At present, Brazil is the most important player in the global coffee market, has the world’s largest coffee production, and controls more than 30% of international production. In the past 30 years, coffee production has increased by 100%. Foreign trade data confirms the importance of the Brazilian coffee industry to the world. According to data from the International Coffee Organization-ICO (2018), the country’s share of the total exports of all exporting countries was approximately 29% in 2016, which affirms that Brazil is the world’s largest exporter.
Coffee in Brazil is thus a very important agro-commodity and has played a major role in determining the country’s economic structure till date. Thanks to the wide exports of Brazilian coffee, it is available almost at any corer of the world, and if you want to buy coffee from Brazil, all you need to do is connect with a reliable exporter like us.
Coffee Regions in Brazil
The distribution of the coffee industry in Brazil is spread across the country, including 15 states, 1,900 Brazilian cities, production is spatially distributed over 2.2 million hectares and 287,000 producers are mainly distributed in small funds and small farms.
The states of Minas Gerais, Espiritu Santo, São Paulo, Parana and Rio de Janeiro are the largest states, accounting for approximately 85.86% of the country’s total production. The product remains one of the most valuable commodities in the country, and its competitiveness is mainly due to the low production costs of labor, land and water.
History and Expansion of Coffee Industry in Brazil
The expansion of the Brazilian coffee market was a key factor in the transformation of Brazilian economic capitalism in the 19th century, and subsequently, it was an important part of the country’s history.
Coffee entered Brazil in 1727 in the northern part of the country (Belem du Para), from French Guiana. Brazil’s coffee integration promoted economic growth in the southwest region around 1825, mainly in Rio de Janeiro, Minas Gerais, São Paulo and Espirito Santo. In the second half of the 19th century, coffee became Brazil’s largest export base product. The funds obtained from coffee exports are important capital to change the country’s society, economy and culture.
In the early days of planting, slave labor was used in the coffee planting process. In the first half of the 19th century alone, nearly 1.5 million slaves were imported from Africa. In 1850, the slave trade was abolished.
In fact, immigrants played a basic role, mainly Italians, Germans and Japanese, who strengthened the transition from capitalism to a paid labor market economy. Salaried workers accelerated the country’s urbanization process and expanded the domestic market, which led to the development of Brazil’s national industry.
Coffee Industry and Supply in Brazil
Various changes have affected the supply chain and the global agricultural value in recent years. Over the past few decades, for example, the increasing importance of retail trade and its impact on developing countries, as well as the opening of some markets have had a significant impact on the structure of the global coffee value chain and its participants. In fact, due to the impact of international competition and the increase in global demand for specialty coffee, Brazil’s coffee industry is undergoing rapid transformation.
However, despite Brazil’s important position in the world coffee market and its competitive advantages, the industry is still based on high quantitative indicators, which is why the country’s production is marked as low-quality coffee. The population is very unwilling to leave their black coffee that they consume every day.
The domestic market absorbs about 40% of the total production, and the niche market for expensive premium coffee in some parts of the country is growing, which reveals a potential promising growth area in which several companies have invested and succeeded.
That was all about Brazilian coffee industry and growth and how Brazil became the leading player in the world coffee market. Nowadays, you can find Brazilian coffee everywhere, and if you want to buy coffee from Brazil, all you need to do is connect with a reliable exporter like us who can arrange the finest Brazilian coffee beans for you to savor.