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.

Tags:

  • Show Comments (0)

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Brazil Wants a Developing Country Heading the IMF

Reflecting its increased importance as en emerging country, Brazil is expected to push very ...

French Filmmaker Faces 8 Lawsuits in Brazil for Documentary on Fishing Village

French documentary maker José Huerta is facing eight legal proceedings, including one criminal charge, ...

Brazil’s CVRD Proposes US$ 1 Billion Dividend Payoff for 2005

Brazil’s Companhia Vale do Rio Doce (CVRD) announced that its Executive Officers will submit ...

Brazil Plays Catch Up in the Wood Industry Investing in Education

The wood sector in Brazil is in expansion mode. Exports of the forest-based sector ...

In Brazil, Hope Springs for a Month

The Brazilian consumer is a little more optimistic now than a month ago and ...

Gathered in Brazil Latin America Defines How to Fight Digital Exclusion

During the Latin American and Caribbean Regional Ministerial Conference, to be held from Wednesday, ...

Brazilian Presidential Candidates Can’t See Eye to Eye on Mercosur’s Usefulness

Dilma Rousseff, the Brazilian presidential candidate handpicked by president Luiz Inácio Lula da Silva ...

Brazil’s (Sí£o Paulo and Rio) Cost of Living Climbs 22 Places Among World’s Cities

Mercosur capitals figure in the lower half of the world’s most expensive cities according ...

After Decades of Neglect Brazil Starts Studies for 150 New Technical Schools

More than 150 technical schools will start being implemented in Brazil, starting January 2008. ...

10 Steps to End Brazil’s Inequality and Backwardness

Brazil needs a revolution. It is not enough that we maintain the old tradition ...