The Vigorous Coffee Market
Find out about the coffee industry from the earliest days in Brazil
The coffee culture began in the period of the Old Republic, in a phase known as "Republic of the Oligarchs" (1894-1930), the main engine of the brazilian economy. This product led exports at the time, followed by rubber, sugar and other inputs. The state of São Paulo captained the production of coffee in this period and also determined the guidelines of the political scene of the time. From the coffee economy, there are three processes that complement each other: the intensive immigration of foreigners to Brazil, urbanization and industrialization. From the second half of the nineteenth century, still in the Second Empire period, the immigration of foreigners, especially Europeans, was fomented by the brazilian government. The reason for this was the need for a skilled and free labor force in the coffee plantations. After the end of World War I, a new migratory wave was directed to Brazil. At that time, the coffee economy became an economic complex with several extensions. The immigrants who came looking for work in the coffee plantations often ended up moving to the urban centers that began to emerge at that time. The urbanization process of cities such as Rio de Janeiro and São Paulo developed to facilitate the distribution and disposal of coffee, which was directed to exports. The expansion of rail lines that occurred in this period, for example, was planned to make this process more fluid.
The agricultural modernization contributed decisively to the industry that developed in the referred sectors. And, for there to be stability in industrial production, it was also necessary to control the value of the brazilian currency. The reason for this control was not to run the risk of having the main export product. The coffee, devalued in the international market. At times, the brazilian government prioritized coffee, neglecting industrial activity. This fact shows that it was only in the Vargas Era, from the 1930s onwards, that Brazil had an economic policy that was truly focused on full industrial development.
Today, due to the diversity of coffee growing regions, Brazil produces varied types of the product, a fact that makes it possible to meet the different world demands, regarding the palate and even the prices. This diversity also allows the development of the most varied blends, based on the "terreiro" or natural coffee, the pulp, the peeled, the soft drink, the acids, the full-bodied, as well as aromatic coffees, special and other characteristics. Largest producer and exporter of coffee and second largest consumer of the product in the world, the product in Brazil is among the top 10 export sectors, ranking 5th. According to the Agribusiness Trade Balance, in December 2016, the product represented 9.8% of Brazilian exports, moving the amount of US $ 600.74 million.