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Volume 8, Number 9 September 2003
NCA's Coffee on the Hill
Congressional Event Makes Impact
NCA Hosts Seminar
on New FDA Bioterrorism Regulations
Oct. 16 & 17
Fall Education Conference Nearing Capacity
Seattle Voters
Overwhelmingly Reject Espresso Tax
Caffeine in Coffee
Reduces Workout Muscle Pain, Study Suggests
Leaders of Congress
Support U.S. Rejoining ICO
Coffee Corps
Activities in Africa
Café Society
Returns to Post-Soviet Russia
Vietnamese Coffee
Exports Decrease, Price Increases
Retail prices (all
sizes/per pound)
The ICO composite
average indicator prices
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:
- Prior Notice of
Imported Food
- Registration of Food
Facilities
- Establishment &
Maintenance of Records
- 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:
- Dairy
ingredient information and education
- Technical
support
- Research
and development opportunities/applications and formulation assistance
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