Korea imported a record amount of coffee this year, hitting the US$500 million mark. According to the Korea International Trade Association on Sunday, the nation's coffee imports stood at $508 million for the first ten months of this year, far exceeding the previous record of $307 million for the whole year of 2010.

Korea imported $140 million worth of coffee in 2005, but the figure has skyrocketed in subsequent years, surpassing $200 million in 2007 and $300 million last year. The global market for coffee amounts to $20 billion, while the nation stands as the 11th-largest market with annual per-capita consumption of 350 to 400 cups of coffee.

Behind the steep rise is an increase in the number of coffee shops in tandem with the growing popularity of the drink among young people. Market researcher Nielsen Korea estimates the number of coffee shops here at around 9,400, up 51 percent from three years ago.

As consumers develop more sophisticated tastes for coffee, a shift has been observed in the countries of origin. Imports of Robusta from Vietnam, largely used for instant coffee, accounted for 13.8 percent of total amount last year, down from 34.8 percent in 2008. In contrast, imports of high-end Arabica coffee from Latin America posted huge growth. Korea imported the largest amount of coffee worth $100 million from Brazil this year, followed by Colombia ($91 million), Vietnam ($71 million), Honduras ($65 million) and Peru ($29 million).

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The International Coffee Organisation (ICO) has revised its global coffee production estimate for the current coffee year to 128.6 million bags, which is 1.2 million bags more than the forecast it made last month.

Last month, the ICO had revised its projection for the 2011-12 coffee year (October-September) to 127.4 million bags of 60 kg each from its June forecast of 130 million bags. “Bad weather continues to have a negative impact on production in some areas by causing a rise in coffee pests and diseases,” it said.

The ICO had earlier cautioned that if the bad weather continues, production potential and coffee quality could be affected in 2011-12. Production of Arabica and Robusta coffee beans in the 2011-12 crop year will amount to 79.6 million bags and 48.9 million bags, respectively, it said.

In the 2010-11 crop year, world coffee production is estimated at 133.1 million bags, which includes 83.2 million bags of Arabica and 50 million bags of the Robusta variety. Rising consumption of the brew and an expected fall in production will affect the demand-supply gap in the current crop year, the ICO said.

“With world consumption estimated at 135 million bags in calendar year 2010, the supply-demand balance continues to be tight,” it added. Global consumption of coffee rose 2.4 per cent to 135 million bags in 2010 compared with 131.8 million bags in 2009.c

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Colombia, the second-largest supplier of Arabica coffee beans, said its crop fell 14 percent in November because of rainstorms that will also hamper output early next year. Output fell to 845,000 bags from 979,000 bags in November 2010 because of the weather pattern La Nina, according to an e- mail today from Colombia’s National Federation of Coffee Growers in Bogota. Exports slid to 770,000 bags from 827,000 bags.

La Nina “brings excessive humidity, affects production and limits flowering,” federation Chief Executive Officer Luis Munoz said in the statement. Coffee has climbed 49 percent in two years as adverse weather in Colombia cut supplies of Arabica beans favored by brewers such as Starbucks Corp. The federation reduced harvest forecasts twice last month amid flooding and mudslides caused by above-average rainfall.

Farmers will have a “very hard” time in 2012 increasing the crop from this year’s forecast of 8 million bags, if adverse weather persists, Munoz said last month. Colombia will produce about 7.8 million bags of coffee this year, less than the federation expects, because of wet, cold weather, Jose Sierra, a member of a committee representing farmers in the largest coffee-growing province of Antioquia, said this month. Brazil is the largest producer of Arabica beans. Each bag of coffee weighs 60 kilograms (132 pounds).

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For some people, enjoying coffee is almost a religious experience. They crave everything about the coffee experience — from the sound of a grinder to the aroma that fills the air when their favorite beverage is brewed. But just how much are we willing to pay to satisfy our caffeinated desires?

With the arrival of the holiday season, many Abilene residents are hunting for gifts that will be treasured, useful and affordable. Coffee is a practical and popular gift that can be personalized for any occasion and budget, said Carmen Guerra of Mezamiz Coffee House.

"People like to buy gifts that others can really get use out of and enjoy. Coffee fits that bill," Guerra said. "Many people will come in for a pound of coffee that can be added to a gift basket with collectibles and other personal gifts."

