Coffee & Tea International #1 2016

GREETINGS FROM THE FIRST INTERNATIONAL TEA CHAMPIONSHIP IN ISTANBUL! THE IMPACT OF THE PRICE OF OIL AND THE US DOLLAR EXCHANGE RATE ON COFFEE PRICES COFFEE&TEA AND HEALTH THE SHORT SEASON OF CUP OF EXCELLENCE

№ 1(126)’2016

1–3 MARCH 2016 — MOSCOW

1–3 MARCH 2016 MOSCOW, ECC SOKOLNIKI RUSSIAN EXHIBITION AND CONFERENCE FOR PROFESSIONALS OF COFFEE AND TEA

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SPONSORS

AMPIO

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GENERAL SPONSORS

EXHIBITION CONFERENCES SEMINARS TASTINGS COFFEE AND TEA COMPETITIONS ROASTING FACTORY MARKET OF COFFEE AND TEA

TIONAL NA

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N IO

Moscow International Coffee Forum

H I P ON NS

Moscow International Tea Symposium

PARTNER

ORGANIZERS

WWW.UNITEDCOFFEETEA.RU

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Founder INTERNATIONAL TEA HOUSE

contents

№ 1’2016

№ 1‘2016 Publisher NTERNATIONAL TEA HOUSE Editor-in-Chief RAMAZ CHANTURIYA Deputy Editor-in-Chief SVETLANA BELIKOVA Computer-Aided Design VALENTINA GUSKOVA Advertising Director JULIA CHANTURIYA Advertising Manager YANA AFTANDILOVA Promotion Managerr JULIA IVANOVA

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THE EDITORIAL BOARD Chairman of the Editorial Board

The Aftertaste of the Tea Championship.

Rize – the Heart Of Turkish Tea

R.O. CHANTURIYA,

Tea Masters Cup Vietnam 2015 Results

General Director, Rusteacoffee Association

Members of the Editorial Board S.G. BELIKOVA, Ph.D. Deputy Editor-in-Chief, Coffee&Tea in Russia Editorial Board Secretary

A.V. ELSON, General Director, KLD Coffee Importers

S.V. KASIANENKO, Chairman, Board of Directors, Orimi Trade

A. MALCHIC, Chief Executive Officer, Montana Kofe

M. PEIRIS, International Tea Committee

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D. SHUMAKOV, Head Judge and Member of the Tea Masters Cup Organizing Committee

I.A. SOKOLOV,

Coffee in China

Green Tea in the USA

Ph.D. in History

V.A. TUTELIAN, Director, Institute of Nutrition of the Russian Academy of Medical Sciences, Member,Russian Academy of Medical Sciences

A.K.WAGNER

4 NEWS

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Founder and Leader of the Project Chaism.pro

Editorial Address: Russia, 123060, Moscow, Berzarina str., 36, building 2, of. 214 tel./fax: +7 495 935-87-07 Email: magazine@coffeetea.ru, www.coffeetea.ru

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HISTORY 30

ECONOMICS Printed in OOO Tipografy

Distributed worldwide among coffee and tea producers,wholesale companies, shops, and restaurants.

Printed in Russia. According to the registration certificate of mass media ПИ №777213 from 30th January, 2001. Reprinting of materials is allowed only by permission of the magazine. The reference to the magazine «Coffee and tea in Russia» is obligatory. The editors don't bear any responsibility for reliability of data placed in advertising blocks or announcements. The editor's point of view may not coincide with the author's point of view. All provided materials will not be returned or reviewed.

Coffee & Tea International magazine has been included in the VINITI (All Russian Institute of Scientific and Technical Information of the Academy of Sciences Vserossiisky Institut Nauchnoi i Tekhnicheskoi Informatsii (VINITI)) list of synopsis journals and the institute's data base. Information about the magazine will be annually published in the «Ulrich's Periodicals Directory», international handbook of periodic magazines and ongoing publications. Coffee & Tea International is an appendix to the Coffee & Tea in Russia magazine.

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“If a samovar is boiling, no one is allowed to leave!” Everything you wanted to know about traditional Russian tea drinking with samovar

Green Tea in the USA

WHO IS WHO?

Coffee in China The Impact of the Price of Oil and the US Dollar Exchange Rate on Coffee Prices

SCIENCE AND TECHNOLOGY 28

Coffee consumption and healthrelated quality of life

Tea and flavonoid intake predict osteoporotic fracture risk in elderly Australian women: a prospective study

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Glatfelter: Capsules for hot beverages

HORECA 38 40

The craft of «teatelling» The Short Season of Cup of Excellence

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SHARING TEA

KNOWLEDGE WITH THE WORLD GREETINGS FROM THE FIRST INTERNATIONAL TEA CHAMPIONSHIP IN ISTANBUL! Aliona Velichko, TMCI host, journalist, contributing author, “Coffee and Tea in Russia”

Yes, it finally happened! An explosion of online postings marked the moment when the first world tea champions were crowned in Istanbul, Turkey, by an international jury.

The pioneers of the global tea movement, a large group of tea industry experts from numerous countries (Belarus, China (Hong Kong), Czech Republic, Italy, Korea, Latvia, Russia, Sri Lanka, Turkey, Ukraine, Vietnam) arrived to Istanbul on September 3rd, 2015 to take part in the final round of the Tea Masters Cup International 2015. The new interactive format of an international competition in three categories – Tea Preparation, Tea Pairing and Tea Tasting – gave the tea community a forum not only to gather tea professionals and enthusiasts, but also to enable them to share their knowledge and expertise with each other, to find out what each of them is really good at and to reflect on how their expertise can help in the development of the tea industry. For 3 days, Istanbul became a “hot spot” for the international tea community: people were anxious to see who will turn out to have the best tea skills, whose expertise will impress the judges, and in the end, who will receive the champion’s medal from the Gaykur Corporation, the main sponsor of the event. And now we – participants, guests, organizers and sponsors – can joyfully say, “We did it!”, pour ourselves a cup of hot Turkish tea and recall the events of these unforgettable few days.

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DAY ONE. A SYMPHONY OF COLORS In the morning, all championship participants gathered at an Istanbul hotel; the polite manager kept wondering out loud, “A tea competition? How can you compete when it comes to tea? You just drink it, that’s all!” Still, he opened doors, looked after the suitcases with tea accessories, and kept smiling. The previous evening, Denis Shumakov, the Head Judge of the competition, had explained the format of the event to all the participants. Each of the three days would be devoted to competition in one of the categories. On the first day, there would be the opening ceremony and the competition in the “Tea Preparation” category.

The participants would have 15 minutes to brew two kinds of tea: one would be “the master’s tea”, the participant’s own recipe prepared in advance, and the other would be an unfamiliar (to the participant) variety, chosen by the organizers. Also, Denis stated that, prior to the competition, all participants would have the opportunity to taste all teas supplied by the sponsors and to select the one they would like to prepare – a black, a white or a green tea.

The judges of the competition were a truly international bunch. The charming Ms. Hong Ang Nguen, Directior of the Vietnam Tea Association; the terse and tothe-point Mr. William Lee, Executive Director of the Korean Tea Board; the vivacious Ms. Gabriella Lombardi from Italy, author of the book “Tea Sommelier”, owner and manager of the Cha Tea Atelier boutique; the meticulous Mr. Bryan Baptist, a professional tea-taster from Sri Lanka working in Turkey; the wise Mr. David Chanturiya from Russia, the Head of the Otari Chanturiya Tea School; the strict Mr. Alexander Wagner, the technical judge of the competition, an academic China scholar from Ekaterinburg, Russia, President of the “Cha-I” Tea Culture Club and the founder of the Chaism.pro community; the cheerful Mr. Mustafa Akbulut, Adjunct Professor and Agricultural Studies and Natural Sciences Department Chair from the Regep Tayyip Erdogan University; and the most experienced member of the jury, the Head Judge of the TMCI, Denis Shumakov from Russia, the founder of the Teatips.ru site and a tea specialist at the Turquoise Tea company. Donning green aprons with the competition logo, the judges did their honorable duty all day long, objectively evaluating the performance and creativity of competition participants.

Hong Ang Nguen

William Lee

Gabriella Lombardi

NEWS

But all this talk about the honorable judges puts us ahead of ourselves: first, of course, came the TMCI opening ceremony, with addresses from the many individuals who had made this first-of-its-kind international event possible. Among the speakers who emphasized the significance of the occasion were Mr. Ramaz Chanturiya, the Chair of the TMCI Organizing Committee, and Mr. Imdat Sutluoglu, the General Director of the Gaykur Corporation, the main sponsor of the competition. Then the guests heard from Mr. Mehmet Erdogan, the General Director of the Rize Commodity Exchange and the Turkish Tea Association, co-organizers and partners of the TMCI. After the speeches came the cutting of ribbons: the red ribbon symbolized Turkey’s national color and the green one – the official color of the competition.

WINNERS: Natalia Lomaeva (Ekaterinburg, Russia) – Tea Preparation; Anastasia Shif (Belarus) and Daria Mikheeva (Russia) – Tea Pairing; Anna Pleshakova (Perm’, Russia) – Tea Tasting.

The judges unanimously noted the very high level of skill and creativity exhibited by each competition participant.

THE PANEL OF JUDGES: Mr. Mustafa Akbulut, Associate Professor and Dean, Chair of the Department of Agriculture and Natural Sciences (Regep Tayyip Erdogan University, Turkey); Mr. Bryan Baptist, professional tea taster (Turkey);

Imdat Sutluoglu

Mehmet Erdogan Aliona Velichko

Hassan Onder

Mr. David Chanturiya, Head of the Otari Chanturiya Tea School, author of the “Tea Taster’s Choice” column in the Coffee & Tea International trade magazine (Russia); Mrs. Gabriella Lombardi, owner of the Cha Tea Atelier boutique, the author of the book “Tea Sommelier” (Italy); Mrs. Hong Anh Nguyen, Vice Chairwoman, the Vietnam Tea Association (Vietnam); Mr. Denis Shumakov, Head Judge of the Tea Masters Cup International (TMCI), Chairman of the Advisory Board of TMC, Advertising Director, Turquoise Tea Company (Russia); Mr. Alexander Wagner, President of the “Cha-I” Tea Culture Club (Russia); Mr. William Lee, Executive Director, Korean Tea Board, CEO of Shinda Wooloo Group (South Korea).

This symbolic procedure can be compared to the crossing of a finish line, the completion of a long and arduous journey of preparation and of all the long journeys that brought the participants to Istanbul.

While the hosts of the competition, Aliona Velichko and Hassan Onder, talked with the spectators in English and in Turkish, the competitors drew lots to

Bryan Baptist

David Chanturiya

Denis Shumakov

determine the order of their performances and came onto the stage, ready to take a deep breath and start the competition.

The first performance was by Vlad Lebedev (Tomsk, Russia).

Vlad’s charisma and his unconventional approach to tea preparation had already impressed his peers during the qualifying

Alexander Wagner

Mustafa Akbulut

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NEWS

powder and to serve the tea to the judges in a larger bowl. This powdered tea took much less time to brew and reminded everyone of the Japanese powder tea.

Natalia Lomaeva (Ekaterinburg, Russia) was the third tea master to take the floor.

Many people said later that they knew right away that Natalia would become the winner.

She instantly won over the spectators and judges alike with her highly original bright red attire, which, together with the blue-and-

Vlad Lebedev

national competition. This time around, Vlad also delivered a memorable performance. His Master’s Tea was a blend of two red teas, Jin Jun Mei and Lapsang Souchong, skillfully flavored with cardamom, coriander, cinnamon, carnation, Chinese ginger, cream and honey.

The tea was served in glasses on special cedar coasters that Vlad had made himself. Little bowls of jam made from pine cones, honeycovered cedar nuts, sesame cookies and pine cones were expertly incorporated into the presentation. Since this was the tea preparation category, not the tea pairing, it was made clear from the start that only the quality and originality of the tea would be evaluated by judges, and the sweets would simply be a pleasant accompaniment. Of course, the judges sampled the tea and the sweets – and so did some of the guests, marveling at the taste of the pine-cone jam, a real culinary masterpiece, well worth a trip to Siberia to harvest the cones. In addition to the Master’s Tea, Vlad also prepared and served an organizer-provided white tea.

The next competitor was Alexei Kupriakov (Brest, Belarus), appearing in a stylized black traditional Chinese outfit with white trim that matched the color scheme of his teaware set.

Alexei brewed his tea using the pinch method, inspired by a movie about Ip Man, who taught martial arts to Bruce Lee. The Master’s Tea was composed of shan puerh with an addition of “Belovezh puerh” – birch leaves from the Belovezh forest preserve in Belarus, handpicked and prepared by Alexei himself using

Natalia Lomaeva

NurHan KoHali

the puerh technology. The resulting composition, served in ceramic bowls, was amazingly laconic, poetic and poignant. And when it came to the Turkish green tea supplied by the organizers, Alexei decided to use an ancient Chinese method to grind the tea leaves into

Alexei Kupriakov

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COFFEE&TEA INTERNATIONAL # 1/2016

white tablecloth, reminded everyone of the colors of the Russian national flag. The “Russian” theme remained very pronounced throughout Natalia’s whole performance: with grace and confidence, Natalia used the gong fu cha technique to prepare Da Hong Pao tea together with “Ivan-chai”, a traditional Russian herb (Chamerion angustifolium), creating a blend of Russian and Chinese traditions. A projector showing images of fire and water added a special touch to the whole atmosphere. As her organizer-supplied tea, Natalia chose Turkish black tea.

Later, responding to the question “What does this competition mean to you?”, Natalia said, “This championship is an opportunity to test myself, to take the next step in my professional development, to see which parts of my tea knowledge and expertise have become obsolete and which are critically important and require further development. So, the only

NEWS

competition that I am facing here is from myself. I am deeply grateful to all those who devote themselves to the Tea Masters Cup, because the TMCI is more than a competition – it is an opportunity to find and appreciate yourself in the world of tea.”

The fourth one up was NurHan KoHali (Rize, Turkey): wearing a traditional Turkish dress, she prepared green Turkish tea using the traditional brewing methods, teaware and music – a real treat and a learning experience for all non-Turkish competitors. Her Master’s tea was white tea, flavored with lemon balm. Two exquisite Turkish teapots – one on top for brewing tea and the other one on the bottom for hot water – together with traditional tea glasses made for a very pretty display.

Then there was a short break: the competitors and the judges took a little rest and the public enjoyed complementary tea prepared by Yuriy Podusov (Riga, Latvia), the organizer of the Latvian national championship. After that, it was time for the last two competitors to take the floor. The first of those was Zeynep Erkan (Rize, Turkey): with a bright smile on her face, she prepared both her Master’s tea and the organizers’ tea using traditional Turkish methods and explaining every step of the process.

Zeynep prepared hand-harvested green tea with basil leaves. Although both competitors from Turkey used the same “two-pot” method in their performances, their individual styles were most certainly unique, as were the flavors of the teas they prepared.

The last performer on day one was Andrei Ivanov (Riga, Latvia). First, he used a clay pot to prepare black Turkish tea supplied by the organizers, as it takes longer for this type of tea to steep; later on, he served this tea in glass bowls. While this tea was brewing, Andrei used the pinch method to prepare Da Hong Pao tea (the “Red Seal” brand), serving it using cups and saucers. Andrei’s whole performance was very intimate: it seemed as if he has invited everyone to a cozy little tea shop to share his teas and his stories.

Those who competed on the first day did not get their scores back until the awards ceremony at the very end of the event. But we won’t keep you in suspense: the first place went to Natalia Lomaeva (Russia), the second – to Alexei Kupriakov (Belarus) and the third – to Vlad Lebedev (Russia).

Yuriy Podusov

syrup and orange zest.

You should have seen the slightly puzzled faces of the judges, set adrift in this ocean of taste sensations! Daria deserves the highest praise for her skillfully designed and flawlessly crafted composition.

