Brazilian coffee suppliers eye inroads into fast growing Chinese market

Brazilian coffee suppliers are seeking to make inroads into the Chinese market, as Chinese consumers have shown a growing taste for good-quality coffee from around the world.

After last year’s successful harvest, the third largest on record, Brazil's coffee plantations are now being cultivated in preparation for the next crop due in the coming months.

Helio De Almeida Leite, a local coffee farmer, said Chinese consumers, historically tea drinkers, began drinking coffee in higher volumes a couple of decades ago, and more recently have developed a taste for higher-quality products.

"There has been a shift in consumption patterns, especially among younger people in China, which has made this market very promising. China has moved from being a small consumer of low-quality coffee to becoming one of the world's biggest potential markets for high-quality coffee," he said.

A new field, planted last December, features a specialty coffee variety called "Catucaí" — a yellow bean developed in a local research center, known for its high sugar content.

The agronomical engineer in charge said the farm adopts sustainable practices that are good for both the coffee and the land.

In the farm's laboratory and tasting room, expert tasters ensure the coffee delivered meets quality standards and help develop new blends.

Jorge Jose, quality control manager of Monte Alegre Coffees, a well-known coffee producer, has been in the business for about 35 years. As Chinese consumers developed a taste for coffee in recent years, he has learned to understand their preferences.

"They are very demanding, especially when it comes to quality. They like naturally processed coffee, which is fuller-bodied, with sweetness and flavors that are more chocolatey and caramelized. They demand that sweetness," said Jose.

To reach the Chinese market, Brazilian coffee has to travel halfway around the world. And as trade between the two countries has grown, efforts have been made to make that long journey more efficient and cost effective, marked by more shipping routes and fewer bureaucratic hurdles along the way.

Five Star Service, a major customs broker who handles about 10 percent of Brazil's coffee exports, said the time needed to obtain export licenses for shipments to China has already dropped from years to months, noting that more still needs to be done to take full advantage of the expanding trade.

"Expectations are high for Brazil, not only for coffee but for many other products. But I believe the bureaucratic process still needs to become faster, a step beyond what has already been done, so approvals can come more quickly, and we can create strong business opportunities in the future," said Ronaldo Taboada, a staff member of the customers broker.

Brazilian coffee suppliers eye inroads into fast growing Chinese market

Brazilian coffee suppliers eye inroads into fast growing Chinese market

Brazilian coffee suppliers eye inroads into fast growing Chinese market

China's consumption growth continues to show resilience, with millions of new restaurants opening last year, underscoring robust demand in the domestic catering sector, said Zhang Yichen, a member of the 14th National Committee of the Chinese People's Political Consultative Conference (CPPCC).

Zhang, who is CEO of CITIC Capital and chairs the master franchise of McDonald's China, told China Global Television Network (CGTN) that 3.5 million new restaurants opened across the country last year, including about 1,000 new McDonald's outlets annually.

At this year's "two sessions," Zhang urged policymakers to introduce measures that would encourage dine-in consumption, linking the restaurant boom to broader efforts to sustain domestic demand.

"This is the amazing resilience of the Chinese economy and Chinese enterprises overall. It's that you have another 3.5 million restaurants, new restaurants, opened," he said.

Zhang believes the key challenge now is reviving in-person dining and shopping to sustain long-term consumption growth.

"In the short term we're actually gaining from that. But in the long run, I believe overall the industry will suffer and the economy will suffer. That's why I brought up the issue and I'm so glad that the government is clearly agreeing with my views. The fact that we're (McDonald's China) opening 1000 restaurants a year and the fact that there are new restaurants still doing very well, it's a clear indication there is consumption power, you just have to find them," he said.

The "two sessions" are the annual meetings of China's supreme organ of state power, the National People's Congress (NPC), and the top political advisory body, the CPPCC. Both bodies serve five-year terms and hold a plenary session each year.

The fourth session of the 14th NPC and the fourth session of the 14th National Committee of the CPPCC opened in Beijing on March 5 and March 4, respectively.

Zhang’s remarks underscore both the resilience of China's consumer market and the need for policies to secure sustained demand, a key focus of this year’s "two sessions."

CPPCC member seeks measures to boost dine-in consumption as China's demand stays resilient