The document provides information about the demand and supply of coffee. It discusses factors that affect coffee demand and supply in India and overseas. On the demand side, it outlines factors like income levels, lifestyle, health concerns, and competing drinks that influence coffee consumption. On the supply side, it discusses coffee production in India and key producing countries overseas as well as factors impacting global supply like weather conditions in Brazil. The document concludes by noting that lower production in Brazil and Indonesia may lead to a global coffee supply deficit and higher prices in the coming year.

1. The Demand and
Supply of Coffee
Hrishika Rajesh
2014

2. 2
Content ……………………..
1. Acknowledgement 3
2. Aim 4
3. Introduction 5
4. Demand 6
5. Supply 12
6. Coffee 17
7. Conclusion 21
8. Bibliographies 23

3. 3
Acknowledgements
My completion of this project could not have been accomplished
without the support of my classmates, my favorite teacher Ms.
Mary and my Mom and Dad. Thank you for allowing me to take
so much time to do my research and to write it. Your
encouragement when I was making mistakes is duly noted. My
heartfelt thanks.

4. 4
Aim
To find out the Demand and Supply of Coffee (referring to
figures from the coffee board of India), and to determine the
market clearing rate at which the market gets cleared of its
supplies

5. 5
What is Demand and Supply?
In microeconomics, supply and demand is an economic model of price
determination in a market. It concludes that in a competitive market, the unit price for a
particular good will vary until it settles at a point where the quantity demanded by
consumers (at current price) will equal the quantity supplied by producers (at current
price), resulting in an economic equilibrium for price and quantity.
The four basic laws of supply and demand are
1. If demand increases (demand curve shifts to the right) and supply remains
unchanged, a shortage occurs, leading to a higher equilibrium price.
2. If demand decreases (demand curve shifts to the left) supply remains unchanged, a
surplus occurs, leading to a lower equilibrium price.
3. If demand remains unchanged and supply increases (supply curve shifts to the
right), a surplus occurs, leading to a lower equilibrium price.
4. If demand remains unchanged and supply decreases (supply curve shifts to the
left), a shortage occurs, leading to a higher equilibrium price.
The price P of a product is determined
by a balance between production at
each price (supply S) and the desires of
those with purchasing power at each
price (demand D). The diagram shows
a positive shift in demand from D1 to
D2, resulting in an increase in price (P)
and quantity sold (Q) of the product.

6. 6
Demand
Demand in India
In a nation of tea drinkers, the joint venture between Indian mega-conglomerate
Tata, which already owns the Eight O’clock Coffee brand in the U.S., and the Seattle-
based retail giant Starbucks will open 50 coffee outlets across India by the end of the
year.
Another Indian company, Cafe
Coffee Day, is taking the battle to
the enemy camp before the enemy
arrives. It plans to scale up its
premium coffee chain Square to
counter the entry of Starbucks in
India.
It’s all a sign of the huge boom about to take place in this commodity, and it’s not just
happening in India. While the traditional markets in the U.S. and Europe remain central
to the industry, the aroma of freshly brewed coffee is spreading fast and far. And while
demand for coffee continues to grow, thanks to a bumper crop in Brazil last year, supply
so far in 2012 has outstripped demand. Hence
the bargain-basement price. P.S. Coffee may
be undervalued at the moment, but the
fundamentals of supply and demand cannot
be ignored – it WILL head higher. I see
another commodity in the exact same
position, but it has an even bigger potential to
rocket higher. I’m talking about natural gas.
Twenty years ago, I saw that silver was
massively undervalued, and ready to explode
higher. When silver’s wild ride came to a
close, it was up 800%. Now I see natural gas
in the same position as silver was back in
1995, and the time to act is now.

