Logistical issues in the Brazilian coffee supply chain Thesis

Logistical issues in the Brazilian coffee supply chain - Thesis Example is has been facilitated through an in-depth analysis of facts and figures related to production, exports, quality, logistics processes and problems associated with the coffee industry in Brazil. 1. Coffee Production in Brazil 1.1 Production Quantity & Trends Coffee is classified into two types of beans: arabica and robusta. Arabica is cultivated in majority of the coffee producing nations with its share accounting for about 80% of the production. According to the San Francisco Chronicle, Brazilian coffee production is expected to reach about 3.78 million metric tons in 2012 (sfgate.com). Based on estimates for the year 2012 and actual figures from the Food and Agriculture Organization (FAO) of the United Nations, the coffee production quantities (in million Metric Tons) are shown in the form of a graph below: Figure 1: Coffee Production: Brazil – 10 year trend (Source: Food & Agriculture Organization of the United Nations, 2012) As it can be seen, the coffee production in Braz il has not changed significantly over the years. While the growth rate has been in the region of 2 to 4% annually, the only surprising spike observed (estimates for 2012) is for the year 2012, where almost 30% gain is expected to be reported over the previous year. It also helps to have an overview of the state wise coffee production in Brazil. Refer Table 1 for the state-wise production. (The values are in million 60-kg bags). Table 1: Brazil’s state-wise Coffee production trend (in million 60-kg bags) Â   MY 2001/02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 Minas Gerais 16.20 26.70 14.40 21.40 16.30 23.70 18.10 25.75 21.00 Espirito Santo 9.70 11.50 7.90 8.10 8.40 10.00 10.40 11.80 10.40 Sao Paulo 3.20 5.90 3.10 4.90 3.30 4.90 3.10 4.85 4.20 Parana 0.50 2.60 2.20 2.60... This research will begin with the presentation of coffee production in Brazil. Coffee is classified into two types of beans: arabica and robusta. Arabica is cultivated in majority of the coffee producing nations with its share accounting for about 80% of the production. According to the San Francisco Chronicle, Brazilian coffee production is expected to reach about 3.78 million metric tons in 2012. Based on estimates for the year 2012 and actual figures from the Food and Agriculture Organization (FAO) of the United Nations, the coffee production quantities (in million Metric Tons) are shown in the paper. According to the research findings the coffee production in Brazil has not changed significantly over the years. While the growth rate has been in the region of 2 to 4% annually, the only surprising spike observed (estimates for 2012) is for the year 2012, where almost 30% gain is expected to be reported over the previous year. It also helps to have an overview of the state wise coff ee production in Brazil. Refer Table 1 for the state-wise production. (The values are in million 60-kg bags). It can be observed that the ratio of Arabica to Robusta is in the region of 70% to 77%. While Arabica is higher quality coffee beans grown at high altitudes, robusta is lower grade coffee beans which can flourish on medium and lower altitudes also. The state of Minas Gerais has accounted for maximum production of coffee, largely on account of its geography. Moreover, it was one of the earliest states to start production of coffee.