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COFFEE


A tropical evergreen shrub whose beanlike seeds are roasted and ground to produce a drink of the same name. Coffee grows best on frost-free hillsides with moderate rainfall. The world's largest producers are Brazil, Colombia, and the Ivory Coast.

In general, coffee is grown in an area ranging from 25 North of the equator to 25 South in a belt that runs around the world. The only coffee grown commercially in the United States comes from Hawaii and is called "KONA" coffee.

There are two principal species of commercial coffee
  1. Aribica
  2. Robusta

The two primary commercially grown species of coffee are:
  1. Arabica
  2. Robusta.

Robusta thrives in low lying, moist river deltas which are much easier to farm than the highlands required for Arabica coffees. Robusta flowers up to four times per year, producing about four pounds of coffee per plant. High yield combined with low farming cost make Robusta a favorite with large commercial coffee companies which are more concerned about cost than taste. While Robusta beans are less expensive than Arabica, they tend to be harshly acidic and woody in flavor. Under natural conditions, coffee trees grow to about 15 to 30 feet at maturity but normally they are pruned to a smaller height to permit easier picking. Growing conditions such as soil, temperature, altitude and rainfall vary considerably. Each of these has an important effect on beverage quality.

In commercial use there are about 50 varieties of coffee
  • Brazils : Santos, Paranas, Bahias, Pernambucous, etc.
  • Milds : Clolmbians (Medellins, Manizales, or by other names reprsenting the area in which they grow), Mexicans, Salvadors, Guatemalas, etc.
  • Robustas : Congos or Ivory Coasts, Ambriz, Encoge, etc.

How Coffee Is Traded

Coffee is mainly traded on the New York and London futures (terminal) markets, which exert a strong influence on world coffee prices. These prices are notoriously volatile - they vary daily, hourly and even by the second, depending on factors such as the size of coffee stocks worldwide, the weather forecast, insecure political conditions and speculation on the futures markets. 90% of the world coffee trade is in green (unroasted) coffee beans.

The main traders of green coffee worldwide are:

  • The Neumann Gruppe GMGH
  • Volcafe
  • Cargill
  • E.D. & F. Man

The four leading manufacturers who dominate the world coffee market are:

  • Nestle
  • Procter
  • Gamble
  • Kraft
  • Sara Lee

Green coffee purchasing is done through three channels:

  • "Spot" is coffee actually landed in port and stored in a warehouse.
  • "Shipment" is actual coffee which will be shipped at a specific time.
  • "Futures" are contracts bought and sold through the New York Coffee and Sugar Exchange. Actual coffee is rarely delivered against these contracts. "Futures" are mainly used for hedging to protect price position.

When the green coffee is sold in this country it goes through one of its most interesting phases. First, the beans are graded according to the number of imperfections, from No. 2 down to No. 8. In theory, No. 1 would be coffee completely free from imperfections. This is so rare that it is not used.

The rating scale for a 300 gram sample is

  • No. 2 - 6 black beans
  • No. 3 - 13 black beans
  • No. 4 - 29 black beans
  • No. 5 - 60 black beans
  • No. 6 - 115 black beans
  • No. 7 and No. 8 are much greater than 115 black beans and are graded by comparison with standard types.
Other imperfections, such as shells, stones, sticks, etc., are evaluated by a scale comparing them to black beans. For example:
  • 3 shells equal 1 black bean
  • 5 broken beans equal 1 black bean
  • 2 small stones equal 1 black bean

Some blends of Coffee:

