European Coffee Market With Focus on Germany - Holger Preibisch (1)

European Coffee Marketwith focus on Germany

I. Introduction German Coffee Association

II. European Coffee Market

III. German Coffee Market

Introduction German Coffee Association

I. Introduction German Coffee Association

Members

Farmers Agents/Importers

Decaffeinaters/Manufacturers of soluble coffee/Roasters

CoffeeshopsLogistic

German members of our Association across the value added chain

almost all

4C, Utz, Fairtrade, RainforestAlliance

Sustainabilityorganisations

Suppliers/Producers of coffee machines

almost all

Based in Germany and Switzerland

almost all

NKG Kala,Vollers, Hamburg Süd

almost all

Sara Lee,Tchibo, DEK,Kraft Foods, Nestlé speciality roasters

almost all

Probat,Jura,WMF

e.g.

Starbucks

1. Information service

2. Risk management and representation of interests

3. Creating a positive image of coffee

Duties

Main Duties of the German Coffee Association:

European Coffee Market

II. European Coffee Market

- Overall facts and trends

European Coffee Market

Divided into Western European market (EU countries,Norway and Switzerland) and Eastern European market

European Coffee Market

Imports into the EU

Western Europe

Central and Eastern Europe86%

14%

Imports into EU-Countries A-I

Germany is the biggest importing country volumewise.

Imports into EU-Countries L-U

Imports into the EU by origin

- Until 2008: Brazil, Vietnam and Colombia three top suppliers of coffee

- In 2010: Brazil remains most important country of origin, Vietnam second most important- Colombia dropped significantly

- Third biggest supplier: Indonesia

- followed by Honduras, Peru,India, Uganda and Ethiopia

Imports into the EU by origin

Imports into the EU from East Africa

About 10% of all imports to the EU come from East Africa.

Imports of green coffee from East Africa into the EU in 2010

UgandaEthiopiaKenyaTanzania

40,5%

39,0%

12,3%

8,2%

Imports per type of coffee

- The overall ratio Arabicas/Robustas has changed very little in 2010 compared to 2009

- But within the Arabica group, there has been a shift towards Brazilian Naturals and Other Milds.

Exports of roasted coffee

Value imports and exports

Coffee production

III. German Coffee Market

- Overall facts and trends

a) Datas and figures

b) Sustainable / Organic cultivation

c) Prices and taxes

German Coffee Market

a) Datas and figures

Datas and figures

German Coffee Market

German Coffee Market

- Important trading and processing places for coffee are located in Germany

- Green coffee imports of over 18 million bags in 2010

- Great processing and decaffeinating industry is based in Germany

Germany: imports and exports

- Exports of roasted non-decaffeinated coffee were mainly destined for Poland (16,7%), France (14,1%), Netherlands (13,4%)

- Exports of decaffeinated green coffee were mainly destined for the United States (54,0%), Spain (12,2%), Italy (6,9%)

- Coffee Extracts were mainly destined for the UK (15,3%), Poland (11,2%), Ukraine (10,6%)

Coffee imports

0100.000200.000

300.000400.000500.000600.000

700.000800.000900.000

1.000.000

2005 2006 2007 2008 2009 2010

Ethiopia

Uganda

Kenya

Burundi

Cameroon

Tanzania

Green coffee imports from African countries to Germany in bags à 60 kg:

Imports to Germany

Germany: segments of coffee consumption

- The market share of the segments single portions and espresso/caffè crema kept increasing

- Beside these trends: roast and ground coffee is still an important market segment

- Steady demand for soluble coffee

Espresso / Caffè Crema

Single portions

Out of home consumption

Out of home consumption

b) Sustainable / Organic cultivation

Sustainable / Organic cultivation

Organic coffee exports

Certified coffee

Market segment of certified coffee

• Market segment of certified coffee (organic &sustainable) is about 3% of the whole coffeemarket

• Certified coffee is still a niche

• Consumers are still not ready to pay more forsustainbility .

c) Prices and taxes

Prices and taxes

Taxes on coffee

Prices for green and roasted coffee

Final

Africa is the coffee continent

• Africa = long history and experience in supplying coffee to world markets

• Coffee in Africa is almost entirely smallholder-produced, continously working on improvement in quality and productivity

• Strong growth in global coffee consumption – Africa is well placed to respond to this growing demand

Germany is a coffee nation

Thank you for your attention!