After the Cup was over, Daria shared her thoughts with us. “To me, this competition is all about the long and infinitely creative process of working with tea. By taking part in

Zeynep Erkan

Andrei Ivanov

cucumber sprinkled with sugar. Then came a sip of the Tieguanyin tea; after that, caramelized red apples with water-soaked walnuts. This was followed by a serving of the Dianhong tea and the grand finale of dried apricots and pumpkin seeds coated in maple

this event, I am opening new doors into an already familiar world of tea. To prepare for this competition, I used my many years of experience in the world of tea, did some structured training, tasted many teas, read and studied… always pushing myself to new mile-

DAY TWO. A SYMPHONY OF CREATIVITY Day two was especially “tasty” – sky was the limit to the creativity and improvisation of the competitors. After the drawing of lots and introductions, Daria Mikheeva (Ekaterinburg, Russia) was the first to take the floor. Daria conducted a veritable “gastronomical symphony” of two teas and three foods. First, in glass bowls rinsed with a lavender infusion, she served small pieces of cheese on thin slices of

Daria Mikheeva

Diana Kutafina

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stones, but building upon, and honoring, time-tested traditions.

The community of tea enthusiasts here at the TMCI is incredible, and the opportunity to make friends and to learn is priceless. As we share our ideas, we are making the tea world – and the whole world – a better place!”

Diana Kutafina (Kiev, Ukraine) began her performance with an elegant tale about tea, once told to her by her father. While telling the tale, Diana leisurely prepared shan puerh in big pretty bowls, then served it with a comfiture made from whole pinecones. This pairing definitely made a lot of sense, emphasizing fresh and tangy notes in the flavor of the tea. Diana explained that this combination made for a very “dynamic” flavor, one that “intensifies going from the comfiture to the cone itself, just as the flavor of tea with tea leaves in the bowl becomes more intense with every sip”.

The third composition, presented by NurHan KoHali (Rize, Turkey) was very cheerful and dynamic. While her proprietary blend of black teas was steeping in the pot, NurHan got the audience to join her in a merry Turkish dance. Since Turkey is so rich with cultural traditions, why not use them to get the judges and the audience “warmed up”? Baklava, a traditional Turkish dessert, was served on a special tray for glasses, which, as Hassan Onder showed us, could be twirled in the air.

The fourth performer was Andrei Ivanov (Riga, Latvia), who prepared a proprietary blend of herbal teas. While the tea was steeping in the pot, Andrei demonstrated his skill of preparing a complementary meal of nuts and

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dried fruits that included almonds, walnuts, white and red raisins, pistachios, goji berries, herbal honey, dried apricots and mint. Of course, all this wonderful concoction was cheerfully served to the judges.

The last one up was Anastasia Shif (Minsk, Belarus). She presented to the judges a com-

clear glasses and served to the judges with parmesan-coated almond crackers.

It is no surprise that the judges had a difficult time selecting the winner. In the end, the first place was shared by Anastasia Shif (Belarus) and Daria Mikheeva (Russia).

Anastasia Shif

position titled “Fluid Amber”. In creating her composition, Anastasia was inspired by the inherent coziness and harmony of this wonderful natural substance. She prepared her favorite Darjeeling tea in a see-through container, which allowed the amber color of the beverage to shine forth. In order to further amplify this effect, Anastasia served the tea using containers with specially designed lighting (she later revealed that this know-how was contributed by her husband). The beverage was sweetened with maple syrup, poured into

COFFEE&TEA INTERNATIONAL # 1/2016

After the award ceremony, Anastasia shared her thoughts and feelings with us: “In designing my composition, I was not thinking about victory at all. My only goal was to capture and reproduce the magical quality of tea. I had a lot of help from my friends and my loved ones. Taking part in this competition is an invaluable experience and an opportunity to share knowledge and to meet great, interesting people from every corner of the wonderful world of tea. Happy tea drinking to all!”

NEWS

DAY THREE. A SYMPHONY OF FLAVORS The third day of the competition was the briefest and the most “by-the-book” procedurally. The judges had selected 10 types of teas from different countries of origin. During the first stage, the competitors had to taste all 10 teas and memorize their tastes. For the second stage, the judges selected 5 out of 10 teas, and the participants had to identify which teas had been presented to them; both accuracy and speed counted. The participants in this category were Andrei

At the closing ceremony, the sponsors and organizers spoke about the fact that taking part in such a unique event, the first of its kind, is an honor and a very important milestone. Think of all the journeys the competitors had to make to find themselves on the stage, sharing their creativity and expertise with the

countries, new sponsors, new organizers. And now it is time for national qualifying competitions. It is wonderful that so many new countries want to join the movement!

Ivanov (Latvia), Anna Kisel (Ukraine), Anna Pleshakova (Russia), Ol’ga Slizanova (Belarus) and Zeynep Erkan (Turkey). Anna Pleshakova managed to identify all five teas accurately and faster than the other competitors, becoming the champion in this category.

Here’s what Anna had to say about the significance of the TMCI: “To me, competing in a world championship is a gift. Really, is it not a gift to find yourself in a beautiful ancient city, to meet and get to know experts from all segments of the tea industry, to experience the tea culture of an unfamiliar country? The whole event felt as if we were one big family – and that’s a gift as well. I think I managed to do as well as I did because I trusted my professional intuition and was able to focus all my attention on the task before me. And, of course, experience and practice – that’s the foundation of it all. My colleagues are encouraging me to start a tea-tasting school. It’s a great challenge that requires a lot of preparation and hard work. I would have to sort out and document precisely the methods that I am using intuitively – and then present them so that they could be learned by others. But I’d love to share my knowledge with other people.”

public! Think of all the benefits of events like this one for the tea community, all the growth and development! A precedent has been set for new encounters, competitions and knowledge sharing in the future.

The next TMCI event will take place in South Korea – there will be many more participating

We would like to express our deepest gratitude to all who helped organize and run this unique and very important event, especially to Jana Aftandilidu, David and Ramaz Chanturia, Hassan Onder – without them, this competition would not have been possible.

Partner Партнёр

Mediapartners Медиапартнеры

General sponsor Генеральный спонсор

Official partner Официальный партнер

Official partner Официальный партнер

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THE AFTERTASTE OF THE TEA CHAMPIONSHIP. Tea enthusiasts know that the aftertaste of tea is just as important as the taste. For the participants of the Tea Masters Cup International (TMCI) that took place in Istanbul, Turkey, in September 2015, the “aftertaste” of the competition was a trip to the Rize province of Turkey for a tour of tea plantations owned

by Gaykur, a leading Turkish tea producer and the main sponsor of the TMCI. The trip was organized and sponsored by the Rize Commodity Exchange.

Nothing brings people closer than travels and common interests, and nothing is more pleasing to the eye and more dear to the heart of tea enthusiasts than seeing live tea bushes and touring tea laboratories.

Exceptionally well-organized, the trip to Rize had plenty to offer for the eyes and for the hearts – most importantly, an opportunity to experience the Turkish tea culture “from within”. Two days in the heart of Rize’s tea industry made for a rich and unforgettable experience. We would like to express our deepest gratitude to our colleagues who made this trip possible: Hassan Onder, Mehmet Erdogan and Imdat Sutluoglu.

In Turkey, tea grows at altitudes from 0 to 1,000 m above sea level; differences in altitude translate into differences in flavor, and those who say that all Turkish tea tastes the same are mistaken. Certainly, Turkish tea in general has flavor characteristics that set it apart from teas of other origins, and it takes a little more time and patience to prepare, but it definitely exhibits some internal variety. Turkey produces mostly black tea (99% of all production), with 1% for green tea and a very small quantity of white tea. Throughout our travels in Rize, tea was served everywhere – business meetings, informal gatherings and meals – and our delegation tasted a wide variety of teas. We experienced the difference altitude makes not only with our taste buds, but with our whole bodies: while climbing mountains during plantation tours and while rafting down local rivers (a fun and memorable experience for all members of the delegation). And during stops in the most exotic places, Yuriy Podusov (Riga, Latvia) and Jiři Altior (Prague, Czech Republic) always seemed to have enough Chinese tea, pots, cups and hot water for everyone.

Tea plantations in Rize are truly impressive: tea bushes cover mountain slopes so densely it feels as if tea has been growing here forever. But the history of Turkish tea goes back less than a hundred years, to the time the first tea seeds were brought in from Batumi (Republic of Georgia) and the first tea factory opened in 1947. Today, however, Turkey holds the first place in the world in per-capita tea consumption. We learned all this in informal conversations with Imdat Sutluoglu, the head of Gaykur, who spent a whole day with our group, underscoring the significance of our visit to the company. During our two days in Rize, filled with numerous meetings and travels, we learned many more interesting facts about Turkish tea; we had previously observed the “professional” way of brewing this tea during the TMCI, when NurHan KoHali and Zeynep Erkan showed us the “Turkish way” of brewing tea using two teapots. We were surprised by the taste of Turkish white tea, a great rarity in that country: its taste resembles Indian Silver Tip tea and the Chinese Baihao Yinzhen. This novelty shows once again that Turkey is not stagnant when it comes to tea, but is always on the lookout for new flavors and technologies. Each member of our delegation received a souvenir of a small and beautifully packaged quantity of white tea. It will be cherished and brewed only on special occasions, to complement reminiscences and conversations about everything we witnessed and experienced during these two days.

We visited a tea processing plant, absolutely spotless, where careful workers showed us the whole process of tea production, from receiving fresh tea leaves to packaging the finished product. In addition to loose-leaf tea, the plant produces powdered tea using a Japanese technology; there are plans to start producing granulated tea.

All innovations in tea processing technologies and creation of new varieties of tea are developed at a special research facility; we had the pleasure of visiting it

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RIZE –

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THE HEART OF TURKISH TEA.

and listening to a short presentation on tea production.

The facility is located right near the plantations; nearby there is a grove of flowering trees whose fruits and blossoms are used as natural flavorings for tea. One of these flowering trees is bergamot (also known as sour orange); many of us have never seen the actual fruit and were surprised by its pear-like appearance. Even seeing the tea bushes themselves, up close, only a breath away, was a first for many members of the group. Such experiences are invaluable for every tea

Aliona Velichko

master, and will be cherished and shared for years to come. Another discovery was the fact that Turkish tea winters under the cover of snow; this, according to our Turkish colleagues, is the reason local tea needs virtually no pesticides, since pests are killed by low temperatures.

We were told that because of this, Turkish tea is the purest in the world; we found this claim very easy to believe.

Beautiful mountains covered with tea bushes, hospitality and fun and busy schedule made our two days in Rize absolutely unforgettable.

Rize, we’d love to see you again!

But the TMCI will not return to Turkey for now; all about discovering new countries, it is headed for South Korea.

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he Bag Broker is an independently owned specialist within the Coffee and Tea packaging market. Currently delivering its range of leading Coffee and Tea packaging solutions world wide from offices within Asia and Europe.

Our vision is to provide consistently high quality, flexible packaging to the main stream market, removing many of the barriers that currently exist and inconsistency experienced by many in the manufacturing process. Having launched in Australia, UK and continental Europe. From 2004, The Bag Broker has grown rapidly and built a very strong customer base throughout the world wide market, with an enviable reputation for excellent customer service, fast delivery and consistent quality products.

Our range of flexible (Coffee, Tea and dry food) packaging consists of 3 types. The industry standard, side gusset bag, which has been in the main stream for many years due to its key benefits to both wholesalers and roasters alike. The stand up pouch, a relatively new design, offering excellent self standing solutions for display on shelfs and other retail applications. Lastly, the box bottom, which brings much of the same benefits of the stand up pouch, within a new design model. All of the above can benefit from having a one-way degassing valve, this ensures the freshly roasted coffee beans can release CO2 without the risk of damaging the packaging they are housed in. We are also pleased to offer our stand up pouch and box bottom options with a zip lock feature, enabling the user to open and reseal the bag as much as is required. Ensuring the products enclosed stay fresh for as long as possible.

Whilst our range of products meet most needs, there has always been one missing component or feature to our range.

The ability to offer a range of products that also meets the needs of the environment. A bag that has the properties to bio-degrade.

The packaging industry as a whole, including our competitors, have one thing in common. The material used is a sandwich of very different plastic and metal components, only intended for single use, making recycling and re-use impossible. If left in a landfill, the bags will need upwards of half a millennium to degrade. If incinerated, some of the materials used, will emit substances such as dioxin and toluene, which are not good for the environment and have even been attributed to causing cancer in human beings when exposed in large quantities.

For an industry with a strong social and environmental that supports initiatives such as Rainforest Alliance, Coffee Kids, and Fair Trade, a better alternative must exist? The CEO and Founder of The Bag Broker has devoted the last 5+ years developing the solution.

We have chosen to call our bio-degradable bag, and contribution to the environmental cause, The True Bio Bag. Which is exclusively made from compostable materials, as measured by the European Norm EN 13432, which is the

T

most stringent standard for measuring bio-degradability in existence. It sets very strict rules for when a material can be called compostable, the Latin term being ‘humus’, suitable for growing plants, even for growing the very basis of our industry, coffee!

The True Bio Bag consists of 3 layers. The outer layer is an unbleached Kraft paper, in the middle, we have a pulp-based barrier layer, with oxygen transmission levels measured to be on par with existing common shelf-stable non-bio-degradable packaging solutions. Oxygen transmission is very important for coffee roasters, as oxygen will make coffee go stale, very fast. The inner layer of The True Bio Bag is made of a new bio-degradable plastic, which will degrade within 90 days. The bag also comes with a one-way valve, for the first time made from the same compostable plastic as the inner layer.

At the point of writing this article, there are no other products in this market, which offer this kind of protection of the contents, whilst only being made from certified biodegradable products.

The current market, including our nearest competitor, offers a product, where 40% of the product will degrade within 5-10 years when composted. That is well below the standard we set out to achieve, and have achieved.

The coffee industry is based on a natural resource, and as with all natural resources, the very best quality products are delivered only with the very best of care, nurture and attention. However, the key factor is the environment they are developed in. All natural produce is sensitive to changes in our environment, the smallest changes can have an impact.

Pollution in the environment in Europe, can and does affect natural goods elsewhere on our planet.

A True Bio-degradable bag that not only offers very real environmental benefits, but for the first time, offers both value to the markets they are sold in and has a return for the very industry we serve! After all, we have a responsibility to ensure that our industry doesn’t harm its heart, coffee itself!

11

PR-NEWS

MEETING OF THE 115th SESSION OF ICO’S INTERNATIONAL COFFEE COUNCIL: Trends, analysis and the Global Coffee Forum orking meetings of the 115 th Session of the International Coffee Council of ICO took place from September 28 to October 2, 2015, in Milan, Italy, on the premises of Expo-2015. At the opening meeting of the Session, the participants officially welcomed the Russian Federation, as the country had become a full member of ICO in the spring of 2015. His Excellence, Mr. Alexandеr Yakovenko, the Ambassador of the Russian Federation to the United Kingdom (the location of ICO’s headquarters), briefly addressed the Council. He stated that Russia’s ICO membership will be an advantage not only for Russia, but for all countries that produce and process coffee. The Ambassador assured the esteemed representatives of the world coffee industry that Russia is prepared to cooperate with all ICO members in matters of developing the organization’s strategy and raising its effectiveness.

The Session also included a regular meeting of the Private Sector Consultative Board (PSCB)1, where Russia, previously admitted as an observer, was represented as a full member. It is noteworthy that a representative of Russia (Mr. Ramaz

W

RobJrio Oliveira Silva

Chanturiya, RosTeaCoffee Association) was elected vice-president by members of the Board.

The Session hosted the Global Coffee Forum (Sept. 29 – Oct. 1), an event aimed at a wide audience of professionals and coffee enthusiasts. During the Forum, many industry experts gave presentations on issues of current interest. In particular, Michael R. Neumann, Chairman of the Board of Trustees of Hanns R. Neumann Stiftung, called for implementation of programs of fair cooperation with coffee farmers and their governments in order to establish control over the 200-million-bag coffee market and deal with the problem of climate change.

