Tuesday, October 18, 2016

Lack of coffee industry concerns

The coffee will heat up. The industry goes by supply difficulties never before recorded. The drop in coffee production type conilon caused by weather effects, is harm the market. The national consumption of this type of coffee is 12,200,000 sacks per year. The Brazil produced only 8,400,000 sacks. This demand must be covered by coffee Arabica type. "It is a scenario that I''ve never seen before," says Nathan Herszkowicz, Executive Director of Abic (Brazilian coffee industry Association). "There is a shortage that affects both the internal and the external sector," he adds.
Herszkowicz says the industry is affected not only by the lack of product, and the consequent rise in prices, but also by having to make an industrial rearrangement. With less robust (conilon), which generally accounts for 40% of the blend of coffee that goes to the supermarket, the industry has to change the composition of your "blend". This shift to "blend" has consequences both for the consumer, accustomed to the taste of the product for the company. After industrialized, these coffees have different volumes, which brings up problems at the time of packing, according to Herszkowicz.
What most concerns the industry is that this scenario is not difficult. The ongoing harvest doesn''t promise much, since it will live the call bienalidade, period of lower production due to stress of plant on the previous year. And the importation of coffee is not permitted.
Traditionally with lower prices, the sack of coffee are in 481 R$ conilon coffee, up from 450 R$ of Arabic. At this point, the high prices of the Arabian also elevates conilon coffee, and producers who still have coffee waiting for better prices, increasing the product on the market, according to Herszkowicz.
These costs will be passed on to the consumer. The transfer will depend on the behavior of raw material prices. The coffee that the consumer finds in supermarkets was around 40% conilon and the remainder Arabica. With the fall of conilon, some "blends" already bring only 20% of this type of coffee.
The Arabica coffee''s aroma and flavor more intense and more consistent. He gives taste to the coffee. Already the conilon doesn''t have as many variations as the Arabica. Is more full-bodied and has more caffeine, having a bitter taste.
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