Brazil economy and its coffee industry

Federative Republic of Brazil

Stav SalinasDvir Kreizman

Some Background

It’s name is after the Brazil tree Agriculture - ground, vast rain forest and coast-line. Area - 8,514,877 km^2 Population - 201,032,714 Language - Portuguese

Significant events 7.9.1822-Independence from Portugal 1888-slavery ended Early 20Th century-coffee replaced sugar

as the main export of Brazil 1930-1945- Vergas regime-period of

Industrialization and development Democracy was established in 1946

Brazil Economy 7th largest economy in the world by nominal GDP

($2.190 trillion) and PPP.

The nominal GDP per capita – 68th in the world

One of the fastest growing-economies in the world, with an annual growth of 5%

in the upcoming decades Brazil is expected to be one of the five top economies in the world

The world economies prediction by GDP considering:labor forcecapital accumulationprogress in technology

Brazil economical independency

Brazil government had decided to lower her oil dependency in other countries

They manage to do so thanks to oil fields that were found near the coast

Brazil became completely oil-independent in 2007 when a very big oil field was found next to her coast-line.

As a result of the oil discovery and other government regulations Brazil economy became less vulnerable…

Brazil Industry:Big & famous company's

Brazilian multinational energy corporation (no.4 in the world!)

mining company

bank

Americas' Beverage Company

biggest banking and financial services companyIn brasil

Banco do Brasil

steel-maker company

largest producer of long steel in the Americas

electric utilities company

Aircrafts manufacturer

On the other hand… Corruption & Crime Mundial? Brazil is suffering from the global

crisis*: Forbes (25.11.2013): “In October: Brazil breaks public debt* record”:

On the other hand… Bloomberg (14.11.2013): Brazil Economic

Activity Unexpectedly Contracts in September: “The number today confirms expectations that GDP growth in the third quarter was close to zero or even negative…”

The Economist (30.9.2013): Stumbling up the hill: “After a decade of encouraging growth, Brazil's economy has stalled. Without substantial changes to public spending and business relations, the country may lose its momentum”

Brazil’s export distribution

Brazil Agriculture Brazil was blessed with a great agriculture

environment (rain, fruitful-land…) Half of it’s area is covered with rain-forests The agriculture is pretty diverse so it can

maintain the Brazilian people’s needs almost by itself.

Brazil is an exporter of Tobacco, Cocoa, soya, tropical fruits and more…

Brazil is the biggest producer of sugar cane and coffee in the world!

Coffee?

Brazil by Coffee The world’s largest producer (for 150 years already). 1920-1950 – supplied 80% of the world's coffee. Today – supplying 33%. mainly exported to the US, the world's largest coffee

consumer. Coffee plantations covering some 27,000 km2

Two main species-Arabica and Robusta. Grown in 13 out of 26 states in Brazil.

Areas of coffee cultivation

Robusta

Arabica

Both

The coffee production process - 1

Picking the fruits manually/mechanically

Planting and growing the coffee trees

The coffee production process - 2 Washing and separating the mature ones

from the other.

• Peeling off the outer shell and extracting the beans

The coffee production process - 3 Washing the beans in hot water to remove the

sticky and sweet layer that surrounds them.

• Drying process – initially, under the sun for 4 days.

The coffee production process - 4Breaking the outer shell with a milling

machine.

• Drying process – finally, in large containers using hot air.

The coffee production process - 5 Classified to different grades according to: size,

weight, shape, defects. Packing in bags of 60kg and exporting.

Planting and

growing

Harvesting

Washing separating and

pillingDrying

Classifying

Packing Exporting to coffee

companies

Annual average production (60kg bags):

1. Brazil - 45M2. Vietnam – 20M3. Indonesia – 10M

Brazil responsible for third of the whole world production! (133M 60kg bags per year)

Manufacturing ParadigmMass-Production – why?

Design – picking the type of beans (limited variety) and planning the final product.

Make – the production process Sell – exporting the crop to coffee

companies throughout the world

*Mass-Customization – will take part at the specific destination of the coffee beans.

Forecasts Though the importance of coffee export

for Brazil’s economy has declined in the last 50 years, it still considered an important export.

Brazil is the second largest consumer of coffee and is predicted to surpass the United States in the mid-2010s.

Coffee in Brazil is a national pride – “Cafezinho”

ReferencesThe economist:http://www.economist.com/blogs/americasview/2013/09/brazils-troubled-economyInternational coffee organization:http://www.ico.orgForbes:  http://www.forbes.com/sites/kenrapoza/2013/11/25/in-october-brazil-breaks-public-debt-record/Bloomberg:http://www.bloomberg.com/news/2013-11-14/brazil-economic-activity-unexpectedly-contracts-in-september.htmlWikipedia: Brazil economyThe world bankGoldman sachs:http://www.chicagobooth.edu/alumni/clubs/pakistan/docs/next11dream-march%20'07-goldmansachs.pdf

 

Keywords

IndustrializationAgricultureGDPPPPlabor forcecapital accumulationannual growthnatural recourses

global crisispublic debtfree-marketproduction processAnnual average productionMass-ProductionMass-Customization

Thanks for your listening !