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Changing Patterns of Consumption, Reasons & Impact for Producers & Global Sustainability of Robusta and Naturals ASOEXPORT, CARTAGENA 06 NOV 2015 Surendra Kotecha

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Page 1: Changing Patterns of Consumption, Reasons & Impact for Producers & Global Sustainability of Robusta and Naturals ASOEXPORT, CARTAGENA 06 NOV 2015 Surendra

Changing Patterns of Consumption,

Reasons & Impact for Producers & Global Sustainability of Robusta

and Naturals

ASOEXPORT, CARTAGENA 06 NOV 2015 Surendra Kotecha

Page 2: Changing Patterns of Consumption, Reasons & Impact for Producers & Global Sustainability of Robusta and Naturals ASOEXPORT, CARTAGENA 06 NOV 2015 Surendra

Main Global Trends

• Price - consensus going down

• Increased price volatility

• Climate change, temperature, water needs

• Continued sustainability standards

• Increased use of Robusta coffees

• Consumer prefer systems offering convenience

ASOEXPORT, CARTAGENA 06 NOV 2015 Surendra Kotecha

Page 3: Changing Patterns of Consumption, Reasons & Impact for Producers & Global Sustainability of Robusta and Naturals ASOEXPORT, CARTAGENA 06 NOV 2015 Surendra

Sustainability of Consumption

• Originally support farmers, low prices

• Consider consumers of 80% + generic

• Also want sustainably priced coffees to be doing good for farmer livelihoods

ASOEXPORT, CARTAGENA 06 NOV 2015 Surendra Kotecha

Page 4: Changing Patterns of Consumption, Reasons & Impact for Producers & Global Sustainability of Robusta and Naturals ASOEXPORT, CARTAGENA 06 NOV 2015 Surendra

ASOEXPORT, CARTAGENA 06 NOV 2015 Surendra Kotecha Coffee Quality & Marketing

Page 5: Changing Patterns of Consumption, Reasons & Impact for Producers & Global Sustainability of Robusta and Naturals ASOEXPORT, CARTAGENA 06 NOV 2015 Surendra

CHANGING COMPOSITION OF COFFEE CONSUMPTION - ICO

Page 6: Changing Patterns of Consumption, Reasons & Impact for Producers & Global Sustainability of Robusta and Naturals ASOEXPORT, CARTAGENA 06 NOV 2015 Surendra

Influence of Supply on Consumption

• Sporadic disruption of volume origin• Roaster procurement planning • Blend ‘engineering’, better defined as

adaptation by replacement of part or whole of green bean ingredient/s to suit particular taste profile of blend

• Trader positions - entrusted to supply taste specific blends at arrival port silos, in bulk to the roaster unit.

ASOEXPORT, CARTAGENA 06 NOV 2015 Surendra Kotecha

Page 7: Changing Patterns of Consumption, Reasons & Impact for Producers & Global Sustainability of Robusta and Naturals ASOEXPORT, CARTAGENA 06 NOV 2015 Surendra

Changing Supply Impact

• Roasters choose consistent & high volume origins, changing scenario, Vietnam Brazil

• Growth in volume by two countries with sustainable costs of production; improved qualities – Brazil naturals & Vietnam WP

• Roasters pricing for market share and price competition

• Supply pushes consumption to solutions

ASOEXPORT, CARTAGENA 06 NOV 2015 Surendra Kotecha

Page 8: Changing Patterns of Consumption, Reasons & Impact for Producers & Global Sustainability of Robusta and Naturals ASOEXPORT, CARTAGENA 06 NOV 2015 Surendra

Case of Germany

• >90% are blends but composition change

• 1990 Colombia was 26%, Vietnam ZERO

• By 2014 Colombia < 5% Vietnam 24%

• Robusta import increased 14% to 35%

• Remember increased trade to E. Europe

• Colombia decline due stronger differentials and high global prices at the same time

