Wednesday, May 20, 2015

The coffee sector keeps focus on emerging

The decrease in supply of Brazilian coffee, and the low level of inventories of passage supports the prospect of falling a million sacks in exports of the sector this year, a decrease of 3% compared to the result of 2014.
Even so, with gradual growth in consumption, the strategy to leverage the recipe is in emerging markets.
South Korea, Russia, India, Indonesia and, especially, China, along with other rising countries, totaling 27 billion bushels in the demand for grain, while the so-called "traditional" markets-United States, European Union and Japan-consume about 74 billion bushels.
"There won't be enough to send exports to overcome the 2014 volume, this causes the producer is more competent, increase in productivity and seek importers where there's room to grow," says the Director General of the Council of Brazil's coffee Exporters (CeCafé), Guilherme Braga.
During the 6° Forum Coffee & Diner, promoted yesterday (19) by the CeCafé, Executive Director of the International Coffee Organization (ICO), Balram Sharma, told the DCI that consumption in traditional countries have remained practically stable with advances between 1.5% and 2% per annum. By contrast, emerging and producers have expanded at 2.5% per year the demand for the drink. For him, even if there is loss in volume shipped this year, this is a "set" that can be retrieved in 2016.
Profitability
With the external and internal consumption moving towards an increasing-to assume that Brazil is included among the emerging-and production with a tendency to fall, it is possible to design expansion for commodity prices, increased by the high dollar.
"We work with the possibility of the revenues grow even in the face of a smaller embedded volume scenario, something that already happened last year after the losses for which the Brazilian crop weather passed", explains the analyst of the Research Department and sectoral analysis of Rabobank, Jefferson oak.
According to the Arabica coffee Indicator Cepea/Esalq, the Center for advanced studies in applied economics (Cepea), the 60-pound coffee bag ended last listed at $ 141,92, or $ 431,29, down 1% on monthly variation.
The Executive of the CeCafé also sees a better horizon for the prices of the market values and remember that in the last ten months there has been a gradual reduction in around 30% in prices-although still be considered high. The segment earned $ 6.5 billion last year, up from $ 5.2 billion in 2013.
"We export 80% of Grand we receive and I think there is room for price gains," agrees the President of Cooperativa Regional de Cafeicultores em Guaxupé (Cooxupé), Carlos Alberto Paulino.
Regardless of the number of the crop, the Brazil stock variation is one of the industry's concerns. Data from the United States Department of agriculture (USDA) projected four million bags to stockpiles of passage of Brazil. "A very low number. We offer reduced and also stock, something that will not be reassembled easily, even if the next year's crop is too full, "recalls oak.
Production
In the midst of the harvest period, Paulino account that the rains may impair the quality of the grain, however, the miner consolidated results should only come in August. Whereas there will be loss from dry gives between January and February, it is expected to reach 4.5 million bags on Cooxupé by gain in number of cooperative members.
DCI
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