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With good bush conditions and favourable showers in majority of the estates, Tata Coffee expects normal output this crop year (2011-12).
Tata Coffee Chairman, Mr R.K. Krishna Kumar, in a note to shareholders said: “This coffee crop year (2011-12) will be ‘on' year with anticipated increase in the crop.”
“With the good winter showers during October and November 2010, the bushes are looking healthy and the prospects for the coming year appear to be good and the crop estimates indicate a good crop in both the growing areas of Kodagu and Hassan,” he added.
The company's arabica output is projected to increase substantially in short-term with large replanting/consolidation programme undertaken at estate level.
In 2010-11, Tata Coffee harvested 1,670 MT of arabica as against 2,171 MT in the previous year. Arabica production was poor across all the three planting districts of Karnataka (Kodagu, Hassan and Chikmagalur). The decline is mainly attributed to failure of rainfall during the crucial months and also unusual and continuous rains during October and November.
After a record robusta crop in the previous years, the company harvested 6,620 MT last year as against 7,285 MT in the earlier year. The estates in Hassan did extremely well to harvest a record crop during 2010-11.
Starbucks
The company is gearing up to facilitate global major Starbucks' entry into retail operations in India.
Mr Krishna Kumar said: “The company entered into a non-binding memorandum of understanding (MoU) with Starbucks Coffee International (Starbucks) for a potential strategic collaboration in areas of sourcing of coffee beans, coffee roasting facilities relating to Starbucks entering retail operations in India initially and other Asian countries at a later date.”
With thrust on quality at every stage of operation, the company expects an increase in its share in the specialty coffee market.
“On the domestic coffee front, according to current trends, coffee consumption is expected to grow at the rate of over 8 per cent in the next five years. Instant coffee is expected to grow further from the current levels to about 15 per cent in the next five years,” Mr Krishna Kumar said.
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