Fire losses in Brazil exceed 1 billion yuan! Coffee prices will continue to rise

According to Brazilian media reports, the state of Sao Paulo has been hit by a serious fire recently, so the Sao Paulo State Civil Defense Bureau issued a warning, pointing out that almost the whole state still faces a high-risk fire threat, all because of the current high temperature.

Earlier, the government of the Brazilian state of Sao Paulo said on August 25 that the state of Sao Paulo was on "high alert", with 46 cities entering a 180-day state of emergency. According to Sao Paulo State records, there were 2600 fires between 22 and 24 August, of which 81.29 per cent were concentrated on agricultural land, such as sugar cane plantations, coffee farms and farms.

At present, the police are investigating the fire in the state of Sao Paulo, suspected that some of them may be intentional arson, seven people have been arrested on suspicion of arson. In addition, due to the current high temperatures in Brazil, strong winds (up to 60 kilometers per hour), lack of rainfall and low air relative humidity will increase the risk of fire.

Many open fires in Sao Paulo state have been basically extinguished, but due to the high risk of fire, the fire is still worrying, so the supporting troops are still on standby. The Sao Paulo State Department of Agriculture and supply estimates that the fire has caused about 1 billion reais (about US $182 million) in damage to agricultural production activities in Sao Paulo state. This data is based only on preliminary data from 20 of the 40 regions under the State Bureau for the Coordination of Technical Assistance, so the actual loss is even greater.

It was reported that the fire not only destroyed native vegetation, but also burned at least 80,000 hectares of crops, including sugar cane fields, coffee farms, agricultural research centres and various crops in rural areas, and many agricultural facilities, rural farmhouses and crops were damaged.

In addition, an agricultural expert said that the real loss of the natural environment itself, the trees were burned, causing serious damage to the ecosystem, and it will take about three years to partially recover. The fire also seriously affected the local apiculture industry, with millions of bees dying because they could not resist smoke and high temperatures, causing losses to honey production. And because the area has been reduced to ashes, the surviving bees cannot find food, and coffee production is likely to fall sharply, and in addition to being destroyed, there will be no bee pollination at the beginning of flowering.

Recently, as Brazil is the world's largest coffee producer, the drought and fire situation in coffee-producing areas in southeastern Brazil has attracted market attention and continues to drive up coffee prices.

Near September, the blooming season in Arabica, Brazil is approaching, but at present, several coffee producing areas in Brazil have reported drought. Several coffee producing areas in Brazil have not received meaningful rainfall in the past 120 days, which is not conducive to the flowering of coffee trees. Sao Paulo has suffered the worst fire in decades, resulting in the destruction of most of the vegetation, affecting next year's production.

According to the forecast of Brazil's local meteorological department, a new heat wave will be ushered in in the coming period of time, the weather in Brazil's coffee-producing areas is still in a dry and unfavorable situation, and the rainfall will be lower than normal. As a result, Arabica futures prices are likely to rise to 300 cents per pound, while Robusta prices are now above $5000 per ton and are likely to remain high in the future.

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