Issue link: http://read.dmtmag.com/i/763665
STiR coffee and tea 45 Bahia Rondonia Espirito Santo Federal District Brazil's Robusta Varietals Robusta varietals were first planted in Brazil only 60 years ago* at Cachoeiro de Itapamerim but commercial farms did not spread far until the 1990s. Today Brazil is the second largest robusta producer in the world with coffee covering 2.5 million acres. Producers initially feared that low-cost robusta would replace arabica production, a coffee segment that Brazil has dominated for 150 years. In time the numbers proved that diversifying the crop increased profit overall, making Brazil the global leader in coffee production at 2.5 billion kilos. Here is a rundown of growing regions from small to large. Bahia Coffee in the state of Bahia is concentrated in three regions: Cerrado and Planalto primarily grow arabica and Atlântica is predominately robusta. There are 345,000 acres planted in coffee about 75% of which is arabica. Embrapa reports these regions different in geographical features and adoption of technology. In 2016 the harvest yielded 2.1 million bags (1.3 million bags of arabica and 826,000 bags of robusta). The average farm in Bahia is 74 acres. Rondonia Rondonia planted robusta exclusively and produces the second largest robusta crop. The plant adapted perfectly to the local climate, soil and topography since its initial plantings and now cov- ers 215,000 acres (87,657 ha) mainly owned by small families. Producers already have sold 90% of the 2016 harvest. Now, farmers are working to main- tain the plants to maximize production next year. In addition too little rain, the miner bug, nema- todes, and coffee drills are problems that have arisen in the past few months. According to CONAB coffee production is undergoing a transition as old plants are replaced by new clonal varietals. To achieve productivity and quality goals, the local government supports farmers through the State Secretariat for Agriculture, Livestock and Land Regularization (Seagri). Partnerships with rural extension institutions like Emater Rondonia include training producers in 44 municipalities. Financial agents such as Banco da Amazôna, Banco do Brasil and individual credit plans at cooperatives also help these small farmers to implement technical changes that increase yield. The unusual price increase attracted speculators, emptied warehouses and led to increased volatility (See Coffee Volatility pg. 26) during the past few months. Now producers can no longer meet industry demand. Robusta market A lack of sensorial quality and cheap production make robusta an important segment of Brazil's coffee industry. Ge- netically robusta is a stronger plant with greater resistance to plagues, diseases, and climate change. It also contains a high concentration of caffeine. Blended with arabica, a more flavorful but deli- cate coffee, robusta makes it possible for manufacturers to create a much more af- fordable cup. Brazil's coffee drinkers enjoy the least expensive coffee in the world. In Brazil a pound of coffee sells for $1.90 (Pilão 500 grams). A cup brewed at home averages 11 cents. Rio de Janerio and Sao Paulo residents pay an average $1.02-1.03 for coffee, the most affordable coffee among 75 major cities. In Switzerland Zurich residents pay $5.96 for takeaway at an independent coffee shop and spend 55-cents per cup at home. The inflation averaged price in the US is 31-cents per cup (8-oz) at home and $2.70 in a cafe. A Starbucks cappuccino costs $5.30 in New York. The global av- erage price for a medium cappuccino at Starbucks $4.05. "Conilon is considered neutral and with good price, a great deal for the indus- try," said Eduardo Carvalhaes, director at Eduardo Carvalhaes coffee brokers and president of the Coffee Sector Chamber. The soluble coffee industry is the main buyer, followed by domestic roast- ers that rely on robusta to make what is known as traditional coffee. According to the Coffee Technological and Devel- opment Center (CETCAF) report, 90% of the robusta harvest stays in Brazil. Brazilian coffee roasters can insert 55% robusta in blends destined for the local market where consumers are accustomed to a very dark and bitter coffee, always accompanied by a great deal of sugar. Importing robusta Domestic demand is squeezing the mar- ket and forcing local price volatility. To preserve the solubles segment it may be- Robusta (Conilon) Area: 441,000 hectares Planting: 91 million trees Yield: 29.54 bags per ha Production: 13 million bags Robusta Producing Regions in Brazil - 2014 1.0 million bags 1.48 million bags 69,000 bags 164,000 bags 297,000 bags 9.95 million bags