High Expectations for Brazilian Economy and Coffee Demand
As a result of its economy demonstrating the fastest growth since 1995, Brazil is now expected to witness a greater than predicted increase in coffee demand this year.
As well as helping to maintaining pricing levels at their highest point for 12 years and at least until the end of the year, it’s anticipated that Brazil’s heightened domestic coffee consumption could rise to an unprecedented 19.6 million bags in 2010. This is compared with the 19.3 million bags that were predicted at the start of the year, as revealed by the executive director of Brazil’s Coffee Industry Association, Nathan Herszkowicz. If achieved, this equates to a 6.5 per cent increase on the 18.4 million bags of coffee consumed in 2009.
Expanding by significant 9 per cent during the first quarter of 2010, the Brazilian economy has been driven by demand within the country as well as a focus on investment. In turn resulting in increased production, the US Department of Agriculture has predicted that Brazil’s coffee crop could rise by 23 per cent to a record 55.3 million.
Brazilian consumers’ growing interest in coffee – in take-away cappuccinos, espressos and speciality coffees as well as the filtered coffee used at home – is considered to be a direct result of the beverage industry’s greater investment in advertising and new coffee products, according to Herszkowicz.
Brazil’s Coffee Industry Association, representing Brazil as the world’s second largest coffee consuming nation after the US, also expects that the consumption of premium coffee blends will see a 15 per cent increase annually.