7. 7
Demand Overseas
Coffee exports from India, Asia’s third-biggest supplier, may decline for a second
straight year as an economic slowdown in
Europe cuts demand and as damage from pest
attacks reduces the harvest.
Shipments may drop below 300,000 metric
tons this year from 310,886 tons in 2012,
Ramesh Rajah, president of the Coffee
Exporters Association of India, said by phone
from Bangalore. Exports fell 9.4 percent last
year, the first annual drop in three years,
according to data from the Coffee Board of
India.
A drop in Indian supplies may help limit a 39 percent slump in Arabica prices in the past
year in New York and cut costs for Starbucks Corp. and Nestle SA. Stockpiles monitored
by ICE Futures U.S. reached 2.63 million bags of 60 kilograms each on Feb. 1, the
highest since March 2010. Slowdowns in Italy, Russia and Spain, India’s main buyers,
curbed demand for the commodity brewed by specialty coffee makers.
“The order book is thinner this year because the economies of the main markets
aren’t faring well and buyers are aggressively searching for cheaper coffee,”Rajah said.
“Arabica exports from India will be lower as prices have come down sharply and
shippers don’t want to sell at these prices.”
The euro-area economy shrank 0.1 percent in the third quarter after a 0.2 percent
contraction in the three previous months. Gross domestic product probably fell another
0.4 percent from October to December and will stagnate in the first quarter of 2013,
according to a Bloomberg survey. Europe accounted for 38.3 percent of the global green
coffee consumption in 2012, according to the U.S. Department of Agriculture.
Brazilianmarketdemandcurve of Coffee Venenzulaianmarketdemandcurve of Coffee

8. 8
Factors that affect demand in India
Growing Conditions
All coffees grown in India are grown in shade and commonly with two tiers of shade. Often
inter-cropped with spices such as cardamom, cinnamon, clove, and nutmeg, the coffees gain
aromatics from the inter-cropping, storage, and handling
functions. Growing altitudes range between 1,000 m
(3,300 ft) to 1,500 m (4,900 ft) above sea level for Arabica
(premier coffee), and 500 m (1,600 ft) to 1,000 m (3,300 ft)
for Robusta (though of lower quality, it is robust to
environment conditions). Ideally, both Arabica and Robusta
are planted in well drained soil conditions that favor rich
organic matter that is slightly acidic (pH 6.0–6.5). However,
India's coffees tend to be moderately acidic which can lead
to either a balanced and sweet taste, or a listless and inert
one. Slopes of Arabica tend to be gentle to moderate, while Robusta slopes are gentle to fairly
level.
Blooming Process
Blooming is the time when coffee plants bloom with white flowers which last for about 3–4 days
(termed "evanescent" period) before they mature into seeds. When coffee plantations are in full
bloom it is a delightful sight to watch. The time period between blooming and maturing of the
fruit varies appreciably with the variety and the climate; for the Arabica, it is about seven
months, and for the Robusta, about nine months. The fruit is gathered by hand when it is fully
ripe and red-purple in color.
Climatic conditions
Ideal climatic conditions to grow coffee are related to
temperature and rainfall; temperatures in the range of 73 °F
(23 °C) and 82 °F (28 °C) with rainfall incidence in the range
of 60–80 inches (1.5–2.0 m) followed by a dry spell of 2–3
months suit the Arabica variety. Cold temperatures closer to
freezing conditions are not suitable to grow coffee. Where the
rainfall is less than 40 inches (1.0 m), providing irrigation
facilities is essential. In the tropical region of the south Indian
hills, these conditions prevail leading to coffee plantations
flourishing in large numbers. Relative humidity for Arabica ranges 70–80% while for Robusta it
ranges 80–90%.
A Coffee
Flower

