Business Interaction

On Coffee India-Canada

Srivatsa Krishna, IASChief Executive Officer & Secretary

COFFEE BOARDMinistry of Commerce and Industry

Government of India

Coffees of India – 7 Beans of 17th Century and thereon…

India - The Seventh largest Coffee producer in the

world produces 3.16 lakh MTs of the worlds’ best

Sustainable and Scintillating Coffees.

Sufi saint Baba Budan brought Seven Arabica

seeds from Mecca and planted them in

Chandradronagiri Hills of Chikkamaglur district of

Karnataka.

Commercial cultivation started in early 19th

century by British entrepreneurs.

Beans are dense,

full-bodied, slightly acidic

with exciting aroma

Grown under the canopy of

two-tier mixed shadeHand-picked Sun-dried

Nurtured by rich soils,

mountain streams and

filtered sunlight

Diverse ecosystem

with Rich Flora and

Fauna

Mostly high-grown at

altitudes above 1000m

Eco-friendly

cultivation

techniques

Uniqueness of Coffees of India

Finest Indian Arabica

Coffees

➢ Kents – Earliest variety of Arabica with exceptionalcup quality with good body, good acidity and fairlygood flavour

➢ S.795 – Most popular, bold beans superior quality,balanced cup with subtle flavour notes of Mocca

➢ Cauvery – High yielding with superior qualityattributes

➢ Sln 9 – Bluish green beans with strong body andpossess distinct flavour in the cup

➢ Chandragiri – Most popular variety of recenttimes,tolerant to CLR, Fruit clusters are loose,superior grade percentages (over 70 per cent 'A'grade beans), superior balanced cup with notes ofcaramel and Mocca.

Finest Indian Robusta

Coffees

➢ S.274 – High yielding, Bold and Round Beans that appear greyish when processed by wet method

➢ CxR – Interspecific hybrid developed by crossing Coffee congensis which has soft and neutral features in the cup

S.274

CXR

Diverse Coffee Growing Regions of India

• Coffee in India is grown indifferent geographies, undervarying degrees of altitudesand rainfall.

• These differences bring subtlebut exciting variations to theflavor Indian coffee.

• 16 Coffees each one uniqueand distinct but all deliciouslyIndian.

• Coffees of India are very wellknown for the micro-lots andestate branded Coffees.

Geographical Indication of Regional Coffees of India

• A micro hotspot of biodiversity

• Multistoried coffee agro forestry

• Coorg Coffee Culture – Devarkadu

• Unique Place with many GI registered products

• Suitable Microclimate for Robusta coffee varieties

• Robusta Coffee accounts to more than 95% of the

total coffee cultivation

• More than 90% small and tiny farmers

• Coffee land of India

• Rich Flora and fauna

• Tigers, Medicinal plants…

• Grown by 100% tribal farmers with small holdings

• Organic method of cultivation

• Unique varieties grown at Higher altitude

• Birthplace of coffee

• High-grown

• Traditionally and Popularly known as Giri Coffee

more than a century

Soft to neutral cup, full

bodied, malty and chocolatey

note with light to medium

flavour

Pleasant Aroma, Balanced

cup with mild acidity, Strong

body with a hint of floral note

Mild acidity and medium body

with floral and a hint of citrus

note of lemon grass

Light to medium body,

pleasant acidity with citrus

note of grape fruit with mild

jaggery sweetness

Striking acidity with full body

and sweetness with mild

flavour and a balanced cup

Specialty Coffees of India

Monsooned Malabar CoffeesGeographical Indication

MONSOONED MALABAR

COFFEES – GI TAGGED• Prepared from whole Arabica and

Robusta cherry

• The coffee is processed during the

intense South West Monsoon

period in the West Coast of India

• In the cup the coffee is mild,

mellow and neutral flavor

Specialty Coffees of IndiaMysore Nuggets Extra Bold

MYSORE NUGGETS

EXTRA BOLD

• Premium Grade

• Washed Arabica

bold beans

• High elevation

• In the cup Mysore

Nuggets Extra

Bold exhibits full

aroma good body,

good acidity and a

fine flavour with a

hint of spice

Specialty Coffees of IndiaRobusta Kaapi Royale

ROBUSTA KAAPI

ROYALE

• Premium grade

• Washed Robusta

• Bold round beans

• The coffee with

full body, soft,

neutral clean cup

StateArea (Ha.)