Francesco Morace (Future Concept Lab) talked about paradigms of coffee culture and the global tendency of associating coffee with enjoyment. Professor Jeffery Sachs, Director of the Earth Institute at Columbia University (USA), discussed the impact of climate change on coffee production and trade. The Forum also included numerous talks on such topics as coffee’s impact on human health, new ways of stabilizing development in coffee-producing countries and other issues of concern for the industry.

Alexander Yakovenko

1 Private Sector Consultative Board (PSCB) is a body of the International Coffee Organization (ICO) whose mission is to give voice to representatives of private sector within coffee-

producing countries. Established in 1999, it consists of 16 prominent coffee industry representatives from producer as well as consumer counties.

12

COFFEE&TEA INTERNATIONAL # 1/2016

PR-NEWS

Michael R. Neumann

Prof Jeffrey Sachs

Francesco Morace

13

NEWS

Tea Masters Cup Vietnam 2015 Results coffeetea.ru

26th of November, 2015, on the main stage of Vietnam Ethnic Museum, Vietnam officially hosted the very first Tea Masters Cup Vietnam 2015 (TMC VN 2015). This qualifying national round was held

by Vietnam Tea Association in corporation with The Organization Board of the Third Tea Festival Thai Nguyen, under the framework of Tea Festival Thai Nguyen – one of the largest and most successful national events of tea producers, tea traders and tea customers, which took place in Thai Nguyen Province, Vietnam.

Vietnam Tea Association honors to be the official sponsor of TMC VN 2015. And there are 9 other cosponsors which are: • Sinh Thai Joint Stock Company; • An An Joint Stock Company; • Hiep Khanh Tea Joint Stock Company; • NTEA Vietnam Joint Stock Company; • Oxfam Tea Project; • Nam Anh Importing and Exporting Joint Stock Company; • Bac Thanh Trading Ltd; • Tra Viet CLUB – Hoa Tra Viet Joint Stock Company; • Helvetas Project.

The VIP guests participating and cutting inauguration band of TMC VN 2015 are: • Ms. Ma Thi Nguyet – Vice Chairwoman of The People’s Committee of Thai Nguyen Province – President of The

14

COFFEE&TEA INTERNATIONAL # 1/2016

Organization Board of the Third Tea Festival Thai Nguyen, Vietnam 2015; • Mr. Nguyen Huu Tai – Chairman of Vietnam Tea Association – The national organizing committee – official sponsor of TMC VN 1015.

Along with the judges committee of professionals and experts in tea industry, including: • Ms. Nguyen Thi Anh Hong – Vice Chairwoman of Vietnam Tea Association; • Mr. Ramaz Chanturiya – General Director of Rusteacoffee Association, the Chairman of Tea Masters Cup; • Mr. William Lee, Executive of Korea Tea Board, CEO of Shinda Wooloo Group (South Korea); • Ms. Sharyn Johnston, Director of Australian Tea Masters Cup Pty Ltd; • Mr. Tran Dang Khoa – poeist, journalist, Vice President of Vietnam Literature Association; • Mr. Hoang Anh Suong – Journalist, Tea Masters; • Mr. Mong Dong Vu – Vietnam Records for having the largest collection of teapots; • Mr. Hoang Dinh Nhu – Vice Director of Tea Market Research and Development Center – Technical Judges.

And 23 contestants from all over Vietnam, media channels, domestic tea producers and a huge number of Vietnamese tea lovers.

Those 23 young talents from different counties of Vietnam has participated and competed in 3 categories: Tea Preparation, Tea Pairing and Tea Tasting Despite the fact that this is the very first TMC competition in Vietnam, which has ever been hosted, TMC VN 2015 still succeeded in making a strong impression. While contestants ages range from 20 - 40, they all delivered amazing performance of tea preparation, tea pairing and tea tasting which showed their skill, creativity and passion for this rustic beverage.

In this way, TMC VN 2015 could be considered as a national union of young talents in tea field, honoring quintessence of Vietnam tea culture, encouraging youngsters who have passion for tea and devote thoughts and time to creating new method of tea preparation. This competition has witnessed many compelling performances of 23 talents when they were shining, demonstrating their own skills on stage After a long day of intense competitions, TMC VN 2015 has chosen and handed trophy to 3 champions of 3 categories, who are:

NEWS

•

Ms. Tran Thi Mong Kieu from Ho Chi Minh City – champion of Tea Preparation; • Ms. Nguyen Thi Bich Hong from Hai Duong – champion of Tea Pairing; • Mr. Le Minh Phuong from Hanoi – champion of Tea Tasting.

Besides, because of the creativity in tea preparation and the beautiful love story behind Mr. Doan Hung Son’s performance, the organizing committee and judges agreed to hand an additional prize which is Creative Awards to Hung Son. This is considered as a considerable change between TMC VN and the original version of TMC. And the other 19 contestants were honored with certification for participating with professionalism and passion. The 3 champions will be sent to compete in the international final round of Tea Masters Cup 2016.

In summary, The Organizing Committee of Tea Masters Cup Vietnam 2015 would like to spend the deepest thank to our sponsors and cosponsors as well as local and national media channels who supported us during this competition, contributing to the success of TMC VN 2015. It is our honor to continue working with all organizations, media channels in the next Tea Masters Vietnam 2016.

15

ECONOMICS

GREEN TEA IN THE USA

1

Peter F. Goggi

The following numbers will show the growth of the US tea market from 1990 to 2014, broken down by consumption channel: 1990 $VALUE BY TYPE Traditional $ 0.87 Billion RTD 0.20 " Food Service 0.50 " Special 0.27 " Total $ 1.84 Billion Green $ 20 Million

The following charts will give you an idea about the recent trends in green tea imports into the USA and the breakdown by the country of origin Figure 1.

2014 $VALUE BY TYPE Traditional $ 2.51 Billion RTD 5.23 " Food Service 1.20 " Special 1.90 " Total $ 10.84 Billion Green $ 1.6 Billion

Total tea sales in the United States are projected to grow further to nearly US$15 billion by the end of 2019.It is important to note that green tea sales are growing much faster than black tea, with over 200% increase by volume in the last 10 years.

U.S. GREEN TEA CONSUMPTION The following are some general observations about the current green tea consumption trends in the US: • While tea in general (both black and green) is consumed anywhere and anytime, green tea consumption still trails black tea consumption by 6 or 7 to 1 • Green tea is seen by consumers as “good for you” • Green tea is also beginning to be seen by consumers as “good tasting”, although traditional black tea consumers find the taste of green tea to be polarizing • Green tea is generally viewed as either “Chinese Style” or “Japanese Style” by the consumer

Figure 1

GREEN TEA IMPORTS (2011–2013 vs 2012–2014) 3 Year Rolling Averages

% Total Green Tea Imports 2011–2013

% Average Total Green Tea Imports 2012–2014

1 This is a partial summary of the presentation made at the November 2015 meeting of the Tea Association of the USA.

16

COFFEE&TEA INTERNATIONAL # 1/2016

ECONOMICS

•

•

Green Tea consumption is being encouraged by nutritionists, members of the medical and fitness communities, by the specialty tea community and by the culinary arts community With all the increasing trends in tea consumption, coffee remains the undisputed “king of the morning”

LIFESTYLE TRENDS OF THE AMERICAN TEA CONSUMER Below are findings from the research conducted by Pollock Communications. The research was conducted in order to determine how and where Americans drink their tea and to get new, media-worthy ways to communicate the science behind the tea and the health message to the consumer.

The research surveyed 1,012 nationally representative Americans ages 18 and over, falling into one of the following age categories: Millennials(born 1981 and after, ages 18-34), GenX’ers (born 19651980, ages 35-50), Baby Boomers (born 1946-1964, ages 51-69) and Traditionalists (born 1925-1945, ages 70-90).

WHAT, WHERE, AND WHEN?HOW AMERICANS LIKE TO DRINK THEIR TEA The following are the findings about tea-drinking habits of the contemporary American consumers.

• 85% of American tea drinkers like their tea iced • Tea drinkers are only slightly more likely to be female (85% versus 79%) • Americans living in the South drink more tea than inhabitants of other regions • The three most popular complements to tea among tea drinkers are sugar, honey and milk In terms of places of consumption, the results are as follows: • 89% of Americans enjoy tea at home • 48% enjoy drinking tea at a restaurant • 29% drink tea at work The following findings apply specifically to consumers of green tea: • 68% of green tea drinkers enjoy their tea iced, and 66% enjoy it hot • Nearly half of green tea drinkers enjoy their tea with honey or milk • One fourth of green tea drinkers could not get through a Monday without a cup of tea • Green tea drinkers typically enjoy tea in the evening • Most green drinkers enjoy drinking tea at home, more so than on the go (69% versus 26%)

to green tea over other types when they are feeling sick or stressed or experiencing a stomachache.

More Americans in the West than in other regions 91% vs. 84% drink green tea The following is an analysis of the attitudes of green tea and black tea drinkers.

Americans who drink Black Tea are more likely than non-drinkers to saythat they: • Feel happy almost all of the time (77% versus 69%) • Are completely satisfied with their sex life (62% versus 48%) Black tea drinkers are also more likely than non-drinkers to describe themselves as “creative”, “confident”, “peaceful” or “intellectual”.

Americans who drink Green Tea are more likely than non-drinkers to saythat they: • Feel happy almost all the time (77% versus 71%) • Are completely satisfied with their sex life (61% versus 52%) Black tea drinkers are also more likely than non-drinkers to describe themselves as “creative”, “adventurous”, “spontaneous” or “bold”.

CONCLUSION In order for the overall tea consumption and, more specifically, green tea consumption, to grow, the messages about the health benefits of drinking tea must find new audiences. While the current audience consists of tea-drinking consumers overall, primarily women, who get their news from traditional and digital media, the new target audience must include young, health-conscious females and males, ages 18+ who get much of their news online and via social media.

PERCEIVED HEALTH BENEFITS OF GREEN TEA Americans are more apt to associate green tea than black, white or oolong teas with the following health benefits: • Being good for one’s health • Containing protective antioxidants • Boosting the immune system More than half of Americans would turn

17

ECONOMICS

COFFEE IN CHINA

1

In recent years, both the production and consumption of coffee in China have been growing at doubledigit rates, and show few signs of slowing. It is estimated that China now produces more coffee than Kenya and Tanzania combined, and consumes more than Australia. As the economy of China continues to grow, the pool of consumers with disposable income expands and demand for coffee rises accordingly. The presence of coffee shops is no longer a novelty, but rather an essential feature of the urban landscape. Although still predominantly a tea-drinking nation, China is rapidly developing a taste for coffee, which could have significant implications for the world market.2

Figure 1

COFFEE CONSUMPTION IN CHINA Overview Estimates of coffee consumption in China are somewhat hampered by the lack of reliable statistics. However, it is possible to derive an estimate based on production, export and import figures, which are more readily available. The results of this analysis suggest that coffee consumption in China came to around 1.9 million bags in 2013/14, and has been growing at some 16% per annum over the last ten years3. This level of consumption would make China the 17th largest coffee consumer in the world. With a population of 1.4 billion people, however, per capita consumption comes to just 83 grams, or 5 to 6 cups per year, although again this is growing.

Furthermore, per capita consumption is believed to be significantly higher in urban areas, and has been estimated at 2 kilograms in Hong Kong, compared to 4.9 kg in the European Union or 4.4 kg in the USA. Market structure According to market research firm Euromonitor, the Chinese coffee market is predominantly composed of instant coffee.

Indeed, instant coffee makes up around 99% of retail sales by volume and 98% by value, although fresh roasted coffee is growing at a faster rate. The most popular types of instant coffee are the 3-in-1 products which contain coffee, sugar and whitener, as well as potential flavourings. Nevertheless, the rising popularity of coffee shops and coffee culture in general is promoting growth in fresh roast and ground coffee. Furthermore, on-trade sales are increasing faster than retail sales, with the number of cafJ outlets in China estimated at 13,834 by the end of 2013. As dis-

Market composition of retail sales by value a. Retail sales of coffee by value

b. Retail sales of fresh ground coffee by value

100%

100%

80%

80%

60%

60%

40%

40%

20%

20% 0%

0%

2008 2009 2010 2011 2012 2013

2008 2009 2010 2011 2012 2013 Fresh coffee

Instant coffee

Pods

Standard

Source: Euromonitor International

Figure 2

Market shares of tea and coffee in the retail and foodservice sectors a. Retail sales of hot drinks

b. Foodservice sales of hot drinks

100%

100%

80%

80%

60%

60%

40%

40%

20%

20%

0%

0% 2008 2009 2010 2011 2012 2013 Coffee

Tea

2008 2009 2010 2011 2012 2013 Coffee

Tea

Source: Euromonitor International

1 The review was prepared 10.08.2015 by ICO experts for International Coffee Council, 115th Session, 28 September ‒ 2 October 2015 Milan, Italy.

2 This study refers to ‘China’ to include the Special Administrative Regions of Hong Kong and Macao. Unless otherwise stated, figures are given on a crop year basis, i.e. October –

September.

3 Full details of this methodology can be found in the Annex (pg. 21).

18

COFFEE&TEA INTERNATIONAL # 1/2016

ECONOMICS

Figure 3

Coffee imports by China by form of coffee

Thousand bags

1,500

1,000 Soluble Roasted Green

500

0

Source: Euromonitor International

Figure 4

Origin of coffee imports by China (Average: 2009/10 to 2013/14) Vietnam

Indonesia

Malaysia

Brazil 6%

14%

USA 5%

7%

49%

average of 69% over the last five years. In 1994/95, a much greater proportion of imports were of soluble coffee; the resulting decrease could potentially be attributed to the development of a local processing industry following investment from NestlJ to help meet national demand. Over the last five years, however, soluble imports have been increasing rapidly, presumably as national demand increases faster than domestic processing capacity. (Figure 3) In terms of origins, the biggest supplier of coffee to China is Vietnam, which accounted for almost half of all imports from 2009/10 to 2013/14. Over 80% of imports come from just five countries (including re-exports from the USA), as shown in figure 4 below. Based on these origins, and information from external sources, it seems likely that the significant majority of coffee imported into China is Robusta, which reflects the preference for soluble coffee. However, it is worth noting that imports from Colombia and Central America have been increasing significantly in recent years, at over 25% per annum since 2009/10, and now make up around 5% of the total.

(Figure 4)

Source: Euromonitor International

Imports Total coffee imports by China in 2013/14 came to 1.4 million bags, compared to 418,000 in 2004/05. There has been a substantial increase in imports over time, growing at an average annual rate of 15% over the last ten years.

Coffee imports are mostly in green, unprocessed form, accounting for an

Box 1. COFFEE CONSUMPTION IN JAPAN The development of the coffee industry in China over the last ten years is comparable to the evolution of coffee demand in Japan fifty years ago. As shown in figure 5 below, coffee consumption levels in China and Japan grew at similar rates over a ten-year period. Japan continued growing strongly until the mid-2000s when it reached over 7 million bags and became the world’s fourth largest coffee consumer, with a per capita consumption of 3.5kg. Japan now has an advanced coffee culture, composed predominantly of Arabica and with a developed processing capacity. This process took 30 to 40 years in Japan, and China is still very much in the early stages of its coffee development.

Figure 5

Coffee consumption in China (2004/05 to 2013/14) compared to Japan (1964/65 to 1973/74) 2,000 Thousand bags

posable incomes rise, consumers tend to ‘trade up’ to a more premium product.

The most dynamic growth is found in retail sales of coffee pods, although in absolute terms they remain a niche category. (Figure 1) Despite this growth, China remains overwhelmingly a tea-drinking nation, with retail sales of tea outweighing coffee by almost ten to one. However, in the foodservice sector, coffee commands a stronger market share, up to 44% in calendar year 2013. The foodservice sector is still small by comparison, but reflects the growing preference for coffee demand in the social or out-of-home sector. Furthermore, the rapid development of commercial chains and coffee shops shows the potential for further growth. (Figure 2)

1,500 Japan 1,000

China

500

0 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Source: Euromonitor International

19

ECONOMICS

Figure 6

Coffee producing areas in China

Arabica Китай Robusta

Source: Euromonitor International

History Coffee was first introduced to China in the late nineteenth century by a French missionary in Yunnan province, in the southwest of the country. Coffee production subsequently languished for the better part of a century, until 1988 when the Chinese Government, in association with the World Bank and the United Nations Development Programme, initiated a project to regenerate the sector. Large companies like NestlJ also encouraged coffee growing in the region, and as a result production soared.

