HOW BRAZIL IS CAPITALISING ON INSTANT COFFEE BOOM

As inflation drives up global coffee prices, cheaper robusta beans are in hot demand — and Brazil may be the market to supply it.

Although the production of robusta traditionally falls largely on leading supplier Vietnam, farmers there have not been able to increase output fast enough to meet soaring consumer demand.

BRAZIL-ECONOMY

While its production plateaus, the world’s second biggest robusta grower is picking up speed. Brazil’s output is expected to reach a new high this year, with the US Department of Agriculture forecasting its robusta production will climb 5 per cent this year as Vietnam inches lower.

“Brazil has plenty of room to increase coffee production by converting pastures into robusta crops,” said Fernando Maximiliano, an analyst at StoneX Financial in Sao Paulo. “Vietnam has no room to expand.”

Robusta coffee, used widely to make instant coffee such as Nestle's Nescafe brands or as a blend in espressos, was once seen as a poorer alternative to higher-end arabica beans, which are traditionally favoured by companies such as Starbucks. But it has been making a comeback, especially for its convenience and improving taste.

Consumers globally still drink more arabica-based beverages, but with households and companies dealing with the worst inflation in more than four decades, more buyers are giving the lower-priced robusta bean another look, despite its reputation for overpowering strength and bitterness.

Read More : https://www.thenationalnews.com/business/economy/2022/07/16/how-brazil-is-capitalising-on-instant-coffee-boom/

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