Coffee bean prices are high! Nearly 60% of Brazil's land is affected by drought and fires!

According to Brazilian media reports, Cemaden, the Brazilian natural disaster detection center, recently released data showing that Brazil is facing the worst drought since records began in 1950. Nearly 60 percent of the land area has been affected by drought, and effective rainfall may not occur until mid-September at the earliest.

It is said that the Cemaden index of drought is the standardized evapotranspiration Index (SPEI), which is calculated from rainfall and the amount of plant evaporation and transpiration. The data show that the recent drought in Brazil has exceeded the severe drought in 1998 and 2015-2016. The drought problem has affected more than 5 million square kilometers of land in Brazil, accounting for 58 per cent of the country's land area.

And recently, Brazil's rainfall continues to be low, and encountered such as fires, poor air quality and so on. Earlier, Brazilian media reported that the number of forest fires has increased abnormally since the beginning of this year. Brazil recorded 68635 fires in August, the highest since 2010, with 38266 fires recorded in August in the Amazon forest, according to the National Institute for Space Research.

This was followed by Sao Paulo, where 3175 fires were recorded in August, with several cities in a state of emergency, and the fires occurred mainly in rural areas of Sao Paulo, seriously affecting agricultural production in the state. The fire destroyed native vegetation, destroyed at least 80, 000 hectares of crops, including sugar cane fields and coffee farms, and caused damage to many agricultural facilities and rural homes. it is estimated that the fire has caused more than 1 billion reais in agricultural production.

By September, most of the fires in Sao Paulo state had been extinguished, but nine cities in Sao Paulo state still had active fires, including Ribeir ã o Preto, Campinas, Bauru, Marí lia and Vale do Para í ba, causing damage to surrounding farmland, forests and protected areas and possibly affecting water sources, according to the Sao Paulo State Civil Defense Department.

In addition, the Cemaden report also pointed out that about 3978 cities in Brazil are currently facing varying degrees of drought, of which 201 are in a state of extreme drought, the highest number ever. The regions with the largest number of extremely dry cities include the states of Sao Paulo (82) and Minas Gerais (52), and the number of cities is on the rise in early September and is likely to exceed 4500.

Drought and lack of rainfall also affect local soil. according to data, the average land humidity in Brazil from May to July is 66.10 mm lower than that in the same period last year. Sao Paulo, Minas Gerais, Goas and the Federal District of the Brazilian capital have entered a red emergency due to humidity below 12%, while a number of areas with relative humidity below 30% have entered an orange or yellow emergency. Recent droughts and fires will aggravate the situation.

The smoke caused by the fire aggravates the air pollution. According to monitoring data, the air pollution in Minas is about 10 times higher than the World Health Organization (WHO) standard. To a certain extent, air pollution will also affect plant photosynthesis, affect growth, and eventually lead to a decline in quality and production.

It is understood that the states of Sao Paulo and Minas Gerais are both major agricultural and animal husbandry producing areas in Brazil and are rich in coffee. Minas Gerais accounts for 30% of the country's coffee production. At present, Brazilian coffee trees are in bloom, lack of rainfall and very dry weather conditions are not conducive to growth, while worried that La Nina weather at the end of the year will aggravate the climate impact, this situation will affect Brazil's coffee production in the new season next year.

Moreover, Brazil is the world's largest coffee producer. At present, the spot price of Robusta in Brazil in August is 1483.95 reais per bag, a cumulative increase of 16.73 percent, surpassing the spot price of Arabica, which was 1448.24 reais per bag in August. The international price of Robusta has also reached 5340 US dollars / ton, and the international price of Arabica is 296.5 cents / lb. now this unfavorable climate situation has kept the domestic and international coffee prices high, or even pushed them higher.

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