"We can put something together for any budget," Guerra said. In regard to cost, there are many ways to enjoy coffee based on the limits of a person's budget. Factors such as quality, convenience and personal taste have to be considered when trying to get the most buzz for your buck.

In recent years, Keurig brand coffee machines have been all the rage when it comes to making coffee at home, but they are not the most cost-effective option available, financial experts say. According to the home economics blog Mrs. Moneysaver,the average person who consumes two cups of coffee per day will spend more than $380 per year using a Keurig machine. That cost is low compared with buying two cups of coffee per day at Starbucks (more than $1,000 per year) or at McDonald's (more than $850 per year). Using a standard coffee maker, however, will only set you back just over $100 during the same period.

Being frugal and following a few simple steps can make the convenience factor of Keurig more affordable. The key to saving money on Keurig's proprietary K-Cups is by stockpiling when you find a great deal.

When shopping online, look for coupon codes to save money. If you are looking to buy local, keep an eye out for coupons and buy in bulk at places like Sam's Club and Walmart. During the holidays, H-E-B and United Supermarkets often offer special variety packs that will save you money and allow you to sample a variety of coffee flavors.

Another popular trend this year for coffee fans is ready-to-brew coffee. This "just add water or milk" option was introduced by Starbucks as an alternative to standard instant coffee with its Via line, but you do have other options.

Via averages about $1 per cup, while Nescafe's Clasico line currently is being offered at Walmart for less than $2 per box of eight packets, which is enough to make eight cups of coffee. Adding a box or two of ready-to-brew in a gift basket along with a mug and/or other small gifts will score you some bonus points with your favorite coffee fan.

If you're buying for a coffee aficionado like local real estate broker Randy Dodd, who proudly proclaims "Coffee is my drug of choice," a bit of research will go a long way. Talk to friends and scour websites such as Yelp for reviews on local coffee shops.

Gift cards and certificates will help local businesses boost their bottom line while making someone a nice gift, said Jerry Hendrix of Monk's Coffee Shop. "Send someone in for something special like our Royal Breve," Hendrix said. "We combine steamed half-and-half with honey and espresso. This would not be easy for someone to make at home."

No matter how you buy it, coffee makes the holiday season a bit warmer. For many, the gift of coffee and conversation is always welcome.

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Sales at Costa oultets open for more than a year were up 3.8% in the third quarter to 1 December, compared with growth of 6.7% in the first half of the year. Costa remains Whitbread’s leading brand in terms of sales and grew revenues by 25.2% in the period.

Whitbread says it plans to open 300 further Costa stores in the next year as part of its growth programme, bringing the total amount of outlets in the UK to more than 2,400.

Earlier this year Costa launched a new self service coffee brand Costa Express, after taking over the Coffee Nation company. Whitbread says there are now 579 Costa Express units and it is proceeding with the rebranding of the remaining 498 Coffee Nation units.

This month Costa, Marketing Week’s Brand of the Year for the Engage Awards, has just restructured its business into four divisions and promoted its marketing director Jim Slater to oversee a new unit responsible for the Costa Express brand and partnerships. Whitbread’s next biggest brand Premier Inn, grew sales by 2.6% in the quarter, compared with growth of 5.2% in the first half of the year.

The hotel chain increased the total room nights sold in the quarter by 7.4% to 9.6 million and the company says it continues to win share in both London and the provinces. The Whitbread Group, which also owns brands such as Brewers Fayre and Beefeater, said overall sales rose 2.4% in the quarter, a slow down from sales growth of 3.3% in the first half.

Andy Harrison, chief executive of Whitbread, says: “Our like for like sales performance keeps us on track to deliver full year results in line with expectations. “As we said at the half year, trading month by month continues to be variable in a challenging consumer environment.”

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Burundi’s coffee growers threatened to stop selling produce unless they are granted a controlling stake in the East African nation’s washing stations, said Joseph Ntirampeba, president of the farmers’ association.
The country started selling its coffee-washing and purification plants to closely held companies in 2009, with Webcor Ltd., a Swiss company, buying 13 stations. Burundi in November said it plans to sell the remaining 133 stations.

Farmers should hold a controlling stake in the plants as they have paid a tax of 60 Burundian francs ($0.04) per kilogram of coffee cherries since the 1980s to pay for the construction of the stations, Ntirampeba, who leads the National Federation of Coffee-Growing Associations of Burundi, known as CNAC, said by phone Dec. 9 from Bujumbura, the capital.

