The Hindu Business Line : Italy plans buying more coffee from India

Advantage
Traders from Trieste who import from India are already active in the commodity futures markets of London.
Indian arabica coffee varieties find value addition & demand across the world, thanks to firms such as Illycafe.

C. J. Punnathara

Trieste (Italy), Sept. 27 Indian coffee trade is all set to gather more steam with more importers from the North East Italian Port of Trieste evincing interest in the beans. Italy is a significant player in the $70 billion global coffee trade, Mr Furio Suggi Liverani, Director, Research and Technology Development, Illycaffe s.p.a. said.

Poised to rise

India is the third largest coffee exporter to Italy after Brazil and Vietnam. Now, with the New York Board of Trade including Trieste, the only Port from Italy among the five approved delivery points for Coffee “C” futures contracts from Europe, Indian coffee exports are poised to increase.

Traders from Trieste who import from India are already active in the commodity futures markets of London. Coffee imports into the Port of Trieste, including those from India, are mostly in the form of raw beans.

Value-addition

With over 800 roasting companies in Italy, the raw beans are roasted for further value addition. Though Italy has one of the highest per capita coffee consumption at four kg, a significant portion of the value-added coffee is exported. Italian coffee has got a global reputation and an international market for its coffee making and Expresso machines, roasted and ground coffee exports. With a turnover of over €300 million Euros, Illycaffe alone exports to over 130 countries with 70,000 clients.

The company is the market leader in Expresso coffee in Italy and produces more coffee and coffee making machines for the export market rather than for domestic consumption. The company is increasingly focusing on developing countries and has a joint venture in China with Shanghai Fortune Café and in India with Fresh & Honest Coffee of the Sterling group.

Finding demand

It is in the process of setting up a chain of Expresso coffee parlours at airports across the world.

Thanks to companies such as Illycaffe, Indian arabica coffee varieties have found value addition and demand across the world.

The company said: “Illy buys green coffee of high quality arabica directly from the growers through partnerships based on mutual creation of value.

Long-term partnership

The Trieste-based company fosters long-term collaboration with the world’s best coffee growers – in Brazil, Central America, India and Africa – providing know-how and technology and offering above market prices.”

Though the average Indian might be no connoisseur of coffee, one of the Italian favourites is the ‘Monsoon Cafe’ sourced from India. In fact, several Italians choose the coffee by its Indian origin, be it Kodagu, Chikmagalur or Munnar.

Expanding its coffee business, Fiera Trieste Spa is organising the fourth edition of TriestEspresso Expo during November 13-15 at Trieste.

B2B event

“The most important entrepreneurs of the `black bean’ will be present at the Trieste exhibition, along with green coffee producers and everything which gravitates round the sector, such as producers of expresso equipment, roasting and processing machinery, packaging, coffee cups and accessories, connected services, merchandising and the trade press,” the organisers said. The biennial business-to-business event represents the only exhibition in Italy specifically on the theme of the expresso coffee trade industry.

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