Growing areas Coffee is still predominantly grown in Yunnan province, which accounts for over 95% of China’s coffee output. Yunnan is traditionally a tea-growing region, source of the renowned ‘Pu’er’ tea. However, with its mountainous landscape (an average altitude of around 2,000 metres) and mild climate it is well-suited to coffee production. It also borders Vietnam, Laos and Myanmar, in the heart of the coffee belt. It grows exclusively Arabica coffee, and is a large province with an area of 394,000 km2 and population of 46 million people. There are also small amounts of Robusta grown on the island of Hainan, situated in south China, and in Fujian province, in the southeast. (Figure 6) Current state of production (1994/95 to 2013/14) Coffee production in China has escalated rapidly over the last twenty years (Figure 7).

Figures from the Food and Agriculture Organization (FAO) suggest that output in crop year 2013/14 reached 1.9 million bags, and has been roughly doubling every five

20

years. This would make China the 14th largest producer of coffee in the world, ahead of Costa Rica but behind Nicaragua, compared to the 30th worldwide ten years ago with a level of 361,000 bags.

This growth in production has been encouraged by significant investment in the

Exports In parallel with its production levels, China’s exports of coffee have been

Figure 7

Production and exports in China (1994/95 to 2013/14) 2,500 2,000 Thousand bags

COFFEE PRODUCTION IN CHINA

sector, from both the public and private sector (Box 2). The Coffee Association of Yunnan has recently announced plans to invest RMB3 billion (US$480 million) in coffee over the next ten years. This investment is to be used to improve soil quality, build research centres and provide training to coffee growers, expanding both the area of plantation and production.

Coffee production in Yunnan region has also been promoted by the decline in tea prices, making coffee significantly more remunerative. Farmers in the area can reportedly make double the income compared to tea over the same land area; farmers are also converting from maize or rice production because of the higher expected return.

There is some debate over the current quality of China’s production. It is generally considered to fall short of specialty coffee standards, yet is too high to be used purely for local consumption. Most of the Arabica production is fully washed Catimor, although producers have recently been moving towards other varietals including Typica and Bourbon, which can bring a higher return.

1,500 1,000 500 0

Production

Exports Source: Euromonitor International

Box 2. PRIVATE SECTOR INTEREST IN CHINA’S COFFEE PRODUCTION Private sector involvement in China’s coffee production has also been growing recently.

NestlJ has been present in Yunnan province since the late 1980s, but has significantly increased its purchasing and investment in the last few years. In 2013, NestlJ signed a memorandum of understanding with the local government of Pu’er to invest in a regional coffee centre. Starbucks has also been looking to expand its presence in the area, opening a farmer support centre in 2012 piloting the adaptation of alternative varietals with an emphasis on improving quality. Furthermore, in October 2014, the coffee trader Volcafe announced plans to partner with a local company, Simao Arabicasm Coffee Company, to source, process and export Chinese coffee beans to the international market.

COFFEE&TEA INTERNATIONAL # 1/2016

ECONOMICS

Figure 8 of Arabica coffee and consumption currently favouring Robusta. A more in-depth analysis of these trends would be facilitated by more data.

Destination of coffee exports by China (Average 2009/10 to 2013/14) Germany

USA

Belgium

Malaysia

France 5%

9%

9%

ANNEXE DATA AND METHODOLOGY

8%

40%

Source: Euromonitor International

increasing sharply over the last twenty years. In absolute terms, from just 58,000 bags in 1994/95, China exported 1.2 million bags in 2013/14, nearly a twenty-fold increase. Around 90% of China’s exports are in unprocessed, green form, with roast and soluble products averaging a 4% share each over the last five years.

In terms of destinations, over the last five years, China exported coffee to 97 different countries worldwide, although 71% of these shipments went to just five countries (figure 8 below). Germany is by far the biggest destination, accounting for 40% of total exports over the last five years, where the coffee is likely processed and re-exported. (Figure 8)

PROSPECTS The coffee sector in China is unsurprisingly generating significant interest; the extraordinary growth exhibited in both production and consumption has the potential to alter the coffee landscape in unpredictable ways. Based on official government statistics and derived figures, production is estimated at just over 1.9 million bags and consumption at just under 1.9 million, with both growing at double-digit rates. It should, however, be noted that these estimates are significantly higher than other sources, which range between 1.1 and 1.5 million bags. This could be explained by increasing consumption of domestically produced coffee, but suggests that all figures should be treated somewhat carefully.

Returning to the comparison with the development of the coffee sector in Japan, consumption in China could follow a similar growth trajectory. Coffee consumption in Japan has stabilised recently at a level of just over 7 million bags, or 3.5kg per capita.

China has a population ten times larger than Japan, although coffee is predominantly consumed in the urban areas which cover around half of the total population. By the end of the decade, China could be consuming over 4 million bags per year, with plenty of potential for further growth.

Similarly, Arabica production in Yunnan province has been growing substantially, and the Coffee Association of Yunnan has

set a target of 4 million bags by 2020.

Furthermore, looking at the import/export statistics for China suggests that an increasing proportion of local production is being consumed internally. This trend fits the narrative that companies involved in both supply and demand in China, such as NestlJ and Starbucks, are increasingly investing in Chinese coffee production in order to supply the local market with specifically targeted blends and products. As the preference for Arabica in China continues to rise, this pattern looks likely to continue.

To conclude, the overall impact of the Chinese coffee sector on the global coffee economy is as yet undetermined. By driving up both production and consumption in relatively proportional amounts, China is currently a broadly neutral presence on the global balance sheet. However, the dynamics of these two trends are very different, with production composed almost entirely

The availability of data on coffee in China has presented some problems in terms of analysing trends and dynamics. The numbers used in this report were calculated as follows: • Import and export data: these numbers are made available to the ICO through customs statistics, which cover imports and exports into mainland China, and the official statistics offices of Hong Kong and Macao, which are then aggregated.

• Production: statistics on coffee production in China are available from the Food and Agriculture Organization of the United Nations (FAO). These are given in tonnes, which were then converted into 60kg bags.

• Consumption: No consistent data on consumption were found. Therefore, these numbers were derived by calculating Production + Imports - Exports, and then a rolling two-year average was used to smooth out any unusual year-to-year changes. This approach also assumes zero changes in stock levels over time.

This data was calculated over a twenty year period from crop year (October to September) 1994/95 to 2013/14. Full data can be seen in the table below. (Table 1)

Table 1. Coffee statistics for China (in thousand 60kg bags)

1994/95 1995/96 1996/97 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 Growth rates 1994-2013 2004-2013

Production

Consumption

Exports

Imports

54 53 50 60 104 146 193 287 324 386 361 365 428 433 555 1 173 827 1 090 1 534 1 947

180 255 220 109 167 245 282 337 396 448 514 544 576 606 623 994 1 271 1 312 1 488 1 891

58 24 196 166 124 109 186 212 265 283 240 301 352 401 530 563 633 969 1 269 1 170

173 313 245 225 236 238 282 309 348 387 418 485 527 577 611 742 995 1 314 1 275 1 463

21% 21%

13% 16%

17% 19%

12% 15%

Source: Euromonitor International

21

ECONOMICS

THE IMPACT OF THE PRICE OF OIL AND THE US DOLLAR EXCHANGE RATE

ON COFFEE PRICES

1

Graph 1

INTRODUCTION

300

300

250

250

200

200

150

150

100

100

50

50

0

0

New York Futures

Crude oil

Source: ICO

Graph 2

Crude oil price index and London futures price (January 1990 – December 2014)

• Changes in the prices of coffee and oil products • Exchange rates and the price development of coffee

200

• Recent developments

300

180 250

160 140

200

120 100

150

80

Crude oil index

London Futures (US cents/lb)

The methodology of the study is based on the use of statistical tests in order to determine the relationship between average monthly prices of coffee and oil products, and also the relationship between coffee prices and the exchange rate between the US dollar and national currencies of the selected exporting countries. This analysis will cover the period from January 1990 to December 2014. This period corresponds to the era of free trade following the abandonment of the regulated quota market system that was in place the previous decades. The reference price of coffee will be the prices on the New York and London futures markets, specifically, the average of the second and third positions.

Indeed, futures prices react very quickly to new information relating to physical prices. On the other hand, prices in physical markets react with delay, for transactions take time to become effective.

Crude oil index

New York Futures (US cents/lb)

As in the case of many other agricultural commodities, the coffee market is influenced by several factors, which can be categorized in hierarchical order. In the economic theory of general equilibrium, the pricing system is only a reflection of the balance of physical transactions.

Essentially, supply and demand are the main factors, which influence the price formation of coffee. At the same time, however, less fundamental factors come into play to superimpose themselves on the underlying fundamentals to influence coffee price determination and behaviour. Among these are climate problems (prolonged droughts or rainfall, frosts), price fluctuations of oil products, and variations in the US dollar exchange rate with other currencies.

The aim of this study is, on the one hand, to conduct a comparative analysis between the price of coffee and the price of oil products, and on the other hand, the relationship between coffee prices and the US dollar exchange rate in relation to the national currencies of selected coffee exporting countries. The purpose is to analyse the nature of the relationship between the price of coffee and oil products as well as the movement of the US dollar. The following main points will be covered:

Crude oil price index and New York futures price (January 1990 – December 2014)

100

60 40

50

20 0

0

London Futures

Crude oil

Source: ICO

1

22

The review was prepared by ICO experts for International Coffee Council, 115th Session, 28 September ‒ 2 October 2015 Milan, Italy.

COFFEE&TEA INTERNATIONAL # 1/2016

ECONOMICS

Correlation coefficients between the price index of crude oil and coffee prices Crude New York London oil index

Crude oil index New York futures price London futures price ICO Composite Colombian Milds Other Milds Brazilian Naturals Robustas

1 0.59 0.40 0.60 0.58 0.59 0.55 0.43

1 0.81 0.98 0.97 0.99 0.99 0.81

1 0.87 0.75 0.78 0.82 1.00

ICO

1 0.97 0.98 0.98 0.88

Table 1

Colombian Milds

Other Milds

1 0.99 0.96 0.76

1 0.98 0.78

Brazilian Robustas Naturals

1 0.82

1

Graph 3

Oil plays an important role in modern agriculture. Along with fuel for transport and agricultural machinery, plastic materials, nitrogen fertilisers and pesticides require a high consumption of hydrocarbons. Fertilisers are effectively substances, which, through soil enrichment, provide the plants with nutritive food supplements, which boost their growth and productivity. The development of the oil industry has increased the use of fertilisers. Natural deposits of phosphate and potassium contribute equally to the development of fertilisers. A number of coffee exporting countries use fertilisers in order to improve productivity. Three main nutritive elements are used in coffee growing: nitrogen fertilisers, potassic fertilisers, and phosphate fertilisers.

The chemical industry has developed the production of nitrogen fertilisers through ammonia synthesis from the nitrogen in the air and the supply of hydrogen from natural gas. Natural gas represents more than 80% of the cost of the production of ammonia, the source of nitrogen fertiliser. Furthermore, as a result of the strong positive correlation between the price of fertilisers and oil products with a coefficient of 0.90, it is worth bearing in mind that if the price of these move, it has an impact on the price of coffee, particularly through the costs of fertilisers and transport. In other words, an increase in the price of oil products could cause a rise in the price of agricultural inputs, leading to a fall in their use due to their being too expensive for many farmers. In addition, a fall in the use of inputs could result in a fall of production, which could have an impact on the prices of these agricultural products.

300

New York Futures (US cents/lb)

Nature of the relationship between oil products and coffee growing

Regression chart for crude oil price index and New York futures price (January 1990 – December 2014)

250

200

150

100

50

0 0

50

100

150

200

250

300

Crude oil index (Independent variable)

Source: ICO

Graph 4

Regression chart for crude oil price index and the London futures price (January 1990 – December 2014) 200 180 London Futures (US cents/lb)

CHANGES IN THE PRICES OF COFFEE AND OIL PRODUCTS

160 140 120 100 80

Correlation between the price of crude oil and the price of coffee 60 The price index of crude oil is used as the reference price 40 for oil products. Graphs 1 and 2 represent the development of the price index of crude oil and the average of the 2nd 20 and 3rd positions on the New York futures market on the nd nd 0 one hand and on the other, the average of the 2 and 3 0 positions on the London futures market. The two graphs illustrate the relationship between the price index of crude oil and the coffee futures prices of Arabica and Robusta.

Visual observations of the graphs do not determine the nature of the relationships between the price of coffee and the price index of crude oil. In effect, with some exceptions, the movements of the two price series were generally reversed at the beginning of the 1990s. It is since the 2000s that we observe a certain similarity in the development of the price of coffee and the price index of crude oil.

50

100

150

200

250

300

Crude oil index (independent variable)

Source: ICO

Table 1 indicates the coefficients of the correlation between the prices of crude oil and coffee on the basis of monthly observations during the period of 1990 to 2014. We observe the relatively high correlation between the price index of crude oil and the price of Arabica, for they vary between 0.55 and 0.59 both on the New York futures market but also for the three groups of physically traded Arabica

23

ECONOMICS

coffee. On the other hand, the coefficients of correlation between the price index of crude oil and the price of Robusta are weak, in the order of 0.43. Even the price on the London futures market, which reflects the situation of Robusta, has a coefficient of correlation of 0.40 in relation to the price index of crude oil. These coefficients seem to indicate that the development in the price of crude oil has very little impact on the prices of Robusta coffee, contrary to the case of Arabica coffee.

Analysis of the regression between the price index of crude oil and the price of coffee It is necessary to analyse the extent to which the price of oil products is a good estimator of the price of coffee. The following equation will be considered as a simple linear regression: Y = aX + b Where, Y is the explained variable and represents the coffee market price; X is the explanatory variable and represents the price index of crude oil; "b" is a random or residual variable; "a" is the slope of the regression line, indicating the scale of the relationship between the price index of crude oil and the market prices.

Table 2 provides the results of the regression tests of the price index of crude oil and the New York and London futures market price, while Graphs 3 and 4 provide the regression lines.

Results of the regression tests between the consumer price of crude oil and the market prices Table 2

Multiple R R Square a b

Crude oil index & New York futures price

Crude oil index & London futures price

0.59 0.35 0.45 80.63

0.39 0.16 0.18 50.32

The correlation and regression tests during the period of January 1990 to December 2014 confirm the absence of a determining relationship between the price index of crude oil and the market prices.

Nevertheless, it should be noted that contrary to Robusta, the prices of Arabica have relatively high correlation coefficients but the 2 regression test provides a low determination coefficient (R ).

EXCHANGE RATES AND THE PRICE DEVELOPMENT OF COFFEE Analysis of the correlation The objective here is to determine whether fluctuations in the exchange rate between the US dollar and the national currencies of

selected exporting countries affect the price of coffee. In order to conduct this analysis the currencies of nine exporting countries were considered. These countries represent 75.7% of the average exports of all types of coffee during the period of 1990 to 20142. Another criterion for the selection of these countries is the availability of statistical information. The Annex provides average exports of all forms of coffee and destination areas. It should also be noted that the US dollar is the reference currency in the majority of coffee transactions.

Table 3 indicates the correlation coefficients between the price of coffee and these exchange rates.

We observe low coefficients of correlation on the exchange rates for the majority of currencies in relation to the US dollar. Nevertheless, four exporting countries seem to make a difference compared to others, for a few correlation coefficients of significance are noted. The correlation coefficients of the US dollar/Brazilian real exchange rate are -0.49 and -0.66 in relation to the New York and London markets respectively. The Ethiopian birr provides a positive coefficient of 0.58 with the New York futures market and 0.32 with London. To a lesser extent, the Vietnamese dong provides a coefficient of 0.46 with the prices of the New York futures market, while the Ugandan shilling provides a coefficient of 0.38 with the New York futures market.

