00:00Hi, everyone! Good morning! Negócio Rural is on the air! It's great to have you with us on another show.
00:22I'll start by asking you a question. Which coffee variety do you like best? Arabica or Canephora? Our famous Conilon.
00:32Go on social media and tell me. I personally like both. It doesn't matter. Arabica or Conilon.
00:402025 began with a very busy coffee market. Just look at all the news from all over Brazil.
00:48But what's going on? Why is the coffee bag so high?
00:55I'll explain it to you from now on in Negócio Rural.
00:57From the beginning of the earth to the end of the world, agriculture is everywhere. We turn cow manure into profit; agriculture is everywhere.
01:09The coffee that wakes you up to work hard, agriculture is in everything.
01:18Would you like some coffee?
01:33This is how many people start their day.
01:36We have a cultural thing about waking up in the morning and having that coffee, right?
01:42Otherwise the day doesn't work.
01:43Since I started working with coffee, which was a long time ago, the increase in specialty coffee, in particular, has increased by 400%.
01:50There was a demand, a very large increase in demand.
01:54I think there is still a lot of room for growth in the market and it will grow more every day.
01:58You now have access to specialty coffee at the supermarket.
02:01So, the public is looking for a better quality coffee for their daily consumption.
02:08Coffee took root in Brazil almost 300 years ago.
02:12It is the most consumed food in the country.
02:14In the last 20 years, consumption has increased by 37% among Brazilians.
02:19It is the grain that unites Brazil.
02:21Coffee is a product, unlike soybeans, corn, and cotton, that can socialize wealth.
02:30He employs a lot of people.
02:32It is not as mechanized as other crops.
02:34So, it's a culture that, in addition to adding value to our table, we add value to society.
02:40Because we employ.
02:41We generate revenue.
02:42We generate dreams.
02:43And it creates reality for all those who are in the daily struggle.
02:46I can hardly resist a cup of coffee.
02:52And you, Marcos Magalhães, our voice of coffee, a great expert and enthusiast of Brazilian coffee.
02:59Tell me.
03:00It's impossible not to drink coffee, right?
03:02Really, I'm driven by coffee.
03:04And really, it's a drink that, besides giving you energy, also brings a great deal of peace.
03:11Because you get that feeling that you're from the countryside to the city, doing some cool homework.
03:16And, as the other one says, it's a drink that's contagious, it's a drink that goes well with our Brazil.
03:21Because coffee will always, always be a Brazilian product.
03:24Now, pay attention to this number.
03:26Each Brazilian consumes, on average, 1,430 cups of coffee per year.
03:32This is an estimate from the Brazilian Coffee Industry Association, ABIC.
03:37That's an average of 4 cups of coffee a day.
03:42Are you part of this statistic?
03:44Because I'm past it.
03:45I don't belong because I drink more than that.
03:48We are together.
03:49I drink more than 4 cups of coffee a day.
03:51And really, if you drink good coffee, there's not much of a problem, no.
03:55Coffee really gives us the energy we need to get on with life.
03:58The year has just begun and it has started off busy in the coffee market.
04:03We never imagined that a bag of coffee would sell for over 2 thousand reais.
04:11I said 2 thousand reais and I'm not saying it wrong.
04:16No, it's not.
04:16Indeed, we entered 2025 with very high prices.
04:19I'll tell you differently.
04:21I don't think anyone has ever seen a bag of coffee at that price, and no one in our generation has ever lived through the times we are living now and will live through.
04:29Because prices should not fall.
04:31And, look, folks, the explanation for this is right here, look, inside the cup.
04:46We are in Caldeirão de São José, Santa Tereza, in the interior of Espírito Santo, where coffee production is a family inheritance.
04:54I am the third generation and Carlos Alberto Rode, who is now our partner in coffee cultivation, is the fourth generation of a family of immigrants from Zanotti.
05:10It started back in 1977, while the government was still in power, bringing integration to rural areas, and my father was invited by Carlito's grandfather to be involved in the acquisition of some land here in the region, where he saw a great opportunity in coffee planting.
05:32It started with my grandfather, in coffee farming, in the 60s, 70s, producing, I'm in the fourth generation, producing coffee, so we're already talking about more than 50 years in coffee farming within the family.
05:50Is producing coffee easy?
05:53No no.
05:55I consider it a culture, so it's difficult.
05:58Not for variety.
06:01Today, because we are a rugged region, we demand a lot of labor.
06:06So, today, I believe that, in my view, it would be a game changer for the workforce.
06:13And today can we say that coffee is a good business?
06:15It's a great business. Coffee has already been a good business, right?
06:19Now, it's, like, extraordinary, right?
06:23When we see that, in fact, prices have increased significantly for the producer and the cost of production has not yet increased, right?
06:34It has not yet undergone all the market interaction that coffee has undergone currently.
06:43Has coffee production changed much since you started?
06:47Yes, it's changed a lot. I believe it's almost like a change from water to wine with this increase in technology.
06:53A question of management, a question of spacing, of variety.
06:57Irrigation arrived, which is essential today. Without irrigation, we have no success.
07:02We thus take away a good part of this difference.
07:05That's where we can be productive.
07:08Brazil has 35 producing regions in 17 states.
