Nepalese coffee has the potential to be one of the most exported products in Nepal. Even with limited production Nepal has already started exporting coffee to the selected overseas markets. Thus, if Nepal can promote and confine coffee as Specialty coffee, the opportunity to export coffee would increase to a great extent.
Even though the fluctuating trend in production, demand has remained constant more or less in the importing countries. Slight marginal growth has been noted which shows that the consumption trend is at a comfortable level in the markets so, although the market may not be robust, it is already consistent and strong enough.
Currently, world production is unable to meet the total demand for high-quality coffee under the prevailing context where more than 20 % of the low-quality coffee is dumped every year and hence there is a good market prospect for this crop if promoted as a Specialty and organic coffee.
Specialty Coffee:
Specialty Coffee beans are produced under special microclimatic conditions that possess outstanding flavor. Specialty coffee has generated much higher value compared to 100% pure coffee in the international markets. As the demand and value of specialty coffee raise the profit margin associated with it also rises, the profit margin of the specialty coffee roasters and the retailers are also in increasing trend.
The following are the kinds of Specialty Coffee:
- De-caffeinated coffee
- Organic coffee
- One estate coffee
- One variety coffee
There may be a problem related to producing a decaffeinated type of coffee as huge financing is required which may be difficult at the present. Depending upon the profit, environment and technology requirement, inputs, skilled manpower, affordability, and risks as well as the comparative advantage, Nepal must decide to promote and develop the rest three types of coffee at the appropriate locations. The success and failure of each type depend upon various factors and these factors may vary from place to place and type to type. Even though all these three types look to have potential, a detailed study or research in this aspect is very essential.
Nepalese coffee is considered organic by default by the international buyers and they are also disseminating the same message to the consumers in overseas markets. As a result, the demand for Nepalese coffee is increasing over the last few years and will continue to remain so until a foreseeable future also. Therefore, considering the international coffee market environment, it is very essential to
develop and promote coffee in Nepal as an organic product. This, however, should not mean that we must prioritize the organic coffee only. As the international coffee market is heavily dominated (about 98% of the total market) by the inorganic coffee, ample space must be left for inorganic integrated coffee as an alternative measure in view of the dynamic nature of the market.
Organic Coffee:
Organic coffee is the one grown under a production system and it includes the composting of the organic materials, mulching, shades regulation, and biological pest control. This production system is based on the principle that the value of the harvest is returned to the soil. However, for a product to be marketed as organic, it must be certified by a 16 recognized agency or the certifier. The certification must be based on a regular inspection at all the stages of production, processing, transporting, and roasting of the coffee.
Therefore, as the consumers in the international markets are increasingly demanding and becoming more sophisticated in terms of both quality and image, there is a good prospect for both the specialty and organic coffee, provided Nepal can develop and promote.