Production (MT)Productivity

(Kg/Ha.)Holdings

(No.)

KARNATAKA 244785 222300 983 79183

KERALA 85880 65735 774 77861

TAMIL NADU 35607 17440 519 18006

NTA 80438 10340 158 178715

NER 8013 185 63 12477

TOTAL 4,54,722 3,16,000 765 3,66,242

11

Area, Production,

Productivity and Holding

Area & Production

Planted Area under Coffee Coffee Production

Karnataka

53.8%

Kerala

18.9%

Tamil Nadu

7.8%

NTAs

17.7%

NE Region

1.8%

Karnataka

70.3%

Kerala

20.8%

Tamil Nadu

5.5%

NTAs

3.3%NE Region

0.1%

Coffee Board – Birth and Evolution

• Research

• Extension

• Development

• External & internal promotion

• Quality up-gradation

• Market intelligence

• Labor welfare

• Through an Act of Parliament (1942)

• Transition from Private Marketing to Central Authority

• Take over of research from United Planters Association of Southern India (UPASI)

• Pool marketing system

• In tandem with global quota marketing system

• End of ICO quota in 1989

• 90s – winds of liberalization – change in govt. policy

• Demand by growers and return to private marketing

• Phased transition (1992–95) from control regime to free market

BIRTH

MIDDLE YEARS

LIBERALIZATION

POST

LIBERALIZATION

CURRENT

TECHNOLOGY

INITIATIVES

• Mobile Applications

• IVR Service

• Data Analytics

• AI and Internet of Things (IoT)

• Block Chain Based Model

• e-Commerce

• Incubation Centres

• High-throughput testing laboratories

CURRENT TECHNOLOGY INITIATIVES

Mobile Applications

COFFEE CONNECT Improve the efficiency of the extension staff

Digitization of growers, coffee estates, their infrastructure

Providing advisory services to the coffee growers

Transparency in the extension activities

Transparency in subsidy disbursement

Tracking of availability of sales and services

Real time Report generation

Interactive Voice

Response System

COFFEE KRISHI THARANGA

To reach 30,000 coffee farmers in 8 months pilot.

To reach maximum growers in limited period

Efficient, timely customised advisory

Improve the efficiency through digitisation

Leverage existing mobile reach for wider delivery of improved technology.

Data Analytics, AI and Internet of Things (IoT)

CURRENT TECHNOLOGY INITIATIVES Cont…

Pest (white stem borer) identification application

Smart Phone based pest & disease diagnosis tool

Hyper local weather forecast

Image Based Quality Grading for Coffee

Leaf rust disease forecast

Block Chain – Pilot

CURRENT TECHNOLOGY INITIATIVES Cont…

a. Eka Analytics

➢ 25 stakeholders - Coffee growers, curers, roasters,

exporters, importers consented for participation.

➢ Registration processing is going on.

➢ Exploring more no. of foreign roasters, importers,

retailers and also more domestic stakeholders.

b. Tier 1 – Digital

➢ Being implemented in BR Hills of Karnataka state.

➢ Coffees grown by tribal coffee farmers of BR Hills.

➢ Coffees are by default organic, fair-trade certified.

➢ Traceability is established by geo-tagging at farm

level.

CURRENT TECHNOLOGY INITIATIVES Cont…

AIC-CCRI FOUNDATION FOR

ENTREPRENEURSHIP DEVELOPMENT

TRADE INFRASTRUCTURE EXPORT SCHEME

STATE-OF-THE-ART LABORATORIES

➢ Sensory and Roasting Laboratory➢ Analytical Laboratory

➢ World class infrastructure to provide

space, product development laboratories,

meeting rooms, auditorium and

contemporary IT infrastructure

➢ Supported by national and international

mentors.