The London futures market, which is sensitive to the situation of supply and demand of Robusta coffee, has a very weak relationship to the exchange rates of the currencies of the main countries that produce this variety. Only the Brazilian real has a strong relationship with the London futures market contract price. In other words, a strong US dollar against the Brazilian real coincides with a fall in the price of Robusta.

Analysis of the regression Table 4 presents the summary of the regression tests for the four countries whose exchange rates with the US dollar seemed to have relatively significant correlation coefficients with the price of coffee.

The observation from the regression tests indicate that only the exchange rates of the Brazilian real in relation to the US dollar is related to the prices of the two futures markets (New York and London).

Nevertheless, we note that only 23% of the price variations in the New York futures market is explained by the Brazilian real exchange rate, while the variations of the London market is explained by 43%.

As for Ethiopia, only 33% of the New York market price variation is linked to the birr exchange rate.

In total, based on the observations of the period from 1990 to 2014, it is not possible to establish a significant correlation between the price of coffee and the exchange rates of the currencies of the selected exporting countries in relation to the US dollar. With the exception of the Brazilian real, the correlation and regression tests have not clarified the dependence of coffee prices in relation to the movements of the exchange rates against the US dollar.

RECENT DEVELOPMENTS The purpose here is to introduce a new element into the analysis of the relationship between the price of coffee and the variables related to the price of crude oil on the one hand and exchange rates on the other, taking into account the active nature of the single European currency, the euro. The euro entered into force in January 1999 and effec-

Correlation coefficients between exchange rates between the US dollar and national currencies and coffee prices (January 1990 - December 2014) New York Futures

New York futures London futures BRL/US$ *(Brazilian real/US dollar) COP/US$ (Colombian peso/US dollar) ETB/US$ (Ethiopian birr/US dollar) GTQ/US$ (Guatemalan quetzal/US dollar)

1.00 0.81 -0.49 -0.08 0.58 0.17

* Brazil: Exchange rate from July 1994 ** Mexico: Exchange rate from October 1992 2 Full details can be found in the Annex (pg. 27).

24

COFFEE&TEA INTERNATIONAL # 1/2016

London Futures

1.00 -0.66 -0.28 0.32 -0.05

Table 3

New York Futures

London Futures

INR/US$ (Indian rupee/US dollar)

0.26

0.09

IDR/US$ (Indonesian rupee/US dollar)

0.15

-0.05

MXN/US$**(Mexican peso/US dollar)

0.29

-0.03

UGX/US$ (Ugandan shilling/US dollar)

0.38

0.11

VND/US$ (Vietnamese dong/US dollar)

0.46

0.21

ECONOMICS

Results of the regression tests (1990 – 2014)

Table 4

BRL/US$ New York futures Multiple R R Square a b

0.48 0.23 -37.14 200.1

COL/US$

London futures 0.65 0.43 -30 129.2

GTQ/US$ New York futures Multiple R R Square a b

0.16 0.03 7.04 70.00

Multiple R R Square a b

0.28 0.08 7.86 76.20

London futures 0.06 0.00 -1.28 74.90

London futures 0.04 0.00 -0.30 71.70

Relationship between the price of coffee and the price index of crude oil The analysis of the observations from the period of January 2002 to December 2014 reveals significant correlation coefficients between the price of coffee and the price index of crude oil (Table 5).

There are strong positive correlations between the price index of oil and the price of coffee with coefficients going from 0.74 to 0.91, indicating that the price of coffee and the price index of crude oil develop in the same direction.

Correlation coefficients between the price index of crude oil and he price of coffee for the period of January 2002 to December 2014 Table 5

Crude oil New York futures London futures ICO Composite Colombian Milds Other Milds Brazilian Naturals Robustas

1 0.78 0.90 0.83 0.74 0.77 0.79 0.91

London futures

0.08 0.01 -0.01 129.80

0.28 0.08 -0.01 86.00

New York futures

New York futures

London futures

1 0.83 0.99 0.96 0.99 1.00 0.83

1 0.88 0.79 0.82 0.84 1.00

London futures

0.58 0.33 6.6 60.6

0.32 0.1 2.21 45.8

IDR/US$

New York futures

London futures

New York futures

London futures

0.25 0.07 1.22 69.20

0.08 0.01 0.24 55.70

0.15 0.02 0.00 104.80

0.05 0.00 0.00 68.90

UGS/US$

tively became active in transactions from January 2002. It should be noted that the European Union is the destination of more that 50% of the average annual exports of all kinds of coffee from exporting countries. Furthermore, the relationship between the price of coffee and the two types of variables (the price index of crude oil and the exchange rates of exporting countries in relation to the US dollar) will be analysed for the period of January 2002 to December 2014.

Crude oil

New York futures

INR/US$

MXN/US$ New York futures

ETB/US$

New York futures 0.37 0.14 0.03 69.1

VND/US$

London futures

New York futures

0.11 0.01 0.005 57.4

London futures

0.45 0.21 0.01 31.60

0.20 0.04 0.00 41.70

Analysis of the regression between the price index of crude oil and the price of coffee The analysis of the regression confirms the firmness of the link between the price of coffee and the price index of crude oil for the period 2002 to 2014 (Table 6).

Results of the regression tests from 2002 Crude oil index & New York futures price Multiple R R Square a b

0.78 0.60 0.75 32.70

Table 6

Crude oil index & London futures price 0.90 0.81 0.41 12.50

The regression tests provide strong coefficients of 0.60 for the New York futures market and 0.81 for London, indicating the extent to which the price of crude oil affects that of coffee.

Relationship between the price of coffee and the exchange rates The last part of the analysis will take into account the euro's status as reference currency in coffee transactions as well as the US dollar.

Between 2002 and 2014 the average annual exports of all types of coffee from exporting countries to Europe were of the order of 51.1 million of bags, 47.6 million of which were to EU countries, compared to 21.7 million for North America. Table 7 provides the correlation coefficients between the price of coffee and the exchange rates.

There are many strong negative correlation coefficients between the price of coffee and the exchange rates of three currencies in relation to the US dollar. In particular, this concerns the euro, the Brazilian real, and the Colombian peso. In other words, a strong US dollar in relation to these currencies coincides with a fall in the price of coffee. On the other hand, the relationship is strongly positive in the case of the national currencies of Ethiopia, Mexico, Uganda, and

25

ECONOMICS

Correlation coefficients between the US dollar exchange rate in relation to national currencies and the price of coffee (January 2002 to December 2014) Table 7 New York London futures futures

New York futures London futures Euro to US$ BRL/US$ *(Brazilian real/US dollar) COP/US$ (Colombian peso/US dollar) ETB/US$ (Ethiopian birr/US dollar) GTQ/US$ (Guatemalan quetzal/US dollar) INR/US$ (Indian rupee/US dollar) IDR/US$ (Indonesian rupee/US dollar) MXN/US$**(Mexican peso/US dollar) UGX/US$ (Ugandan shilling/US dollar) VND/US$ (Vietnamese dong/US dollar)

1.00 0.83 -0.60 -0.70 -0.75 0.76 -0.09 0.19 0.11 0.57 0.65 0.76

1.00 -0.73 -0.76 -0.84 0.67 -0.26 0.24 0.25 0.54 0.55 0.71

Vietnam, indicating that the exchange rates in relation to the US dollar and the price of coffee develop in the same direction. However, the exchange rates of the currencies of other countries (Guatemala, India and Indonesia) with the US dollar do not maintain a significant relationship to the price of coffee.

In order to obtain a better appreciation of this relationship, the regression tests on the observations during the period January 2002 to December 2014 were conducted (Table 8).

The regression tests are significant for the euro, Brazilian real, Colombian peso, Ethiopian birr, Ugandan shilling and Vietnamese dong exchange rates. The Mexican currency exchange rate in relation to the dollar has less impact on the price of coffee. The exchange rates, which develop in a reverse manner to the price of coffee are the euro, the Brazilian real, and the Colombian peso. On the other hand, the birr, Mexican peso, Ugandan shilling, - 12 - and Vietnamese dong exchange rates develop in the same direction as the price of coffee. The determining coefficients show that the strongest relationships are provided by the Brazilian real, the Colombian peso, the Ethiopian birr, and the Vietnamese dong.

CONCLUSION The relationship, which exist between the development of the price of coffee and the price index of crude oil, is less marked as a

Results of the regression tests of the relationship of the exchange rates of national currencies in relation to the US dollar (January 2002 - December 2014)

Euro/US$

Euro/US$

BRL/US$

BRL/US$

London futures

New York futures

London futures

0.72 0.52 -191.00 218.60

0.71 0.50 -76.40 304.20

0.77 0.60 -39.60 157.10

COP/US$

ETB/US$

ETB/US$

New York futures

London futures

New York futures

London futures

0.76 0.57 -0.12 388.40

0.84 0.70 -0.06 204.00

New York futures Multiple R R Square a b

0.59 0.35 -328.00 391.00

COP/US$

Multiple R R Square a b

GTQ/US$

Multiple R R Square a b

INR/US$

New York futures

London futures

New York futures

London futures

0.09 0.01 -25.20 329.60

0.26 0.07 -34.10 334.70

0.19 0.03 1.70 48.70

0.10 0.01 0.01 76.90

UGX/US$

26

0.67 0.45 4.70 11.00

INR/US$

New York futures

Multiple R R Square a b

0.76 0.58 11.10 0.10

GTQ/US$

IDR/US$

Multiple R R Square a b

Table 8

IDR/US$ London futures 0.25 0.06 0.01 3.50

MXN/US$

0.23 0.05 1.03 17.60

MXN/US$

New York futures

London futures

0.57 0.32 24.30 -153.50

0.53 0.28 11.00 -61.80

UGX/US$

VND/US$

VND/US$

New York futures

London futures

New York futures

London futures

0.64 0.42 0.10 -74.70

0.55 0.30 0.04 -16.40

0.76 0.57 0.01 -189.10

0.70 0.50 0.01 -76.60

COFFEE&TEA INTERNATIONAL # 1/2016

ECONOMICS

whole during the period of 1990 to 2014. On the other hand, it becomes significant from 2002. As regards the exchange rates of certain currencies in relation to the US dollar, the only significant relationship is between the world coffee price and the Brazilian real/US dollar exchange rate. However, recent developments since the introduction of the euro provide significant results.

The exchange rates of certain currencies of exporting countries, in particular the Brazilian real, have become good indicators of the

price of coffee. This close relationship indicates that the exchange rates of these currencies in relation to the US dollar allow us to forecast the movement of exports in the near future.

Finally, these different tests have confirmed that in the majority of cases a strong dollar causes a fall in the price of coffee.

Specifically, it should be noted that a fall in the value of the dollar against the euro results in an increase in the price of coffee and viceversa.

Average exports by country of origin and destination per region Average 1990 to 2014 (Unit of weight: 60kg bags of GBE) Country of destination

Total exports

Total exports by all countries 89 085 814

Africa

Asia & Oceania

Incl.

China

Central America & Mexico

2 820 117

13 059 716

305 017

638 862

24 227 248

257 466

3 544 501

27 806

256 125

2. Vietnam

11 239 026

446 825

2 272 303

188 905

3. Colombia

10 651 937

13 916

1 540 400

13 801

4. Indonesia

5 959 479

561 939

1 958 659

5. Guatemala

3 658 589

13 124

475 750

6. India

3 425 186

125 895

517 391

7. Mexico

3 227 938

1 527

161 951

8. Uganda

2 928 279

272 953

9. Ethiopia

1. Brazil

ANNEX

Europe European North South Other Union America America destinations

48 840 323 45 534 487 20 282 915 1 524 791

1 919 090

14 171 733 12 893 631

5 146 551

825 977

24 896

131 898

6 359 183

6 078 820

1 648 620

187 411

192 785

25 658

5 199 654

4 938 169

3 774 775

86 185

11 349

49 630

9 248

2 338 294

2 181 425

773 257

33 726

284 358

2 814

15 376

1 256 579

1 170 008

1 879 076

10 559

8 125

3 817

261

2 607 861

1 967 211

173 234

209

335

1 477

42 462

528 749

451 490 2 420 480

19 572

53 197

80 136

2 214

90

2 448 682

2 349 199

105 819

5 682

14 918

190 773

65

0

2 084 834

40 318

688 461

2 454

714

1 164 504

1 142 360

Selected countries (1-9) 67 402 516

1 733 964

11 239 551

292 918

481 830

36 075 238

33 172 313

16 112 585 1 169 385

589 963

Other exporting countries 21 683 299

1 086 153

1 820 165

12 099

157 032

12 765 085

12 362 174

4 170 330

355 406

1 329 127

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

European North South Union America America

Other destinations

All exp countries

Country of destination All countries

100.0%

Total exports

Africa

Asia & Oceania

Incl.

China

Central America & Mexico

Europe

100.0%

3.2%

14.7%

0.3%

0.7%

54.8%

51.1%

22.8%

1.7%

2.2%

27.2%

9.1%

27.1%

9.1%

40.1%

29.0%

28.3%

25.4%

54.2%

1.3%

2. Vietnam

12.6%

15.8%

17.4%

61.9%

20.6%

13.0%

13.3%

8.1%

12.3%

10.0%

3. Colombia

12.0%

0.5%

11.8%

4.5%

4.0%

10.6%

10.8%

18.6%

5.7%

0.6%

4. Indonesia

6.7%

19.9%

15.0%

16.3%

1.4%

4.8%

4.8%

3.8%

2.2%

14.8%

1. Brazil

5. Guatemala

4.1%

0.5%

3.6%

0.9%

2.4%

2.6%

2.6%

9.3%

0.7%

0.4%

6. India

3.8%

4.5%

4.0%

1.3%

0.0%

5.3%

4.3%

0.9%

0.0%

0.0%

7. Mexico

3.6%

0.1%

1.2%

0.5%

6.6%

1.1%

1.0%

11.9%

1.3%

2.8%

8. Uganda

3.3%

9.7%

0.6%

0.7%

0.0%

5.0%

5.2%

0.5%

0.4%

0.8%

9. Ethiopia

2.3%

1.4%

5.3%

0.8%

0.1%

2.4%

2.5%

0.9%

0.0%

0.0%

Selected countries (1-9)

75.7%

61.5%

86.1%

96.0%

75.4%

73.9%

72.9%

79.4%

76.7%

30.7%

Non-Selected countries

24.3%

38.5%

13.9%

4.0%

24.6%

26.1%

27.1%

20.6%

23.3%

69.3%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

All exp countries

27

SCIENCE AND TECHNOLOGY

Tea and flavonoid intake predict osteoporotic fracture risk in elderly Australian women: a prospective study 1

Gael Myers et al.

There is increasing interest in the role of dietary factors in osteoporosis and fracture prevention. The protective effect of calcium and vitamin D on bone health has been investigated extensively, and there is evidence that foods rich in flavonoids, such as fruits, vegetables, and tea, may also be related to bone loss and fracture outcomes. Flavonoids are a large class of phytochemicals that are widely distributed in plant foods. Tea is the main source of flavonoids in many populations, including Australia.

The primary objective of the present study was to determine whether higher intake of tea was associated with a reduced risk of fracture in a prospective cohort of Australian women aged >75 years. A secondary aim was to evaluate whether higher intake of total flavonoids and flavonoid classes was associated with a reduced fracture risk.

STUDY POPULATION

OUTCOME ASSESSMENT

A recruitment letter was sent to 24,800 potentially eligible women (> 70 years old).

Of the women who responded to the letter inviting participation, 1460 were recruited for the study. Participants were similar in terms of disease burden and pharmaceutical consumption to whole populations of this age, but they were more likely to be from higher socioeconomic groups. At the completion of the trial, subjects were invited to participate in two follow-up observational studies. Participants provided written informed consent, and ethics approval was granted by the Human Ethics Committee of the University of Western Australia.

