line either towards a ‘D’ (for decaf, or less than 20mg of caffeine) or a ‘C’ (for caffeinated, 20mg or more of caffeine). A useful item for those who prefer decaf or lower caffeine contents in their drinks – and want to ensure that what they order is what they are being served!

 

Organic imports up

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US

According to the North American Organic Coffee Industry Survey, organic coffee imports to North America rose 12% year-on-year in 2008, thanks largely to consumer health-consciousness.

A total of 89 million pounds of organic coffee worth US$1.3 billion found its way into the region according to consultant Daniele Giovannucci.

"We were looking for a potential disaster. These certified coffees, like organic and fair trade and such are higher-priced typically," said Giovannucci. "So, in a recession, what would you think would happen? Much to our surprise, quite the opposite happens."

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Exports drop

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Guatemala

Latin American washed arabica coffee exports dropped 8.93% year-on-year during the first nine months of the 2008-2009 cycle according to Anacafe, Guatemala’s National Coffee Association.

It released data showing that accumulated coffee exports from October, 2008 to June, 2009 totaled 20,360,260 bags, down from 22,357,670 bags shipped in the same period the previous year.

The countries showing the largest declines were Colombia (-21.53%), Costa Rica (-9.54%) and Honduras (-9.22%).

Peru however saw an increase of 23.69% in exports during this period. The other countries that experienced increased exports were Mexico, (+11.31%) and the Dominican Republic, which exported 75,198 bags, an almost 70% increase.

 
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Quarter 4, 2011


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