The market for coffee beans (green beans) has surprisingly evolved gradually overcoming challenges for those who have already experienced glorious days, or irreversible losses, which is a peculiar natural characteristic, as it is “Very complex” for some or “IMPENETRABLE” for others. 50 years of living with it, inserted in its market, I acquired almost complete knowledge, but always learning from the surprising news he offers and imposes on us. The coffee market itself is constantly undergoing transmutation, which has been created by circumstances of the most different origins with its particularities, reasons that configure its unique existence in the world of rubiaceous. 

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COFFEE MARKET AND ITS HISTORICAL PAST

Take the past, just as an experiment. Brazilian governments have been present for long and long years, coexisting and creating support mechanisms for the coffee producing class and its intermediaries, etc. Studying its origins, its importance in the country's foreign exchange revenue is recognized. "King Coffee" as it was known at that historic time was responsible for up to 70% of our revenue, currently, perhaps only 5%.
Among so many interventions, let us start in 1964. At that time, a guarantee price was once again applied by the government, thus giving a new opportunity to the producer and consequently to the rest of the industry. How did it work? In case of prices fall in exports, the producer would deliver his product to the old IBC warehouses and receive a price considered fair for the type stipulated by the government at the time. This procedure was always applied at the beginning of each harvest, thus contributing to its warehouses to receive 79 million bags by June 1966.

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In order to keep the price for many years, stocks were burned and even thrown overboard.
In 1969, the Government reduced its stock to 47 million bags, thanks to its innovative sales policy for its own product, as it continued to participate in these long years helping to strengthen Brazilian Industries.
Recently in 2016, the last 2 million bags belonging to the Brazilian Government were auctioned and purchased for domestic consumption because they are past harvests that are no longer interesting to the foreign market. For those who are active in the current coffee trade, it can be interpreted as a strategic withdrawal from the government leaving its trade in the hands of its traditional negotiators: Cooperatives, exporters and roasters of soluble industries, and to a lesser extent, the traders of each region.

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ANALYZING THE EVOLUTION OF INTERNAL COFFEE CONSUMPTION IN BRAZIL.

 

It's important to follow the evolution of Internal Consumption in Brazil - Data obtained from ABIC.
In 1965, according to ABIC data, consumption in the country was only 8.1 million. After a few years - 2016/2017/2018 - we consumed an average of 21 million. All these data are from ABIC, a very respectable source.
Therefore, the great evolution that took place during these long years in the roasted and soluble coffee industry in Brazil does not go unnoticed.

 

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