“We are not ready to give our coffee freely when we are not really involved,” he said. “Coffee is our business, our efforts, everything to us as it is grown on our lands and we spend all the time working in it.”Coffee output in Burundi, which grows mainly the arabica variety and relies on the crop to generate more than half its foreign-currency earnings, may drop 13 percent to 21,000 metric tons this year amid declining plantings, the Burundi Coffee Regulatory Agency said in June.

Production is falling because of a lack of motivation among farmers, who are replacing the beans with other crops, according to Ntirampeba. Growers are “revolting against themselves” and will be the first to suffer if the plants are destroyed, Finance Ministry spokesman Joseph Ndayikeza said by phone from Bujumbura on Dec. 9. Arabica-coffee futures for March delivery snapped three days of losses, adding 0.6 percent to $2.2725 a pound by 9:31 a.m. in New York on Dec. 9.

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Coffee exports for the current financial year may fall to 2.4-2.5 lakh tonnes from 2.94 lakh tonnes in the previous year, said Coffee Board Chairman, Mr Jawaid Akhtar. The projected decline of 15-18 per cent is mainly on account of sluggish demand from the financial crisis hit Europe, a key destination for about two thirds of Indian exports.

“Last year was an exceptional year for exports and it is difficult to achieve that this year,” Mr Akhtar told reporters on the sidelines of launch of India International Coffee Festival, 2012. The Board has renewed its initiatives to boost exports to Japan and South Korea, sensing a huge potential in the Asian nations, Mr Akhtar said. Exports for the April-December period have grown by 17 per cent to 2.30 lakh tonnes as against 1.97 lakh tonnes in the corresponding period previous year.

The Coffee Board has estimated the 2011-12 crop size at 3.21 lakh tonnes as against 3.012 lakh tonnes in the previous year, primarily led by a 10 per cent increase in the Arabica variety, Mr Akhtar. Arabica production is expected to be 1.04 lakh tonnes in 2011-12 as against 94,000 tonnes in the previous year. The Robusta output is projected to grow by 5 per cent to 2.17 lakh tonnes as against 2.07 lakh tonnes in the previous year.

The crop this year is backed by good rains across the main growing regions of Karnataka, Tamil Nadu and Kerala. Besides, the expansion of crop in non-traditional areas of Andhra Pradesh and Orissa is adding up to the output, he said.

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US arabica coffee futures trading jumped 3 percent Monday, in sympathy with other markets on hopes for a solution to the eurozone debt crisis, while cocoa closed around three-year lows as ample supplies weighed.

Sugar was firm. Confidence that European leaders will come up with a credible plan to lead the region out of its debt crisis at a crucial summit this week lifted world stocks. The Thomson Reuters-Jefferies CRB index, a global benchmark for commodities, reversed lower after the softs markets settled.

Arabica coffee prices jumped, but remained stuck in a two-month range from $2.23-$2.55 per lb, basis March, supported by a softer dollar and investor buying. Diminishing crop prospects in countries including Colombia have been viewed as bullish while rising certified stocks have added pressure. Hopes of a solution to the eurozone crisis gave underlying support. March arabica coffee on ICE jumped 6.85 cents, or 3 percent, to close at $2.3640 per lb, an inside day.

The planned strike was seen added a mild bullish element to the market. "Trade in arabicas futures is expected to be rangebound for a bit longer," said Keith Flury, a senior soft commodities analyst with Rabobank.

In the robusta coffee market, sales from Vietnam may be restricted by labour constraints and volatile prices, dealers said. March robusta coffee on Liffe settled up $51, or 2.6 percent, at $2,040 a tonne.

Speculators added net short futures positions in NYSE Liffe cocoa and feed wheat, while cutting their net short futures position in robusta coffee in the week to November 29, exchange data showed on Monday.

Liffe cocoa futures closed at the lowest level in three years, while ICE cocoa dropped to the lowest in more than 2-1/2 years, weighed by large supplies, but the US market reversed slightly higher with a lift from the firm sterling. March cocoa on ICE eased $22 to close at $2,206 a tonne, the lowest settlement for the second-month contract December 2008.

London March cocoa closed down 15 at 1,420 pounds per tonne, its weakest finish since November 2008. Continued hot and dry weather in western Ivory Coast, a key cocoa growing region, heightened worries among farmers that supply could drop off starting early next year.

