The opening panel of the International Coffee Week brought together authorities and leaders from organizations in the sector this Wednesday, 18th, for a market overview. Roberto Simões, president of the Federation of Agriculture and Livestock of the State of Minas Gerais (FAEMG), revealed that Arabica coffee production grew 34% compared to the previous year.
The executive also said that a Center of Excellence in Coffee Production should be opened in the city of Varginha between April and May next year “with a focus on spreading knowledge, technology and innovation throughout Brazil and even other countries”, he said. He also highlighted that people are adopting a more sophisticated form of consumption and valuing quality, “which opens up space for specialty coffees”.
The president of the OCEMG system, Ronaldo Sucato, recalled that if Minas were considered a country, it would be the largest coffee producer in the world. “Almost 50% of the coffee produced in Brazil comes from Minas Gerais and 70% goes through cooperatives in the state. Of every 10 cups of coffee consumed in the country, four are from cooperatives and the production volume is only growing, accumulating an increase of almost 50% in the last 5 years”, he said.
The Secretary of State for Agriculture and Supply of Minas Gerais, Ana Valentini highlighted the government's concern in providing producers with quality technical content, research results, new technologies and the importance of certification programs and emphasis on business rounds. “We want to look for new markets for the state’s specialty coffees and we will have webinars with businesspeople from Exito, Morocco, Kuwait and Peru to learn about our coffee regions and our full production potential,” she explained.
Tereza Cristina Correa da Costa Dias, Minister of State for Agriculture, Livestock and Supply, reinforced that “Brazil has sustainable coffee farming, with excellent products and a very organized production chain”. Governor Romeu Zema praised coffee production in the state and that “the sector has the support of the public administration”.
Adding positive perspectives, João Martins da Silva Júnior, President of the Confederation of Agriculture and Livestock of Brazil, said that “the producer's willingness, the advancement of quality and technology are greater than the challenging moment” and Carlos Melles, President of SEBRAE , highlighted that coffee is a “product that made the country in economic, cultural and social aspects”.
Completing the presentations, Caio Alonso Fontes, Founding Partner and Director of Café Editora, one of the organizers, commented on the challenges of the first 100% digital edition. “We are certain that SIC is more than a platform for connection, but for transformation and acceleration of the coffee chain. The virtual format allows for expansion, bringing training and business to more people,” he commented. Rachel Muller, Director of Nestlé, agreed, indicating that “the power of coffee is much greater than the limitation of not being able to find it physically and that the company decided to save the best it has in projects for dissemination at the event”.
Presented by journalists Phelipe Siani, anchor of CNN Brasil, Mariana Proença and Natália Camoleze, from Café Editora, the opening continued with a presentation by economist Ricardo Amorim on macroeconomic scenarios in Brazil and the world for the coming years with a focus on coffee agribusiness.
He began by remembering that, despite having faced the biggest economic contraction that humanity has ever seen in a very short period of two months, the United States and European countries had the biggest growth in history in the second quarter.
“The data we have in relation to the Brazilian economy as a whole until September shows that it is no different here, with a very strong recovery in the services, industry, commerce sectors and even better in agribusiness”, he says.
Regarding a more specific focus on the coffee market, the economist highlighted the increase in competitiveness. “In practice, profitability for Brazilian producers increased significantly due to the rise in the dollar. The competitiveness of the national product in relation to the rest of the world, too. This is because the exchange rate movement was not as strong in competing countries like Colombia, for example,” he explained.
Even with growth at the base and top of the consumption pyramid, Ricardo highlighted two challenges. The first in relation to communication/marketing. “I lived in the United States from 2001 to 2008 and I always heard Americans in conversations about coffee associate the product with Colombia, even though Brazil is the largest exporter. But this happened because our competitor had a very strong campaign, which established this connection. Today the situation is a little better, but we still need to make a lot of progress”, he detailed.
Another issue is the need to work on the Brazil “brand”. A factor that has been gaining importance is Environmental, Social and Governance (ESG), referring to environmental, social and governance issues. The economist stated that the country has performed poorly in this regard. “It protects two thirds of its territory and preserves the most in the world, but it has an image associated with it as a major destroyer of the environment. This could be even more disruptive, he concluded.
Until the 20th, SIC's program continues with courses, lectures and panels in the agribusiness, marketing, roasting, coffee shops, baristas and consumption segments, presented by more than 150 market experts from Brazil and the world. Free registration via the website www.semanainternacionaldocafe.com.br.
November 18th to 20th
Free registration: www.semanainternacionaldocafe.com.br
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