• May change 2016 onwards ASOEXPORT, CARTAGENA 06

NOV 2015 Surendra Kotecha

Page 9: Changing Patterns of Consumption, Reasons & Impact for Producers & Global Sustainability of Robusta and Naturals ASOEXPORT, CARTAGENA 06 NOV 2015 Surendra

  1990 2005 2014

   

‘000 bags % ‘000 bags % ‘000 bags %

Brazil 994 8 4,246 28 6,328 34

Vietnam Nil Nil 2,549 17 4,510 24

Honduras 148 1 671 4 1,531 8

Peru 86 0.5 741 5 1,013 5

Colombia 4472 26     766 4

Total of the four 1,228 9.5 8,207 54 13,382 71

Other countries 11,474 90.5 6,789 46 5,425 29

Grand total 12,702 100 14,996 100 18,807 100

             

Robusta portion of the total   14   29   35

ASOEXPORT, CARTAGENA 06 NOV 2015 Surendra Kotecha

Table 6.X. Countries exporting coffee to Germany in 1990, 2005 and 2014, and the Robusta portionSources: ICO, Eugen Atté coffee agent, ITC’s Coffee Exporter’s Guide ( www.thecoffeeguide.org, Q&A 144) and others.

Page 10: Changing Patterns of Consumption, Reasons & Impact for Producers & Global Sustainability of Robusta and Naturals ASOEXPORT, CARTAGENA 06 NOV 2015 Surendra

Coffee Machines & Quality• Coffee machines development – espresso base• Bean to Cup, fresh grind, key to better quality • Self-serve machines – macchiato, latte etc with

fresh instead of powdered milk• Interacting with machines, roast profiles in timing

and temperature, better packaging, degree of roast, machine adjustment settings for grind, grams of dosage, water volume and temperature, infusion time and spin cycles per second have yielded cup improvements.

• Improved Brazil qualities, Robusta potential; Solubles

ASOEXPORT, CARTAGENA 06 NOV 2015 Surendra Kotecha

Page 11: Changing Patterns of Consumption, Reasons & Impact for Producers & Global Sustainability of Robusta and Naturals ASOEXPORT, CARTAGENA 06 NOV 2015 Surendra

Grower Perspectives

• From the production angle, contributory factors to the increase in robusta usage:

• Lower costs of production

• Hardiness to drought; pests & diseases (especially leaf rust).

• Yield responses to fertiliser and irrigation timing for flowering and setting.

• Combined factors result in greater margins

• Reduced production risks. ASOEXPORT, CARTAGENA 06

NOV 2015 Surendra Kotecha

Page 12: Changing Patterns of Consumption, Reasons & Impact for Producers & Global Sustainability of Robusta and Naturals ASOEXPORT, CARTAGENA 06 NOV 2015 Surendra

Background of Robusta• Known 150 years compare Arabica 400

• Generic to Canephora, congensis, quillou

• 50m years old; predecessor to Arabica

• Central & west Africa to Uganda origin

• Cultivated due global leaf rust, Sri Lanka

• Treated as secondary quality, sundried

• Stigma can change with improved processing & acceptance to pleasant different but pleasant flavours

ASOEXPORT, CARTAGENA 06 NOV 2015 Surendra Kotecha

Page 13: Changing Patterns of Consumption, Reasons & Impact for Producers & Global Sustainability of Robusta and Naturals ASOEXPORT, CARTAGENA 06 NOV 2015 Surendra

CQI Fine Robusta Protocol

• Decided not use ‘specialty’ but ‘fine’ Robu

• Denser bean, more difficult for even roast with moisture content variation

• Higher caffeine and chlorogenic acid creates bitterness bigger caffeine kick

• Substantially potassium based, Arabica more sodium salts & organic acids (citric)

• Causing ‘Robusta flavour’

ASOEXPORT, CARTAGENA 06 NOV 2015 Surendra Kotecha

Page 14: Changing Patterns of Consumption, Reasons & Impact for Producers & Global Sustainability of Robusta and Naturals ASOEXPORT, CARTAGENA 06 NOV 2015 Surendra

CQI ‘R’ Profile Evaluation Sheet

• Mouthfeel to describe Body

• Bitter-Sweet Ratio discern fine + softness

• Salt: Acid ratio column

• Otherwise the same as for ‘Q’ arabica : Aroma, Flavor, Aftertaste, Balance, Uniform Cups, Clean Cups, Overall.

