"I have spent the last two weeks touring the world's largest producer of raw coffee; Brazil. This year (crop 2002) Brazil produced enough coffee to fulfil 45% of the world's total coffee consumption."

"Brazil is a well known producer of quantity; perhaps less well known as a producer of exceptional estate quality coffee. People continually try to categorise and over simplify things - but consider a country as vast and diverse as Brazil with production typically in the 30-40 million bag range (of course, even more this year) and then ask; is this coffee really all the same? Of course not. Even if only 2-3% is fine estate grade; we are still talking about a considerable quantity of top quality, traceable, estate grown coffee."

"I travelled to Brazil as a judge in the 4th Cup of Excellence Brazil competition. For those of you not familiar with the Cup of Excellence; this Programme brings together the best coffee cuppers / tasters in the world - who select the finest coffee in Brazil for the season; following 3 days of intensive ''blind'' cupping. The Programme has operated since 1999 and now incorporates Guatemala, Nicaragua, and (new in 2003) El Salvador. This year almost 900 lots were submitted by growers for the competition - narrowed down by a national jury to 50 lots. The International jury of 30 judges cup tasted these 50 lots again and again during three days in the city of Salvador in Bahia State, North East Brazil."

"After the competition, some of the international group took a tour of Bahia State; visiting a co-op, a private estate, and an agro industry project. Bahia State is larger than France, and produces about 2 million bags per year (similar quantity to Costa Rica). From the new frontier of irrigated coffee 'ranches'; (each a 100 hectare crop circle) in Barreiras it is 1000km (2 hours flying) back to Salvador on the coast. Note to Central America low grown producers and other growers of bulk commodity NYC grade coffee. Don't visit Barreiras. I don't think people have any idea how big Brazil really is (5th biggest in the world by population and area - bigger than the US ex-Alaska). Huge potential if even a fraction of it's undeveloped land was put into production. Same note to EU and US protected agricultural markets - beware this giant."

"We then proceeded to Sao Paulo for the award ceremony. The winning farms were announced, and the 28 Cup of Excellence lots were confirmed based on the international jury scores. These lots (typically 20-100 bags each) will be auctioned as usual on the Internet in December. We welcome all enquiries about Cup of Excellence; and we would be delighted to recommend some of these exceptional coffees. Mercanta The Coffee Hunters coordinate and bid on behalf of many international customers; and many clients have been highly successful marketing the Best of the Crop each season. While many claim to sell the best; the Cup of Excellence proves it."

"The Award Ceremony is always enjoyable and emotional; more so this year as last year's winning farm again made the top five; and all five of the very best lots came from a distinct region and micro climate in South Minas. The entire town seemed to be there; and celebrated wildly at their earned success."

"Perhaps I can make a small observation at this point. Many (most?) buyers talk about Santos when they are looking for Brazil coffee. Santos is a port. No coffee grows in Santos. It is like calling French wine Marseilles or Le Havre after the port that it is shipped from. Santos is a common term for bulk commodity grade natural that Brazil produces in huge volume for the multinational roasting giants - you know, the guys in the Oxfam report for whom coffee is one of thousands of brands in the portfolio. Santos is bulked together from farms all over Brazil, and cannot be traced back to individual growers any more than vin de table can be traced to any particular vineyard. Santos (or Swedish or 3/4 mtgb) is the definition of industrial coffee. As you are unlikely to be one of the aforementioned four multinational giants mentioned above, you may be more interested in genuine Brazil estate grade coffee. Superb coffee from single identifiable farms where your money goes to support farming communities. Quality coffee from a wide range of identifiable, audited, environmentally aware, socially responsible farms. Think about it the next time you are looking for Brazils."

"After the awards ceremony, I travelled to South Minas and Mogiana; Brazil's quality coffee heartland. Mercanta The Coffee Hunters are UK, Eire and Nordic exclusive representatives of the Brazil Specialty Coffee Association (BSCA). I was visiting a number of existing suppliers and some new BSCA members. The fifty BSCA members represent the finest of Brazil's production; so while thousands of growers sell their coffee to disappear into bulk anonymity; roasters can buy BSCA coffees by estate, varietal and production process (natural, pulped natural, washed) - virtually custom sourced. Leave the commodity Brazils to the commodity buyers - if you claim to be specialty buyers; reconsider your Santos category. BSCA estate Brazils are widely used in fine espresso blends (ever wondered where Italy's finest espresso companies buy from??) or often as fine single estate filter products."

"Brazil had been suffering a drought (speculator longs) / lack of rainfall (speculator shorts); but this well and truly ended during my visit as I endured three days of torrential rain!!! This led me to believe that the ''Rain Dance'' I performed on stage in Salvador may have had some affect. Photos from Jose Francisco Perreira and Stephen Leach. I saw plenty of evidence of leaf burn / leaf drop but a lot of the digital photos sent back and forth by futures brokers hungry for price volatility show trees more exhausted from the exceptional abundance of this year's crop; perhaps exacerbated by lack of rain. The combined effects of this year's huge 50 million bag crop together with a delay to seasonal rains points toward a drop in production to around 30 million bags next year (crop 2003). 30 million is the 'hinge' number; as the usual margin of error allows for 5 million bags either side of this number. Higher prices tend to attract coffee; so I will reserve final judgement. However, the fact is that there will almost certainly be a global production shortfall next year (more coffee consumed than produced); perhaps as high as 15 million bags deficit. Given historically low prices, I can say that the outlook for the commodity market price would appear to be mildly / moderately positive; and consumer inventories will be drawn down."

"I believe we will continue to see the ever widening gap between quality estate coffee (rising demand, historically inexpensive) and poor quality commodity grade (stagnant demand, quality reflects price below production cost). The specialty and commodity business continue to grow rapidly apart."

"I also met a number of Organic producers; as such is the growth in demand that we now purchase the entire crop from one small producer in South Minas; and we are opening up at least 1-2 more supply lines from certified organic growers (thank you but we do NOT need any more samples - this is a niche business and volumes are small). We stock organic because many clients demand it; but I would not recommend more producers to enter this market - in my opinion the market is amply supplied."

"In summary; Brazil once again proved its ability to produce some exceptional coffees in the Cup of Excellence Programme. Brazil Specialty Coffee Association growers continue to provide fine, affordable, estate grade coffees to the growing specialty market, organic production is rising, and the next Brazil crop will be a lot smaller than this (record) one."

"Keep your eye on Brazil; this rapidly developing nation can supply not only bulk commodity grade but exceptional estate grade coffee. Dedicated, professional growers with a tremendous wealth of knowledge and expertise are helping us supply an international clientele of discerning buyers."

"Travelling for two weeks in this generous and hospitable country, I cannot hope to do justice to all that I learnt and discussed in this platform. However, I hope that this report will give buyers a new / alternative perspective on Brazil; and I welcome questions and comments."

"Thank you to the Cup of Excellence organisers for another memorable event. Kind regards to my fellow jury members; many of whom are now good friends. It is a pleasure and honour to spend time with the cream of the world's coffee experts. Thanks to the Brazil Specialty Coffee Association members for their customary and genuine warmth and hospitality and for the generous knowledge that they share."

"The combined efforts of this 'team' will help to drag the coffee business away from the commodity curse; and into the realm of wine and fine beverages where coffee rightly belongs."

"Best Wishes to All"

Stephen Hurst
Mercanta The Coffee Hunters
Importers of Fine Coffee
Sunbury on Thames - England