Coffee consumption in Brazil has slight increase after retraction

Coffee consumption in Brazil rose 1.24 percent between November and October 2013 2014, retrieving similar level indentation observed in the same previous period, reported on Tuesday the Associação Brasileira da Indústria de Café (Abic).
The growth in internal demand for 20.333 million sacks in 12 months, amid a slight increase in the per capita consumption in one year-high raw material prices, was below the annual target of Abic of 3 percent.
For 2015, the Association predicts that the coffee consumption will grow more intense, reaching the 21 million bags in the year.
In the year 2013/14 of Abic, the per capita consumption increased slightly, rising from the 4.87 4.89 kg/inhabitant/year of ground roasted coffee (6.12 kg of green coffee beans), equivalent to 81 litres per inhabitant/year.
The Abic also said that raw material prices skyrocketed, squeezing margins in the industry, with sales estimated at 7 billion reais in 2014.
"Under the effect of drought and high temperatures in early 2014, which resulted in a drop in Brazilian crop forecast, the world prices and the internal grain amounted sharply," he said.
The price of Arabica coffee has increased by an average of 58 percent in the year to 455 reais/sack in December 2014, while the conilon coffee ranged 22 percent to 275 reais/saca, according to data from the Ministry of agriculture quoted by the Abic.
Meanwhile, according to research in the city of São Paulo, January to December 2014, the prices of traditional cafes, retail shelves, soared 9.7 percent to 13.88 reais/kg.
"The difference of rates of variation between raw material and the final product shows that the industry has come to the end of 2014 with its costs very pressured, said the Abic, predicting difficulties in the coming months.
"Adjustments in fuel, electricity, and gas exchange will continue to press the industry's costs at the beginning of 2015." As a way to expand consumption, the Abic defends the thesis that we must invest more in marketing, advertising, differentiation and product innovation ".
The Brazil is the second largest consumer of coffee in the world, behind the United States, consuming little less than half of what it produces. The country, the largest global producer of raw materials, exports most of its production.