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Volume 8, Number 9           September 2003

 

 

NCA's Coffee on the Hill Congressional Event Makes Impact 1

NCA Hosts Seminar on New FDA Bioterrorism Regulations. 2

NCA to Permit Members to Arrange to Name Association as "U.S. Agent" For Purposes of Bioterrorism Act 3

Oct. 16 & 17 Fall Education Conference Nearing Capacity. 4

Seattle Voters Overwhelmingly Reject Espresso Tax. 4

New NCA Board Member Named. 5

Caffeine in Coffee Reduces Workout Muscle Pain, Study Suggests. 5

Leaders of Congress Support U.S. Rejoining ICO.. 6

Coffee Corps Activities in Africa. 6

Got Milk Tech Support Needs?. 8

Café Society Returns to Post-Soviet Russia. 8

Vietnamese Coffee Exports Decrease, Price Increases. 9

Retail prices (all sizes/per pound) 10

The ICO composite average indicator prices. 10

 

NCA's Coffee on the Hill Congressional Event Makes Impact

 

NCA members and other coffee industry leaders informed Members of Congress and their key legislative staff about coffee and coffee issues this month at the first NCA Coffee on the Hill morning coffee reception.

 

In addition to NCA members and members of Congress, leaders from the Specialty Coffee Association of America, Green Coffee Association, Pacific Coast Coffee Association, and the Southern Coffee Association were also invited, as were Ambassadors from several coffee producing nations and key Executive Branch officials.

 

The event was designed to raise Congressional top-of-mind awareness about the coffee industry and its economic impact and importance, and of the views of coffee leaders on critical issues impacting the industry.

 

By all measures it was deemed a success. Several hundred legislative staffers of individual members and key committees, as well as key Members, Ambassadors, and Executive Branch officials began pouring into the Gold Room of the Rayburn Congressional Office Building shortly after 8 in the morning, as the smell of freshly brewed coffee wafted through the polished halls of the huge building.

 

There, in addition to talk and literature, they were offered a choice of samples from airpots containing 15 different single origin coffees, each displayed with sample trays of the green and roasted versions of its beans. Full cups of a special “Congressional Blend” were also available.

 

NCA members presented a demonstration of cupping and grading in one corner of the room, and an ongoing illustrated presentation on roasting in another. Margaret Swallow and James Coleman of the Coffee Quality Institute presided over a display table and literature of the organization’s activities, including the volunteer Coffee Corps (see related story). Daniel and Linda Rice Lorenzetti, photographer and writer for The Birth of Coffee project, presented a display and talked about their sepia toned documentary photographs of the coffee world at origin.

 

NCA members and staff circulated among the crowd, answering questions, providing business cards, and drawing the attention of the Members and legislative aides to the NCA literature available on side tables and the key issues they highlighted.

 

As they left, each participant was again offered literature, a special NCA “Coffee on the Hill” coffee mug to remind them of the Association and the event throughout the year, and a package of the specially prepared “Congressional Blend” coffee.

Among the key issues specifically brought to the attention of Congress at the event were:

 

The need to exert Congressional influence on the Administration to rejoin the International Coffee Organization (ICO). This is key to U.S. interests as ICO is the only multi-lateral organization devoting a significant focus to addressing the coffee crisis and sustainable coffee production.

 

The need for Congress to assert its oversight as new regulations implementing last year’s Bioterrorism Act are put into effect,  to ensure that the new authorities granted FDA are executed in a manner that genuinely enhances our protection against bioterrorism without erecting barriers to trade or imposing ineffective regulatory requirements, and are used only for the purposes expressed in the law.

 

The need to support ongoing Administration programs, such as the Department of Agriculture’s (USDA) research program to control the coffee berry borer, and the US Agency for International Development’s (USAID) initiatives to improve quality as opposed to increasing quantity.

 

Following the Coffee on the Hill event, several NCA members and other coffee leaders met with their individual Congressional representatives.

 

At an orientation session to prepare for Coffee on the Hill conducted the evening before, key staffers for two of the most influential and knowledgeable Congressional Members on coffee matters provided some tips for providing information to Congress.