• Defects, both Taints and Faults, can also be recorded on the form

ASOEXPORT, CARTAGENA 06 NOV 2015 Surendra Kotecha

Page 15: Changing Patterns of Consumption, Reasons & Impact for Producers & Global Sustainability of Robusta and Naturals ASOEXPORT, CARTAGENA 06 NOV 2015 Surendra

Factors for Fine Robusta Tastes• Some acidity, sweetness , softness

• Variety / plant material, soil type, shade patterns and moisture conditions, climate and altitude (1000-1500 metres depending on latitude); harvest (ripe only) and post-harvest processing

• Finest qualities - initially India & Uganda; later identified varying ‘fineness’ in Flores of Indonesia, Mexico, Tanzania, Brazil, Cameroun & Congo. Washed Amagu PapuaNGuinea generally fermented.

ASOEXPORT, CARTAGENA 06 NOV 2015 Surendra Kotecha

Page 16: Changing Patterns of Consumption, Reasons & Impact for Producers & Global Sustainability of Robusta and Naturals ASOEXPORT, CARTAGENA 06 NOV 2015 Surendra

Arabica Naturals & Pulped Naturals• Scientific approach, CQI - Mario Roberto,

Fernandez Alduenda, from Mexico; PhD at University of Otago in New Zealand

• Thesis entitled ‘The effect of processing on the flavour character of Arabica Naturals’ is on the impact on cup quality of the post-harvest technique/s; Washed, pulped natural & natural process.

• Overall aim: understand flavour of Arabica natural coffee as product class & understand main taste formation pathway during the post-harvest drying process.

Page 17: Changing Patterns of Consumption, Reasons & Impact for Producers & Global Sustainability of Robusta and Naturals ASOEXPORT, CARTAGENA 06 NOV 2015 Surendra

Conclusions & Ways Forward?• The way forward in terms of global

sustainability and supply-demand balance: with increased annual demand,

• Washed arabica will continue, especially the flavour characteristics of Colombia

• Need for improvements in Robusta

• Climate change implications- elevation

• Water supply needs changes in processing methods we use.

ASOEXPORT, CARTAGENA 06 NOV 2015 Surendra Kotecha

Page 18: Changing Patterns of Consumption, Reasons & Impact for Producers & Global Sustainability of Robusta and Naturals ASOEXPORT, CARTAGENA 06 NOV 2015 Surendra

For Colombia• Continue arabicas washed & develop

natural & pulped - new planting higher

• Considering land planning for food security as well, robustas of the correct appropriate varieties for quality can be planted on slightly lower elevations

• Need for classification & regulation to strictly monitored to retain reputation and image of Colombia as the prime source of consistent high quality washed arabicas

ASOEXPORT, CARTAGENA 06 NOV 2015 Surendra Kotecha

Page 19: Changing Patterns of Consumption, Reasons & Impact for Producers & Global Sustainability of Robusta and Naturals ASOEXPORT, CARTAGENA 06 NOV 2015 Surendra

Marketing

• For enhanced promotion of marketing, the geographical indication (GI) registration at the EU of Colombia as a country should be further harnessed

• Use in more detail with the different regions having their own sub-identities: Varieties or processing methods or taste profiles, more akin to wine and other GI products.

•  ASOEXPORT, CARTAGENA 06

NOV 2015 Surendra Kotecha

Page 20: Changing Patterns of Consumption, Reasons & Impact for Producers & Global Sustainability of Robusta and Naturals ASOEXPORT, CARTAGENA 06 NOV 2015 Surendra

ASOEXPORT, CARTAGENA 06 NOV 2015 Surendra Kotecha