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PROJECT
T.Y.B.COM
Division:- F
AY:- 2010-2011
1
Roll no:-851
Project Topic
Detailed Account of
India’s trade in Coffee
and Nestlé’s hold in
coffee market globally
2
Index
Sr No. Particulars Page
No.
4 Nestle 12
5 Bibliography 15
3
Introduction to Indian coffee
and stimulating intensity. India is the only country that grows all of its coffee under
shade. Typically mild and not too acidic, these coffees possess an exotic full-
Indian coffee has a unique historic flavour too! It all began with a long, arduous
journey around four hundred years ago... when the legendary saint Bababudan
brought seven magical beans from distant Yemen and planted them in the
Chandragiri hills of Karnataka. The sensations of aroma, flavour, body and acidity
that you enjoy with each coffee experience is rooted in these mystical beginnings.
It is often said, the Indian coffee grower pours his life into the crop. Is it any
wonder then that India has consistently produced and exported a remarkable
variety of high-quality coffees for over one hundred and fifty years!
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Indian coffee production at a glance
There are over 170,000 coffee farms in India, cultivating nearly 900,000 acres of
coffee trees. Most coffee production in India is on small farms, with over 90
percent of all farms consisting of 10 acres or fewer. However, such farms account
for just over half of all land used for coffee production and a minority of all coffee
produced
Most coffee in India is grown in three states: Karnataka, Kerala, and Tamilnadu.
These states accounted for over 92 percent of India's coffee production in the 2005-
5
India’s position in coffee exports
.Today, Indian coffee enjoys a free market and coffees are easily and readily
available - one can buy them directly from farm gate, through disciplined weekly
facilitators and get them shipped through established C and F agents. And the piece
de resistance is that the Indian coffee farmer can function not only as a grower, but
6
This is a significant developmental change for the Indian coffee industry, which
took place in January 1996 and has been a positive step towards quality
development. India: a Significant Player in the Global Coffee Trade Today, as the
sixth largest producer of coffee in the world, India is a significant player in the
global coffee trade. The total plantation area is around 355,102 hectares, with both
Arabicas and Robustas being grown. The productivity is around 960 kg per hectare
and the total production is approximately 5.0 million bags, accounting for about
million bags, with the share of global exports being 4.5%. During the year 2003,
the export earnings from coffee were approx U.S. $484 million. The principal
buyers of Indian coffee are: Italy, C.I.S., Germany, Belgium, Spain and the U.S.
Organic coffee:-
Organic coffee is being produced by about 40 countries in the world with major
production share coming from Peru, Ethiopia and Mexico. Organic coffee is
recording a 56% increase from 2003 when approx. 42,000MT were exported. In
the United States alone the organic coffee sales amounted to approx. $110 million
in 2006, an increase of 24% from previous year. Organic coffee products are now
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marketed in the form of regular, decaffeinated, flavoured and instant coffee as well
as in other foods like ice-creams, yoghurt, sodas, candies and chocolate covered
beans etc.
9
News Report:-
: India's coffee export in the 2010-11 crop year is expected to be more than last
years' 2.7 lakh tonnes, although appreciation of rupee against dollar poses a
In its report on coffee production, USDA said that boosted by the increase in
than 2009-10 crop year. Crop year runs from October to September.
India has exported 2.7 lakh tonnes of coffee in the last crop year.
"Considering the larger size of the crop year 2010-11, coffee exports are forecast to
The report, however, noted that appreciation of rupee against dollar is also a
challenge, as it would make exports less competitive and there are some quality
10
India's Coffee Production (In tonne)
11
Nestle
About Nestle:-
Nestle is one of the largest consumer packaged goods company in the world
The company operates in 86 countries around the world and employs nearly
283,000 people.
Nestlé has 6,000 brands with a wide range of products across a number of markets
(chocolate) & Skinny Cow), chocolate, ice cream, infant foods, performance and
pet food.
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Nestle Coffee:-
Nescafe dominates the premium instant coffee segment. Nestle's other coffee
brands are Sunrise Premium and Sunrise Extra, which have been brought under the
Nescafe name to leverage on the existing equity of the brand. Nestle's market share
in the coffee segment has increased from 36.3 per cent to 40.2 per cent by the end
of 2000. The company also exports coffee and tea and is one of the largest coffee
exporter in the country. However this market was affected in 1999 due to the
Russian crisis and has been slowly recovering in the last one year. In the tea
segment Nestle's 'Tasters Choice' tea positioned in the premium segment, has a
minuscule market share. Nestle also exports tea where its 100 per cent EOU at
Choladi manufactures instant tea, which is exported to USA and Japan. Few years
back Nestle entered the malted beverages market with the launch of Milo, a brown-
malted beverage. Milo has been slowly consolidating its position in its segment.
The company has launched two new milk drinks -Nestle Growing Up Milk and
News article:-
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NEW YORK: Nestle, the world's biggest food group, said on Friday it would
invest $487 million in coffee projects by 2020 to help the company optimize its
supply chain.
The investment comprises $341 million for Nescafe products and $146 million for
expanding technical assistance and buying directly from growers, the company
said in a statement.
This is in addition to the $195 million the Swiss-based firm has invested in coffee
projects over the past 10 years. Nestle said it would double the amount of Nescafe
coffee bought directly from farmers and their associations, eventually buying an
All of the directly purchased green coffee will meet "4C" sustainability standards
by 2015, with the support of the Rainforest Alliance and the 4C Association. The
meeting sustainabilitycriteria.
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Bibliography
www.wikipedia.org
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