 

Ned Steiner, of Rep. Sam Farr's (D-CA) office, and Becky Linder, from Rep. Cass Ballenger's (R-NC) office, stressed the importance of sticking with one message during a brief meeting with a Member of Congress. Members want to be responsive, and to bear in mind the concerns of those they meet with, but need to have a clear distinct message to take away from each encounter. Engage the staffers and develop relationships with them, they emphasized; they do much of the legwork in gathering and developing information and briefings upon which members make their decisions. Tell the Member why your issue is important to them and their district, if possible in terms of the employment impact it will have on their district.

 

NCA President & CEO Robert Nelson pointed out the importance of making our views known to members of Congress, because, in addition to other powers, Members have the power to initiate fiscal measures – new taxes and tariffs – that greatly influence how specific industries fare. “No one can represent the will of the people unless that will is made known to them,” he pointed out. “Certain rights are guaranteed, but every right has an obligation.”

 

 

NCA Hosts Seminar on New FDA Bioterrorism Regulations

 

NCA will host a special half-day seminar titled "New FDA Bioterrorism Regulations and The Implications for the Coffee Trade" in conjunction with the NCA Fall Educational Conference. The seminar will be held at the Metropolitan Hotel, New York, NY on October 17, 2003 from 1:30 pm to 4:15 pm.

 

Attendees will:

 

§         Receive must-know information about new import regulations, including a legal analysis by an attorney specializing in food and drug law

§         Find out how the regulations will impact your business

§         Learn what you need to do to comply with the new regulations

 

The FDA has announced that on October 12 it will publish final regulations in compliance with the Public Health Security and Bioterrorism Preparedness Act (Bioterrorism Act). This Seminar is essential for coffee importers, exporters and manufacturers.

 

Details will be provided on four regulations, including:

 

  1. Prior Notice of Imported Food
  2. Registration of Food Facilities
  3. Establishment & Maintenance of Records
  4. Administrative Detention

 

Ted Ogdahl of the FDA will explain the details of the new regulations. Steven Steinborn of Hogan & Hartson, LLC, a leading Washington law firm, will give a Legal analysis. Matthew Brauner of Brauner International, a leading customs broker, will cover the practical impact and compliance considerations. This timely discussion on the new regulations will provide critical insight that will allow companies to properly adjust their practices in a timely fashion according to the new law.

 

This important seminar will be held in conjunction with the NCA Fall Educational Conference, and is FREE to NCA Members and Conference attendees. For all others there is a $45 registration fee for this special program.

 

For registration information go to www.ncausa.org.

 

NCA to Permit Members to Arrange to Name Association as "U.S. Agent" For Purposes of Bioterrorism Act

 

To help government and industry implement new U.S. food security regulations and to minimize interruption of coffee commerce, the NCA Board of Directors voted this month to permit U.S. and foreign members to arrange to name the Association as their "United States agent" when they register foreign facilities with the U.S. Food and Drug Administration (FDA) under new anti-bioterrorism regulations anticipated in October. Although legislation passed by Congress last year subjects certain foreign and domestic food facilities to registration, a “United States agent” is only required for foreign food facilities.

 

Current members are encouraged to forward this information to any of their vendors or partners with foreign facilities that may be affected by the new regulations. It may be in their interest to consider applying to take advantage of the service NCA is making available to members.

 

Coffee companies, whether members or not, interested in receiving detailed information about the FDA food facility registration regulations and NCA’s “United States agent” service should email NCA at info@ncausa.org. The Association will email the information to them as soon as the final regulations are published in October.

 

The Public Health Security and Bioterrorism Preparedness and Response Act of 2002, passed to protect America's food supply following the 9 - 11 attacks, requires that facilities engaged in "manufacturing, processing, packing, or holding food for consumption in the United States" register with the FDA. Foreign facilities subject to the Act must also include the name and contact information of a "United States agent." Failure to comply will result in holding of all U.S. imports from that facility.

 

Foreign facilities subject to the Act are those facilities that manufacture, process, pack, or hold food, but only if food from such facility is exported to the U.S. without further processing or packaging outside the U.S. NCA will act as members' U.S. agent "solely for the limited purpose pursuant to Section 305 of the Act, 'Registration of Food Facilities,'" NCA President Robert Nelson noted. All members, foreign or domestic, will be required to sign an agreement with the Association in order to take advantage of this service.

