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Coffee Update

China

Following is an excerpt from a special report on coffee from the Agricultural Office in China: The full report can be found at http://www.fas.usda.gov/scriptsw/attacherep/default.asp .


China's production of coffee in 2001 is estimated at approximately 13,000 tons (217,000 bags). China's production has been steadily increasing over the last several years. China in 1997 harvested 3,573 tons (60,000 bags) of coffee and by 2000 the harvested amount had grown to 11,568 tons (193,000 bags). Along with production, acreage has grown too. Both existing and harvested coffee acreage has continuously risen from 1997 to 2000. China's existing coffee acreage in 1997 was 7,400 hectares, but rose to 23,709 hectares by 2000. As for harvested coffee acreage, it equaled 3,700 hectares in 1997 and jumped to 9,600 hectares by 2000. These figures probably will continue to increase in the near future, because new coffee acreage has been developed during each of the last few years. Most of the development of new acreage has been in Yunnan province in the southwestern part of China.

The main drink of choice in China still is tea, but coffee consumption is growing. Amounts to date are still small in comparison to tea consumption, and instant coffee is the dominant product. The International Coffee Organization (ICO) reports that Nescafé and Maxwell House instant coffees occupy at least 70 percent of the market and that these brands are well known among China's urban households.

Most of the instant coffee sold in China is produced domestically and nearly all of this production occurs in Guangdong province. Nestlé who produces the Nescafé brand of instant coffee produces all of its instant coffee for China in a plant located in Dongguan county of Guangdong province. Kraft, the producer of the Maxwell House brand, produces its instant coffee for the China market in a factory located in Guangzhou. While the Nescafé and Maxwell House brands hold the greatest shares of China's instant coffee market, Nestlé is the dominant of the two brands. Another brand of instant coffee available at least in southern China is Colcoffee, which is manufactured in Colombia and distributed in China by Tsit Wing (TW) International Limited of Singapore. TW also has an instant coffee joint venture in Zhuhai, a major Chinese city located next to Macau, and markets the joint venture's product under the TW brand name. Other brands of instant coffee, including imported ones, occasionally can be found at local retailers, but amount and variety tend to be limited and not always available.

Brazil

Brazil continues to offer government-owned stocks through its auction system.

 
Brazil: Auctions of Government-Owned Coffee Stocks
Date of Auction Quantity Offered Quantity Sold Price Range
--------60-kilogram bags-------- Brazil reais/bag
2001
December 12 20,000 14,331 avg. 76.58
2002
January 16 20,000 17,724 53.50-76.50
February 20 20,000 19,184 55.00-85.00
March 20 20,000 13,014 72.00-83.60
April 17 20,000 18,620 65.00-87.20
May 15 20,000 14,494 59.80-85.00
June 12 20,000 11,656 62.00-89.00
July 10 20,000 18,161 avg. 64.78
August 14 20,000 9,997 68.20-90.00
September 11 20,000 16,105 81.00-105.00

United States

U.S. coffee stocks at the end of July totaled 5.3 million bags, up 147,720 bags from the June 30, 2002, level. Details follow in 60-kilogram bags:

Location June 30 July 31 Difference
New York 1,272,787 1,281,436 8,649
New Orleans 1,903,362 1,909,373 6,011
Jacksonville 136,645 149,504 12,859
Miami 1,027,270 1,038,562 11,292
Houston 178,083 255,950 77,867
Laredo 156,732 145,132 (11,600)
Port Everglades 7,250 7,000 (250)
San Francisco 317,280 342,673 25,393
Los Angeles 3,566 3,157 (409)
Seattle 0 0 0
Norfolk 126,004 145,512 19,508
Philadelphia 8,248 6,648 (1,600)
Baltimore 0 0 0
Total 5,137,227 5,284,947 147,720


Last modified: Sunday, March 17, 2013