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Brazilian coffee production may reach 43.5 million bags in the 2005/2006 crop according to estimates by the National Food Supply Company (Conab), a company connected to the Ministry of Agriculture, Livestock and Supply.
The volume represents an increase of 32.3% in relation to the last coffee harvest, which reached 32.9 million bags. According to Conab technician Jorge Damião Queiroz, in Brazil there are two varieties of coffee. "We have Arabica and Conilon coffee. Arabica coffee has greater production, around 70% of the total, and Conilon coffee is responsible for the rest." According to Jorge Damião, Brazil has always done well both in production and in coffee consumption. "We are in the first place in the world ranking in terms of production. Our production represents 40% of the world production and we are the second largest consumer in the world. We drink around 15.5 million bags of coffee a year, losing only to the USA, whose current consumption is around 20 million bags," he said. The Conab technician also added that the main Brazilian competitors in the production of coffee are Vietnam and Colombia. "Vietnam produces basically Conilon coffee and Colombia produces Arabica coffee of excellent quality. Forecasted production in Vietnam for 2005 is estimated at 13 million bags, and the Colombian 15 million," said Jorge. The research regarding the next harvest took place between November 7 and 30 and was carried out by 258 technicians from the Conab and connected organizations in states like São Paulo, Rio de Janeiro, Minas Gerais and Espírito Santo, in southeastern Brazil, Paraná, in the south, Bahia, in the northeast and Rondônia, in the midwest. The study was complemented with information from Geosafras, which uses satellite research. Agência Brasil
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How do you see the trend in the selling price of your coffee ?
UP ? You are dreaming !
DOWN ? No doubt you will complain that you get unfair prices.
But unfair price is simply the result of your over production.
When one floods the market with whatever product, prices have only one direction : DOWN !
No doubt that Lula, his Ministers and your coffee industry, mostly small farmers, will cry, shout, rather sooner than later.
Over production has never been a wise decision from a producer.