 

Other sections of the Act refer to prior notice requirements for imports of foods into the U.S., maintenance and inspection of food records, administrative detention and other issues. Proposed Regulations were published for comment earlier this year. 

 

 

Oct. 16 & 17 Fall Education Conference Nearing Capacity

 

Enrollment is nearing capacity for the NCA 2003 Fall Educational Conference, to be held Oct. 16 - 17, at the Metropolitan Hotel, New York City. For information and registration materials, visit www.NCAUSA.org.

 

One highlight of the two days of programming will take place on the floor of the brand new New York Board of Trade Coffee Exchange, located at the World Financial Center in lower Manhattan, which was recently re-opened after being destroyed during the 9/11 attacks. The new trading floor will be the scene of this year's Educational Conference's mock trading session and networking reception.

 

During the mock trading session the arcane, ancient, yet thoroughly modern methods of coffee traders will be demonstrated and explained to coffee professionals enrolled in either of the Conference’s two tracks: “Total Quality & New Realities,” (for those engaged in coffee production); and “The Frontline of Coffee Marketing,” (for those on the business and sales side.) The two tracks are designed to provide coffee professionals and others comprehensive knowledge of fundamentals and past-year developments in either coffee production or coffee marketing.

 

"Total Quality & New Realities," will take participants step-by-step through a two-day, nine-session program that will go from agriculture and processing, in "Coffee at Origin," through an extremely timely presentation on "How Coffee Traffic Will be Effected by the New Bioterrorism Regulations" (publication is expected in mid-October), and will also include presentations on cupping and grading, quality in the roasting process, gold cup standard brewing, the vital importance of water quality, the finer points of espresso and of robusta, and a tour of a roasting facility.

 

"The Frontline of Coffee Marketing," will present latest developments in the coffee business from large and small company perspectives, including discussion of past year developments in liquid coffee and office coffee, robusta’s potential as a high-margin specialty coffee, marketing opportunities and realities of single-origin, whole-bean, and certified coffees, new distribution channels opened by the internet, new packaging innovations and the opportunities they afford, as well as such current business-environment topics as corporate social responsibility, managing media crises, and keeping marketing in line with your organization's core mission. Full details on both programs are posted at www.NCAUSA.org.

 

The mock trading session and networking reception will take place at the end of the first day of the two-day Conference, on Oct. 16, at 4:30 – 6:30.

 

 

Seattle Voters Overwhelmingly Reject Espresso Tax

 

Seattle voters this month overwhelmingly rejected Initiative 77, a citywide ballot measure that would have imposed a 10-cent per cup tax on espresso-based drinks served for immediate consumption. The measure would not have affected coffee brewed by other methods.

 

The measure was opposed by a broad-based coalition of Seattle civic and business groups, as well as small and large Seattle coffee companies, working together in an ad hoc coalition known as JOLT, for Joined Against the Latte Tax. NCA supported the group’s opposition, and provided background research on the financial implications of the proposed measure, as well as input on strategy.

 

Almost 7 out of 10 Seattle voters – 69 percent – said no to the tax, though the measure would have earmarked funds for early childhood education programs. 

 

According to JOLT, the tax would have made extremely poor public policy, since there is no direct relationship between espresso drinking and early childhood education, and no other reason to single out this product. Passage would have set a poor precedent for other hidden taxes.

 

JOLT commented that the proposed tax bore no relation to the use it was intended for and would have made an unreliable funding base for the early childhood programs. JOLT pointed out that espresso drinking might in future decrease in popularity while the need for early education programs increased. Childcare is too important to be funded by a mechanism like this, the group argued.

 

“We believe the important considerations JOLT raised against the tax are correct," NCA President Robert Nelson said. "NCA also believes that, in raising the retail price of these coffee products with no corresponding increase in value, this tax could result in a decline in coffee consumption and overall traffic in coffee venues. That would not only hurt coffee shop owners and restaurants, but all Seattle citizens, because of the resultant diminished economic activity, and certainly coffee farmers, who already are suffering from global oversupply of coffee.”