  • Smoky Mountain Blend : Very smooth tasting coffee for those lazy afternoons.
  • Morning Blend : A brisk blend for a needed pick-me-up in the morning.
  • Sumatra : Least acidic coffee on the market - great for anybody wanting to protect their sensitive stomach.
  • Kenya AA Limited : Limited world supply. Leading choice of the coffee cognoscente. Snappy brisk flavor with rich and elegant smoothness in the cup.
  • Seville Orange : This deliciously flavored coffee is based on the Colombian Supremo bean, pure orange extract and orange zest. The latter ones having been added just after roasting, while the beans are still warm. Great for an afternoon break - or any time!
  • Creme de Noisette : Hazelnut flavoring, added to the finest Colombian coffee beans right after the roasting process, produces this savory blend. It is, by far, our most popular flavored coffee.
  • Blue Ridge Blend : Smooth blend of coffee reminiscent of a Blue Ridge Holiday with a good bite to start any day with gusto!
  • Costa Rica : Delectably full bodied, winey coffee, lightly acidic, a rich and luxurious discovery.
  • Mocha Java : Mocha Harrar contributes winey flavor. Java provides full body and aroma. Together, a velvety smooth, full flavored cup.
  • Tip of the Andes : Grown in the highest altitudes of the Andes, extremely rich with flavor, mellowness and aroma.
  • Colombia Supremo : Beans labeled supremo are all of the largest size, uniform and without imperfections. Hand sorted, superb flavor.
  • Italian Espresso : A deep, dark roast coffee, very full bodies. Perfect any time.
  • Ethiopian Mocha Harrar : Winey and piquant flavor. Excellent choice for the stronger partner in a blend.
  • French Roast : Darker than Viennese, but lighter than Italian Roast. Somewhat strong heavy brew with a pleasant spiciness.
  • Viennese Colombian : Slightly dark, makes a strong full-bodied cup with spiciness.
  • Copenhagen : Rare, rich flavor, nicely mellow. Especially enjoyable as an after dinner treat.
  • Guatemalan : Distinctively aromatic lively and tangy, with pleasant acidity. Widely considered to be the perfectly balanced coffee.
  • Swiss Chocolate Almond : Choice Colombian beans flavored with selected chocolate extract while still warm from roasting. Enhanced with slivered almonds
  • Irish Cream : Flavored with the savory pure extract of Irish Cream while still warm from roasting. A creamy and flavorful treat.
  • Brazil Bourbon Santos : Named for the French colony where the ancestors of the Brazilian bean once grew. The premium Brazil coffee.
  • Southern Pecan : The finest 100% Colombian coffee blended with luscious southern pecans and the purest flavoring
  • Raspberry Almond : While still warm, the choice Colombian beans are flavored with selected raspberry extract and accented with slivered almonds.

Classes of coffee in futures

The quality of coffee also affects the premium or discount paid for a coffee. There are five classes of coffee:
  • Class 1. Specialty Coffee - 0-5 defects.
  • Class 2. Premium Grade - 6-8 defects.
  • Class 3. Exchange Grade - 9-23 defects. This is the grade traded on the NYCE. Class 1 and 2 demand premiums to this price, whereas Class 4 and 5 coffees demand discounts.
  • Class 4. Below Standard Grade - 24-86 defects.
  • Class 5. Off Grade - More than 86 defects.

The producing country also determines the differential paid. Costa Rica, El Salvador, Guatemala, Kenya, Mexico, New Guinea, Nicaragua, Panama, Tanzania, and Uganda are at par (basis).

Colombia has a differential of plus 200 points (2 cents/lb).

Honduras and Venezuela have differentials of minus 100 points.

Burundi, India, and Rwanda deliver at discounts of 300 points

Dominican Republic, Ecuador, and Peru deliver at minus 400 points

History of Coffee

According to one story, the effect of coffee beans on behavior was noticed by a sheep herder from Caffa Ethopia named Kaldi as he tended his sheep. He noticed that the sheep became hyperactive after eating the red "cherries" from a certain plant when they changed pastures. He tried a few himself, and was soon as overactive as his herd. The story relates that a monk happened by and scolded him for "partaking of the devil's fruit." However the monks soon discovered that this fruit from the shiny green plant could help them stay awake for their prayers.

Another legend gives us the name for coffee or "mocha." An Arabian was banished to the desert with his followers to die of starvation. In desperation, Omar had his friends boil and eat the fruit from an unknown plant. Not only did the broth save the exiles, but their survival was taken as a religious sign by the residents of the nearest town, Mocha. The plant and its beverage were named Mocha to honor this event.

Originally the coffee plant grew naturally in Ethopia, but once transplanted in Arabia was monopolized by them. One early use for coffee would have little appeal today. The Galla tribe from Ethiopia used coffee, but not as a drink. They would wrap the beans in animal fat as their only source of nutrition while on raiding parties. The Turks were the first country to adopt it as a drink, often adding spices such as clove, cinnamon, cardamom and anise to the brew.





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