9. 9
Coffee diseases
The common disease to which the coffee plants are subjected to in India is on account of fungus
growth. This fungus is called the Hemileia vastatrix, an endophytous that grows within the
matter of the leaf; effective cure has not been discovered to eliminate this. The second type of
disease is known as the coffee rot, which has caused severe damages during the rainy season,
particularly to plantations in Karnataka. Pellicularia kole-rota is the name given to this rot or
rust, which turns the leaves into black color due to the coverage by a slimy gelatinous film. This
causes the coffee leaves and the cluster of coffee berries to drop off to the ground. Snakes such
as cobras can also cause a nuisance to coffee plantations in India.
Processing
Processing of coffee in India is
accomplished using two methods,
dry processing and wet
processing. Dry processing is the
traditional method of drying in
the sun which is favored for its
flavor producing characteristics.
In the wet processing method,
coffee beans are fomented and
washed, which is the preferred
method for improved yields. As
to the wet processing, the beans
are subject to cleaning to
segregate defective seeds. The
beans of different varieties and
sizes are then blended to derive
the best flavor. The next
procedure is to roast either
through roasters or individual
roasters. Then the roasted coffee
is ground to appropriate sizes.

10. 10
Factors affecting Demand overseas
Income is an important factor affecting the demand for coffee. In many ways this
is not surprising, especially as coffee is still perceived by many to be a luxury item,
especially in low-income countries.
There is clear evidence that consumption is highly
dependent not only on absolute
income levels, but also, and probably more importantly, on
changes in real-income levels. In countries that have a history
of drinking coffee, there seems to be a direct correlation
between the level of income and the level of consumption.
The highest consumption per capita is found in the Nordic
countries: Denmark, Finland, Iceland, Norway and Sweden –
all of them at around 10kg per person per year. Other
European countries such as
Germany, Switzerland, the Netherlands and Austria also have
a history of drinking coffee and also enjoy relatively high
personal incomes. It is noticeable that countries with a tradition of drinking coffee and
lower personal incomes, such as Spain, Portugal and Greece, have a considerably lower
rate of consumption. Given that coffee is still considered to be a luxury item in many
consuming countries, it is not surprising that as a general rule, changes in real incomes
have a greater effect on consumption in low income
Countries than in high-income countries.
Lifestyle, health and competing drinks
While price and incomes obviously play a major role in determining the demand for
coffee, it is difficult to ignore the effect other factors may have on overall consumption –
for example competition from alternative
beverages, adverse publicity as a result of
various health studies, advertising, or
lifestyle. Coffee is traditionally recognized
as an everyday beverage that is frequently
seen as a stimulant and an aid to
Alertness, but also seen as a social
lubricant fulfilling a very necessary
function enabling people to socialize.
‘Let’s have a coffee’is a phrase often used
to cover a general request for an informal
get-together, regardless of whether coffee
is to be drunk or not. It is interesting to
note that coffee is more likely to be

11. 11
consumed at breakfast, lunch or dinner if these are taken as family meals rather than
eaten alone. The type of food consumers prefer may also have an effect on the amount of
coffee they drink. Either through habit
or taste, coffee seems to complement some foods more than others. This might explain
why coffee is generally less popular in restaurants serving Asian foods than in those
serving traditional Western European cuisine. Competition from other beverages has also
been an important factor affecting the demand for coffee. Over the last 30 years or so,
soft drinks have become more popular, invariably at the expense of coffee, especially
among young people.
However, the situation is far from static and the
new American-style coffee bars appear to reversing
this trend, although the situation varies from country to
country. Consumption of soft drinks in the United
States has shown rapid growth since the mid-1960s:
the percentage of the population drinking soft drinks
grew from 47% in 1975 to 58% in 2011. It does,
however, appear to have reached a plateau as very
little growth has been achieved over the last four years.
However, In Germany coffee remains the most popular
beverage and although the consumption of herbal teas,
fruit juices and mineral water is rising, it does not
appear to be doing so at the expense of coffee. In Japan coffee is gaining ground at the
expense of other beverages, but more slowly than in the early 1980s? Price may be a
major factor in the change to alternative beverages, but
health worries and advertising also provide strong motives
to switch to other beverages.
Over the years a number of studies have suggested
that coffee – in fact invariably caffeine, but the stigma
attaches to coffee rather than to all beverages containing
caffeine – is linked in some way to some cancers and other
diseases. The publicity given to the findings of these studies has contributed significantly
to the decline in the consumption
of coffee in some developed markets. A number of the cola drinks on the market contain
high levels of caffeine – but not as high as most coffees. Studies have found that coffee
may have some beneficial health effects, e.g. helping to relieve stress and inhibiting the
viruses that cause cold sores, measles and polio, as well as preventing some types of
cancer and possibly delaying the onset of Parkinson’s disease.
.

