FDRE Ministry of Agriculture AGP-AMDe INTERNATIONAL CONSUMER MARKET TRENDS Daniel Humphries, AGP / CQI February 21, 2013 FDRE Ministry of Agriculture Coffee Export Performance: Volume versus Specialty Buyers FDRE Ministry of Agriculture Largest Volume Buyers (2011/12) RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 BUYER VOLCAFE LTD. TALOCA AG AL KHAIR TRADING OFFICE CO LTD BERNAHARD ROTHFOS GMBH ALMUSTANEER TADING EST SUCAFINA SA PLACE COFEY HANDELS GEBR WESTHOFF GEBR SCHLUTER SA TABOCCA B.V.PRINS MAISON P.JOBIN CONSTANTIA TRADING MARUBENI EUROPE ILLY CAFFE SPA LUCK HOME HOUSE HOLD AT LLC TOUTON S.A. LOUIS DERYFUSS COMM. ECOM AGROINDUSTIRAL CORP. SALEM BIN MAHFOOZ EST.FOR SALEM ABAULKADER BAJUBATER SONS CO HAMBURG COFFEE COMPANY ROYAL COFFEE INC INTERAMERICAN GMBH KEIF AL WATAN COMPANY PRINCE MS FOOD EUROPE BOOMPJES VOLUME (TONS) 22,163.3 14,572.8 6,138.0 6,242.4 5,508.0 5,716.8 4,608.0 4,227.0 2,669.8 2,271.6 3,380.3 2,935.2 3,600.0 2,317.2 4,379.8 3,370.8 3,804.0 2,793.0 2,430.0 2,610.0 2,634.6 1,612.2 1,531.9 1,998.0 1,744.8 AV. PRICE ($ / LBS) 2.21 2.04 2.70 2.18 2.36 1.96 1.89 2.03 2.85 3.16 2.09 2.41 1.89 2.88 1.52 1.96 1.70 2.13 2.38 2.14 1.95 3.10 3.04 2.26 2.57 FDRE Ministry of Agriculture Highest Average Prices Paid (2011/12) RANK 204 203 124 188 93 192 74 84 112 145 127 153 101 201 206 125 150 198 103 199 116 69 55 128 BUYER HAKSAN CO.LTD 973-1 U-DAN RI, NINETY PLUS COFFEE,LLC GREEN BEAN KOREA INC MAPO-GU HA BENNETT & SONS PTY LTD 2/2 WATARU AND CO., TRIBECA COFFEE CINMARK ONE (PTY) COOPERATIVE COFFEE INC CAFE IMPORTS R G C COFFEE .INC 1330GREENE AVENUE EL PUENTE GMBH OXFAM FAIRTRADE HAKSAN CO.LTD GEPA GESELLSCHAFT YOUR DEKALB FARMERS MARKET DWP EG HINZISTOBLER STR. 10 88212 FRANCE ALTER EQUAL EXCHANGE MECCA ESPRESSO CONSORZIO CTM ZEPHYR GREEN COFFEE A.POORTMAN(LONDON) LTD A.VAN WEELY B.V TRADE AID IMPORTER SUSTAINABLE HARVEST INC. VOLUME (TONS) 15.0 15.4 54.0 19.2 111.1 19.2 180.0 147.2 72.0 36.0 54.0 33.0 96.0 18.0 17.0 57.6 36.0 19.2 96.0 19.2 72.0 230.4 378.0 56.4 AV. PRICE ($ / LBS) 4.31 4.23 4.04 4.01 4.01 3.91 3.84 3.83 3.78 3.78 3.77 3.75 3.75 3.73 3.71 3.71 3.61 3.61 3.61 3.61 3.60 3.59 3.55 3.54 FDRE Ministry of Agriculture Lowest Average Prices Paid (2011/12) RANK 200 28 114 65 68 144 70 107 208 202 196 193 104 54 111 67 17 117 56 48 87 148 100 15 73 135 BUYER PERSNAM CORPORATION AL NAMLAH AND CO. LTD GEBREMESKEL T/MARIAM WEBCOR SA HUSSIN ATAH HUSSIN SHAREKAT AZHAR ALAQSA RAJAB HANIEH & SON'S CO. PIASSA GENERAL TRADING L.L.C OMER SALEM BAOBED AND CO CINSTANTIA TRADING SA RUE AUGUSTE SUCAFINE SA OMER MOHAMMED TAIFUR SUDAN THE NATIONAL COMMERCIAL BANK A/C OF OLAM INTERNATINAL LIMITED EAST AFRICA STAR GENERAL AL HUSSIEN TRADING LOUIS DERYFUSS COMM. CENTERSNAB LTD. COED COFFEE INTERATIONAL ALTAWAFUQ ALSAMEL EST ALHUSSEIN TRADING EAST NAJIMAT AL SELAM MERCON COFFEE CORPORATION LUCK HOME HOUSE HOLD AT LLC BRIGHT WORLD PETROLEUM MAGZOOP ABDALLA VOLUME (TONS) AV. PRICE ($ / LBS) 36.0 1,953.4 139.5 485.3 453.5 76.8 441.6 169.9 33.0 36.0 38.4 40.0 180.0 753.0 164.5 497.3 3,804.0 153.6 780.0 937.8 305.7 82.7 230.4 4,379.8 491.0 119.9 1.88 1.88 1.88 1.87 1.86 1.86 1.84 1.84 1.84 1.83 1.82 1.82 1.80 1.79 1.79 1.73 1.70 1.66 1.66 1.65 1.62 1.62 1.58 1.52 1.47 1.44 FDRE Ministry of Agriculture Coffee Consumption in the USA Past day penetration of total coffee was reported at 58% in 2011 and 64% in 2012. Gourmet coffee past day penetration has shifted from 25% in 2011 to 32% in 2012. Both shifts are driven by: · Including a representative sample of Hispanic Americans in the 2012 research. · Adding café con leche as