Wednesday, June 29, 2016

The country''s coffee industry compete for raw material

Drought and high temperatures in the Holy Spirit in the period of development of the coffee harvest and rain the conilon Grand Arabic in Minas Gerais and São Paulo generate uncertainty in the sector in the country in 2016/17. Companies that produce instant coffee and that if mainly cater to conilon already have trouble buying the raw material. In the case of Arabic, the rains brought down grains of coffee plantations and the offer of top quality coffee, the more demanding for export, should be less.
In this environment, increases the bake-off for the grain industry, and the prices of the two species have been appreciating in the domestic market. In 12 months, the sack of coffee climbed 27.86% conilon while 15.83% appreciation was Arabic, as the indicators Cepea/Esalq for both products.
The shortage of coffee soluble industry reflects mainly the situation of the 2016/17 in Espírito Santo, the largest national producer of the species, where the harvest is over.
Second Bourdeen Calegari, General Manager of Cooperativa dos Cafeicultores de Sao Gabriel (Cooabriel), São Gabriel da Palha (ES), the State''s crop is estimated at 4 million to 5 million bags, 50% below the previous harvest. In February, the Cooabriel, the country''s largest conilon cooperative, estimated that the production would be between 6 million and 7 million bags. In its first estimate, in January, Conab predicted production of 7.697 million bags in the Holy Spirit, but reduced the forecast for 5.953 million bags in May.
"It was worse than we imagined," says Cadena. According to him, the strong heat stroke has affected even the cafes of the irrigated areas in the State, and the formation of the grains was impaired. This means smaller and less grain yield.
The soluble coffee industry ever accuse the coup. "For 15 days, the supply situation worsened a lot. In addition, prices for conilon rose alarmingly, "said Aguinaldo José de Lima, Director of institutional relations of the Brazilian Association of the industry of instant coffee (Abics).
He explains that on the shortage of supply in the market, the industry conilon can''t just migrate to Arabica. The soluble can be produced also from the Arabic, but it means higher cost, not just because of the higher value. "The efficiency of the extraction of soluble solids conilon is 20% higher than Arabica. If you use Arabic, the cost increases and competitiveness falls ", he argues. In General, the soluble blends have 80% and 20% Arabica conilon.
Though I do admit difficulty in offering, Lima ensures that "there''s no shortage of the product" and that "If industries scheduled". To worsen the picture of low availability, the soluble thread has to compete for conilon with ground roasted industry, which also mixes the conilon your blends and with green bean exports.
Another concern, according to the Director of Abics, is that if the Brazilian get much more expensive conilon coffee the other supplier countries such as Viet Nam, the competitiveness of soluble produced here in relation to the other sources will decrease. "As Brazil exports 80% of the production of instant coffee, the industry could lose space in the international market," he says. The sector in the country demand 4.5 million bags of grain for the production of instant coffee.
"There won''t be enough conilon coffee," said Nathan Herszkowicz, Executive Director of the Brazilian coffee industry Association (Abic), which brings together the ground roasted coffee industry. This thread demanded 7 million bags from conilon last year for use in their blends. But this year, the Bill will not close, whereas there are green grain exports. As the may estimate of Conab, the national production of coffee conilon must add 9.4 million bags.
According to Herszkowicz, given the scarcity of supply and high prices for ground roasted companies failing to use conilon in their blends.
In the case of Arabic, the concern is with the quality, since the rains during the harvest between the end of May and beginning of June knocked much of the coffee beans in the Southeast.
In the Regional Cooperative of coffee growers in Guaxupé (MG), largest cooperative exporter of coffee in the world, it is estimated that 21.9 percent of the grains that were to be harvested in the area where the cooperative fell due to the heavy rains. That way, should have the quality suffer. The President of Cooxupé, Carlos Alberto Paulino da Costa, notes that when the survey was done last week, the harvest had reached 18% of the total forecast.
The Cooxupé estimates that its members should reap 7.8 million bags this year. In the area of operation of the cooperative (includes coffee growers associated and not associated with), with 200 municipalities, in sul de Minas, Cerrado, Vale do Rio Pardo, São Paulo, the production must be 19 million bags.
Costa admits that the percentage affected is relevant. However, he argues, there will be damage to the quality, but the grain will not be lost. The leader claims that the export of Cooxupé is estimated at 4.8 million bags of coffee, should not be affected.
The quality of the coffee that falls as a result of the rain is impaired, usually because the grains are not removed immediately from the ground and, during this period, shall be subject to fungi that affect the quality.
According to the President of the Cooxupé, lower quality Arabica coffee is already being used as a substitute for conilon because it is more competitive. "The industry will have to pay more. Is not left coffee ", says Costa. Nathan Herszkowicz, the Abic, claims that some companies "didn''t have to endure the high costs". "At some point, will be passed on to the final product.
In the market, there are estimates that 15% to 20% of the brazilian crop of Arabica has affected quality as a result of the rains. But José Edgar Pinto Paiva, President of the Fundação Procafé, avoids making predictions. According to him, as the next harvest and the coffee that fell to the floor is benefited and submitted to the test is that it will be possible to know the intensity of the impact on quality.
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