COFFEE BUSINESS

Coffee is a beverage brewed from the roasted and ground seeds of coffee plant, is one the 3rd most popular beverages in the world (aside water and tea) and one of the most profitable international commodities. It is commercially produced in more then 50 countries and the world drinks over 3 billion cups a day. Coffee producing countries export the bulk of their produce, earning around $20 billion in exports a year. The annual revenue of the global coffee industry is estimated to exceed $200 billion. Around 25 million farming households depend on coffee for their living. At least 100 million families depend on coffee for their living. It is one of the most widely consumed beverages in the world. In 2021/2022, nearly 176 million 60 kilogram bags of coffee were consumed worldwide, a slight increase from almost 167 million bags in the previous year.
There are many different varieties of the coffee plant, only two species are of major economic importance.

Two species for major economic importance are Arabica and Robusta. 

• Arabica: Known for its smooth, nuanced flavor, Arabica accounts for about 60% of global production. Arabica coffee’s optimal temperature range is 64°–70°F (18°C–21°C). It can tolerate mean annual temperatures up to roughly 73°F (24°C).
• Robusta: Cherished for its bold flavor and high caffeine content, Robusta constitutes nearly 40% of worldwide production.

Optimal coffee-growing conditions include cool to warm tropical climates, rich soils, and few pests or diseases. The world’s Coffee Belt spans the globe along the equator, with cultivation in North, Central, and South America; the Caribbean; Africa; the Middle East; and Asia. Brazil is now the world’s largest coffee-producing country.

Coffee is a tropical plant which is also grown in a semi-tropical climate. This plant requires heat, humidity and abundant rainfall to grow and yield well. It requires an average temperature of 15℃ to 28℃ . Growth of the coffee plants is very rapid during the hot rainy season and during the cool dry season the berries get ripened and ready to be plucked. Bright sunshine and warm weather are necessary for harvesting. It needs abundant rainfall that is nearly 100-200 cm annually. The hill slopes that receive orographic rain are thus best suited for coffee cultivation.

Coffee plants can sustain a dry spell of 2-3 months after an abundant amount of rainfall. These plants cannot survive in extreme sunlight thus they are planted under the shadows of other big trees.

Faster ripening might not sound bad, but it actually degrades coffee bean quality. Continuous exposure to temperatures up to and just over 86°F (30°C) can severely damage coffee plants, stunting growth, yellowing leaves, even spawning stem tumors.

Need to know for coffee production

Cultivation

Climatic factors most important for coffee growth are temperature and rainfall. Temperatures between 73 and 82 °F (23 and 28 °C) are the most favourable. Rainfall of 60 to 80 inches (1,500 to 2,000 mm) per year is required along with a dry period of two to three months for the Arabica. Irrigation is required where annual rainfall is less than 1 metre (40 inches). The Arabica species is more delicate and vulnerable to pests than Robusta and requires a cool subtropical climate; it must grow at higher elevations of 600–2,000 metres (2,000–6,500 feet) and requires a lot of moisture and has fairly specific shade requirements. The Robusta variety, as its name suggests, is hardier and can grow at lower altitudes—from sea level to 600 metres.
Plantations are established in cleared forestland or modified forests. The young coffee plants are spaced in rows so that the density varies between 1,200 and 1,800 plants per hectare (500 and 750 plants per acre). Seedlings or cuttings raised in nurseries are carefully planted at the beginning of the rainy season; until they start producing fruit three to four years later, their care is limited largely to the trimming required to give them a strong, balanced framework and to stimulate fruiting.

Shade-grown and sun-grown

 Some shade-grown coffee is grown on plantations that have been planted with shade trees, which allows farmers to space the plants as desired. On such farms, fruit and timber trees are often utilized, which allows farmers to further supplement their income. Other growers modify existing forested land and may or may not plant additional shade trees. Shade-grown coffee is considered more labour-intensive than sun-grown coffee and produces lower yields. However, it produces a superior flavour in the beans and is frequently sold at higher prices as a specialty coffee.

Diseases

Among the diseases of the coffee plant are leaf rust, caused by the fungus Hemileia vastatrix, which does considerable damage in the plantations of Arabica, and coffee berry disease, caused by the fungus Colletotrichum coffeanum, which also attacks the Arabica. Robusta appears to be resistant, or only slightly susceptible, to these scourges. Among the numerous parasites that attack the coffee plant is the berry borer (Stephanoderes hamjei), which damages the seeds of both Arabica and Robusta.