12. 12
SUPPLY
Supply in India
Coffee production in India is dominated in the hill tracts of South Indian states;
with the state of Karnataka accounting
53% followed by Kerala 28% and
Tamil Nadu 11% of production of
8,200 tones. Indian coffee is said to be
the finest coffee grown in the shade
rather than direct sunlight anywhere in
the world. There are approximately
250,000 coffee growers in India; 98%
of them are small growers. As of 2009,
the production of coffee in India was
only 4.5% of the total production in the
world.
Coffee is grown in three regions of
India with Karnataka, Kerala and Tamil Nadu forming the traditional coffee growing
region of South India, followed by the new areas developed in the non-traditional areas of
Andhra Pradesh and Orissa in the eastern coast of the country and with a third region
comprising the states of Assam, Manipur, Meghalaya, Mizoram, Tripura, Nagaland and
Arunachal Pradesh of Northeastern India, popularly known as “Seven Sister States of
India".
In India the 2 most common types of coffee made are Robusta and Arabica. The Annual
production of coffee is 3, 20,250 MT (2011-2012). These are the future market analysis
of Robusta and Arabica. This is the future price trend of the 2 types of coffee.

13. 13
Supply Overseas
Coffee prices are set to raise further, as the crop year 2014-15 stares at a supply deficit in
the global market. Prices, ruling at 190-200 cents per lb (pound), are poised to move up
to 220-230 cents per lb by December.
“Drought in Brazil at the beginning of
the crop year will result in global supply
deficit and concerns over its crop will
trigger price rise,” Jawaid Akhtar,
chairman, Coffee Board, told Business
Standard. Global coffee production
remained flat at 145.2 million bags (each
bag 60 kg) in 2013-14 as in previous
year (145.3 million) bags. Consumption,
however, surpassed supply to 145.8
million bags.As the world’s largest
coffee producer, Brazil harvested 44.57
million bags in 2014, a decline of 9.3 per
cent from 49.15 million bags in 2013.“Brazil has been going through unseasonal weather
patterns this year. After drought in the initial months, which affected the crop, prolonged
hot and dry months may further damage the crop in 2015. As a result, crop output will be
lower at 42-43 million bags next year,” said Nishant R Gurjer, coffee exporter and former
chairman, Karnataka Planters’ Association.
Production in Indonesia, the third largest producer, is also estimated to decline 14 per
cent to 10 million bags in 2014 from 11.67 million bags in 2013, Akhtar said.
Production in Colombia, which is recovering after massive replantation, will increase 25
per cent to 12 million bags this year from eight million bags, with prospects of good crop
in future. Vietnam, which leads in growing Robusta beans, however, is set to harvest a
record crop next year.
“Brazilian production risks continue to support the outlook for the International Coffee
Exchange Arabica coffee futures, and some volatility is expected during the key
flowering period of September-October,” Rabobank said in its latest report.

14. 14
Factors affecting Supply in India
Prices of Factors of Production
A change in the price of labor or some other factor of production will change the cost of
producing any given quantity of the good or service. This change in the cost of
production will change the quantity that suppliers are
willing to offer at any price.
An increase in factor prices should decrease the quantity
suppliers will offer at any price, shifting the supply curve
to the left. A reduction in factor prices increases the
quantity suppliers will offer at any price, shifting the
supply curve to the right
.
Suppose coffee growers must pay a higher wage to the
workers they hire to harvest coffee or must pay more for
fertilizer. Such increases in production cost will cause them
to produce a smaller quantity at each price, shifting the
supply curve for coffee to the left. A reduction in any of
these costs increases supply,
Shifting the supply curve to the right.

