Bureaucracy Is Hurting Brazil Coffee Overseas

    Brazilian coffee producers’ exports revenues increased by 26.6% in the first eight months of the year in relation to the same period in 2003, according to information from the Brazilian Coffee Exporter Council (CeCafé). The revenue went from US$ 1 billion to US$ 1.3 billion.

    However, the volume of sales decreased by 84%. According to Guilherme Braga, general director at CeCafé, the performance wasn’t better because of a drop in the sales of the conillon variety. The national factories pay more for this kind of coffee; therefore producers are prioritising the local market.


    Despite the mixed news, Brazil continues to lead the world coffee market in production and export, but it still faces the problem of the expensive “Brazil cost factor,” which impedes better results in the sector.


    This is the judgment offered by the president of the Rio de Janeiro Coffee Trade Centre (CCCRJ), Guilherme Braga, who is also director of the CeCafé.


    It is estimated that coffee exports will reach 26 million sacks of exports this crop year. This corresponds to a 32% share of the world market. Overall production in Brazil, according to Braga, is expected to amount to 40 million sacks.


    The president of the CCCRJ said that domestic production averages 45-50 million sacks per harvest. According to Braga, this year’s production is down to 40 million sacks, because the price was not encouraging.


    But, in his opinion, the country is fully capable of turning out 45 million sacks annually, because it possesses advanced technology and higher productivity.


    For Braga, all that remains is for the price to be more attractive to yield better returns to the producers.


    Braga recalls that the cost of logistics, related to movement of the product in the ports, is still high in comparison to other countries and constitutes the chief obstacle to the country’s coffee activities. He pointed to the need for improvements in this area, as well as reducing bureaucracy.


    The president of the CCCRJ recalled that to gain other market niches implies big investments in publicity and infrastructure to enable Brazilian coffee to compete for shelf space in foreign supermarkets with already established brands.

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