 

The vote marks the second time in a year that measures singling out coffee and coffee drinkers and shop owners as targets for social initiatives were deemed ill-founded by very large majorities of voters in municipalities known for their social consciousness. Last November, citizens of Berkeley, CA, rejected a ballot measure that would have imposed penalties, including possible jail-time, on coffee shop owners who served non-certified coffees. Voters there also nay-said the measure by a margin of 7 to 3.

 

Many Seattle voters, according to The New York Times, were torn between the desire to find funding for the education programs and the unfairness of the tax, but ultimately decided the measure was merely an a “band-aid” that failed to address the need to find rational funding mechanisms for public programs.

 

 

New NCA Board Member Named

 

Mark Pettie was elected to the NCA Board of Directors this month. He is Executive Vice President of Kraft Foods North America, and General Manager of the Coffee Division, where he oversees the strategic business vision, marketing and promotion for Maxwell House, Gevalia, General Foods International Coffees, Starbucks, Yuban, Maxim and Sanka brands. He joined the former General Foods business in 1981.

 

 

Caffeine in Coffee Reduces Workout Muscle Pain, Study Suggests

 

That cup of coffee in the morning does more than wake you up. It can also help you feel less pain during your morning workout, according to a news report from the University of Georgia.

 

According to the University, that’s what researchers there found in a recent study exploring why muscles hurt during exercise. The research group had previously learned that aspirin, though commonly used to treat muscle pain, did not reduce muscle pain produced by vigorous exercise.

 

"Muscle contractions produce a host of biochemicals that can stimulate pain. Aspirin blocks only one of those chemicals," said Patrick O'Connor, Professor of Exercise Science in the University’s College of Education. "Apparently the biochemical blocked by aspirin has little role in exercise-induced muscle pain."

 

The researchers' latest study, published in the August issue of the Journal of Pain, found that caffeine reduced thigh muscle pain during cycling exercise. Participants in the study, 16 nonsmoking young adult men, cycled for 30 minutes on two separate days. The exercise intensity was the same on both days and purposefully set to make the riders' thigh muscles hurt.

 

According to the University, participants in the study took either a caffeine pill or a placebo pill one hour before the exercise. The riders reported feeling substantially less pain in their thigh muscles after taking caffeine, compared to after taking the placebo.

 

This observation suggests that prior reports showing that caffeine improves endurance exercise performance might be explained partially by caffeine's hypoanalgesic properties, Prof. O'Connor said.

 

"Not all analgesics or combinations of analgesics are effective for every type of pain or every individual," he said. "Much of this is due to biological variation among people in receptors for the drugs, as well as variation in pain receptors in different body tissues. For instance, brain tissue has no pain receptors, so surgery can be done on the brain without anesthesia. Of course it will hurt getting through the skin and cranium."

 

Caffeine also seems to work less well for heavy caffeine users who habituate, probably because of changes in their receptors with increased caffeine use, Prof. O'Connor said.

 

Prior research in this area has focused on other types of pain, such as headaches, joint or skin pain, toothaches, or pain in damaged muscles at rest, perhaps a few days after being injured during exercise, the University reported. The current work focuses on pain that occurs naturally with muscles contracting during exercise.

 

"The next step is to learn how caffeine helps people feel less muscle pain during exercise," said Robert Motl, lead author of the study and an Assistant Professor of Kinesiology at the University of Illinois. "Evidence suggests that caffeine works by blocking the actions of adenosine. However, we don't know yet whether the caffeine is acting on muscles or the brain."

 

 

Leaders of Congress Support U.S. Rejoining ICO

 

A letter partially prompted by NCA was sent earlier to this month to the Honorable Colin L.Powell, U.S. Secretary of State, by key Congressional leaders, urging that the U.S. rejoin the International Coffee Organization.

 

The letter, which noted that there is "a severe, ongoing crisis in the worldwide coffee industry that is having a devastating impact on coffee growers," was signed by Rep. Henry Hyde (R-IL) and Rep. Tom Lantos (D-CA), the Chairmen and Ranking Member of the House International Relations Committee, and the Chairmen and Ranking Members of two of the Committee's relevant Subcommittees; Rep. Elton Gallegly (R-CA) and Rep. Brad Sherman (D-CA), of the Subcommittee on International Terrorissm, Nonproliferation & Human Rights, and Rep. Cass Ballenger (R-NC) and Rep. Robert Menendez (D-NJ), of the Subcommittee on Western Hemisphere.

