Brazil celebrated a record 61.7 million bags last year, making it the world's largest consumer market.

Brazil celebrated a record 61.7 million bags last year, making it the world's largest consumer market. Domestic coffee drinkers emptied 21 million bags of 60kg coffee in 2018, an increase of 3 per cent.

The day when production records are set year after year to make the coffee world the world's largest coffee consumer in Brazil's domestic market. In 2018, during the biennial harvest, this forecast was realized. According to the national supply company (Conab), the harvest of Arabica and Robusta increased by 37.1% compared with the previous year, a record high.

Arabica accounted for 47.5 million bags (up 38.6%), while Robusta / trypanosome production exceeded 14.2 million bags (up 32.2%). Favourable climatic conditions in 2018 played an important role, but harvest and post-harvest scientific and technological innovation and more productive varieties pushed Brazil to the highest point in the coffee supply chain.

Despite the large number, coffee expert Eduardo Carvalhaes says there is no need to worry about oversupply. "the world needs Brazil to export an average of 35 million bags. Last year, the surplus of the product was absorbed by the domestic market, which grew exponentially, "explained Carvalhaes, a coffee broker and chairman of the coffee shop chamber of commerce at Carvalhaes.

Despite decades of political turmoil and economic difficulties, Brazil still has more coffee drinkers than American coffee drinkers. Euromonitor International, a market research provider, reported that "the Brazilian coffee category remained flexible, with total sales growing by 3.2 per cent in 2017." The penetration rate of coffee in Brazilian households with increased per capita consumption is 98 per cent. Local industries are able to meet demand, especially those related to specialty coffee customers. As a result, Brazil is both the world's largest coffee producer and the world's largest consumer market.

Expansion

Coffee country

Will Brazil store or transport its crops?

The short answer is: delivery. The Brazilian Council of Coffee exporters (Cecaf é) reported that coffee exports increased by 14 percent in 2018. Exports totaled 35.2 million bags, including green coffee, instant coffee, roasted and ground worth $5.1 billion.

Statistics show that Brazil remains a global leader and everything suggests that the result will be better in 2019. Brazil is in a position to maintain this performance in the structure of its coffee chain, as global consumption grows by an average of 2 per cent a year to reach 170 million bags by 2020, "explained Nelson Carvalhaes, president of Cecaf é.

The price is very low, why do producers sell coffee? All Brazil's bumper harvests and record harvests mask the fact that 80% of farms are small properties (2-7 hectares).

Few people know that the days of coffee tycoons are over. In the early 20th century, these aristocrats controlled the country's wealth and seriously influenced national policy. To prevent the prices of coffee-growing states from plummeting, the state government, urged by a wealthy coffee dynasty, agreed to buy and store coffee. The surplus is out of control.

"Brazil burned 78 million bags of coffee between 1921 and 1944, apparently playing a leading role in the price leadership competition," Vernon Yorgason wrote in the International Coffee Agreement: prospects and Review.

"I don't believe that Brazil will hold coffee because these small producers have to pay the bills," Carlos Brando, a director and partner of coffee consulting, marketing and trading firm Pumbaa International Marketing, said today.

Expansion

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Commodity and professional export

Although the futures market sets the prices of a large number of low-quality commodity coffee national competitions, online auctions of exotic and unique sensory varieties enable growers to obtain diversified and more profitable specialty coffee combinations at many times higher prices. Exchanges in New York or London.

Once the producing country and the producing country prove to the international market that they produce great coffee under their native conditions, an agreement can be reached. However, the biggest challenge for Brazilian producers and traders is to prove that Brazil can produce coffee for all types of buyers: from large industries to small fancy coffee shops.

"it needs to provide daily work for buyers on both sides of the chain. We provide training programs for producers who want to invest in quality and special visit / tourism programs during the harvest to showcase valuable locations and local conditions to our international customers, "explains Thiago Trovo of Piaos de Caldas, a specialty coffee trader at Bourbon.

Historically, Brazil has been a pioneer in investment quality competitions. The Outstanding Cup sponsored by the Coffee Excellence Alliance is an example of how Brazilian manufacturers have proved through blind verification.