07:15In the more than 100 municipalities that house production, 300 thousand plantations are distributed.
07:22Seven out of ten of these properties are family farms.
07:27And look at João and Carlinhos's farm.
07:30There are more than 120 thousand trees planted here.
07:33And they are laughing out loud at the rise in the price of coffee.
07:36Coffee, along with geopolitical issues, meant that Brazilian coffee had a cheaper origin.
07:44So they came looking for this coffee here.
07:47With this strong demand, the price of coffee rose to levels that we are seeing now, extraordinary.
07:54And when it happens now, recently, the flowering of this harvest that will start now, 25, 26,
08:00It was seen that the setting in Arabica was also not so good due to a drought that was happening.
08:07So, Brazil today and always will be the largest coffee producer and it is the one who really sets the rules.
08:13So all this market volatility that we are seeing is precisely how it will produce better, it will produce worse.
08:19So, really, it was imaginary, unimaginable that this coffee would reach these levels,
08:24but it is possible that we will have 2025 and who knows, even 2026, also maintaining these levels that we are currently seeing.
08:32We are an open-air industry.
08:34There are times when there is a lot of rain, a lot of water.
08:36And this directly interferes with production.
08:38We talk about breaks, there are times when we withdraw 20, 30, 40%.
08:42This hurts us a lot on the other side.
08:46So this increase that you are seeing is a reflection of the problems that we have daily within the properties due to climate factors.
08:54And it's also a question of when we go to TEC, the death squad has to be well paid.
08:59So we increase costs.
09:01So it's a chain of issues of having execution to have, whoever works has to be well paid.
09:07And the climate issue of losses at this percentage, at this level that I told you about.
09:12We are at an altitude of 540 meters and in this region of Espírito Santo, the presence of Arabica coffee is very common.
09:22And here he is, soaking up the morning sun.
09:25But thanks to science, in many properties, conilon has also been adapting to altitude.
09:32And here it is, conilon on one side, arabica on the other.
09:36Do you know the difference?
09:38It's here, one of them is the leaf.
09:40This is the conilon coffee leaf and we cross the street here to show the arabica coffee leaf, which is much straighter.
09:50Another way to identify plants is by the filling of the grains.
09:55Arabica beans are a little more spaced out.
09:58The conilon, all very close together, forming bunches.
10:01It is diversification in coffee farming, where the producer wins on both sides.
10:07So we have here Arabica, on our left, and a Conilon, on our right.
10:13Why?
10:13Because the cultivars, the genetic improvement, the adaptation of these plants, made it possible to plant these crops under these conditions.
10:25So today we have here in a position that we call morning sun, where we thought of placing the Arabica so that it takes a little longer to mature, so that it carries more sugars and becomes a better drink.
10:38And we also have a conilon, which is excellent, producing an average of 100, 105 bags per hectare, a three-year average.
10:46Quiet.
10:46Diversification in agriculture and business.
10:53João and Carlinhos rely on the support of the Regional Cooperative to guarantee the sale of coffee they produce and future harvests.
11:05The cooperative is part of the entire process, because from the beginning of the purchase of inputs, all fertilizers, correctives,
11:15and also on the condition of bringing us opportunities in marketing.
11:22Today it has a storage area, you can leave your coffee there, and the truck is insured when it leaves your property.
11:30So, you leave your coffee at the cooperative, it has the weight, the packing list, classification, when you go to sell your product, it's what's on that packing list.
11:38So, and daily with updated prices, because there is an entire team there in the market to be able to do these analyses,
11:47is passing on prices to the purchasing counters.
11:51And also the field technology issues, a whole team of agronomists who are with us here, producers,
12:03bringing the best conditions and the latest in irrigation, fertile irrigation, planting,
12:11This whole issue of varieties seeks to increasingly improve productivity as a cooperative member.
12:16The importance of us walking together with them is the issue of information and they bring new business models to us,
12:25so that we are not always limited in acquiring things, supplies, not being limited only by money.
12:32It gives us the power to bargain, we can exchange a pesticide for fertilizer, if we think the moment is favorable,
12:39You can exchange an implement in a cafe, if you think the moment is favorable.
12:43So it gives the business more options, so we can stay within the segment.
12:47And there is also no middleman, precisely, in consumption, it perhaps makes bridges directly from the cooperative,
12:53directly to the end consumer at the point where they are roasting and selling this coffee in coffee shops and local businesses, perhaps.
13:02In Espírito Santo and in Brazil, coffee is more than a bean, it is identity.
13:11With each cup, the world discovers the flavor of our land, made with passion and dedication.
13:18It is the Brazilian soul transformed into wealth, appreciated and valued in the four corners of the planet.
13:25When we talk about coffee, we are not talking about farming.
13:30But where to drink today? To have coffee.
13:32How many people are employed here serving good coffee?
13:35Look how big the chain is.
13:37So, like, you have the producer, you have the barista, you have the restaurant, you have the coffee shop,
13:41You have the one who puts coffee on the shelf in the supermarket.
13:44So it's a chain that really moves and unites Brazil.
13:47Coffee is the national passion, I have no doubt about that.
13:50In fact, it was already said a week ago that people are going to cut everything off their tables due to rising prices,
13:56except coffee, because coffee is part of our culture, our daily lives.
