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Brazil Loves Coffee

The key coffee producing country is Brazil. In 2006, Brazil consolidated its position as the world's largest producer and exporter of coffee.

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According to the CNA (National Confederation of Agriculture and Livestock), the gross value of coffee production last year was US$ 4.8 billion. 1.9% more than in 2005, when revenues amounted to US$ 4.7 billion.

Last year, coffee was fifth among the agricultural product most exported by Brazil. Of a total 44 million bags of coffee produced, 27.2 million were exported, generating revenues of US$ 3.3 billion.

Presently, coffee represents 2.5% of the total Brazilian export basket. The country already has a reputation in the soluble coffee market and has recently begun entering the roasted-and-ground coffee market.

In 2006, Brazil consolidated its position as the world's largest producer and exporter of coffee, contributing to the country's agribusiness Gross Domestic Product (GDP), which was US$ 250.8 billion. According to the CNA (National Confederation of Agriculture and Livestock), the gross value of coffee production last year was US$ 4.8 billion, 1.9% more than in 2005, when revenues amounted to US$ 4.7 billion.

Last year, coffee was fifth among the agricultural product most exported by Brazil. Of a total 44 million bags of coffee produced, 27.2 million were exported, generating revenues of US$ 3.3 billion.

"It was the sector's highest exchange revenue in recent years. Coffee accounted for 8% of gross revenues obtained with agribusiness exports," said Guilherme Braga Abreu Pires Filho, general director at the Brazilian Coffee Exporter Council (CeCafé). Presently, coffee represents 2.5% of the total Brazilian export basket. But the commodity once amounted to 70% of the country's foreign sales, during the 1920s. Brazilian coffee exports began in 1816. Between 1830 and 1840, coffee led exports from the country, answering to more than 40% of total exports. In 1840, Brazil became the world's largest coffee producer.

"The golden age of coffee lasted until 1930, when the commodity represented, on average, 65% of Brazilian exports," says MaurĂ­cio Miarelli, president of the National Coffee Council (CNC). In 1932, there was a stock sell-out, due to a worldwide super-crop.

The share of coffee in the country's exports decreased during the 1970s, when the value of manufactured goods exports surpassed that of coffee. During the 1980s, coffee answered to approximately 10% of total exports. In the 1990s, with greater diversification of the export basket, that percentage decreased even further, with coffee amounting to approximately 3% of Brazilian exports.

Added Value

The main market segment for coffee in Brazil is still the export of green grains. But the country already has a reputation in the soluble coffee market and has recently begun entering the roasted-and-ground coffee market. The country has exported the variety for only four years now, and it yielded US$ 26 million in 2006.

"That is not much if compared with grain sales, but it is a lot if we consider that we got started a little while ago. On the other hand, roasted and ground coffee has added value. We can charge up to US$ 4.5 per kilogram, whereas grains are sold for US$ 1.7 per kilogram," says Nathan Herszkowicz, executive director at the Brazilian Coffee Industry Association (ABIC).

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