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Market analysis for Coffee Market.docx

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Market analysis for Coffee Market Irina Achim Antonia Călineț-Petre Group 942, year II, REI, ASE 1.Market area History of coffee The history of coffee goes at least as far back as the thirteenth century. The story of Kaldi, the 9th-century Ethiopian goat herder who discovered coffee while searching for his goats, did not appear in writing until 1671 and is probably apocryphal. From Ethiopia, coffee was said to have spread to Egypt and Yemen. The earliest credible evi
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  Market analysis for Coffee Market Irina Achim Antonia Călineț -Petre Group 942, year II, REI, ASE  1.Market area History of coffee The history of coffee goes at least as far back as the thirteenth century. The story of Kaldi, the 9th-century Ethiopian goat herder who discovered coffee while searching for his goats, did not appear in writing until 1671 and is probably apocryphal. From Ethiopia, coffee was said to have spread to Egypt and Yemen. The earliest credible evidence of either coffee drinking or knowledge of the coffee tree appears in the middle of the fifteenth century, in the Sufi monasteries of Yemen. By the 16th century, it had reached the rest of the Middle East, Persia, Turkey, and northern Africa. Coffee then spread to Balkans, Italy, and to the rest of Europe, to Indonesia, and then to America. The first step in Europeans' wresting the means of production was effected by Nicolaes Witsen, the enterprising burgomaster of Amsterdam and member of the governing board of the Dutch East India Company who urged Joan van Hoorn, the Dutch governor at Batavia that some coffee plants be obtained at the export port of Mocha in Yemen, the source of Europe's supply, and established in the Dutch East Indies; the project of raising many plants from the seeds of the first shipment met with such success that the Dutch East India Company was able to supply Europe's demand with Java coffee by 1719. The first coffee plantation in Brazil occurred in 1727 when Lt. Col. Francisco de Melo Palheta smuggled seeds, still essentially from the germ plasm srcinally taken from Yemen to Batavia, from French Guiana. By the 1800s, Brazil's harvests would turn coffee from an elite indulgence to a drink for the masses. Brazil, which like most other countries cultivates coffee as a commercial commodity, relied heavily on slave labor from Africa for the viability of the plantations until the abolition of slavery in 1888. The success of coffee in 17th-century Europe was paralleled with the spread of the habit of tobacco smoking all over the continent during the course of the Thirty Years' War (1618  –  1648). For many decades in the 19th and early 20th centuries, Brazil was the biggest producer of coffee and a virtual monopolist in the trade. However, a policy of maintaining high prices soon opened opportunities to other nations, such as Colombia,Guatemala, Nicaragua, Indonesia and Vietnam, now second only to Brazil as the major coffee producer in the world. Large-scale production in Vietnam  began following normalization of trade relations with the US in 1995. Nearly all of the coffee grown there is Robusta. Despite the srcins of coffee cultivation in Ethiopia, that country produced only a small amount for export until the Twentieth Century, and much of that not from the south of the country but from the environs of Harar in the northeast. The Kingdom of Kaffa, home of the plant, was estimated to   produce between 50,000 and 60,000 kilograms of coffee beans in the 1880s. Commercial production effectively began in 1907 with the founding of the inland port of Gambela. 100,000 kilograms of coffee was exported from Gambela in 1908, while in 1927-8 over 4 million kilograms passed through that port. Coffee plantations were also developed in Arsi Province at the same time, and were eventually exported by means of the Addis Ababa - Djibouti Railway. While only 245,000 kilograms were freighted by the Railway, this amount jumped to 2,240,000 kilograms by 1922, surpassed exports of Harari coffee by 1925, and reached 9,260,000 kilograms in 1936. Coffee market Coffee is an important commodity and a popular beverage. Over 2.25 billion cups of coffee are consumed in the world every day. Over 90% of coffee production takes place in developing countries, while consumption happens mainly in the industrialized economies. Worldwide, 25 million small producers rely on coffee for a living. For instance, in Brazil alone, where almost a third of all the world's coffee is produced, over 5 million people are employed in the cultivation and harvesting of over 3 billion coffee plants; it is a much more labour-intensive culture than alternative cultures of the same regions as sugar cane or cattle, as it is not subject to automation and requires constant attention.  Coffee is also bought and sold as a commodity on the New York Board of Trade. This is where coffee futures contracts are traded, which are a financial asset involving a standardized contract for the future sale or purchase of a unit of coffee at an agreed price. The world's largest transfer point for coffee is the port of Hamburg, Germany. Coffee statistics show that among coffee drinkers the average consumption in the United States is 3.1 cups of coffee per day. COFFEE STATISTICS: 50% of the population, equivalent to 150 million Americans, drink espresso, cappuccino, latte, or iced/cold coffees. COFFEE SHOP FACTS: Independent coffee shops equal $12 billion in annual sales. At the present time there are approximately 24,000 Coffee Shops across the country. Statistics show there will be approximately 50,000+ Coffee Shops by the year 2012. The average Espresso Drive-thru Business sells approximately 200-300 Cups of Espresso and Coffee Based Drinks per day. Coffee Statistics & Coffee Consumption Statistics The National Coffee Association and The Specialty Coffee Association of America conduct annual surveys regarding coffee consumption each year. The gathered data below can be extremely  beneficial to anyone wishing to start a business or just have an insight on coffee consumption. The Specialty Coffee Association of America (SCAA) CoffeeResearch.org Results of Gathered Data: Over 50% of Americans over 18 years of age drink coffee every day. This represents over 150 million daily drinkers. 30 million American adults drink specialty coffee beverages daily; which include a mocha, latte, espresso, café mocha, cappuccino, frozen/iced coffee beverages, etc.

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