Fracture outcomes over 10 years were tracked through the Western Australian Hospital Morbidity Data system, which is part of the Western Australian Data Linkage System. Fracture hospitalizations were determined with the International Statistical Classification of Diseases and Related Health Problems, 10th Revision. Major osteoporotic fractures included those of the hip, spine, humerus, and wrist.

DIETARY ASSESSMENT Tea intake was assessed at baseline, year 2, and year 5 with a beverage questionnaire.

The questionnaire asked, “On average (over the past 4 weeks) how many cups of tea [non-herbal] do you usually drink?” A validated food-frequency questionnaire (FFQ) from the Cancer Council of Victoria was used to assess dietary intake at baseline.

FLAVONOID INTAKE Flavonoid intake was estimated from data from the FFQ and the beverage questionnaire with the USDA databases. Where a category included in the FFQ or beverage questionnaire represented several entries in the databases, a mean value for flavonoid content was calculated. In the case of tea, only the value for black tea has been used because black tea is more commonly consumed in Australia than other beverages from the Camellia sinensis plant.

RESULTS BASELINE CHARACTERISTICS AND CHANGE IN TEA INTAKE OVER TIME Participants were classified into low (<=1 cup/week; 17%), moderate (> 1 cup/week to <3 cups/day; 30%), and high (>=3 cups/day; 53%) tea intake categories. The mean age of participants at baseline was 80.1 years. Significant differences were observed across tea intake categories for total energy, protein, calcium and total flavonoid intake. Tea accounted for 75.3% of the total flavonoid intake. A beverage questionnaire was completed by 1188 subjects at baseline, 996 subjects in 2005, and 824 subjects in 2008. Movement between tea intake categories over the 5years of follow-up was determined. A total of 19 (1.9%) participants moved from the highest to lowest or lowest to highest tea intake categories from baseline to 2005; similarly, 19 (2.3%) participants moved from the highest to lowest or lowest to highest tea intake categories from baseline to 2008.

1 Tea and flavonoid intake predict osteoporotic fracture risk in elderly Australian women: a prospective study

Gael Myers et al.

American Journal of Clinical Nutrition, 2015(102), pp. 958–65 © 2015 American Society for Nutrition

28

COFFEE&TEA INTERNATIONAL # 1/2016

TEA DRINKING AND HOSPITALIZATION FOR FRACTURE In the 10-year follow-up period, 288 (24.2%) women sustained an osteoporotic fracture, 212 (17.8%) women sustained a major osteoporotic fracture, and 129 (10.9%) women sustained a hip fracture. To investigate the incremental benefits of tea drinking, we categorized the women by whole cups of tea intake per day. For each 1-cup/day increase in tea intake, there was a 9% decrease in the risk of any osteoporotic fracture. There was no significant association betweenwhole cups of tea intake per day with hip fracture or major osteoporoticfracture. Compared with the lowest tea intakecategory (<=1 cup/week), consumption of>=3 cups/day was associatedwith a decreased risk of any osteoporotic fracture.

TOTAL FLAVONOID INTAKE AND HOSPITALIZATION FOR FRACTURE Compared with women in the lowest tertile of flavonoid intake, women in the highest tertile had a lower risk of osteoporotic fracture, major osteoporotic fracture, and hip fracture.

DISCUSSION In this prospective cohort of elderly Australian women, we found that daily consumption of >=3 cups of tea was associated with a lower risk of osteoporotic fracture hospitalizations. In addition, women with the highest flavonoid intake had the lowest risk of all osteoporotic fractures, major osteoporotic fractures, and hip fractures independent of traditional risk factors.

SCIENCE AND TECHNOLOGY

Coffee consumption and healthrelated quality of life 2

Esther Lopez-Garcia et al.

Health-related quality of life (HRQL) represents the individual perception of the impact of health status on different spheres of life, including physical, mental and social aspects. A decline in HRQL has been shown to predict increased mortality in subsequent years, while its improvement is predictive of lower mortality. However, no previous study has examined the association between coffee consumption and HRQL. A positive or null association would contribute to a better understanding of the mechanisms of the long-term effect of coffee on health and would add biological plausibility to the association between coffee and lower all-cause mortality reported in many studies. Thus, the objective of this study was to assess the association between habitual coffee consumption and HRQL in a representative sample of the Spanish population.

METHODS

HRQL

STUDY DESIGN AND PARTICIPANTS

HRQL was measured using the Spanish version of the SF-12 questionnaire. This is a reduced version of the SF36 questionnaire, one of the most widely used instruments to evaluate HRQL. This shorter version was obtained with a selection of 12 items, whose responses are coded and analyzed to reproduce the physical composite summary (PCS) and the mental composite summary (MCS) from the longer version. A zero score in PCS or MCS indicates the lowest level of health, and 100 indicates the highest level.

Data were taken from the ENRICA study, whose methods have been reported elsewhere. This is a cross-sectional study conducted in 2008-2010 among 12948 individuals representative of the non-institutionalized Spanish population aged >=18 years. Information was obtained in the households of study participants. Data collection included a health interview, samples of blood and urine, a physical examination, and a computerized dietary history to obtain habitual diet. Study participants gave written informed consent.

COFFEE CONSUMPTION Habitual food consumption in the previous year was assessed with a computerized dietary history, developed from the one used in the EPIC-Spain cohort study.

Coffee consumption was recorded in detail by asking the participants whether they consumed caffeinated or decaffeinated coffee and also about the method of preparation: drip coffee (filtered), percolated, espresso or instant (unfiltered). We considered the size of the cup and the addition of milk to the beverage to calculate the total amount of coffee in ml per day. Caffeine and other nutrient intakes were estimated using standard food composition tables.

To calculate the total caffeine intake per day we included caffeine from coffee and also from tea, caffeinated soft drinks and from chocolate.

RESULTS In this study, we found no association between coffee and HRQL. Our results mainly apply to non-filtered coffee, which was the type of coffee most frequently consumed in Spain. The weak positive association of coffee with the MCS found in women needs further confirmation. In any case, no detrimental effect of coffee on HRQL was observed.

This study allowed us to combine several physical and mental aspects of health that until now had been investigated separately. Our result of a null association between coffee consumption and the PCS of the SF-12 is consistent with previous publications showing no increased risk of diabetes, coronary heart disease, stroke, and cancer associated with coffee consumption.

Because the impact of mental health on mortality is minor compared to that

due to physical health, the effect of coffee on mental health may have been underestimated when studied using premature mortality as the global measure of health. However, there is emerging evidence that coffee has mental health effects, which are in line with our findings.

Several biological mechanisms might underlie the mental effects of coffee.

Caffeine is an antagonist of adenosine receptors A1 and A2. These receptors are distributed in brain structures related to cognitive skills, such the hippocampus, cerebral cortex, and hypothalamus. The blockage of these receptors by caffeine leads to an increase in adenosine within the noradrenergic, cholinergic, dopaminergic and serotoninergic systems, which are regulated by adenosine. Stimulation of noradrenergic and cholinergic systems increases alertness and attention.

Activation of the dopaminergic system acts as a psychostimulant and also increases alertness. In addition, stimulation of the serotoninergic system increases the feeling of wellness and energy.

The above acute effects of caffeine can be observed starting 30-45 min after intake and last for 3-6 hours. However, it is possible that habitual coffee consumers develop partial tolerance to these effects, so that coffee components other than caffeine may become more relevant in the long term. For example, phenolic compounds are antioxidants, and could improve neuronal function by reducing total free radicals and oxidative stress.

2 Coffee consumption and health-related quality of life

Esther Lopez-Garcia et al.

Clinical Nutrition 33 (2014), pp. 143-149 Š 2013 Elsevier Ltd and European Society for Clinical Nutrition and Metabolism

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HISTORY

“IF A SAMOVAR IS BOILING, NO ONE IS ALLOWED TO LEAVE!” Everything you wanted to know about traditional Russian tea drinking with samovar Ivan Sokolov, Ph.D. Historian

THE PLACE OF SAMOVAR IN THE RUSSIAN CULTURE Samovar (literally “selfcooker”, from “samo” = “self”, “var” = “cooking by boiling”) is one of the most recognizable “quintessentially Russian” artifacts in the world. It is one of the symbols of Russian hospitality, “Russian spirit”, and a part of the Russian tea tradition. Historically, this device has had many names: “samogrei” (“self-warmer”), “samogar” (“self-burner”), “samokipets” (“self-boiler”). Some historians even point out that the Tatar language has the word “sanabar”, meaning “kettle”. But of all these variants, it is the word “samovar” that has become widely used as a label for this miracle of Russian 18th-century engineering.

In the 19th century, samovar became a must-have in the everyday life of many social classes within the Russian society: the nobility used expensive silver samovars, shiny copper Bogdanov-Bel’ski, N. P. (1868 - 1946), “New Owners” (1913). Postcard from a private collection. samovars presided over the tables of the merchant class, of the “Chinese route” often point to a vesexpressions came to reflect the fact that mesh’chane (petty urban bourgeoisie) sel named “hogo”, used for warming food. samovar was widely regarded as a “winfamilies gathered around a samovar in the However, hogo did not have a spout, as it dow” into the unfathomable depths of the evenings, and even many peasant families was used for cooking soup. When ready, Russian psyche. had samovars and used them to relax after food was retrieved from hogo through an a day of hard work and on special occaopening at the top. sions. During that century, samovar has RUSSIAN? CHINESE? IRANIAN? In terms of their technical sophistication, become a symbol of prosperity and of a EUROPEAN? hogo and other similar devices were predetight-knit, happy family. Businesspeople The origins of the Russian samovar are cessors of the samovar. At the same time, gathered around a samovar in restaurants still the subject of a debate, especially the they gave rise to a wide variety of devices for to conduct transactions involving large degree to which various design elements of heating solid and liquid foods – so-called sums of money. There were special travel this engineering marvel may have been bor“samovar-kitchens”. These devices had a versions of samovars for people to take on rowed from other nations. Some chimney inside a body divided into several trips. Conflicts and disputes, a perennial researchers see samovar as a purely Russian compartments for boiling water and for scourge of mankind, were settled during invention, while others allow the possibility preparing soups and other types of food. negotiations around a samovar. An invitathat certain elements were borrowed from While certain design elements of the tion to a tea party often functioned as a Tibet, China, Iran or Europe (for example, samovar (common during various periods) form of apology or a redress for an offense the “samovar” from Pompeii). Proponents did have foreign sources, the samovar as a against someone. Many folk sayings and

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HISTORY

with zavarka on top of the samovar; rather, the pot was covered with a special insulating sleeve made of cloth stuffed with dry tea leaves, in order to keep it hot and to lock in the flavor. Another common attribute of the samovar was a metal tray that protected the tabletop from excessive heat and from spills.

SAMOVARS FOR SBITEN’ AND FOR PUNCH

A family photo with samovar, late 19th – early 20th century (prior to 1912).

Originally, samovars were used for heating up sbiten’, a traditional Russian drink made with honey and herbs. Tea came along later; in the 19th century, sbiten’ and tea were both popular, with sbiten’ remaining an integral part of the Russian culture. Unlike tea pots and kettles, samovars could keep water and sbiten’ hot for a long time.

According to historical sources, a craftsman named Lisitsyn opened a samovar-making shop in Tula in 1778. Although it is known that samovar production had existed even earlier – the first Russian samovar was made in 1740 in the Ural region, and production had existed in Moscow – it truly blossomed in Tula, making that city the “samovar capital” of the Russian Empire. It is a historical fact that samovars became fairly widespread as means of tea preparation prior to 1812.

whole is indisputably a product of the Russian culture. 19th-century European authors clearly recognized this fact, and separated “Russian samovar” from other conceptually similar devices endemic to Europe and other regions.

UNIQUE FEATURES OF THE SAMOVAR The design of the samovar is fairly simple: it is a vessel with handles and a spout, and inside of it is a heating chamber (pipe) that is filled with fuel. The large surface area of the heating chamber allows it to heat water fast and to keep it at the optimal temperature for brewing tea.

Samovar keeps the water hot without overheating it and at the same time softens it – the minerals exit the water and are deposited on the outside walls and bottom of the heating chamber. To prevent this sediment from getting into the cup, the spout is raised above the bottom.

“SAMOVAR PAIRS” AND “TEA PAIRS” When the samovar boiled, a porcelain teapot with zavarka (a very strong brewed tea that was poured into cups and diluted with hot water to make tea for drinking – Transl.) was placed on the top. Thus, the notion of a “samovar pair” came into existence: a samovar proper and a pot with zavarka. In Russia, there was also the notion of a “tea pair”: a small pot for zavarka and a larger pot/kettle for hot water.

The Russian method for preparing tea was as follows: first, zavarka was brewed in a small teapot and steeped for a period of time; then it was poured into cups and diluted with hot water to produce tea with the desired strength and flavor. In Europe and China, there was no special vessel for zavarka: tea was brewed in a pot or kettle and poured directly into cups for drinking.

TRICKS OF THE TRADE Many samovar enthusiasts in the 19th century had their own methods of preparing tea.

In particular, some people did not place a pot

Makovsky К.Е. (1839 - 1915), “A cup of mead”. Private collection.

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HISTORY

samovar producers ended up this way – but more still were never caught and earned a handsome profit.

Later, the authorities replaced old copper coins by lighter alloys and paper money, making the criminal enterprise less profitable. But even then shrewd samovar manufacturers managed to make a profit – by buying old coins from the population at prices that were higher than those offered by the state.

SAMOVAR AT THE CENTER OF THE RUSSIAN DINNER TABLE In Russia, samovar became the focal point of every gathering: it became synonymous with Russian hospitality, creating an atmosphere conducive to discussing personal as well as business matters.

This latter quality was especially prized by merchants: samovar and tea stimulated the conversation without altering the mind as, for example, vodka did.

Although in Russia tea drinking was not a ritual in the same way it was in the East (e.g. in China and Japan), with special rules and procedures, nonetheless, it was a time for slow and deliberate conversation, for demonstrating one’s mindfulness. Conversations around tea were not to be rushed: slowly sipping tea allowed people to think before speaking. According to a Russian proverb, “With tea, it is paradise even under a fir tree!”

FROM COMPLEX TO SIMPLE: EVOLUTION IN REVERSE AND PRICE REDUCTIONS

Makovsky К.Е. (1839 - 1915), “Alekseich” (1882). Postcard from a private collection.

In addition to tea, many Russian military officers used samovars to make punch (a hot alcoholic beverage). One 19th-century source describes a high-ranking military officer thus: “Field Marshal Dybich was a big drinker. During the Turkish war he was nicknamed “Field Marshal Samovar”: at his headquarters, from early morning to late night, a samovar full of punch was always boiling. Even when he ventured into the field on horseback – to survey enemy positions or to check on his troops – an assistant always followed him, carrying a container of cold punch and a glass.”

SAMOVAR TECHNOLOGY: HIDE-AND-SEEK WITH THE LAW By the 18th- and 19th-century technological standards, samovar was a fairly complex device. Interestingly, samovar production for most craftsmen was a semi-criminal affair. The reason is simple: some samovars were made from coins issued by the state. One Russian pound (= 16 kg) of copper coins was worth about 16 rubles in paper money, while the same amount of copper as raw material cost about 40 rubles. Thus, simply melting coins allowed samovar producers to secure a profit of more than 150%.

Manufacturing and selling a samovar increased the gain even further.