 

"As the leading coffee consuming nation, joining the ICO will strengthen our ability to address the coffee crisis," they wrote.

 

"In addition, ICO membership would be a positive development of U.S. consumers," the letter stated. "The ICO supports market-based solutions to the current coffee crisis and is also working to ensure that coffee supplies continue to be available in many varieties and from many different countries. U.S. influence within the ICO can be used to reinforce these goals."

 

NCA has been presenting a similar point of view to Executive Branch officials throughout the spring and summer, in arguing in favor of the U.S. rejoining the ICO.

 

The Congressional letter noted, "United states membership in the ICO is strongly supported by the National Coffee Association, which represents all segments of the U.S. coffee industry including many small and medium sized businesses."

 

The State Department's Assistant Secretary for Legislative Affairs, Paul V. Kelly, responded to the letter in late September, stating the Department expects "a senior interagency group to consider these questions within the near future."

 

 

Coffee Corps Activities in Africa

 

Two Coffee Corps Advisory Committee members -- Jim Reynolds, of Peet's Coffee & Tea, representing NCA, and Arnoldo Leiva, of The Coffee Source, representing the Specialty Coffee Association of America (SCAA) -- recently traveled to Africa with Margaret Swallow, Executive Director of the Coffee Quality Institute (CQI). The group went to five countries there to meet with coffee farmers, agriculture ministers, bankers and others to better assess the potential contribution and programs Coffee Corps can make in these areas.

 

The Coffee Corps was established by CQI in January, with initial funding from the U.S. Agency for International Development (USAID) and the joint support of both NCA and SCAA, to facilitate current and retired coffee experts volunteering for on-site technical and marketing assistance projects at coffee origin.

 

The Advisory Committee members and staff met with small to medium producers and cooperatives, representatives from the East African Fine Coffees Association (EAFCA) Secretariat and the Regional Agricultural Trade Expansion Support (RATES) program, government Ministers in Uganda, Tanzania, and Zambia, and other stakeholders including bankers.

 

The timing of this trip was planned to coincide with the first Coffee Corps activity in Africa – a program of intensive cupping seminars and other training to help improve quality in Uganda, Rwanda, Tanzania, Ethiopia and Zambia.

 

Previously, Coffee Corps volunteers have been sent on four missions fulfilling requests for technical assistance in Honduras, Costa Rica and Guatemala. (One of these projects, to Cooperative Cafetalera Siguatepeque in Honduras, was previously described in the May 2003 issue of The Coffee Reporter.)

 

The cupping seminars, conducted by a team of coffee industry volunteers selected by Coffee Corps, were held in response to a request from the East African Fine Coffees Association (EAFCA) to help improve the cupping skills infrastructure within the countries involved to help them better conform to specialty coffee industry requirements.

 

The team, consisting of Bob Stephenson, a third generation roaster with Kavanaugh Coffee, in California, Chris von Zastrow, of San Cristobal Coffee Importers, of Kirkland, WA, Gerry LaRue, of Partners Coffee Company, Atlanta, GA, Francisco Osuna and Willem Boot, both independent coffee consultants, traveled to Uganda, Rwanda, Tanzania, Ethiopia and Zambia to conduct the seminars. Cuppers from several other EAFCA member countries – Burundi, Kenya, Malawi and Zimbabwe – also participated in locations nearest their countries.

 

"The basic purpose of the program was to introduce the producers to the preferences and requirements of the buying community," Mr. Reynolds said.

 

"Some of the cuppers were trained, but only to look for defects," he noted. "The Coffee Corps seminars were aimed at providing them the ability to identify attributes that coffee buying companies look for."

 

In total over 100 “thought leader” cuppers from nine countries participated in the training. According Ms. Swallow, response to the training was overwhelmingly positive; the majority of the participants believed that their skills improved as a result. The comment most frequently received, she said, was that they could use even longer sessions in future.

