Coffe Report Final

Chapter 1 Introduction
The purpose of this report is to introduce and analyze more into the world of
coffee. Our main objective for this report is about Arabica VS Robusta. As you
can see, you can find coffee everywhere around the world. This report is
consist of the characteristics of the coffee, followed by the cultivation, the
coffee`s taste and level of caffeine. The report will also include the
consumption of coffee, factors that affect the price market, then the
customer`s preference and finally the conclusion of the whole report.
Chapter 2 Characteristics
Botanically, coffee is a shrub from Rubiacean family. The cultivation of coffee
Arabica and coffee Canephora more known as Robusta constitutes 99 % of
world market (Appendix 1).However these two types of coffee mainly
distinguished in method of cultivation, taste and level of caffeine (Appendix
2).
2.1 Cultivation
Arabica trees are growing at subtropical climates at altitude of 800 to 2,000
meters above sea level. However, the more favorable conditions for growth
of coffee at altitude of about 1,500 meters, where high humidity, lots of
moisture and temperature is around 20 degrees Celsius. The shrubs of
Arabica can reach around 6- 8 meters high, however it usually pruned for 4
meters to make harvesting easier. It is a delicate plant, they need lots of
moisture, rich soil, shade and sun as well as they are prone to damaging
insects and fungi such as coffee beetle, coffee rust fungus and are extremely
vulnerable to cold and bad handling (Coffee Book, 2013). Furthermore as
stated by Bertrand et al. shrubs of Arabica more prone to various diseases
comparing with Robusta trees. In comparison, Robusta trees are perfectly
disease resistant and can grow in lowland areas at the temperature of 25
degrees Celsius. Also plantations do not require careful maintenance and
differ of high productivity. The main advantage of Robusta trees is that it

survives at very high temperature although its optimal at 24-30 degrees
Celsius. In addition, Robusta shrubs can survive at very wet climate, even so
its no allowed to stagnating of water under the trees because it begins the
process of decay, and the plant dies.
2.2 Taste and level of caffeine
The higher altitudes produce the richer range of flavoring of coffee beans;
because they have the effect of increasing the acidity of the bean and the
cold nights forcing the tree mature more slowly, allowing the beans to
develop a fuller flavor (The coffee companion, 2006). Moreover, the quality
of the coffee depends on the place of growth. For instance the coffee beans
from Costa Rica cultivated on high altitude have a very delicate taste, strong
flavor and slightly sour. In Cuba the coffee is milder compare with Ethiopia
which is spicy.
Arabica beans have more diverse tastes with slightly
sourness. Furthermore the smell of unroasted grains associated with

blueberries. The roasted grains contain sugar-fruit notes. The taste of
Robusta tends to have more neutral flavour which can be compared with
oatmeal. Unroasted Robusta grains conjure the smell of raw peanuts. In
contrast with Arabica, Robusta beans have rather bitter taste. Due to high
contain of caffeine Robusta beans usually used in various mixtures, as well
as for the production of instant coffee. The caffeine content in Robusta
constitutes 250 mg per cup, however in Arabica only 120mg per cup.
Otherwise, Robusta is not recommended for use as a drip-brewed coffee, yet
Robusta beans make instant coffee and premixed coffee.
Chapter 3 Consumption
The market for coffee has slowly expanding throughout the decades but it
has been booming the past few centuries. As Jose Settee, Head of Operations at
the London-based International Coffee Organization states that the growth in coffee
consumption these days occurs much more in emerging markets, which are bearing
up much better under this economic turbulence than in the developed world . The
increased consumption of Robusta in Asian countries significantly changed

the
coffee market,
thereby
displacing
and
reducing
Arabica
coffee.
According to Rabobank forecasts the global consumption of Robusta rise

three per cent from 2012-2013. Yet Robusta production increase only one per
cent. The studies show that the crop of the top world coffee producer
Vietnam fall down to 12 -15 per cents. However Indonesian Robustas crop
which rises up to 47 per cent year-on year able to fulfil global increased
consumption. Furthermore strong rate of growth shows in South Korea up to
eight per cent and nine per cent up in Philippines. The results of this growing
demand for Robusta are Asian market preferences of instant coffee and the
way how they drink it. Moreover the demand will continue outstrip as most of
Robusta grows in South East Asia which is the main consumer of Robusta. As
the standard of living is getting higher; the society will need coffee which
contains caffeine to cope up with it. . The way of drinking coffee is the main
reason of Robusta popularity in Asian countries. For instance Indonesians
prefer to drink strong coffee with sugar. They add two teaspoons of coffee
and sugar into the cup then fill with boiling water and wait until grounds
settle on the bottom.
It will provide necessary strength but sometimes
overdose will have it effect.

