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Focused on quality, Brazilian coffee crop promises high profitability for the sector in 2020

Producer and entrepreneur of thespecialty coffees, Bruno Souza sees new consumer markets that the mining and Brazilian product ofhigh quality and certified bysustainable practicesin the plantations it will be able to conquer in 2020, year of natural renewal of thebreath of crops. The growth has been constant in this segment in the country for at least three years. Special coffee has always been priced. I even paid R 3,500 for a 60-kilo bag when the market price quoted on the stock exchange was R 380, he says. afirma.

After a bearish cycle this year, thegrain production in Brazil is estimated between 58 million and 66 million bags in the most optimistic forecasts.Refined taste and purity is that they promise to boost the coffees of Brazil and Minas Gerais, responsible for 50 to 55 of the national offer.l.

Quality should not only improveremuneration producers, as well as allowing the expansion of the presence of Brazilian and Minas Gerais brands in the international market. The predictions of the representatives of thecoffee sector are that the year should beharvest full. Still, it should not break records, as sudden climatic changes hurt the crops in 2019. If the rains and dry weather don't get in the way next year, the focus on quality should characterize thecoffee harvest in 2020, according to industry sources heard by theState of Minas.

For the president ofNational Coffee Commission of the Confederation of Agriculture and Livestock of Brazil CNAA), Breno Mesquita, Brazil is increasingly consolidating itself as a producer of high quality coffee and the greatest contribution to this title is due to Minas Gerais. What was a niche became a trend. Investing in the production of higher quality coffee is an alternative for the producer to escape from the product quoted on the stock exchange and sell at a higher added value, he says. THEA BSCA Brazilian Specialty Coffee AssociationA) estimates that 16.2% of Brazilian beans production in 2018 was from coffees considered special..

The CNA leader believes that this range of participation tends to grow. This year, it was difficult to produce specialty coffee and we still made it. Brazil has everything to consolidate itself as the largest supplier, justifies Mesquita. According too Council of Coffee Exporters of Brazil Cecaféé), the country exported from January to November this year 6.9 million bags of differentiated coffees, 18.6 of the total sent abroad. The value represents a growth of 23.4 in volume compared to the same period last year.o.

As a physiological issue of the plant, coffee production works biennially. That is, if in one year production is weaker, in the following year the trend is upward. As 2019 was a low year forcoffee, the projection of agribusiness consultancies is a robust crop in 2020. This year, the balance released by the Federation of Agriculture and Livestock of Minas Gerais(Faemg) estimates the state's production at 24.252 million bags until November, representing a 27.3 drop compared to the same period last year. The entity works with projections from 46 million to 48 million bags for the Brazilian harvest in 2019. For 2020, bet on up to 58 million bags, with half of them originating in Minas.

Climate

Cooperatives from Minas Gerais producers fear not reaching the most optimistic crop forecasts if there is a repetition of climatic problems that have affected crops in recent months. José Marcos Magalhães, CEO of the Coffee Growers' Cooperative in the Varginha Zone(Minasul), in the south of the state, is sure that the harvest of Arabica coffee variety that occupies 98 of the coffee plantations in Minas Gerais should be smaller next year than that of 2018, due to a rain that came out of hours. The forecast of Minasul technicians is the production of 60 million bags in the country in 2020.20.

“In December 2018, we had a lot of rain. In January 2019, excess temperature, and during the winter of this year a cold, he explains. For these reasons, Magalhães estimates that the weather affected the flowering of the plants in September and consequently the quantity produced. What can compensate is the production ofe conilon coffee, which is expected to increase, he says. However, Magalhães says that the quality of the grains, yes, is assured..

With that, theexport capacity of producers should grow. The last forecast, for the year, of the National Supply Company Conab for next year's harvest has not yet been released. The company has been working with 50 million bags, a reduction compared to 2018, the last year of a full harvest that registered 61.7 million bags, according to Conab.nab.

Productivity

The special coffee technician from the Minas Gerais State Department of Agriculture Niwton Castro Moraes says that the goodproductivityit is another factor that favors culture. There was a dry spell in October and staff were concerned. This would mean a loss already at the beginning of the harvest. But at least for now, we realize that the influence was not so great, he explains.a.

Even with a higher total production, an increase in crop productivity, measured in bags per hectare, is not guaranteed for 2020. According to Breno Mesquita, Brazil has the highest productivity in the world, something around 30 bags per hectare. Crops are becoming more productive, mainly in the study of the plant. THE Brazil is doing homework”, concludes. Still, the climate has to helpproducer efforts.

According to Niwton Castro, the implementation ofnew technologies and processes more and more advanced established a trend. It is a growth not exactly constant, but we see an increase in all harvests, he says. In the last 20 years, crop productivity in Brazil and Minas Gerais has almost doubled. Mining crops are spread over 460 municipalities.. 

Asia and Eastern Europe in sight

Brazilian coffee farmers should be rewarded, in 2020, with the recovery ofgrain prices and the expansion into new consumer markets abroad. After a sharp drop in recent years, quotes on the stock exchangeare rising again. As some producing countries have reduced supply, consumption is expected to be higher than production in 2020, enforcing the laws of the economy. This creates a shortage in the market, which causes prices to rise. According to theNational Coffee Council of the CNA, Breno Mesquita, the price of the 60kg bag three months ago was around R 400, and today it is already R 500.0.

“The forecast is for the producer to deliver the bag, in December 2020, to R 550 or R 565, he says. Producer Bruno Souza, who also directs the a Coffee Academy, a store that serves specialty coffees from all over the country and offers training courses in the sector, sees Asia and Eastern Europe aspromising new markets for Brazilian coffee, in addition to the United States, which is already the largest importer of the product.

“There ismarket for specialty coffees anywhere. If you don't sell abroad it is almost impossible to survive if you are not a big producer, he says. With an eye on the international expansion of sales of coffee and other products Brazilian agribusiness, CNA has established an office in Shanghai, China, and will open a representation in Singapore.

According to the Council of Coffee Exporters of Brazil Cecafé, thes external sales from January to November totaled 37.4 million bags, an increase of 18.4 compared to the same period in 2018. The revenue was US $ 4.7 billion, an increase of 2 compared to last year. The conclusion is that this year's performance was the best in the last five years. According to the council, with the exception of the United Kingdom, the 10 main consuming countries of Brazilian coffee increased imports of the bean.ão. (with Marta Vieira)

 Source: The State of Minas

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