an additional coffee type. A significant portion of café con leche was classified by respondents as gourmet.) FDRE Ministry of Agriculture Daily Penetration of Coffee by Type NOTE: NCDT 2012 includes a representative sample of Hispanic Americans and African Americans. Comparisons to previous years are directional only. 64 58 56 PERCENT DRINKING 56 54 51 3839 35 32 Combined to Create Gourmet Coffee Beverages 2425 8 67 88 14 11 7 22 1817 2010 9 2011 2012 Total Coffee Traditional Coffee - Total Traditional Instant Decaf Gourmet Coffee Espresso-Based Coffee - Not Beverages (Net) Beverages Gourmet Base: Total sample aged 18+ (n=2,740, 2010, n=2,663, 2011, n=2,955, 2012) What did you drink yesterday during each of the following times? This may include any beverage that you drank at home or outside your home and may have come in a cup, can or bottle. Traditional Coffee Gourmet FDRE Ministry of Agriculture Coffee Consumption in the USA: Gourmet vs. Non-Gourmet Gourmet coffee includes all espresso-based coffee and any traditional coffee the consumer considers to be gourmet coffee, which is defined as “brewed from premium whole bean or ground varieties”. As such, there is a strong element of consumer perception in this measure. Gourmet coffee accounted for nearly half (46%) of all cups of coffee consumed in 2012. FDRE Ministry of Agriculture Share of Cups – Gourmet vs. Non-Gourmet SHARE OF COFFEE CONSUMED YESTERDAY 2010 2011 2012 40 37 60 Gourmet 63 46 NOTE: NCDT 2012 includes a representative sample of Hispanic Americans and African Americans. Comparisons to previous years are directional only. Not Gourmet 54 Base: Past-Day Coffee Drinkers Age 18+ (n=1523, 2010, n=1,555, 2011, n=1,814, 2012) Was the [COFFEE/COFFEE BEVERAGE] gourmet coffee - that is, brewed from premium whole bean or ground varieties? FDRE Ministry of Agriculture Coffee Consumption in the USA: Gourmet Consumption Penetration of traditional coffee – gourmet and espresso-based coffee are both strong in 2012. What did you drink yesterday during each of the following times? This may include any beverage that you drank at home or outside your home and may have come in a cup, can or bottle. Now we’d like to ask you about some specific types of coffee beverages you may have consumed in the PAST WEEK. Please keep in mind that these may be coffee beverages that you drank at home or bought outside your home and may have come in a cup, can or bottle. In the past week, have you, yourself, drunk... FDRE Ministry of Agriculture Weekly Penetration of Coffee by Gourmet Sub-types NOTE: NCDT 2012 includes a representative sample of Hispanic Americans and African Americans. Comparisons to previous years are directional only. PERCENT DRINKING 44 39 36 31 26 25 22 18 13 11 Gourmet Coffee Beverages (Net) Espresso-Based Cappuccino 2010 2221 11 12 10 13 9 9 Latte Cafe Mocha 2011 13 13 87 Espresso 2012 99 344 Macchiato Traditional Coffee Gourmet Frozen Blended Coffee Base: Total sample aged 18+ (n=2740, 2010, n=2,663, 2011, n=2,955, 2012) What did you drink yesterday during each of the following times? This may include any beverage that you drank at home or outside your home and may have come in a cup, can or bottle. Now we’d like to ask you about some specific types of coffee beverages you may have consumed in the PAST WEEK. Please keep in mind that these may be coffee beverages that you drank at home or bought outside your home and may have come in a cup, can or bottle. In the past week, have you, yourself, drunk... Significantly higher / lower vs. previous year FDRE Ministry of Agriculture