15. 15
Factors Affecting Supply Overseas
On the supply side there have been various issues affecting
coffee harvests worldwide. Columbia and Central
American countries have seen inclement weather affect
coffee production and a La Nina weather pattern may
continue this trend in 2011.
Columbia is now in its second straight year of lower
production and higher prices due to lower supplies were
announced by the Columbian National Federationof
Coffee Growers. Decreased coffee crops have also been
reported in Costa Rica and Guatemala.
Brazil also saw coffee crop damage due to rainfall.
Meanwhile Brazil is keeping more of their crop due to
increased demand for coffee among the country’s people.
Brazil’s crop is alternately strong and weak every other
year, and 2011 is a weak year for coffee in Brazil which only exacerbates the worldwide
coffee shortage.

16. 16
In Kenya there has been an increased
demand for real estate, particularly in
western and central Kenya, and this has
displaced some coffee farmers and led to the
uprooting of many coffee plants. That was at
least in part responsible to steep prices
increases at the end of 2010 for the premier
Kenya AA coffee beans on the Nairobi
Coffee Exchange.
While some countries such as Tanzania (which recently had large numbers of coffee
plants devastated by drought) are replanting coffee at a rapid rate, coffee plants take at
least three to five years to mature and thus relief for world coffee supplies will not come
soon enough if demand continues to grow.
Tanzania plans on increasing coffee production from about 70,000 tons annually to
100,000 tons by 2015. The country is known for several top world gourmet coffees
including Tanzania Pea berry and
Tanzania Kilimanjaro.
Also affecting world coffee crops is
the continuing problem of coffee plant
diseases and pests which periodically
claim large percentages of coffee crops
and must be dealt with in each case.
Adding to the worldwide increase in
coffee prices is the influx of money
into coffee futures on the
Intercontinental Exchange. Coffee
price speculation is just one more
contributing factor in addition to the
supply and demand issues.

17. 17
Coffee
Coffee is a brewed beverage prepared from the roasted or
baked seeds of several species of an evergreen shrub of the
genus Coffee. The two most common sources of coffee beans
are the highly regarded Coffee Arabica, and the "Robusta"
form of the hardier Coffee canephor. The latter is resistant to
the coffee leaf rust (Homilies), but has a more bitter taste.
Coffee plants are cultivated in more than 70 countries,
primarily in equatorial Latin America, Southeast Asia, and
Africa. Once ripe, coffee "berries" are picked, processed and
dried to yield the seeds inside. The seeds are then roasted to
varying degrees, depending on the desired flavor, before being ground and brewed to
create coffee.
Coffee is slightly acidic (pH 5.0–5.1[1]) and can have a stimulating effect on humans
because of its caffeine content. It is one of the most popular drinks in the world.[2] It can
be prepared and presented in a variety of ways. The effect of coffee on human health has
been a subject of many studies; however, results have varied in terms of coffee's relative
benefit.[3] The majority of recent research suggests that moderate coffee consumption is
benign or mildly beneficial in healthy adults. However, the diterpenes in coffee may
increase the risk of heart disease.[4]
Coffee cultivation first took place in southern Arabia;[5] the earliest credible evidence of
coffee-drinking appears in the middle of the 15th century in the Sufi shrines of Yemen.[5]
In East Africa and Yemen, coffee was used in native religious ceremonies. As these
ceremonies conflicted with the beliefs of the Christian church, the Ethiopian Church
banned the secular consumption of coffee until the reign of Emperor Menelik II.[6] The
beverage was also banned in Ottoman Turkey during the 17th century for political
reasons and was associated with rebellious political activities in Europe.
Availability of coffee in India

