Before the unprecedented commercial barriers prepared by the United States of Donald Trump, Brazil, the world’s leading producer and exporter, he still awaits an exemption due to the US dependence, while looking for other markets for their emblematic grains. The United States is the first destination for Brazilian exports of this product, which is part, such as meat, 50% taxed products from August 6 by the decision of the US president.
Others (orange juice, airplanes …) were exempt from this measure taken in retaliation in the trial of former Brazilian president Jair Bolsonaro for a coup attempt. “We believe that at one point, coffee will be exempt,” said Paulo Teixeira, Brazilian agrarian development.
Americans are, with much, the first coffee consumers in the world, and local production is insignificant compared to demand. Almost a third of imported coffee in the United States comes from Brazil, including Arabic variety. On the Brazilian side, 16.1% of coffee exports had the US market as a destination last year, for a volume of 8.1 million 60 kg bags (approximately 486,000 tons), according to data from Brazil Coffee Exporting Council (Cecofé).
“The impact is very important”
“It will be difficult for the United States to find new suppliers for such volumes,” warns Jorge Viana, president of the Brazilian association to promote exports and investments (Apexbrasil), a public body, in an email sent to AFP. That is why Brazil “is still willing to negotiate” with Washington for an exemption, insists. But commercial discussions are stopped between the government of Brazilian president Luiz Inacio Lula da Silva and the Trump administration.
It will be “difficult for brands [américaines] To change the composition of your ‘mixture’ [mélange de grains, ndlr] While retaining a flavor that pleases its consumers, “said Renato García Ribeiro, a researcher at the Center for Advanced Studies in Applied Economics at Sao Paulo University (USP).
A quarter of its high -end coffee production is generally exported to the United States, but its usual customers have warned that they could not “buy as much as expected.” “The impact is very important,” Deplora Marcio Candido Ferreira, president of the Cecafé, which specifies that there is no “new US application.” From the announcement of the surcharge. According to him, many importers have requested a postponement of the orders of the contracts already signed and “will wait as much as possible” with the hope of the resolution of the crisis.
China, Germany, Japan …
On the American side, Phyllis Johnson, president of the company’s offers imports, that imports of Brazilian coffee is categorical.
Throughout the world “there is a lack of coffee” and “other markets want Brazilian coffee,” reassures Minister Teixeira. Apexbrasil has established a “market diversification” program to help Brazilian companies, identifying in particular Germany, Italy, Japan or China as possible points of sale. Like a Desaise, China, a great rival in the United States, announced in early August that it opened its market to almost 200 companies that exported to the “much appreciated Brazilian coffee.”
Soon more expensive coffee?
For the expert Renato García Ribeiro, the fact that the global offer remains limited “gives more space for maneuver to Brazilian producers” in search of new customers. And as, unlike other foods, coffee can be stored long months after harvesting, “they can wait until the most favorable to sell it,” he added, highlighting the “resistance” of the sector.
Especially because coffee could see that its prices join. The world prices of coffee have shot them at the beginning of the year due to the important drop in the offer, due, among other things, to the Brazilian production heavy for a historical drought last year. “The downward trend in prices that could have been expected later is questioned, because the surcharge has changed everything,” said the president of Cecofé. Wait for a “high -term increase.” According to researcher Renato García Ribeiro, “it is above all the American consumer who will make it the price.”
Source: BFM TV
