Dubai Chamber of Commerce and Industry has identified six important potential markets for UAE coffee traders to increase their re-exports, according to a study published on Wednesday.

Qatar, Kazakhstan, Greenland, Lithuania, Latvia and Austria saw growth in the value of coffee imported from the world between 2006 and 2011. According to the study, they were also markets where importers on average paid a more lucrative price for coffee compared to importers in other countries.

The study suggests that these markets have significant potential for UAE coffee traders because they are those where the annual value of imports is worth millions of dollars and they are located in Central and Northern Europe, which according to the International Coffee Organisation (ICO) have high per capita consumption of coffee.

The colder climates of these countries, coupled with the affluence of their populations is suggested as one reason why there is a high need to import coffee and also a willingness to pay relatively higher prices.

Consumers in these markets may also want better quality brands of coffee and interested re-exporters of coffee from the UAE should conduct further market research in these target markets, to secure potentially lucrative re-export opportunities, the study proposes. Targeting wealthy consumers with sales of differentiated coffee brands could also help UAE business increase their sales, while better prices could improve profit margins, the study suggests. Furthermore, selling coffee sourced from sustainable sources could also help increase sales, as customers become more socially responsible.

Vertical integration, by setting up outlets selling coffee and related products in countries with growing demand, could also help UAE businesses increase their share of these markets, the study proposes, adding that these measures could help the UAE become the hub for coffee trading for the emerging markets of the Middle East and North Africa region, South Asia and Africa.However, the increased demand for coffee also causes some challenges.

For example, as demand has continued to increase, the price of coffee has also generally increased from around the year 2002 to present. Rising international prices of coffee can be a challenge for businesses.

Furthermore, coffee prices can sometimes be volatile and can also experience falls. This happens from time-to-time and occurred recently. For example, according to the ICO, the average monthly price of Robusta coffee has fallen from about 121.98 US cents per pound in May 2011 to about 106.88 US cent per pound in May 2012.