Tuesday, May 30, 2017

Internal demand for specialty coffees must have expansion of up to 7% in 2017

Sao Paulo-the demand for specialty coffees in the internal market should grow between 6% and 7% in 2017, according to estimate of the Brazilian Coffee Industry Association (Abic). The projection of an increase in grain purchase accompanies the increase in consumption expected for the product throughout this year.
This demand represents 800,000 bags per year, says Executive Director of Abic, Nathan Herszkowicz. For him, consumption must remain high even with the uncertainties about politics and economics. "We realize that the consumer prioritizes taste and quality and give up other products to maintain the tradition of drinking the coffee." To be considered special, the coffee must have aroma, flavor, color, and above average size. Also receive that name, originating from certified organic produce, and the gourmet product, almost free of defects. Generally, are Arabica beans.
The specialty coffee market accounts for 9% of consumption, which is still dominated by traditional cafes, for daily consumption, which add up to 91% of the market. "But, if we consider that in the year 2000 this category even exist in Brazil is a significant result," notes.
The prospect of growth is pulled by the increase in the consumption of coffee capsules. According to data from Euromonitor, the sale of coffee in capsules should grow 24.4% in volume in 2017 before 2016, to 11900 tonnes. Until 2021, this increase should reach 110%, to 20100 tons. "Access to coffee machines and capsules created a new occasion for consumption in homes," says the senior analyst of beverages and tobacco of Euromonitor, Angelica Salgado. She points out that another factor that drives sales of specialty coffees is the possibility of acquisition of cafes in grain form or in capsules called atacarejos, stores that sell both wholesale and retail. They accounts for 7.7% of sales of coffee, up 78% between 2011 and 2016.
To the producer that growth is also a good deal. If the trade the pound of the traditional coffee costs, on average, R $50, or 150% more than the traditional product, in the valuation field repeats, although on a smaller scale. The sack of special product sells for up to £ $900, traditional Arabic coffee, for example, is negotiated by R $480 on average-87% difference. "This is an alternative to that producers of mountain areas, where the production cost is higher because of the lack of mechanization, can be more competitive," evaluates the technical advisor of the National Committee of Coffee, the Confederation of Agriculture and livestock (CNA) Brazil, Maciel da Silva. He comments that the production of specialty coffees is quite attached to obtaining the recognition of designations of origin of the beans. Among examples, he points out the coffee of Matas de Minas and Mantiqueira, both from Minas Gerais.
For the traditional cafes, the projection of the Abic is 2% increase in sales. In the vision of Herszkowicz, there is uncertainty about the supply of coffee conilon 2017 harvest. "It is likely that black coffee at again". He justifies the concern with the data by the national supply company (Conab) to yield 2017, who designed 10,100,000 bags of variety. Although the projection represents high of 26.9% compared to the previous cycle, the production still falls short of the average for the variety, between 11 million and 13 million bags of bags. "This number is very similar to the need of the grain by the industries."
For Silva, of the ANC, however, there is no cause for alarm. "There will be no shortage of coffee", guarantees. According to him, the weather has favored the harvesting of grains, which should extend until July, especially in the Holy Spirit, leading producer of variety. "The production in the South of the State should reach 1,800,000 bags 2017 before the harvest 800,000 bags last harvest," says the aide of CNA.
DCI - 30/05/2017
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