This practice was fairly widespread among samovar makers in Tula (and in other quarters as well – for example, makers of church bells were also known to exploit this imbalance). The practice was illegal: if caught by imperial authorities, coin melters were whipped and sent to Siberia for hard labor. Many skilled craftsmen and

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During the 18th-19th centuries the use of the samovar became popular among people of various social classes and guilds. Of course, that meant that samovar had to evolve, changing its quality, materials and designs. Initially, samovars were made from copper; later, from brass. In the 18th century, samovar was a luxury item, beyond the reach of most people. Many specimens from the 18th or early 19th century are of the highest artistic quality, beautiful and elegant despite their relatively simple shape. However, by the end of the 19th and the beginning of the 20th century samovar becomes an element of mass culture, manufactured in factories from parts that had been stamped or cast. These mass-produced samovars were not as impressive as the one-of-a-kind exemplars hand-made for the elite, but they still had their own soul. There was a proliferation of shapes and sizes. Many decorative elements also played a functional role: for example, various reliefs on the body of a samovar made it than a plain one, thereby extending its lifetime. At the same time, many awards reproduced on the body of a samovar were not only advertisements for the manufacturer, but took on their own aesthetic value. Often, some of the awards displayed on a samovar made by a manufacturer were in reality for a different product, but the manufacturer would display them on the samovar anyway; thus, the number of awards was not a reliable indicator of a samovar’s quality.

Moreover, some manufacturers, driven by the desire to sell their product, resorted to fraud: having no permission to use the Russian Imperial Seal for decoration, they would display “dead ducks” – an imitation of the Seal designed to fool careless or uneducated buyers.

Samovars that sported these “dead ducks” could be sold at a higher price than samovars without any awards or other decorative elements. At the same time, many large samovar manufacturers in Russia produced specimens of excellent quality and artistic beauty: during the 19th century, such specimens won prizes at many international exhibitions.

SIZE MATERS The sizes and functions of samovars varied widely and had great significance. On special occasions people brought out formal samovars. For routine tea drinking, whether in the morning, during the day ort at night, there were daily-use samovars – “workhorses”, not as impressive as the formal ones, but loved dearly by their owners. Single people spent their tea time in front of an “egoist” (or a “recluse”) – a samovar that held enough water for only 1 or 2 cups of tea. For people in love, there were “tкte-а-tкte” samovars that

HISTORY

reflected the happiness of a young couple.

“Household” samovars complemented familial bliss. In aristocratic and in wealthy families children had their own “junior” samovars, as children – at least the obedient ones – were allowed to drink tea. Shops and roadside taverns boasted their special designs as well. A travel samovar accompanied a person on the road. Pilgrims arriving to a monastery for a religious celebration were met with samovars that held as much as ten buckets of water – enough for the whole crowd. Soldiers on active duty sported military versions of samovars, outfitted with a shoulder strap that allowed them to be carried around. During the 19th century many families passed a samovar from generation to generation. A popular proverb said, “If a samovar is boiling, no one is allowed to leave”.

SHAPE AND PURPOSE. “FOUNTAINS” – SAMOVARS “IN REVERSE” Samovars came in a wide variety of shapes: jars, flutes, spheres, pears, eggs, vases. Later on, people invented samovars that were heated by ethanol, kerosene and, eventually, electricity. Samovar also inspired many related gadgets: sbiten’niks (for sbiten’, a traditional honey-based drink), vessels for heating and even preparing cof-

A family seated around a samovar. Postcard.

fee, vessels for preparing heated wine and punch and even for chilling wine and champagne in the summer. So-called “fountains”, containers for chilling beverages, were especially popular. Sometimes they were called “samovars in reverse”: instead of an inner chamber filled with hot coals, “fountains” had chambers filled with ice.

Bouillottes (French for “heaters”) were small kettle-like devices for quickly heating small quantities of water. In general, samovars were a fast and cheap means for boiling water: stoves were much slower to heat and required much more work and fuel to get burning, whereas samovars were easy to use, did not require maintenance after each

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HISTORY

use and could take many types of fuel, such as charcoal, wood, pine cones or birch bark.

A TRAY WITH TEA SERVED BY A FAMOUS RUSSIAN FABLE-WRITER In the 19th century, tea drinking with a samovar quickly became a favorite Russian pastime; cultural and scientific elites shared the passion as well. One Russian literary figure, K. S. Serbinovich, wrote the following lines about the family of Nikolai Karamzin, a famous 19th century Russian historian: “Little by little I started looking over the room and everyone present there. Ekaterina Andre’evna was seated on a sofa near the wall to the right of the entrance. In front of the sofa was a round table, and on it – a tea setting with a samovar. The eldest daughter of Nikolai Mikhailovich (Karamzin), 16year-old Sophia, was serving tea; her younger sister, 12-year-old Ekaterina, stayed nearby. There was a lively conversation among the guests around the table.”

We can clearly see how a samovar becomes a social “center of gravity”, drawing people into a friendly circle.

Sometimes the job of serving tea or of firing up a samovar was delegated to foster children, or to children of less well-to-do relatives. In particular, Ivan Andre’evich Krylov, a famous Russian fable-writer, as a 12-year-old boy lived with the family of his wealthy relative, Pyotr Petrovich L’vov, and frequently served tea at the family table.

According to a contemporary, “[…] Ivan grew up and became a smart young man, he was always neatly dressed; since there were few servants in the L’vov household, whenever there were visitors, the hosts would often say, ‘Ivan, please bring a tea tray to the living room’, and Ivan would do the job quickly and get praised by the kind and wise Pyotr Petrovich.”

In many mid-19th-century Siberian towns, every decent-sized inn had a samovar for the guests. I. S. Zhirkevich, a Russian military officer and writer, recalled drinking tea from such a samovar upon his arrival to Symbirsk. This afforded him time to ask the innkeeper about the local news.

By the 1860s, tea drinking had become a common pastime in most peasant families.

FIRST TO GET RESCUED FROM A FIRE During a fire or other calamity, samovars frequently were among the items that would get rescued first. At the same time, while samovars were relatively safe to operate, many people in the 19th century believed that these appliances were prone to cause fires. Of course, frequently such rumors were deliberately spread by those who had a financial stake in the matter: for example, many factory owners forbade the use of samovars in factory dormitories; instead, workers had to use the hot water provided by the owners, thereby providing the latter with a modest but steady source of income.

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That being said, sometimes samovars deserved their “incendiary” reputation. For example, in 1879, a string of fires devastated Orenburg (a large city in Siberia), burning down ѕ of the city and creeping dangerously close to munition depots; a witness recalled that during the first fire in the series, many citizens rescued their samovars and used them for heating water inside the structures that were spared by the blaze.

This source also suggests that those samovars, often kept in barns near bales of hay, were the causes of subsequent fires.

SAMOVARS AND RAILROADS: FROM THE EMPERORS TO STALIN Samovars remained a part of railroad travel until at least the late 1920s, featured on luxury trains, such as the famed “Red Arrow”. Samovars were a relatively safe source of hot water for the passengers.

Back then, railroad cars were constructed mostly of wood, and samovars were a perfect solution for the problem of reducing the risk of fires. The only alternative was using the water from the steam engine itself: on some photos from the RussianJapanese war of 1904-1905, soldiers can be seen lining up in front of an engine to receive a serving of boiling water.

SAMOVAR AMONG VARIOUS ETHNIC GROUPS OF THE RUSSIAN EMPIRE It should be noted that during the 19th century samovar was not an exclusively “Russian” cultural artifact. Many photographs from the pre-1917 period show that samovars could be found in diverse regions of the Russian empire and among its numerous ethnic groups. In particular, samovars were popular among the Tatar people of the Kazan’ region. Among the Siberian Tatars, samovar had become a prominent household item as early as the middle of the 19th century: according to a contemporary source, “Inside a winter as well as a summer yurta (a traditional dwelling made from animal skins or felt stretched on a wooden frame – Transl.) one would find […] women’s quarters to the right, men’s to the left. Along the inner walls are benches or even simply narrow shelves; on the men’s side, they are piled up with horse harnesses, and various boxes and chests, on the women’s side – teacups, samovars and other household items”. A samovar (sometimes several) was a sign of a well-to-do family; Tatars from poorer backgrounds prepared their tea in pitchers and metal kettles on an open fire.

By the middle of the 19th century samovar was also widely seen as a status symbol among the members of the Tepryak ethnic group (thought to have its origins in the intermixing of Finno-Ugric and Bashkir peoples). The well-to-do Tepryak households often had several samovars: “Along the back wall of the house is a cabinet with

COFFEE&TEA INTERNATIONAL # 1/2016

teaware; sometimes, a whole shelf is taken up by kettles; you can’t help wondering, why so many kettles, but when you look closer, you realize that only one of them, rarely two, are usable – and others, one has a hole in the side, one is missing a spout, one has no bottom altogether… but they all are positioned so deliberately by the wall, it appears from afar that they are all in good condition. Same is true about teacups. Next to the stove is a special place for the samovar; there it sits, all clean and shiny, and the rich people may have two of them, and next to it – a copper wash basin, shaped like a pitcher, and a copper tub.”

Tea drinking with samovars was also popular among Yakuts: “Wealthy Yakuts drink brick tea with milk, using copper kettles; some even have samovars and fairly goodquality tea.”

Samovar proved to be such a convenient and useful household item that it made it all the way to Kamchatka and to Sakhalin, on the far Eastern fringes of the Russian Empire. The wife of P. I. Ricord, Governor of the Kamchatka region, recalls this about her stay in Kamchatka during the early 19th century: “One summer, villagers told my husband that there was a beached whale about 5 kilometers from our house. A whole expedition was organized to go see the whale; I did not wish to be left behind, and early in the morning we set out on horseback. It was a short distance, but the trip was very difficult, as there were no roads. We had with us four soldiers with loaded weapons to scare away the bears, who gathered at night in large numbers around the whale to eat its blubber. Six people were carrying a light boat made with birch bark, to cross small streams; besides, they carried on their shoulders a tent, a samovar and provisions…”

It is evident that even far from their native places, at the outer edges of the Russian Empire, early 19th-century noblemen could not bear to remain for too long without a samovar, even on challenging trips through the countryside.

CHANGING PEOPLE’S MINDS, PASSING THROUGH CENTURIES… As an expensive item, the samovar impacted the way people perceived the world around them and became a focus of many superstitions. In the 19th and early 20th-century Russia, a poorly working (hissing or whistling) samovar was considered a bad omen, while a samovar that crackled and “sang a tune” signified good fortune.

When a samovar broke, the owners anticipated not only the expense of repairing or replacing it, but some other approaching misfortune.

Today, the practice of a family gathering for tea around a samovar has been lost; but the time will come when samovar will once again become a cornerstone of the Russian tea tradition.

WHO IS WHO?

GLATFELTER: Capsules for hot beverages apsules for hot beverages have evolved into a mega trend. Consumer demand is reaching record levels, causing markets to offer a wide range of flavors and capsule types. This gives individuals the liberty to live out their specific coffee and tea dreams.

At present, single server solutions are still dominated by coffee beverages, which make up more than 70% of all capsules, as noted by capsule experts. However, tea is growing and made up for 20% of all capsules in 2015. The remaining percentages are divided between other beverages such as hot chocolate or soup. Exports reported in 2015 that tea capsules accounted for 10% of dry tea sales in 2015. This is up from just 2% in 2009.

Technically speaking, single serve tea solutions have advanced in delivering a better tasting product in comparison to a few years past.

A capsuleâ&#x20AC;&#x2122;s modest size does not reveal how complex the structure is. Coffee capsules have an oxygen barrier or are wrapped in individual packaging for the ease of storage and dosage. This causes the product to produce a high quality coffee or tea as the fresh aroma is sealed until the capsule is opened and used. This means that consumers no longer have to worry about consuming a beverage with bad taste. Furthermore, the product is perfectly dosed every time. Quick preparation gives the consumer a high quality beverage without having to spend time preparing and waiting. Easy clean up is an added bonus.

For producers the capsule market has increased revenue, as margins are much higher than in traditional tea and coffee markets. Capsules create added value for their producers and distributors.

In order to better serve its customer base, Glatfelter has become the manufacturer of choice for filter paper applicable to single serve portions. In specifics to materials, Glatfelterâ&#x20AC;&#x2122;s filter paper has proven runnability with excellent filtration properties.

Absolute taste neutrality gives capsule producers the peace of mind needed to produce an end product of

C

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immeasurable quality. The paperâ&#x20AC;&#x2122;s pressure resistance works wonderfully with espresso capsules needed to withstand up to 20+ bar. Further positive properties are the aspects of heatsealability, controlled particle retention and water flow, which make the product versatile as it can be implemented in the capsule or also as a capsule lid.

Glatfelter has experienced technical and commercial colleagues offer a high level of service. Close communication with collaborating agents across the globe make sure to offer local support to all customers.

Constant innovation, to further improve products is done by Glatfelter through engaging in joint developments with excellent industry contacts and partners.

This industry know-how has given Glatfelter significant experience with capsule applications. The option to choose from three unique branding technologies, gives customers the ability to differentiate their products from competitors. The capsule market is highly competitive; therefore, differentiation is a prerequisite for brand awareness and success.

Capsules will continue to be a product of high importance for the beverage market. As current trends show the capsule, future looks bright. Glatfelter is confident in being the partner of choice for your filter paper needs.

HoReCa

The craft of

«TEATELLING» For a person who earns a living by facilitating tea experiences, the ability to tell “tea tales” becomes a key professional skill, rivaling in significance the knowledge of tea proper and the expertise in brewing and serving tea.

We shall introduce the word “teatelling”, a fancy new term for telling

HoReCa

Denis Shumakov, Turquoise Tea Group

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stories about tea (especially since facility with juggling fancy terms is itself a component of this enchanting skill), and we shall proceed by looking into the nature of teatelling in some detail.

Technically speaking, there are no fundamental differences between the ability to tell stories about tea and stories

about, say, soap. An enthusiastic and knowledgeable person armed with irresistible charm is a pleasure to listen to, regardless of the subject matter. But let us pretend for a moment that teatelling is different from soaptelling (and othersundries-telling) and let us formulate teatelling’s basic principles.

Between the two extremes of tea culture – the everyday mass consumer one (built on cheerful, familiar flavors and pervasive stereotypes) and the “haute gastronomie” one (intensely focused on every minute detail of tea and tea experience) – there is a deep and wide chasm… that is surprisingly easy to cross. And that is because this chasm is filled almost to the top with “tea tales”.

Exaggerating only a little bit, we can say that every budding tea enthusiast’s interest in the subject of tea and tea experience is kindled by various “tea tales” heard around the tea table or from other numerous and accessible sources. If the enthusiast preserves the interest, and manages to supplement it with experience, he or she comes to that well-known point where tea experience begins to consist mostly of words. Even if it takes place in total silence.

COFFEE&TEA INTERNATIONAL # 1/2016

MORE ENTERTAINING AND INFORMING, LESS MANIPULATING A tea experience, especially one facilitated by a qualified professional host, is ideally suited for manipulating gustatory and olfactory experiences of the participants. There are times when such manipulations are the primary focus of the experience (for example, during sales-oriented degustations), but when it comes to tea-based entertainment, the temptation to impose one’s own conception of tea on the audience should be resisted.

Organoleptic characteristics of tea are a wonderful foundation for a string of vignettes; this potential should be developed, and there is no justification for making the taste of tea the sole inescapable focus of the whole enterprise.

A “TEA TALE” IS A MEDLEY OF FACTS, FABRICATIONS AND REFLECTIONS, CONNECTED TO EACH OTHER AND TO THE EVENTS UNFOLDING AROUND THE TEA TABLE The proportion of facts, fabrications and reflections in each tea tale will differ, depending on the character of the degustation. In addition, these facts, fabrications and reflections do not have to be directly related to tea.

On the contrary, the crossing of tea-related – and, more generally, of gastronomical – boundaries is a sine-qua-non of every good tea tale, provided, of course, that at any point in the tale there is a direct route back to tea. Such a route always exists, to be sure: the effectiveness of phrases like “But enough about Mamluks; let us get back to tea” is greater the longer and more interesting the story about Mamluks has been.

In order for facts, fabrications and reflections, often utterly unrelated to each other, to come together into an epic narrative, one needs to learn how to make convincing transitions. The skill of making such transitions can be learned by studying classical literature (“The Iliad”, “The Odyssey”, Herodotus’ “History” and, of course, Icelandic sagas) as well as contemporary authors (“Pinball Effect” by James Burke should be required reading for professional topical storytellers).