3.1 Factors that affect the price market
Although there are a lot of coffee bean in the market but there are two main
competitors in the market, which is arabica coffee bean and robusta coffee
bean. Robusta gained wide popularity among retail stores due to the fact
that it serves a good material for preparation of creamy coffee. But lately,
the demand has shift from Arabica to Robusta. The main reason of the
change is the price of arabica coffee has slightly decreased since 2011/12
due to severe weather in some producing countries (Appendix 3). According
to the law of supply, as the supply of the arabica coffee bean has reduced so
will the price. Thus there will be a surplus in the market for Arabica coffee.
On the other hand, it will lead a slight increase in term of price and demand
for robusta. This is because as the productions of arabica decrease, the
productions of robusta have increase at the same time. Although the
popularities of robusta have increase, certain countries and company is still
using Arabica. For example, in Starbucks there are mainly using arabica
based product because their main target market is Europe which their
preferences is more acidity. As for the Asian market, they prefer a milder and
sweeter taste.
3.2 Market opportunity
With world Robusta coffee consumption trends are slowly increasing at this
time, particularly as Arabica is twice the cost of Robusta that pushing many
roasters are experimenting with ways to increase the percentage of Robusta
. For instance, the specific demand for Vietnam Robusta coffee and has
allowed the Vietnam coffee to capture some of low quality Arabica market
share. Moreover, Vietnam has been the second largest overall producer of
coffee in the world. Obviously, Robusta can be profitable.
3.3 Consumers preference

The right amount of coffee for female and male is different; for female is
550mg/per day which is equivalent to 5 cup of espresso, while male are 770
which is at least 7 to 8 cup of espresso. It is concern in that the drinking
preferences in America are unhealthy. They will easily drink up to 5-6 cup per
day.
It is acceptable for male but for female is kind of threat. So it is
sometimes advisable to drink coffee after meal and not before because the
coffee also contains acid that will be harmful to the stomach.
Conclusion
As it stated above, this report built on the comparison of two main coffee
beans Arabica and Robusta. Comparison was done through breaking down
critical analyzing the most essential characteristics of both beans such as
cultivation, taste, level of caffeine, consumption and price market. Findings
from research show us that Robusta beans gain more and more popularity in
the market of consumption and increase in several years than Arabica beans.
First of all, Arabica beans more difficult cultivate as these beans are very
whimsical, sensitive to various diseases and changes in climate. In contrast,
Robusta beans much easier to cultivate, they are perfectly disease resistant
and can grow at higher temperature than Arabica beans. All these issues
make Robusta beans more profitable for the big markets, which require huge
quantity of coffee beans. Next are the taste differentiation, where Arabica
beans have more diverse tastes with slightly flavor whereas Robusta beans
tends to have more neutral and oat flavor. Despite the fact that Robusta
beans are increased in consumption, the taste of Arabica beans are still
remain better, than Robusta as it richer in flavor. Next thing is that Robusta
beans contains more caffeine than Arabica beans that gives advantage to
Robusta beans as nowadays style of life very stressful and require rich
content of caffeine to cope up with. In consumption part, Robusta beans
shows growth, especially in Asian market due to its preference in instant
coffee, compare with Arabica which is faced with a big reduction due to the
changes in climate of Arabicas producing countries. Also, Robusta are much
cheaper compare with Arabica that makes it available for more people. But,
strong growth of Robusta hasnt reduced consumption of Arabica to the
minimum, because many people are ready to pay more for the better taste
of Arabica, especially European market that prefers Arabica. In prediction of
the future, demand and price for the Robusta beans will grow as worlds
population grows, climate changes due to global warming and market
requires coffee that more easier to produce and make.
Appendix 1
Appendix 2
ARABICA VS ROBUSTA TABLE OF DIFFERENCES
Altitude
Rainfall
Temperature
Fruit yielding
Fruit on tree:
Disease resistance
Cultivation
Quality
Caffeine
ARABICA
600-2200 m
12-22 cm/5-8.5 in.
15-24 C/59-75 F
4 years
Low
Low
Difficult
High
120 mg/cup
Chapter 4 conclusion and prospects
ROBUSTA
Sea level-800 m
22-30 cm/8.5-12 in.
24-36 C/76-96 F
2 years
High
High
Easy
Low
250 mg/cup
http://dev.ico.org/prices/m1a.htm
Appendix 3
Total production by region, group and by type Crop years 2008/09 to 2011/12
90,000
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
-
2008/09
2009/10
2010/11
2011/12

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Chapter 1 Introduction

differ of high productivity. The main advantage of Robusta trees is that it

Arabica beans have more diverse tastes with slightly

sourness. Furthermore the smell of unroasted grains associated with

increased consumption of Robusta in Asian countries significantly changed

According to Rabobank forecasts the global consumption of Robusta rise

It will provide necessary strength but sometimes

overdose will have it effect.

3.3 Consumers preference

It is acceptable for male but for female is kind of threat. So it is

Chapter 4 conclusion and prospects

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