¿Where does your morning coffee come from?.Published on 02 August 2016
Which Latin American coffee is most valued by the world, the Colombian or the Brazilian? Which has had the highest export growth in recent years?
The fashion of coffee in capsules entered the market in 1989 in Switzerland, Italy and Japan. From that moment, and very quickly, a new way of enjoying coffee was created. The fashion of the capsules modified the way of consuming coffee in a more technological way and with the least intervention and cleaning. The companies that commercialize this product put many barriers so that you can be an official supplier of the brand. Coffee has many varieties and qualities and only 2% of the world's coffee meets the standards of the most exclusive companies.
What coffee brands do you remember in capsules? There are from the most gourmets to the most commercial. And what happened to the coffee bags or to the whole grain, which one could grind and consume fresh, keeping the whole tradition? What happened to the consumer who went to the supermarket and selected the coffee according to its origin? Do you know where your morning coffee comes from?
We enter our Veritrade website to know what the world consumes and where their coffee comes from. The two largest exporters in Latin America are Brazil and Colombia.
We see that, for both Colombia and Brazil, 2014 was a great year. Colombia grew 40% in dollars and 24% in QQ and Brazil grew 32% in dollars and 29% in QQ. Brazil increased 2% in its price for QQ to US $ 95 and Colombia grew by 12% its price for QQ to US $ 146. This can be due to several factors: quality, bargaining power, standards, etc. But the reality is that Colombia charges almost 1.4 times more for its coffee. We can say that Colombian coffee is more exclusive.
We were really surprised that Brazil exports 2.4 times more in dollars and 3.3 times more in QQ than Colombia. The interesting thing in this is that Colombia receives US $ 142 for QQ of coffee exported and Brazil receives US $ 103 for QQ of exported coffee.
Brazil exports 40% of its coffee to the United States and Germany. On the other hand, Colombia exports 42% of its product to the United States. The interesting thing is to see that the United States, one of the most interesting markets globally, buys US $ 4.5 million of Brazilian coffee and US $ 4 million of Colombian coffee. We can say that the United States has an almost equal market willing to pay a better price for its coffee.
Now it's up to the Colombians to negotiate better with the big companies that buy their coffee, and to emphasize that in that capsule there is an aromatic Colombian coffee. So they will export both coffee and Brazil, but with a much more exclusive product and with a differentiated price
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