HIGHLIGHTS - Tanzanian and Ethiopian coffees star at TriestEspresso

 

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Leading world  coffee companies met in Trieste at the International TriestEspresso Expo a biennial business forum now in its fourth edition. The event, considered the world showcase of Italian espresso, opened on 12 November with a seminar on “The Rise in Coffee Consumption Worldwide and the Future of Coffee-growing: A Critical Balance”.  The meet was attended by leading coffee producers as well as distinguished speakers from Vietnam, Brazil, Indonesia, Guatemala, Italy, and India. In Trieste, they tried to identify solutions to the progressive decline in coffee output among the largest growers against a steady annual growth of consumption, especially in large consuming markets such as Russia, Indonesia, India, and China. Among the speakers, there were important  personalities of the coffee industry such as Dr. Nestor Osorio (Executive Director, International Coffee Organization, London), Luiz Araripe (CECAFE, Brazil), Nguyen Quang Huy (Expert of Plantation Department, Ministry of Agriculture and Rural Development of Vietnam), Dr. Surip Mawardi (Indonesian Coffee and Cocoa Research Institute, Indonesia), Max Quirin (Anafe, Guatemala), and Shri Krishna Rau (Chairman, Coffee Board of India). The workshop presented a critical balance sheet of the entire sector and showed that world consumption of coffee is rising faster than production, in a scenario where there are no expectation of additional supply from the largest, established producers (e.g. Brazil, Colombia).

Through the UNIDO Delegates Program, UNIDO ITPO Italy brought Ms. Birkinesh Gonfa Yado from the Ministry of Industry and Trade of the Federal Republic of Ethiopia and Mr. Daudi Riganda from Tanzania Investment Centre to this event. The two Delegates were thus able get the big picture of the world coffee market and to bring back to their coffee producing countries valuable insights and tips to support the Tanzanian and Ethiopian coffee industry, as well as  promoting previously selected investment opportunities related to this important sector.

Indeed, coffee is Tanzania’s largest export crop. It contributes approximately $115 million to export earnings, providing employment to some 400,000 families. About 95 percent of coffee is grown by smallholders on average holdings of 1–2 hectares, and 5 percent is grown on estates. Tanzania produces about 800,000 60-kilogram bags, or 0.7 percent of the world output of 117 million bags. About two-thirds is mild Arabica, and the rest is strong Arabica and Robusta.

As far as Ethiopia is concerned, both legend and historical sources attest that Ethiopia is the homeland of the coffee plant. In fact, the highlands of Ethiopia can be considered as the ideal environment for the production of the world’s finest coffee and over 85% of Ethiopian coffee production is organic. Annual production reaches 4 million bags (60kgs), of which  3.3 million is exported. Ethiopia has been exporting its green coffee beans, of different types and grades, to almost all major destinations of the world. Roasted and ground bean exports have been marginal - albeit, recently initiatives are showing encouraging results,  also through the support of foreign investors. In this scenario, important producers like Ethiopia and Tanzania could have a chance to penetrate new markets by taking better advantage of existing production capacity, by upgrading their production system, and targeting new countries.

But the results of this initiative was not only theoretical. Indeed, after the seminar, the Delegates had a meeting with Mr. Massimiliano Fabian, President of the Trieste Coffee Cluster, who highlighted the main features of the local industrial district and discussed linked  investment opportunities and projects. Furthermore, the Delegates, supported by ITPO, established direct contacts with leading Italian companies such as: Illy, Sandalj, Cogeco, Imperator, Damus, ARC, Brumen, and several others. As a result of the these activities, eight coffee projects from Tanzania and Ethiopia were successfully promoted during the exhibition and several  negotiations started soon thereafter.