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Coffee and Tea Reports
from the Front Lines

Uganda to Withdraw from Two Coffee Groups
KAMPALA, UGANDA - Uganda says it will withdraw from two international coffee groups due to financial hardship but will not pull out of a retention scheme to prop up world prices, reported Reuters News Service.

“We are pulling out of the Association of Coffee Producing Countries (ACPC) and the InterAfrican Coffee Organization (IACO),” Uganda Coffee Development Authority (UCDA) board secretary William Naggaga told Reuters.

“But we shall remain members of the retention scheme and any future plans to prop up coffee prices,” he said.

International coffee prices have plummeted in the past two years due to oversupply, severely affecting UCDA’s revenues and its ability to pay subscription fees.

“We owe more than a million dollars to ACPC, IACO and the International Coffee Organization (ICO),” Naggaga said. “Due to poor coffee prices our revenues are down 40%...the truth is we just cannot pay.” He said the few resources UCDA controlled would be used for national programs like the fight against coffee wilt disease.

Uganda received an average of $0.64 per kilo for its coffee in March compared with $1.12 at the same time last year. Coffee export earnings were down 49% in the first half of this season (Oct-Sept).

New Alliance for Quality Coffees
SANTOS, BRAZIL - Coffees of the World, Inc. has been formed by an alliance of U.S.-based All World Coffee with the Costa Rican firm, Panamerican Coffee Trading Co. and the Canadian based trade house, All Gold Coffee Inc.

All World Coffee was created by former Cargill executive John W. Bunker and trader Julie A. Burt. Panamerican Coffee Trading is managed by the Sachs brothers, Peter and Volker, and Gary Pillemer is responsible for the coffee operations of Toronto-based All Gold Coffee Inc.

The objective of the alliance is to offer a full service from origin to roaster with personalized, efficient and reliable regular supplies of high quality Latin American coffees.

All members of the alliance possess a large experience in trading specialty quality coffees in their respective areas. - By Harry C. Jones

Santos Commercial Association Installs Directors
SANTOS, BRAZIL - The Santos Commercial Association have installed the directors, counselors and presidents of the various departments of the Association for the two year term 2001/2002. Jose Moreira da Silva was re-elected and installed for his fifth mandate as president which is unique in the 130 year history of the Association. His re-election was a tribute to his work and dedication to the activities of the Association during his eight years as president. He was instrumental in introducing an intense program of modernizing all sectors of the Association as well as restoring the original architecture (Rua Quinze), the well known Santos coffee street.

In addition, his Administrations addressed and organized many Santos community projects, such as reviving the Old Center of Santos, and also the now traditional Santos International Coffee Seminar.

The Santos Association was founded in 1870 by a group of Sao Paulo coffee growers and merchants to represent class interests and policies due to the developing international and local importance of the coffee market in Santos. - By Harry C. Jones

McDonald’s Opens Café in U.S.
CHICAGO - Adjacent to a McDonald’s restaurant in downtown Chicago, McDonald’s recently opened its first U.S. McCafé gourmet coffee shop, reports USA Today. This McCafé uses china cups, customers sit on soft leather couches. The walls are lined with mahogany and floral wallpaper and customers play jazz and classical music. McCafé sells desserts and coffee from Lavazza. McCafé began in 1993 at a McDonald’s in Melbourne, Australia, and more than 300 now operate worldwide.

“McCafé opens up a tremendous opportunity,” says Alan Feldman, president of McDonald’s USA. “This is part of our overall growth strategy to double our U.S. business and triple our owner equity over the next 10 years.”

Industry executives say it will be clear after just a few months if the concept is a hit. If so, McDonald;s might add 100 to 200 McCafés over the next year, says Ron Paul, president of Technomic, a restaurant consulting firm.

“McDonald’s has its work cut out to catch Starbucks,” Paul says. “But it can be a powerful No. 2.”



Tea & Coffee - June/July 2001
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