18. 18
Popularityof Coffee in India
The India Coffee House chain was first
started by the Coffee Board in early
1940s, during British rule. In the mid-
1950s, the Board closed down the
Coffee Houses, due to a policy change.
However, the discharged employees
then took over the branches, under the
leadership of the then communist
leader A. K. Gopalan and renamed the
network as Indian Coffee House. The
first Indian Coffee Workers Co-
Operative Society was established in
Bangalore on 19 August 1957. The
first Indian Coffee House was opened
in New Delhi on 27 October 1957. Gradually, the Indian Coffee House chain expanded
across the country, with branches in Pondicherry, Thrissur,
Lucknow, Nagpur, Jabalpur, Mumbai, Kolkata, Tellicherry and
Pune Tamil Nadu by the end of 1958. These coffee houses in
the country are run by 13 cooperative societies, which are
governed by managing committees electedfrom the employees.
A federation of the co-operative societies is the national
umbrella organization to lead these societies
However, now Coffee bars have gained in popularity with
other chains such as Barista; Café Coffee Day is the country's
largest coffee bar chain.[37] In the Indian home, coffee consumption is greater in south
India than elsewhere.[38]
Indian coffee has a good reputation in Europe for its less acidic and sweetness of
character and thus widely used in Espresso Coffee, though Americans prefer African and
South American coffee, which is a more acidic and brighter variety.[6]
Selection 9 was the winner of the Fine Cup Award
for best Arabica at the 2002 Flavor of India –
Cupping Competition. In 2004, Indian Coffee with
the brand name "Tata Coffee" had the distinction of
winning three gold medals at the Grand Cus De Café
Competition held in Paris.

19. 19
Market Clearing Rate
We are looking for the equilibrium price and equilibrium quantity. The equilibrium
price (or market-clearing price ) is the price at which the intentions of buyers and
sellers match. It is the price at which quantity demanded equals quantity supplied.
The t a ble in Figure 3.6 reveals that at $3, and only at that price, the number of lattes
that sellers wish to sell (7000) is identical to the number that consumers want to
buy (also 7000). At $3 and 7000 lattes, there is neither a shortage nor a surplus of
lattes. So 7000 lattes is the equilibrium quantity: the quantity at which the intentions
of buyers and sellers match so that the quantity demanded and the quantity
supplied are equal. Graphically, the equilibrium price is indicated by the intersectionof
the supply curve and the demand curve in Figure 3.6. (The horizontal axis now measures
both quantity demanded and quantity supplied.) With neither a shortage nor a surplus at
$3, the market is in equilibrium , meaning
“in balance” or “at rest.” To better
understand the uniqueness of the
equilibrium price, let’s consider other prices.
At any above-equilibrium price, quantity
supplied exceeds quantity demanded. For
example, at the $4 price, sellers will offer
10,000 lattes, but buyers will purchase
only 4000. The $4 price e n courage’s sellers
to offer lots of lattes but discourages many
consumers from buying them. The result is a
surplus or excess supply of 6000 lattes. If
latte sellers made them all, they would find
themselves with 6000 unsold lattes.
Surpluses drive prices down. Even if the $4
price existed temporarily, it could
not persist. The large surplus would prompt
competing sellers to lower the price to
encourage buyers to stop in and take the
surplus off their hands. As the price fell,
the incentive to produce lattes would decline and the i n centive for consumers to
buy lattes would increase. As shown in Figure 3.6, the market would move to its
equilibrium at $3.Any price below the $3 equilibrium price would create a shortage;
quantity mended would exceed quantity supplied. Consider a $2 price, for example. We
see in column 4 of the table in Figure 3.6 that quantity demanded exceeds quantity