INDIA’s COFFEE EXPORTS

• Indian coffee is primarily an export-oriented commoditywith over 75% of the annual production being exported tovarious destinations around the world.

• The export potential of coffee is primarily dependent onthe country’s coffee production.

• India is the 7th largest producer of coffee with a productionof 3,16,000 tones during 2017-18 and fifth largest exporterof coffee with total exports of 3.95 lakh tons during 2017-18.

Canadian Coffee Market – An Outline

• Canada is one of the major importer and consumer of coffee inNorth America with the Per Capita Coffee Consumption ofabout 7.5 Kg during 2017.

• USA is the largest supplier of coffee (R&G and Soluble coffee) toCanada.

• Canada mainly imports green coffee which accounts for about57% of their total coffee imports. Brazil (29.27%) and Colombia(24.25%) supplies more than 50% of the green coffee importedby Canada.

Canada-Country wise

Total Coffee Imports

(in 1000 bags of 60 kg each GBE)

Exporting Countries

2013 2014 2015 2016 2017Avg.

(2013 to 2017) % to Total CAGR (%)USA 2450.9 2671.1 2125.0 2332.0 2060.4 2327.9 41.1 -4.7Brazil 667.6 832.8 827.3 853.5 914.7 819.2 14.5 6.8Colombia 663.3 830.0 358.7 906.8 1100.8 771.9 13.6 11.6

Guatemala 378.0 347.8 374.2 412.6 418.4 386.2 6.8 3.8

Peru 133.0 141.8 177.5 180.0 210.8 168.6 3.0 12.3

Honduras 87.7 96.8 124.6 144.4 192.9 129.3 2.3 21.9Nicaragua 81.6 125.4 97.9 165.9 114.1 117.0 2.1 10.0Vietnam 111.5 130.9 121.2 114.6 103.5 116.3 2.1 -2.8Mexico 167.9 105.4 63.2 76.9 93.7 101.4 1.8 -13.8Indonesia 75.8 83.7 106.6 113.0 114.2 98.7 1.7 11.8

India 21.2 21.0 21.2 20.1 17.6 20.2 0.4 -4.1

Other Countries 513.2 502.7 967.3 468.1 582.3 606.7 10.7 1.8

Total 5351.7 5889.4 5364.7 5787.9 5923.4 5663.4 100.0 1.9

Source: F.O. Licht Coffee Reports

Canada-Country wise

Total Green Coffee Imports

(in 1000 bags of 60 kg each GBE)

Exporting Countries

2013 2014 2015 2016 2017Avg.

(2013-2017)% to Total CAGR (%)

Colombia 649.5 812.7 840.4 887.3 1086.4 855.3 29.27 11.81

Brazil 555.5 710.8 719.7 757.7 798.8 708.5 24.25 8.22

Guatemala 376 346.5 372.5 411.5 417.2 384.7 13.17 3.87

Peru 131.9 140.5 176.2 178 209.5 167.2 5.72 12.32Honduras 85.6 94.9 123.6 143 192.0 127.8 4.37 22.45Nicaragua 80.5 125.3 97.7 165.4 113.9 116.6 3.99 10.21Vietnam 99.4 118.8 106.4 102.3 92.5 103.9 3.56 -2.89

Indonesia 74.8 82.8 105.5 110.7 110.1 96.8 3.31 11.22

Mexico 160.5 104.4 58.5 70.4 83.2 95.4 3.27 -15.70

India 19.7 19 20.1 19.3 17.3 19.1 0.65 -2.39

Other Countries 307 248.4 203.6 219.1 255.0 246.6 8.44 -4.85

Total Imports 2540.4 2804.1 2824.2 3064.7 3375.9 2921.9 100.00 6.80

Source: F.O. Licht Coffee Reports

Canada-Country wise

Total R & G Coffee Imports

(in 1000 bags of 60 kg each GBE)