Simplifying greatly, there are two basic approaches to building connections between facts, fabrications and reflections. There is the event-based approach (“I was there, and here’s what I saw” or “While this was happening, one young man stole ten thousand guldens”) and there is the association-based approach (“I was reminded right away of something that happened during my childhood” or “Many familiar things have the same smell – for example, turpentine”).

FACTS SHOULD BE PLENTIFUL While honing the skill of building eventbased and association-based connections, we should not forget that facts are the cornerstone of quality teatelling. And the drier and more particular these facts are, the easier it will be to weave them into the narrative. This is where one’s industrial, commercial and consumer experience and book knowledge become invaluable, especially if the knowledge

is gained from respectable books, not from attempts to write down other people’s tea tales.

Examples of good sources of tea-related facts are books by I.A. Sokolov on history of tea in Russia, by A.N. Ignatovich on the Japanese tea culture and the recently translated into Russian “Big Book of Tea” by a group of Canadian authors. Absolutely invaluable are old books: by A.P. Subbotin, M.D. Davitashvili, K.E. Bakhtadze, and other authors, sometimes tendentious but always based on large volumes of reliable information. Extremely interesting from the point of view of “fact collection” are technical and academic articles and books published abroad; I particularly like “The True History of Tea” by Viktor H. Mair and Erling Hoh and “A History of The World in 6 Glasses” by Tom Standage. Of course, this is not an exhaustive list.

Obviously, serious attention should be devoted to building up the general erudition of a teateller, especially in areas that are related to tea: botany, history, agriculture, the cultures of other beverages.

THE NARRATOR MUST BE PRESENT IN THE NARRATIVE Ideally, the narrator should be the protagonist; if this is not possible, at least an observer or a commentator. A tea tale without an author who is standing right in front of you turns into a mere voicing of a text. And this is boring, even when the text is well-written.

As a teateller, you must not only insert yourself into the narrative and make manifest your feelings about tea history and tea itself; you have to expunge every hint of objectivity.

Subjectivity multiplied by not taking yourself very seriously is the best way of letting your audience know that their personal attitudes toward tea are valid and valuable.

A MEMORABLE PERSONAL TRADEMARK Every good teateller must incorporate a unique personal trademark into the story.

Unusual clothing, gestures, room design and other accoutrements do not merit our attention, as they are only superficially related to the skill of teatelling. But a unique feature of the story itself is indispensable. It usually comes in the form of clever remarks (such as jokes or comments) that are repeated multiple times during a story and thus make the experience memorable. Material prepared in advance can also be used: for example, a term naming a flavor characteristic (“notes of menthol” or something a bit more expressive).

Once again, in order for these remarks to become memorable, they must be repeated many times over.

The above description of the technique may sound a bit childish, but having such a trademark not only makes tea tales more accessible and memorable, enables the teateller to control the “background” mood and imparts uniqueness on the experience, but also becomes an element of the narrator’s personal style, which is frequently very important in and of itself.

ADVANCE PREPARATION Clearly, it is necessary. And, just as clearly, it does not preclude improvisation, so highly valued by good storytellers; on the contrary, advance preparation can lay excellent groundwork for improvisation.

In addition to collecting and memorizing numerous facts, a teateller preparing teatales should pay attention to the following points.

Verbalization of taste and flavor experiences. Descriptions and evaluations of the most common taste, aftertaste and flavor experiences of the audience have to be compiled in advance.

A vocabulary of taste- and flavor-related terms. Ideally, a vocabulary of 15 to 20 terms should be made available to the guests to assist them in verbalizing their experiences. Of course, the vocabulary doesn’t have to be on paper: the terms can be introduced orally and gradually, with the necessary definitions and clarifications (e.g. of the differences between a “woody” and a “flowery” flavor tone). It is quite natural for audience members, who generally have perfectly functioning taste buds, to have difficulties verbalizing their taste experiences. By giving them “ready-made” formulas, the narrator definitely imposes a somewhat rigid structure on their experiences, but in return gives them a language for a meaningful exchange of opinions. This is more than adequate compensation for a slight gastronomical “programming”.

Anticipating disagreements. When preparing one’s gastronomical vocabulary, provisions must be made for subjectivity, i.e. for the possibility of guests giving different evaluations of the same sample of tea. A couple of contexts in which such differences may emerge should be prepared in advance and presented to the guests, making them co-authors of the tea tales.

Common cultural experiences. If possible, these should also be identified and prepared in advance. It is desirable to go beyond the primitives such as “Oh, you’ve just returned from Germany… I remember drinking beer in Munchen” (although, to be honest, the “primitive” approach can work quite nicely, if expertly executed).

Interactivity triggers. Of course, every tea degustation can become interactive at any moment; moreover, it should be interactive.

But, every once in a while, the guests may tend stay passive (not surprising, as tea drinking is very relaxing); just for such cases, the host must have a few reliable tools for getting the audience members to interact.

*** These, in a nutshell, are the basic principles of teatelling. Every degustation is sure to have its unique circumstances, and every individual host may choose to complement these basics with his or her original solutions. And every host will make his or her unique mistakes, which are impossible to foresee but which can serve as material for future tea tales.

And when the skill of teatelling has been mastered to perfection, one can attempt the ultimate teatelling feat: convey the most profound insights by remaining completely silent.

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HoReCa

The Short Season of

CUP OF EXCELLENCE Elena Kupriyanova

The Cup of Excellence program was launched in 1999 and now is operated by the Alliance for Coffee Excellence, Inc (ACE), a nonprofit organization located in Portland, Oregon. The main goal of the program is to give coffee farmers an opportunity of learning quality measures, getting more profit from better-grown coffee and creating a communication between a farmer and a roaster. In 2015, the ten coffee growing countries took part in a competition: Rwanda, Nicaragua, Mexico, Honduras, El Salvador, Guatemala, Costa Rica, Columbia, Brazil and Burundi. Each coffee sample gets through several cupping evaluations conducted over by the national jury first and by the international jury members afterwards. The winning lots are sold in global online auctions. The buyers are the coffee companies and roasters worldwide. The better quality of the coffee is the more profit a farmer can get.

Since 1999, the Cup of Excellence program has had a huge positive impact on the coffee quality and the lives of coffee farmers in the participating countries. A recent study by a global non-profit organization TechnoServe found that COE created an immense value for Brazil ($137 million) and Honduras ($20 million). COE had a far-reaching impact on coffee quality in both countries and changed the attitude to coffee from Brazil and Honduras on the global specialty market.

CUTTING DOWN FOR THE UPGRADE

HoReCa

In July 2015 Geoff Watts, Chair of the ACE Board of Directors, published an official letter about the COE changes in 2016. Here are the items needed to change:

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•

Developing a new auction platform;

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Updating existing competition standards and protocols;

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Creating and implementing an electronic cupping form;

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Improving post‐auction logistical issues with respect to deliveries of purchased lots.

COFFEE&TEA INTERNATIONAL # 1/2016

The goal is to increase the auction prices paid to farmers and ensure that COE coffees continue to represent the pinnacle of excellence. Season 2016 will be a test period and there are no possibilities for following a full competition schedule.

That’s why the ACE made a decision not to hold auctions in El Salvador, Rwanda, Burundi, Mexico and Nicaragua in 2016.

Geoff promises it is a temporary measure.

In 2017, they intend to scale up with the program in the countries they have worked with in the past and new countries as well.

«We understand that this decision will impact farmers in countries without a COE program next year, and will also mean that in 2016, there will be fewer COE coffees for our members to buy. Ultimately, however, the board determined that this step was necessary», - Geoff comments.

Debbie Hill, Executive Director of the ACE, explains why the program is needed to be changed. Cup of Excellence has existed for 16 years, and much has changed in that period of time, both in the specialty coffee world and the world of technology. The ACE now develops new tools for the program. For example, they will provide a new sales channel for the high

quality coffees that advance to the final week of the competition, but are not in the winning list. The system will also provide additional data for both coffee farmers and COE buyers. This will help them in their efforts to create extraordinary quality of coffee. COE will now be able to make available moisture and water activity measurements, warehouse storage information, jury scoring data and suggested roasting profiles. The process for buying and shipping COE coffees will be easier and more efficient.

«The Alliance for Coffee Excellence Board’s decision to reduce the number of COE countries is in no way a reflection of any country’s coffee quality or program performance. All of these countries we have worked in, as well as many that COE still has not touched, are capable of producing exceptional quality coffee. The Board simply had to make some very difficult decisions, and it did so after serious consideration and lengthy discussions. Our intention is to expand operations again in 2017». – Debbie explains. – «Farmers in those countries that do not have a COE program in 2016 will continue to sell high-value coffees to the marketplace through the many direct relationship channels that have been enabled as a result of COE’s presence».

NEW EVALUATION FORMS AND CROPSTER HUB Sherri Johns, Director of Training and Main Judge of Cup of Excellence, tells us why it’s time to update the current evaluation standards and forms.

«Just this year we tested the effect skimming and skim time (following the crust break in coffee cupping), cups were allowed to settle for 0 time, 30 seconds, and 1 minute, all the way to 8 minutes and with the same exact coffee before skimming. The results were noticeable. Therefore, on the cupping table of 10 samples, we now have the jury / cuppers skim in sequence to allow each cup with a very precise and consistent dwell time. This is only one example the standards for the competition protocols have advanced». –Sherri comments.

The judge evaluation protocols for Cup of Excellence will be available in electronic form. Cropster, the Austrian company, famous for its electronic tools for roasters, creates Cropster Hub, a new online data center containing information about coffee producers and coffee lots on sale.

Sherri feels excited about this new service: «Imagine you are seeking to buy a COE coffee at an auction, your customers want chocolate and butter, well, what if you are able to access each winning farm with the attributes of chocolate and butter...cool».

BEING ON THE CUTTING EDGE Alexander Malchik, President of Montana Coffee Company and an ex-member of The ACE Board, considers it important not to make snap judgments. «If they want to advance, they have to do serious work. The program needs to be refreshed. They need changes to be on the cutting edge. Cutting down the COE program in some countries could be caused by the economic or political situation in

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HoReCa

of Excellence is not just the usual auction and coffee selection program. It combines the farmers’, traders’ and roasters’ efforts. COE is one of the most complicated programs in the coffee industry regarding sourcing and logistics issues. The different local political systems are involved in this process.

Today we often read on the coffee package: «This coffee is grown on this farm, with this altitude, has this taste profile».

We should thank COE for this. Without doubt, this competition is of high value for the participating countries. We know today coffee people appreciate coffee from El Salvador.

Before COE this coffee wasn’t identified as specialty and was sold as a blend».

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TWELVE YEARS TO BECOME A WINNER

these countries. For example, COE has been holding the competitions in Bolivia from 2004 until 2009. In 2009, the new government in Bolivia expelled the American company that usually helped with the COE competition. There was no one to take its place. The same thing might be happening now in El Salvador. Another reason could be that something has changed on the local market; the supporting company has left. In any case the competition will come back if they find the local event partners and in case the industry needs it».

Alexander Malchik would like to pay our attention to a big break COE did for promoting specialty coffee on the global market; when good coffee became more than just daily product. «Cup

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COFFEE&TEA INTERNATIONAL # 1/2016

Jorge Raul Rivera family, the owner of the coffee farm in Canton of Santa Rosa (Department of Chalatenango, North El Salvador), is extremely upset about the ACE decision to cut down COE in El Salvador. 2014 was the happiest year for the family because their coffee Santa Rosa II, Pacamara, honey process, won the first prize in the Cup of Excellence competition with 91.41 points. In 2002, Jorge Raul and his brother Jose Roberto became aware of Cup of Excellence and their only purpose from that moment – winning Cup of Excellence. They planted Santa Rosa with Pacamara variety and utilized the previously planted pine tree as shade. Jorge Raul Rivera was a professor at the University of El Salvador and taught coffee cultivation and processing for 10 years.

That is why they applied a scientific approach to farming.

Unfortunately, Jorge Raul Rivera passed away in May 2013.

His son won the first prize. Jorge Raul Rivera Junior continues working on coffee quality. He focuses specifically on improving the fertilization programs and milling process. He wants all his coffee to become the standard for the first place of Cup of Excellence.

«The COE was a great experience for my family. Winning the first place on the COE in 2014 was a great deal for my family and me. I was able to meet many awesome coffee buyers.

This had a very positive influence because in the specialty coffee business networking is a very important factor. You have to work hard and invest much money to have at least one lot of awesome coffee to put into an auction. We are without the COE next year and that will hurt many producers from my country. It totally kills my average price on sales. We are disappointed. I would love to have more networking with more buyers because we want to keep planting more excellent coffee but it is sometimes discouraging when you can’t sell at a good price to customer who appreciate your extra hard work».

Jose Arnold Paz Mejia, one of the final week participants of Cup of Excellence in Honduras 2008, tries to explain the ACE decision with necessarily changes in the judging system.

«Obviously they have some reasons for that. Perhaps they would like to change the judging process. COE did so much for coffee farming. The best thing is the communication between a producer and a roaster. Today the global industry knows about good coffee from Honduras. I don’t know what will happen tomorrow, because it’s not enough to become famous. You have to keep improving quality of your coffee».

Arnold tells us about his COE experience as great joy for his family and big stress at the same time. It took them 7 years to advance to the final week, which is preceded by a long multi-step evaluation process.

The first step is a preselection with green grading and sensory evaluation. On this first stage, the jury have about 300 coffee samples. The lowest passing score – 84 points (was in 2008. Now it’s 87 points).

After that, the national jury evaluate the best 150 samples. First 60 samples go to the international jury. It takes one week to cuptaste these 60 samples. From Monday until Wednesday the jury evaluate 20-35 samples, on Thursday – the samples from the finals, on Friday – the TOP-10.

«Leaving Cup of Excellence aside I think in the future all Central America coffee farmers should work as partners. We should sell our coffee together as Central American coffee. We need a strong union.

We have a very small niche on the specialty market. It seems like we don’t have any problems with micro lots due to COE. The bigger a coffee lot is, however, the more musty and fermented beans we can find in it. We have to learn. We know how to plant and grow, but we need to learn to taste, roast and analyze our coffee quality».

NOT ONLY CUP OF EXCELLENCE The Cup of Excellence program is, of course, not the only coffee auction in the producing countries. In Kenya the local market participants started the auction system in 1934.This system is partly a prototype of the COE model. The annual Best of Panama auction is held in the country with the assistance of Specialty Coffee Association of Panama. In Brazil, where the ACE has already launched two COE programs, the Concurso de Qualidade de Cafй (HRNS Coffee Quality Competition) took place for the first time in 2014. The HRNS Coffee Quality Competition focused on the product of the hard work of smallholder coffee farmers instead of professionalized plantations like the COE program.

«A total of 396 farmers submitted their samples and in the process of a pre-classification, 36 of them were selected and invited to join the event. During these days, the diverse samples were cupped and closely evaluated by the judges using SCAA protocols. The participants, potential buyers, were interested not only in the winning lots (1st of 3rd of each category), but in nearly all lots of the very final round of 22 coffees in total, an auction scheme was

created and in January the coffees were auctioneered and sold at even higher premiums. Needless to say that the additional premiums were also fully forwarded to the farmers. This competition is unique as it focuses on quality generated by smallholder farmers, by the family producers. The coffee is not prepared specifically for such an event; it is the fruit of their labour. The lots (only 20-25 bags of 60kgs) given to the competition sometimes represent considerable parts of the coffee farmers’ whole annual production, – Reena Eddiks, the representative of Hans R. Neumann Stiftung, comments. – Farmers, as explained above, made considerable profits for participating in financial terms. But overall more important, it helps to promote their coffees».

We can’t forget to mention about the prospects of Consejo Salvadoreсo del Cafй.

In 2016, they intend to launch the Quality Coffee Event, which will enable El Salvador to keep the COE data, and continues to improve coffee quality and farmers living conditions. If the COE competition comes back in 2017, there apparently will be two national coffee selection programs in El Salvador.

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