 

This type of capacity improvement is very important, Ms. Swallow noted, as these cuppers can now better evaluate the competitiveness of their local coffees and work within the local system to identify what changes may need to be made in order to be more competitive in the global specialty coffee market.

 

Participants remarked, in the evaluations Coffee Corps collected after each session, that the training was valuable because it helped them understand the relative positions and strengths of their individual countries’ coffees in the world specialty markets. Several remarked that it helped them understand the specialty market from the customers’ point of view.

 

Reviewing the entire trip, Mr. Reynolds remarked, "I think it was really instructive for all of us to see what kind of conditions existed in each of these countries, and the amazing thing is each is really different, with different levels of professionalism and knowledge and appropriate government policies."

 

According to Ms. Swallow, based on the insights gained from this trip, the Advisory Committee will be better able to evaluate requests for assistance and provide required volunteer expertise. She noted also that the talks helped the group better recognize that the challenges facing small to medium coffee producers in these countries are extremely complex and involve other factors such as government policy, the availability of bank financing, etc. that need to be addressed as part of a comprehensive strategic program.

 

 

Got Milk Tech Support Needs?

 

According to National Coffee Drinking Trends 2003, about half of U.S. coffee drinkers use milk products to whiten their coffee.

 

Dairy Management Inc. (DMI), in Rosemont, IL, is the U.S. and international planning and management organization charged with building demand for U.S.-produced dairy products on behalf of America's dairy farmers. DMI, together with other organizations, manages the American Dairy Association®, the National Dairy Council® and the U.S. Dairy Export Council®.

 

In addition to its marketing functions, DMI also oversees technical support programs designed to assist dairy producers with technical issues, and assist other food producers with dairy related technical issues and in the development of new products incorporating dairy.

 

One program DMI conducts that is of direct relevance to the coffee industry is the Do it with dairy® program www.doitwithdairy.com, which promotes the use and benefits of dairy ingredients, such as nonfat dry milk, whey ingredients, whey derivatives, milkfat and cheese. The program offers food manufacturers and ingredient suppliers:

 

 

 

 

Another DMI program of interest to coffee companies is Extraordinary Dairy® www.extraordinarydairy.com, which works to transform dairy research and technology into compelling business solutions -- from developing new products to expanding distribution channels to increasing profit margins. Extraordinary Dairy® helps co-ops, processors, ingredient manufacturers and food companies expand their markets through dairy technologies.

 

It recently sponsored and published research on conditions required for optimal milk frothing by baristas. The study, by John McGregor, Ph.D., Professor and Chair of the Department of Food Science and Human Nutrition, Clemson University, Clemson, SC, found that such factors as milkfat content, processing issues such as hydrolysis after pasteurization, and storage and handling impact successful frothing. His research suggested the possibility of specialized feeds in the future for cattle destined to produce milk for cappuccino. In the meantime, the time-tested advice, "Start cold, stay cold" -- meaning don't leave the milk out on the counter -- remains the byword.

 

DMI is currently involved in research into shelf-stable milk and milk beverages that may someday provide opportunity for coffee companies, and other research.

 

Coffee companies with specific dairy-related questions and/or technical support needs may contact Sharon Gerdes, Technical Support Services Director for DMI, for assistance, at 800-248-8829, or by e-mail at e-mail: technicalsupport@doitwithdairy.com.

 

 

Café Society Returns to Post-Soviet Russia

 

A thriving café society in Moscow is stimulating many new domestic specialty shop chains serving everything from high quality espresso to fruit flavored coffee inspired by exotic offerings from the United States, according to a recent Reuters report.

 

It is the latest sign of Moscow’s rapid transformation from grim Soviet metropolis, where even small luxuries were within reach of only a circle of communist bureaucrats, to an urban consumer society rivaling Western Europe’s capitals, the news agency reported.

 

 “Many young Russian people have traveled abroad and they know what a real cappuccino or espresso should taste like,” the news agency quoted Vladislav Dudakov, managing director of Coffee House, one of the most aggressive Russian chains, with 23 cafes in Moscow.

