Coffee is worth approximately ＄50 -60bn per annum in terms of world sales. It is a truly international commodity, and today more than 50 countries in the world grow coffee beans, This makes the coffee industry fairly universal, according to Pablo Dubois, Head of the International Coffee Organization (ICO), based in London. ICO organization helps coffee producers and promotes coffee consumption worldwide.
ICO estimates that world production next year will reach 97. 5 million bags. 11. 3 million bags higher than the current year. {{U}}(8) {{/U}}. As the largest producing country, Brazil is particularly important in the coffee world. In 1994 Brazil was responsible for 25% of world production. Colombia was next with 13.4%. Indonesia had 7.5%, Mexico 4.7%, Guatemala 3.8% and Ethiopia and Vietnam were equal with 3.4%.
Coffee is a tough crop, and can be grown in areas where it is difficult or impossible to grow other crops. {{U}}(9) {{/U}} However, disease is always a problem for coffee production, as we can see in some parts of South America at the moment. ICO is active in educating farmers about avoiding disease and dealing with problems when they occur.
The distribution chain varies from country to country, explains Peter Reeves. In most countries the smaller farmers sell their crop to a local trader, who then sells it on to exporters. There are, however, other distribution systems. {{U}}(10) {{/U}}. Some countries, like Vietnam. have special government marketing organizations for coffee.
Coffee prices often vary greatly from one year to me next. In 2003, for example, there was a large rise in the world price, which was immediately felt by me consumer. Rising prices always result in a drop in sales, which will have a bad effect on those developing countries. which are highly dependent on foreign exchange from coffee exports {{U}}(11) {{/U}}.
In the opinion of Peter Reeves, the biggest problem for his organization is to create greater consumer awareness of the different varieties of coffee and different ways of preparing it. {{U}}(12) {{/U}}. ICO is therefore concentrating its promotional activities on Russia and China. It is also encouraging environmentally friendly coffee production, and last year's seminar on coffee and the environment created a lot of interest.
The future looks bright for the coffee industry. It is estimated that consumption over the next few years will continue to rise steadily. New markets like Eastern Europe and China are expected to develop fast.
A. As a result, the membership now represents 94% of all exporters and 60% of all importers.
B. In some of these countries, this can amount to as much as 50% of all export earnings.
C. In North America, most consumers already have above average knowledge of the range available.
D. Larger coffee growers, for example, frequently export directly.
E. The main reason for this is higher Brazilian output as production recovers from weather damage to crops.
F. It is cultivated in mountain regions which can only be reached by animal transport, and in other difficult areas where modern agricultural equipment cannot be used.
G. This makes the coffee industry fairly universal, according to Pablo Dubois, Head of the International Coffee Organization (ICO), based in London.