Harvesting and processing

The time between blooming and maturing of the fruit varies appreciably with the variety and the climate; for Arabica it is about seven months and for Robusta about nine months. The ripened fruits of the coffee plant are known as coffee cherries, and each cherry generally contains two seeds (“beans”) positioned flat against one another. About 5 percent of cherries contain only one seed; called peaberries, those single seeds are smaller and denser and produce, in the opinion of some, a sweeter, more flavourful coffee. The fruit is gathered by hand when it is fully ripe and red-purple in colour.

Hulling

The cherries are processed by disengaging the coffee seeds from their coverings and from the pulp and by drying the seeds from an original moisture content of 65–70 percent water by weight to 12–13 percent; all beans must be removed from their fruit and dried before roasting.

Three techniques are used for processing :

• The dry process
• The wet process
• The “pulped natural” process

Storage

The prolonged storage of coffee in the producing countries presents problems, especially in the warm and humid coastal regions, where molds and parasites may develop and cause damage; for that reason coffee from those areas is exported as quickly as possible. In moderate climates the conservation of dry lots does not pose a problem as long as they are stocked in well-ventilated places.

Grading

The practice of grading and classifying coffee gives sellers and buyers a guarantee concerning the origin, nature, and quality of the product to aid in negotiations. Each coffee-producing country has a certain number of defined types and grades—based on characteristics such as growing altitude and region, botanical variety, method of processing, roast appearance, and bean size, density, and defects—but there is no universal grading and classification system. Fair Trade coffee, part of the larger Fair Trade movement, arose to ensure that coffee is harvested and processed without child labour and dangerous herbicides and pesticides and that growers and exporters, particularly in the poorer regions of the coffee-growing world, are paid a fair price.

Each country has its unique coffee culture and dynamics in production and consumption. Let’s explore these fascinating variations in our country-specific statistics.

United Kingdom 

Despite being historically a tea-loving nation, the UK is currently the 9th largest consumer in the world, consuming around 95 million cups per day. The UK also accounts for 2.8% of the global consumption, with specialty coffees like lattes and cappuccinos being particularly popular.

Canada 

Canada ranks 10th globally in consumption, with approximately 14 billion cups consumed annually. In terms of production, Canada has no plantations due to its unfavorable climate, relying entirely on imports.

India

India ranks 7th in the world for production and 11th for consumption, demonstrating a rising trend, especially in urban areas. While the per capita consumption is still relatively low at 85 grams per year, the upward trend is promising.

Australia 

Australia is known for its high-quality coffee culture but does not rank among the top countries in consumption or production due to its smaller population. Australians, however, have one of the highest per capita consumption rates in the world at 1.875 kg annually.

Europe

Germany

Germany stands as Europe’s largest consumer and the world’s 5th, with Germans drinking an average of 162 liters of coffee per person per year. It’s also the world’s 3rd largest importer, importing approximately 1.2 million metric tons of green coffee annually.

France 

France ranks 11th in the world for consumption. The café au lait, a combination with hot milk, is a traditional French coffee drink commonly consumed during breakfast.

Italy 

Italy, known as the birthplace of espresso, ranks 8th in consumption globally, despite its smaller population. Its per capita consumption is 5.8 kg annually, making it one of the highest in the world.

Spain

Spain stands as the 20th largest consumer in the world. Spanish coffee is strong, and the most common way to drink is café con leche, equal parts and steamed milk. 

Brazil

Brazil, the world’s largest producer, is also a major consumer, ranking 14th globally. It produces about a third of the world’s coffee, making up 37% of global production.

Colombia 

Colombia ranks 3rd in global production and 51st in consumption. Despite its high-quality in reputation, Colombians traditionally drink tinto, a small, sweetened black coffee.

Ethiopia 

Ethiopia, the birthplace of coffee, ranks 5th in global production and 60th in consumption. The Ethiopian coffe ceremony is a notable cultural practice, involving the ritualized preparation and consumption.

Vietnam

Vietnam, the second-largest producer globally, ranks 73rd in consumption. Their traditional ca phe sua da, is unique, brewed with a small metal French drip filter and mixed with condensed milk.

Japan

Japan ranks 4th globally in consumption, consuming over 7.1 million bags annually. Canned, flavored sweets, and meticulously brewed pour-over coffee are some of the unique trends in Japan.

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