 

The new coffee bars, some partly inspired by western chains, are also a symptom of growing entrepreneurial flair among younger Russians, according to the Reuters report. Coffee House, Shokoladnitsa, and other chains with names like Zen and Coffee Bean are cashing in on the craze, opening up in the city center and in shopping malls and airport terminals. Global players are also taking notice, sensing an opportunity to develop a business in a market of 147 million people with almost infinite growth potential.

 

Muscovites’ newly discovered passion for coffee is really a throwback to the era before the 1917 Bolshevik revolution, when coffee houses were fashionable in Moscow and St Petersburg, Mr. Dubakov noted.

 

“Before the revolution people regularly drank coffee and there was a culture of drinking coffee,” he said. All that vanished with the communist takeover. Even poor quality instant coffee was a rare luxury in the Soviet era and the idea of buying freshly roasted coffee beans was unheard of.

 

According to Reuters, coffee is not inexpensive at Moscow’s gleaming new cafes. Coffee House, whose clientele was reported to be mainly business people, office workers and students, charges $2 for an espresso and more than $3 for a “classic cappuccino.” Shokoladnitsa, which markets to a more intellectual niche, charges $1.50 for an espresso, according to Reuters, which noted that those prices are steep in a country where many workers are lucky to take home $150 a month.

 

Mr. Dudakov noted that his chain, Coffee House, is providing value for the price it charges, according to Reuters. The company air freights its coffee to Russia from a roaster in Milan and customers are waited on by trained staff. “Our prices are optimal for Russia,” he said. Coffee House is planning to open its chain in St. Petersburg to challenge a well established local rival, Idealnaya Chashka.

 

 

Vietnamese Coffee Exports Decrease, Price Increases 

 

The official Vietnamese News Agency recently reported that, according to Trade Ministry Statistics, average prices received for Vietnamese coffee exports increased this year, so far, while the quantity exported decreased.

 

The News Agency reported that the decrease was due to a low coffee inventory from the last season, according to the report.

 

In August, Vietnam exported an estimated 40,000 metric tonnes (1,000 kg/tonne) of coffee left over from the last crop, which was only 78.4 percent of August ’02 exports, the report said.

 

It was estimated that around 40,000-45,000 metric tonnes of coffee left over from the last crop would be exported in September and early October

.

Export coffee averaged $688 (US) per tonne through August of this year, a year-on-year rise of 50 percent, according to the Trade Ministry.

 

Coffee has become a hard currency earner for Vietnam, the report noted, bringing in an export earning of $400-600 million (US) annually in recent years, accounting for 6 to10 percent of Vietnam's total export revenue.

 

Vietnam exports coffee to 59 countries and territories worldwide. Its major buyers include the United States, the United Kingdom, Germany, France, the Netherlands, France, Spain, Italy, Japan, Singapore, China, Malaysia, Indonesia and Switzerland.

 

 

Retail prices (all sizes/per pound)

 

 

Ground roast

Instant

 

July '03

July '02

July '03

July '02

U.S. Avg

2.944

2.977

12.049

12.111

Northeast

3.287

3.427

N/A

N/A

Midwest

2.738

2.533

N/A

N/A

South

2.773

2.698

N/A

N/A

West

2.984

3.452

N/A

N/A

Source: U.S. Bureau of Labor Statistics

 

The ICO composite average indicator prices

 

 

Colombian Mild

Arabicas

"Other Mild"

Arabicas

Brazilian & Other

Arabicas

Robustas

Composite Price

March

61.82

61.66

43.77

38.26

49.61

April

66.12

65.35

48.71

38.68

51.87

May

67.56

66.47

51.06

38.90

53.19

June

65.01

61.34

47.11

35.33

48.90

July

67.84

62.32

49.64

36.71

50.89

August

68.65

63.60

52.88

37.92

52.22

 

 

 

The Coffee Reporter is published monthly by the

National Coffee Association of U.S.A., Inc.

 

15 Maiden Lane, Suite 1405

New York, NY 10038

© Copyright 2003 NCA

 

Telephone: (212) 766-4007

Facsimile:   (212) 766-5815

 

www.ncausa.org

info@ncausa.org

 

Chairwoman:             Mary J. Williams

President & CEO:     Robert F. Nelson

Editor:                         Jay Molishever