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Coffee in Trieste.

Coffee in Trieste

Trieste has always been the coffee capital in the Mediterranean, maintaining its importance during the centuries. First arrivals were registered at the end of 1700 and consistently increased during the 1800's.

Free market conditions started July 4, 1989 and had an influence on stocks in the free port of Trieste from around 1 million bags as normal average till highs of over 1.3 million. Stocks at the end of December 1990 were slightly over 1 million. This is not due to a higher consumption but to the Government's decision to increase the internal consumption tax at Lire 2,050 per kg. as from Jan. 1, 1991 (from Lire 500).

This increase may affect coffee consumption and is a potential danger for smuggling. Compared to CIF green coffee values, the different custom entries (duty, consumption tax, V.A.T.) are representing some 170% for Robustas and some 115% for Arabicas as an average.

Another governmental decision of late 1990 will have beneficial consequences: a financial "offshore" center will be established in Trieste free port with ambitious programs: financial and insurance services, banking services for conversion of weak Eastern countries' currencies, clearing service for barter-business, and commodities terminal markets.

The world coffee industry will be interested in the closest initiative to re-open the Trieste Coffee Terminal Market with automatic trading screens. The basic contracts will be Brazilian coffee with special provisions to allow tendering of Arabicas as dealt by CSCE New York and Arabicas LTM.

Trieste is already a tenderable Port for both London Contract (Arabicas and Robustas) and will be the main tenderable Port for the Trieste Coffee Terminal Market.

The geopolitical location of the free port in Trieste with the commercial liberalization prospected in the Eastern countries, will certainly favor higher volumes of physical coffee to be stocked: higher amounts of spot coffee from the new area of the East, as well as the tenderability of same coffees against the three terminal markets are the best premises for a golden future.

Trieste, having a free port being supported by the "off-shore" legislation is practically getting back a "Hinterland" for free trade in coffee as it had been until 1918 as the only port of the Austro-Hungarian Empire.

Trieste Coffee Association

to celebrate centenary

In the Autumn of 1891, some 15 coffee firms established a "Coffee Trade Association." At that time, Trieste was the third largest port in Europe, following Hamburg and Amsterdam, and the largest port in the Mediterranean for coffee volume.

Coffee imports registered 476,000 bags in 1891 and reached a record number of 1,387 M bags in 1913. The Trieste Coffee Terminal started activity with a basic "Rio" coffee contract. Turnover increased rapidly, reaching 1 million bags at the eve of WWI.

Just before WWII, the Association began to include roasters in its membership. At that time, the government installed a `Coffee Monopoly," closed down the Coffee Terminal, froze the Association's properties, introduced currency restrictions and imposed quotas on coffee imports.

The Trieste Coffee Association was liquidated in 1939, but was restarted in 1945.

After difficult years of reorganization and consolidation, the Association now has 150 members, with a volume of over 5 million bags (entries and reforwarding).

The Association maintains relationships with all sister associations and has representatives in the Italian Coffee Committee, CECA, and cooperatess with the ICO.
COPYRIGHT 1991 Lockwood Trade Journal Co., Inc.
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Copyright 1991 Gale, Cengage Learning. All rights reserved.

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Title Annotation:international coffee trade
Author:Hesse, Alberto
Publication:Tea & Coffee Trade Journal
Date:Mar 1, 1991
Words:558
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