Exporting Countries

2013 2014 2015 2016 2017 Avg. % to Total CAGR (%)

USA1343 1466.2 1212.2 1126.9 1029.4 1235.5 88.92 -7.64

Italy58.4 65.1 68.4 73 79.5 68.9 4.96 7.59

Switzerland12.2 15.5 21.2 26.1 37.6 22.5 1.62 31.95

Colombia3.6 7.2 4.8 5.6 4.3 5.1 0.37 1.05

Brazil5.4 3.2 4.5 3.3 3 3.9 0.28 -10.82

Other countries58 41.9 45.9 50.6 71.8 53.6 3.86 6.35

Total1480.6 1599.1 1357 1285.5 1225.6 1389.6 100.00 -5.79

Source: F.O. Licht Coffee Reports

Source: F.O. Licht Coffee Reports

Exporting Countries 2013 2014 2015 2016 2017

Avg.(2013-2017) % to Total CAGR (%)

USA 1107.9 1204.9 912.8 1205.1 1031.0 1092.3 80.80 -1.43

Brazil 106.7 118.8 103.1 92.5 112.9 106.8 7.90 -1.36

Germany 37.3 40.6 35.4 35.7 55.3 40.9 3.02 6.81

Hungary 7.2 9 6.8 19.6 40.3 16.6 1.23 52.54

Malaysia 15.1 12.4 12.3 13.9 13.6 13.5 1.00 -0.95

Other countries56.4 100.5 113.1 70.9 68.8 81.9 6.06 0.49

Total 1330.6 1486.2 1183.5 1437.7 1321.9 1352.0 100.00 -0.46

Canada-Country wise

Total Soluble Coffee Imports

(in 1000 bags of 60 kg each GBE)

Canada-Coffee Consumption and

Re-exports

(in 1000 bags of 60 kg each GBE)

Calendar Year Consumption Total Re-exports

20134330 999.4

20144400 1059

20154425 1159.9

20164500 1245.1

20174600 1263.5

CAGR (%) 1.44 6.51

Source: F.O. Licht Coffee Reports

India’s Coffee Exports to Canada

Year

India's Total Coffee Exports to Canada % share in India's Total

Coffee Exports (Qty.)

India's Total Coffee Exports

Green Coffee (MT)

Instant Coffee (MT)

R&G Coffee (MT)

Total Qty. in MT

Value(Rs. In Lakhs)

Value in ( US $ Lakhs)

Qty. in MT

Value(Rs. In Crores)

Value (US $ Million)

2013-14 1112.40 38.65 6.78 1157.82 1656.56 27.59 0.39 299879 4650.30 775.29

2014-15 1057.38 37.56 9.83 1104.78 1735.74 28.42 0.40 274991 4897.94 801.87

2015-16 1018.20 24.26 1.98 1044 1419.11 21.80 0.34 310015 5056.28 774.07

2016-17 1204.11 29.18 3.45 1237 1920.28 28.62 0.36 343933 5446.59 813.10

2017-18* 1148.91 24.50 3.01 1176 1786.16 27.70 0.30 395014 6210.23 963.28

Average 1108.20 30.83 5.01 1144 1703.57 26.83 0.35 324766 5252.27 825.52

Source: Market Intelligence and Market Research Unit, Coffee Board*Based on the exports permits issued

India’s Specialty Coffee Exports to Canada during last five years

Year Qty. MTValue in

(Rs. Lakhs)USD $ (Lakhs)

India's Total

Specialty Coffee

Exports (MT)

% share in Total

Specialty Coffee

exports

2013-14 205 362.24 5.91 15036 1.36

2014-15 196 359.92 5.94 12640 1.55

2014-15 293 440.95 6.79 16042 1.83

2016-17 274 483.75 7.29 16064 1.71

2017-18 383 655.32 10.15 19678 1.95

Average 270 460.44 7.22 15892 1.70

CAGR (%) 17.18 15.97 13.72 8.09

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