Introduction to the Prospect of Coffee Industry in Brazil

Coffee is a traditional industry in Brazil. Since 1960, coffee cultivation in Brazil has been ranked first in the world, with an average annual output of 24.6 million bags (60 kg each). In 2002, due to favorable weather and a good year for coffee production, Brazilian coffee reached the best level in history, reaching 47.2 million bags, an increase of 59.6 per cent over 28.137 million bags in 2001. According to the report of the United States Department of Agriculture in November 2002, due to the increase in productivity and the increase in the number of plants per unit area, the actual production of Brazilian coffee is much higher than the above figure, which should be 51.6 million bags.

In 2002, Brazilian coffee exports reached a 270-year high, with a total export volume of 27.99 million bags (60 kg each), an increase of 19.3 per cent over 23.46 million bags in 2001. Due to the decline in international coffee prices, coffee trade volume was 1.355 billion US dollars, down 5.4 percent from 1.432 billion US dollars last year.

Brazil is the world's largest exporter of coffee, with an average annual trade volume of US $1.38 billion in coffee beans and instant coffee in the past 40 years. In 2002, the total volume of world coffee trade was 88.7 million bags, and Brazil exported 27.99 million bags, an increase of 19.3% over 2001, accounting for 30% of the world coffee trade volume, ranking first (the second is Vietnam, with 12.2 million bags, accounting for 13.7%), an increase of nearly 8 percentage points over the 22.3% in 1998. Europe is the largest buyer of Brazilian coffee, accounting for 50 per cent of Brazilian exports. In 2002, coffee exports to EC countries reached US $708.7 million, accounting for 52.3 per cent, with most of the rest sold to the United States and Asia. Coffee beans account for 85% of Brazil's coffee exports.

Coffee plays an important role in Brazil's economic structure. Since coffee was planted in the 18th century, coffee cultivation has expanded rapidly and has become an important planting industry in Brazil. Coffee has been one of the main economic incomes of Brazilian countries for nearly 30 years since the middle of the 19th century. In the first 50 years of the 20th century, Brazilian coffee was regarded as an important industry of industrialization, agricultural resource transfer and urban industrialization. Since the 1990s, Brazilian coffee has entered the market economy, especially international multinational corporations have entered Brazil, which has professionalized agricultural trade and had a positive impact on improving coffee quality and promoting domestic consumption.