Raw sugar futures climbed on investment fund buying as the weaker dollar and the macro economic environment seemed to support the commodity sector this week. Expectations of big northern hemisphere crops, including a record French beet crop, limited potential upside in prices.

Benchmark March futures gained 0.63 cent, or 2.7 percent, to finish at 24.08 cents a lb, while March white sugar futures on Liffe ended up $10.80, or 1.8 percent, at $624.40 per tonne.

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The Index showed an average price increase of 15 cents per cup for take away coffee and 17 cents per cup for dine-in during the past 12 months across Australia, and while Gilkatho managing director, Wayne Fowler admits that 63.1 per cent of the coffee shops surveyed had increased their prices in the past year, they were not as high as originally predicted.

"2011 has delivered some of the price increases expected by record increases in coffee futures experienced at the start of 2011, but commercial pressures and the continued evolution of a more discerning cafe culture in Australia has kept the expected increases in the cost of take away and dine-in coffees to less than half the expected price hike of between 30 and 35 cents per cup," he said.Fowler added that although the industry had predicted that 2010's 77 per cent rise in coffee futures would outstrip any gains made by the Aussie dollar, most cafe operators decided to absorb the costs themselves at first, but this became increasingly difficult throughout the year because of "the so-called hidden costs in the price of a cup of coffee such as wages for good baristas and premises as well as other ingredients like milk, sugar and chocolate."

State by state

"The September Quarter saw many of the market conditions unique to each Australian capital city at work. For instance, the Gilkatho Cappuccino Price Index found that 30 cafe operators in Canberra had closed since the March Quarter, that's a 21 per cent failure rate over the quarter, which in large part can be explained by the amount of competition, small population ... and it's irregular urban concentration," said Fowler. The rate of increase was less for other states including Adelaide, Brisbane and Sydney.

"The most dramatic price change in the September Quarter, a six cent fall in the price of dine-in coffee in Perth, was difficult to interpret with no apparent link to historical data and instead appears to be more the result of growing price awareness on the part of Perth coffee drinkers."

Other trends

Fowler also commented to cafe operators are starting to increase prices of non-core items such as espresso shots and tea to recoup higher operating costs and the absorption of the increased prices for coffee beans.

Looking to 2012, Fowler warned the industry against using coffee futures as a predictor of price, instead saying that continued pressures from increased business costs for cafe operators are more reliable indicators. In terms of production, however, the following could have an impact:

In 2011 heavy rain in South America resulted in Colombia failing to meet its expected nine million bag production levels. Production will drop to eight million compared to 8.3 million bags produced last year
Brazil will drop its production from 54.5 million a year to 49.2 million for July 2011-2012 Futures prove unstable as productions around the world look grim: futures jumped from $3 a pound in August 2011 to $3.50 in September to fall to $2.90 in November "While these global settings are influential," Fowler said, "commercial business conditions faced by Australian cafe operators are really the most important factors in determining the price of a cup of coffee."

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One fine day coffee is reported of supporting our health, while a few days later, it is alleged to be a troublemaker. Extending this ongoing cycle, University of Glasgow scientists have claimed that coffee consumed in popular coffee shops could be high on caffeine toxicity, which may negatively impact pregnant women.

Caffeine toxicity manifested itself by means of headaches, chest pain, anxiety, elevated heart rate and abdominal cramps. In the lab analysis, single-shot espresso coffees consumed across 20 commercial shops in Glasgow seemed to comprise varying amounts of caffeine from 51mg to 322mg. Almost 4 of the coffees trialed apparently constituted more than 200mg of caffeine.

Professor Alan Crozier of the University of Glasgow’s School of Medicine, who led the research, remarked, “The variations in the amount of caffeine reflect differences in the batch-to-batch bean composition, roasting procedures, grinding conditions and the many variables in the coffee-making process such as water temperature and the ratio of water to coffee.”

The team believed that the hazardous effect of caffeine differed from person to person, but pregnant women, young kids, liver disease patients and oral contraceptive users were supposedly more vulnerable. This was presumably because the responsiveness to caffeine rose to 30 hours for these people.

Pregnant women whose coffee intake was considerably high also appeared to be at greater risk of giving birth to low-weight infants and babies encountering heath problems such as high blood pressure or diabetes at a later stage of life.

The article titled ‘Espresso coffees, caffeine and chlorogenic acid intake: potential health implications’, is published in the Royal Society of Chemistry’s website.

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