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Federative Republic of Brazil Stav Salinas Dvir Kreizman Brazil economy and its coffee industry Some Background It’s name is after the Brazil tree Agriculture - ground, vast rain forest and coast-line. Area - 8,514,877 km^2 Population - 201,032,714 Language - Portuguese Significant events 7.9.1822-Independence 1888-slavery from Portugal ended Early 20Th century-coffee replaced sugar as the main export of Brazil 1930-1945- Vergas regime-period of Industrialization and development Democracy was established in 1946 Brazil Economy 7th largest economy in the world by nominal GDP ($2.190 trillion) and PPP. The nominal GDP per capita – 68th in the world One of the fastest growing-economies in the world, with an annual growth of 5% in the upcoming decades Brazil is expected to be one of the five top economies in the world The world economies prediction by GDP considering: labor force capital accumulation progress in technology Brazil economical independency Brazil government had decided to lower her oil dependency in other countries They manage to do so thanks to oil fields that were found near the coast Brazil became completely oil-independent in 2007 when a very big oil field was found next to her coast-line. As a result of the oil discovery and other government regulations Brazil economy became less vulnerable… Brazil Industry: Big & famous company's Brazilian multinational energy corporation (no.4 in the world!) mining company steel-maker company bank biggest banking and financial services company In brasil Aircrafts manufacturer Banco do Brasil largest producer of long steel in the Americas Americas' Beverage Company electric utilities company On the other hand… Corruption & Crime Mundial? Brazil is suffering from the global crisis*: Forbes (25.11.2013): “In October: Brazil breaks public debt* record”: On the other hand… Bloomberg (14.11.2013): Brazil Economic Activity Unexpectedly Contracts in September: “The number today confirms expectations that GDP growth in the third quarter was close to zero or even negative…” The Economist (30.9.2013): Stumbling up the hill: “After a decade of encouraging growth, Brazil's economy has stalled. Without substantial changes to public spending and business relations, the country may lose its momentum” Brazil’s export distribution Brazil Agriculture Brazil was blessed with a great agriculture environment (rain, fruitful-land…) Half of it’s area is covered with rain-forests The agriculture is pretty diverse so it can maintain the Brazilian people’s needs almost by itself. Brazil is an exporter of Tobacco, Cocoa, soya, tropical fruits and more… Brazil is the biggest producer of sugar cane and coffee in the world! Coffee? Brazil by Coffee The world’s largest producer (for 150 years already). 1920-1950 – supplied 80% of the world's coffee. Today – supplying 33%. mainly exported to the US, the world's largest coffee consumer. Coffee plantations covering some 27,000 km2 Two main species-Arabica and Robusta. Grown in 13 out of 26 states in Brazil. Areas of coffee cultivation Robusta Both Arabica The coffee production process - 1 Planting Picking and growing the coffee trees the fruits manually/mechanically The coffee production process - 2 Washing and separating the mature ones from the other. • Peeling off the outer shell and extracting the beans The coffee production process - 3 Washing the beans in hot water to remove the sticky and sweet layer that surrounds them. • Drying process – initially, under the sun for 4 days. The coffee production process - 4 Breaking the outer shell with a milling machine. • Drying process – finally, in large containers using hot air. The coffee production process - 5 Classified to different grades according to: size, weight, shape, defects. Packing in bags of 60kg and exporting. Planting and growing Harvesting Washing separating and pilling Packing Classifying Drying Exporting to coffee companies Annual average production (60kg bags): 1. Brazil - 45M 2. Vietnam – 20M 3. Indonesia – 10M Brazil responsible for third of the whole world production! (133M 60kg bags per year) Manufacturing Paradigm Mass-Production – why? Design – picking the type of beans (limited variety) and planning the final product. Make – the production process Sell – exporting the crop to coffee companies throughout the world *Mass-Customization – will take part at the specific destination of the coffee beans. Forecasts Though the importance of coffee export for Brazil’s economy has declined in the last 50 years, it still considered an important export. Brazil is the second largest consumer of coffee and is predicted to surpass the United States in the mid-2010s. Coffee in Brazil is a national pride – “Cafezinho” References The economist: http://www.economist.com/blogs/americasview/2013/09/brazils-troubledeconomy International coffee organization: http://www.ico.org Forbes: http://www.forbes.com/sites/kenrapoza/2013/11/25/in-october-brazil-breakspublic-debt-record/ Bloomberg: http://www.bloomberg.com/news/2013-11-14/brazil-economic-activityunexpectedly-contracts-in-september.html Wikipedia: Brazil economy The world bank Goldman sachs: http://www.chicagobooth.edu/alumni/clubs/pakistan/docs/next11dreammarch%20'07-goldmansachs.pdf Keywords Industrialization Agriculture GDP PPP labor force capital accumulation annual growth natural recourses global crisis public debt free-market production process Annual average production Mass-Production MassCustomization Thanks for your listening !
