9 million out of 10 million coffee sacks produced in Brazil is exported to foreign markets
The consumption of the so-called specialty coffee has a steady rise in Brazil, with an annual average increase of 15%. However, the foreign market recognised the quality of the Brazilian coffee and trades 9 million out of 10 million sacks produced in Brazil. It is a distinctive quality product and the exports to foreign markets correspond to 21.6% of the total revenue from coffee.
According to 2018 data from BSCA (Brazil Specialty Coffee Association), the overall exports of coffee generated a revenue of US$ 7.4 billion, US$ 1.6 billion of which are from specialty coffee. The main destinations of that product are United States, Europe and Japan. South Korea is also considered as a potential market as there is a growing presence of specialty coffee from Brazil. There is still room to increase the exports to other countries in Asia, such as China, as it has a great potential for expansion.
The figures for exports in 2019 are promising. Abic (Brazilian Coffee Industry Association) calculations suggest that from last January to April, 2.5 million sacks were exported, which corresponds to an increase of 43.4% compared to the same period in 2018.
Ricardo Silveira, president of Abic, says that there is still room to grow in the specialty coffee market for the roasted and grounded versions as long as new economic agreements are signed. “Brazil can grow through the coffee industry if we sign bilateral economic agreement and import clearance of raw coffee from other countries in order to offer the appropriate blend to every importing country. That procedure could be done via drawback (suspension or exemption of taxes). “In addition, there is a great market to be explored, including South America and Asia”, Ricardo says.
The prospects of new markets is advancing at full steam. BSCA has set a partnership with Apex-Brasil (The Brazilian Trade and Investment Promotion Agency) to develop a project called “Brazil The Coffee Nation”, which seeks introducing the product to countries such as Germany, Australia, Canada, United States, Italy, Norway, New Zealand, Poland, United Kingdom, Russia and Turkey.
Added value and certification
There are regions that are notable for their coffee production, such as Chapada Diamantina, Campo das Vertentes, Vale da Grama, Mantiqueira de Minas and, most recently, north of Paraná and Espírito Santo mountains, as well as cerrado mineiro and Alta Mogiana Paulista. The high quality production from Brazil regarding the exports to foreign markets are quality assured and available at shops near you.
Those who like specialty coffee do not exchange quality for lower prices. Although its price is, in average, 50% more expensive compared to a regular coffee, a cup of specialty coffee is the best experience possible. Another aspect is the development of professionals’ in the sector, which includes Brazilian Baristas Championships that are increasingly spreading information on what is served to consumers.
Another feature that draws the attention of coffee lovers is a quality label. Abic data shows that all and any certified coffee costs, an average, 12% more compared to those not certified in the same category. From 3 thousand coffee brands traded currently in Brazil (all grades), 35.7% (1,072) are certified.
The absence of certification for specialty coffee doesn’t mean it is a poor quality product. In fact, currently BSCA works in partnership with producers and encourages the implementation of quality control techniques and traceability procedures, which guarantees the socio-environmental responsibility and provides them the benefit of competitive advantage for their products.