The Brand characteristics of Brazilian Coffee Bean Market the planting base map of Hilado location conditions

The Brand characteristics of Brazilian Coffee Bean Market the planting base map of Hilado location conditions

Coffee exports plunged 33.7% in July from a year earlier to 1.9 million bags (1 bag = 60kg), mainly due to low inventories and the lack of newly harvested coffee beans to catch up with exports, according to figures released by the Brazilian Coffee Export Association on Aug. 11.

Affected by this, the price of international coffee futures has increased slightly. On Aug. 16, the price of the American coffee futures contract peaked at 137.5 cents per pound on the day, the highest for the year. However, Jia Ben, a senior analyst in the coffee industry of Kunming Fumin Import and Export Co., Ltd., told the Daily Economic News that even if it rises slightly in the short term, the price of coffee beans is still at an all-time low in terms of the year, less than 50% of the high price.

In addition, the Rio Olympics coincide with the Brazilian coffee season, and according to the Brazilian Ministry of Agriculture, the production of Brazilian coffee beans will reach 52 million standard bags (1 standard bag = 60kg) in 2016, which will break the record of 50.8 million bags in 2012 and set a new high.

Affected by Brazil's expected increase in production, the first estimate of the International Coffee Organization (ICO) for the 2015 Coffee 16 year (since October last year) shows that global coffee production is expected to increase by 2 million to 143.4 million bales (8.604 million tons) compared with 141.4 million bales last year.

However, increasing production is difficult to increase income, and the bumper harvest of coffee beans leads to a drop in prices.

"High-yield expectations bring about changes in supply and demand, leading to a fall in prices." Jia Ben told the Daily Business News that at the beginning of this year, the price of American coffee futures contract fell as low as 117 cents per pound, but so far it has only rebounded to about 137 cents per pound, which means it has risen 20 cents per pound since the beginning of the year.

Brazilian coffee bean exports have plummeted and international coffee futures prices have risen slightly, which originally meant more money for farmers. However, due to the difference in longitude and latitude, there is a difference of about half a year between Yunnan coffee season and Brazilian coffee season. At present, most Yunnan coffee beans have been traded and exported.

In July this year, the Yunnan Coffee Association said that the depressed market situation led to the low enthusiasm of enterprises or farmers in picking, and there was still a phenomenon of abandoning harvesting and management in Honghe, Baoshan and other places, bringing certain losses to coffee production in the province.

In addition, according to the statistics at the end of this season, Jia Ben told the Daily Business News that due to the influence of Rain Water's weather, the harvest quality of Yunnan coffee beans this season was not so ideal, especially when there were problems in the drying process.

Jia Ben said that as a result, the final sales price of many farmers this season is much lower than the 10-20 cents price of American coffee futures in previous years, and even some coffee beans are unsalable.

The potential of China's coffee market is promising.

As far as the whole coffee market is concerned, at present, whether it is coffee cultivation or coffee consumption, China's industry position appears to be a bit awkward.

As a producing area, China's coffee bean production is limited, accounting for less than 1% of the world's coffee consumption; in terms of coffee consumption, Jia Ben found that China's coffee bean consumption may not be as optimistic as some institutions predicted (some agencies forecast that China's coffee bean demand will reach 180000 tons in 2015). According to its estimates, the annual consumption of the domestic coffee market is only about 80, 000 tons.

Jia Ben believes that coffee consumption in China is still a minority consumption, although the annual coffee consumption is growing at a rate of 10% to 20%, but because the base is too small, it will take 10 years or more to finally reach the level of a large coffee consumer.