Consumer Perception PERCENT WHO STRONGLY OR SOMEWHAT ASSOCIATE THE COUNTRY WITH PRODUCING COFFEE Less than 25% of the respondents recognize Ethiopia as a coffee producing country. This is significantly lower than Colombia (85%), Brazil (70%), Costa Rica (59%), Kenya (30%). FDRE Ministry of Agriculture Countries Associated with Producing Coffee PERCENT WHO STRONGLY OR SOMEWHAT ASSOCIATE THE COUNTRY WITH PRODUCING COFFEE Vietnam Ethiopia Indonesia Sumatra Kenya Nicaragua Mexico Guatemala Hawaiian Kona Costa Rica Brazil Colombia N/A 14 11 12 26 26 24 23 33 34 30 30 37 36 3032 40 41 37 34 4447 45 44 4850 4145 NOTE: NCDT 2012 includes a representative sample of Hispanic Americans and African Americans. Comparisons to previous years are directional only. 62 63 58 51 6466 5962 2008 2009 2010 2012 80 79 70 77 91 90 85 91 FDRE Ministry of Agriculture Consumer Perception: Quality PERCENT WHO STRONGLY OR SOMEWHAT ASSOCIATE THE COUNTRY WITH PRODUCING QUALITY COFFEE Ethiopia trails behind coffee producing origins like Colombia, Hawaii, Brazil, Costa Rica, Indonesia Sumatra and Kenya. FDRE Ministry of Agriculture Quality Associations with Coffee Producing Countries Vietnam n=355 Mexico n=1335 Nicaragua n=977 Guatemala N=1188 Ethiopia n=665 Kenya n=825 Indonesia Sumatra n=824 Costa Rica n=1679 Brazil n=2010 Hawaiian Kona n=1406 Colombia n=2416 N/A NOTE: NCDT 2012 includes a representative sample of Hispanic Americans and African Americans. Comparisons to previous years are directional only. 74 78 79 78 77 83 80 82 85 83 85 85 84 84 87 89 86 89 90 89 90 90 91 96 95 95 96 97 95 98 98 97 2008 2010 2012 FDRE Ministry of Agriculture Exports Markets: Europe FDRE Ministry of Agriculture EU green coffee imports from top-10 African origins 2011 (bags and %) OTHERS, 375,970, 6% GUINEA, 145,243, 2% RWANDA, 162,780, 2% BURUNDI, 185,767, 3% COTE D'IVOIRE, 343,612, 5% UGANDA, 1,839,303, 27% KENYA, 461,338, 7% CAMEROON, 477,837, 7% TANZANIA, 486,368, 7% TOGO, 529,823, 8% ETHIOPIA, 1,746,985, 26% Source:EU statistical office Eurostat FDRE Ministry of Agriculture Exports Markets: Japan FDRE Ministry of Agriculture Source: FEBRUARY 2013 CAFÉ BACH & WATARU FDRE Ministry of Agriculture Closing Remarks – Strengthening The Legacy of Ethiopian Coffee Among consumers, the awareness of Ethiopian coffees is very low. Mainstream media generally ignore the existence of Ethiopian coffee. During the past four years, business media (Bloomberg, WSJ etc.) have mostly focused on the perils of the ECX and channeled the complaints of specialty buyers. We rarely read anything positive about Ethiopian coffee. The image of Ethiopia as a supplier of “Fine Coffee” starts with the consumer. The successes of Colombian coffee and Napa Valley wine have proven that a Public Relations (PR) campaign, pointed at the consumer, can have a tremendous positive impact on export revenues. A PR campaign must establish Ethiopian Coffee as one of the finest in the world. The campaign needs to continue telling the story about Ethiopian coffee in new and different ways that appeal to the media. Newsworthy events must be planned with industry channel partners, supporting Ethiopia’s image as birthplace of coffee and as THE most diverse coffee producing country on this planet. (Think of the diversity of the ‘terroir’ that creates the distinct characteristics of Yirgacheffe, Sidama and Harar coffee, think of the unique cultures in and around these regions, think of the abundance of flavors….) FDRE Ministry of Agriculture AGP-AMDe INTERNATIONAL CONSUMER MARKET TRENDS Daniel Humphries, AGP / CQI February 21, 2013