Brazil's 2020 Coffee Exports Hit Record 44.5 Million Bags as Production Crisis Looms
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EU and UK Launch Global Consultation on Agricultural Imports to Combat Deforestation
According to foreign media reports, the European Union and the United Kingdom have held a global public consultation on agricultural commodity imports, a move aimed at forcing large companies to ensure no more deforestation or forest degradation occurs. The UK's "Forest Risk Commodities Due Diligence" public consultation, which ended in early October this year, focused on agricultural and livestock cultivation related to deforestation, such as soybeans, beef cattle, etc. Coffee was not mentioned in this consultation.
This consultation has introduced a controversial principle to the UK's trade relations with agricultural exporting countries like Brazil, as the process may legitimize "private restriction of agricultural trade" behavior, which could lead to increased costs for agricultural products in future markets. Therefore, efforts are being made during this consultation to pass a new law that would force large companies to adopt complex verification procedures at the origin of agricultural products to control "private restriction of agricultural trade" behavior.
Purpose and Goals of the Consultation
The purpose of this consultation is to minimize forest degradation caused by deforestation by encouraging EU consumption of supply chain products unrelated to deforestation. Since 2019, the European Commission has announced goals to strengthen the fight against deforestation and has been studying and adopting public policies to limit consumption of products from deforested areas. Commitments include submitting legislative proposals and additional measures (regulatory and non-regulatory) in 2021.
Brazil's Response and Position
The Brazilian Coffee Exporters Association has been proactive on this issue, engaging in long-term dialogue with agriculture, livestock suppliers, foreign affairs departments, and other organizations representing Brazilian agribusiness. The position of Brazilian agribusiness is that the use of land already illegally deforested should be considered according to each country's environmental laws, rather than any other form of deforestation.
Additionally, Brazilian agribusiness has stated that incentives should be provided to promote good practices and encourage recognition of existing agricultural product certification standards, rather than creating new certification standards. The Brazilian government has already taken a stance on already deforested forests, demonstrating growth in productivity and agricultural income, as well as a balance between sustainable production and environmental protection.
Amazon Forest Fires and Deforestation Concerns
Other reports have pointed out that in August 2019, multiple fires occurred in the western Amazon forest, with some areas burning for several days. At that time, Brazilian President Bolsonaro, who advocated for vigorous development of the Amazon forest, faced external质疑, but he rejected these allegations, suggesting that the fires might have been set by environmental organizations. Research by Global Forest Watch found that deforestation in Brazil's Amazon region increased significantly in 2019. Research data from January 2019 alone showed that 1,330 square miles of rainforest disappeared, 40% higher than the same period in 2018. Most of these fires appeared to burn on pre-cleared forest farmland.
Brazil's Coffee Export Performance
According to a comprehensive report released by the Brazilian Coffee Exporters Council (Cecafe), in 2020, Brazil exported 44.5 million bags of coffee (60 kg per bag), including green, soluble, and roasted and ground coffee. This data represents a 9.4% increase compared to last year's Brazilian coffee exports.
Future Challenges for Brazilian Coffee Production
Despite growth in 2020, 2021 will be a year of reduced coffee production in Brazil. According to data from the Brazilian National Supply Company, Brazil's coffee planting area in 2021 was 1.76 million hectares, the smallest value in the past 20 years, and a 6.8% decrease compared to 2020. This fully demonstrates that Brazilian coffee planting area has encountered a bottleneck. However, with technological upgrades, yield per mu has also increased. Once technology and planting area become insufficient, Brazilian coffee production may also encounter an upper limit in the coming years.
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Starbucks Partners with China Soong Ching Ling Foundation to Launch New Initiative
For more professional coffee knowledge and coffee bean information, please follow Cafe Style (WeChat official account: cafe_style). Starbucks closely monitors the pandemic situation. Today, Starbucks announced a partnership with the China Soong Ching Ling Foundation to jointly launch the "Healthy China: Starbucks Supporting Grassroots COVID-19 Prevention and Control Program." According to media reports, this program
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Mobile Coffee Cart: Post-90s Entrepreneurs Turn Car Trunks into Cafés!
Professional coffee knowledge exchange and more coffee bean information, please follow Coffee Workshop (WeChat public account: cafe_style). According to a report by "Beijing News Video," recently, two post-90s entrepreneurs creatively utilized car trunks for their startup, turning cafés into mobile units. The video introduces that these two post-90s individuals from Urumqi, Xinjiang are cousins, among whom Liu Jiang gave up his job to choose
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