20. 20
Case study of Starbucks
In 2002 Starbucks served about 20 million customers a week,
earning $3.288 billion. In 2007 Starbucks has earned a net
income of 9.411 billion. This is a growth rate of 286.2%.
Assuming the 20 million customers are correlated with the
net income and its growth rate, I assume that Starbucks
served 57.24 million customers a week, that is about 2.98
billion customers served per year! However, 85% of sales
come from retail stores, which means with 15,011 worldwide
stores, in 2007, each store, theoretically, averagely served about
168,743 customers a year. This is equal to 462 customers’ day! On average, stores open
at 5:00am to 5:30 and close around 10:00pm to 11:00pm. So at a maximum of 16 hours a
day, the average Starbucks employee team stirs out about 29 beverages an hour.
In the year 2000 in the US, coffee consumption was 22.1 gallons (100.468 liters) per
capita More than 150 million Americans (18 and older) drink coffee on a daily basis,
with 65 percent of coffee drinkers consuming their hot beverage in the morning. In 2008,
it was the number-one hot beverage of choice among convenience store customers,
generating about 78 percent of sales within the hot

21. 21
Conclusion
When it comes to your morning meal,
many people believe that coffee is an
essential part of any healthy
breakfast. It may surprise you to
learn, however, that tea is a much
healthier wake-up beverage than
coffee. Read on to learn about the
various advantages tea has over
coffee.
Disease Prevention
In addition to being part of a healthy
breakfast, tea can play a pivotal role
in protecting your body from assorted
health problems. Because of tea's
high levels of potent antioxidants, it often proves helpful in preventing heart disease, cancer,
diabetes, osteoporosis and even psychological impairments like Alzheimer's. While coffee has
also proven effective in combating Alzheimer's and diabetes, its health benefits essentially end
there.
Furthermore, regularly drinking tea can help reduce your body's cholesterol levels, relax your
blood vessels and impede the formation of blood clots. Drinking excess of three cups of tea can
also reduce your risk for stroke by more than 20%.
Oral Health
As a stark contrast to coffee, tea is actually good for your teeth. While coffee is notorious for
causing brittleness and discoloration in teeth, tea is able to help in the prevention of cavities as a
result of its powerful antioxidants. Additionally, if visiting the dentist is a source of dread for
you, people who drink coffee on a daily basis are strongly advised to visit a dentist once every
six months, whereas regular tea drinkers can typically get by with an annual visit.
In another nod to oral hygiene, tea contains polyphones, which help prevent the formation of the
bacteria responsible for bad breath. To this end, tea has proven effective in staving off assorted
bacterial and fungal infections.
Psychological Health
In some cases, tea, particularly green tea, can function as an effective antidepressant. Studies
have shown that individuals who suffer from both moderate and severe depression experienced

22. 22
improved psychological outlooks after consuming two to four cups of green tea each day. In
other words, a healthy breakfast item can go a long way in improving your overall demeanor.
Enhanced Metabolism
Not only does tea taste great, but its powerful antioxidants can help speed up your body's
metabolism if consumed regularly. While it's a common myth that coffee can also boost your
metabolism, the truth is that it simply acts an as appetite suppressant without actually helping
your body burn fat.
Reduced Stress
Tea, specifically black tea, can prove very useful in lowering your stress levels. Drinking four
cups of black tea each day can lead to a dramatic reduction in your body's levels of cortical, a
prominent stress hormone. So in addition to making it a part of a healthy breakfast, make a point
of enjoying a relaxing cup of tea after a hard day's work.
A healthy breakfast can help set the tone for the entire day, so when preparing this important
meal, it's crucial to choose the right beverage. When trying to choose between coffee and tea,
remember to take the previously discussed health benefits of the latter into careful consideration.

23. 23
Bibliographies
 The Sovereign Investor
 The Economic Times
 Bloomberg
 Business Standard
 Wiki a
 Wikipedia
 World Coffee Guide 2011
 The Saylor
 Sweet Marias