00:00since president trump announced that the u.s will impose 50 percent tariffs on all brazilian products
00:06many people are wondering what will happen to its largest agricultural import coffee a commodity
00:11which has undergone boom and bust cycles for centuries 100 years ago here in paraiba they
00:18produced a lot of coffee there are historical records showing that there used to be over six
00:25million coffee trees here then there was a problem with a fungus and the government support dropped
00:33so when there was a price crash the industry was wiped out even though around one-third of all coffee
00:40drank in the u.s comes from brazil this only represents around 17 of the coffee that is
00:45actually grown there half of all coffee grown in brazil is exported to the european union and around
00:51a quarter of it is consumed in brazil where unlike the coffee shipped abroad it is roasted ground and
00:57packaged generating more jobs and profit for the sector a tariff that is set on all products equally
01:05won't affect all products the same way coffee that is roasted ground and bagged in brazil for local
01:12consumption has boomed during the last few years due to climatic factors causing the price to nearly
01:20double so if the tariffs cost the price to drop i think that in the case of the coffee value chain
01:33there is a margin that will help absorb any possible losses
01:38many of the old coffee towns are now historic landmarks in paraiba where strains of arabica coffee
01:45that had disappeared across the rest of brazil have been preserved and after nearly a century of
01:49neglect are now cultivated for the gourmet market people remain optimistic we believe that even in
01:57the case of a market disturbance coffee is a popular beverage all over the world and certainly
02:07if the product has good quality people will continue to pay for it it's hard to predict exactly
02:13what will happen when and if the trump administration imposes and maintains its tariffs but one thing for
02:19certain is that people are not going to stop drinking coffee brian meir tell us sir are ya paraiba
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