The current turbulence in the world market caused by the new situation due to the pandemic of the coronavirus has raised many questions concerning the procurement of some of the foods, including coffee, without which we cannot imagine everyday life.
We learned in the forthcoming period that coffee would be sufficient and that the supply of raw materials was going as planned, in an interview with Mata Stetic, General Manager of Atlantic Grupa’s Strategic Business Area Coffee.
Is the fear that there might be a shortage of coffee in the domestic market, given the possible delays in the transportation and delivery of raw materials due to border closures?
– The process of processing and production of coffee in our plants, with all the necessary measures of protection, is carried out as usual, so that we have enough supplies of finished products, which can meet the increased demand without downtime and shortages in the domestic market. Due to the specific conditions in which we are located, security measures at border crossings have been increased, leading to a slowdown in international transport, but thanks to the excellent planning of our central procurement, we have supplies of raw coffee, which can fully support the production process until the pandemic situation stabilizes.
In February, Brazil, where you normally purchase the largest quantities of “minas”, saw a 26 percent drop in exports of raw coffee. Is that a bad sign, or a common occurrence this time of year?
– Brazil was facing problems in the supply chain at the time of the epidemic due to difficult transportation and logistics. The situation is similar in Colombia and Honduras, with India completely closing the borders. Brazil, on the other hand, is expecting a new harvest, while the other major coffee producer, Colombia, is in the midst of its growing season, so the two countries known for brewing and exporting coffee have yet to meet global demand. With all this in mind, I think the drop in exports is only a momentary impasse, as evidenced by the statements of the world coffee producers, which do not expect major disruptions in the supply of raw coffee so far.
Which countries do you get robust from, and is the situation in these markets under control?
– We procure Robust from India, Vietnam or Uganda, so we do not depend on one market, which gives us the ability to quickly adapt to the current situation. We are constantly monitoring all developments and for now the supply of raw coffee is running smoothly, primarily from Brazil. By the way, Brazil and Vietnam today produce more than half of the world’s coffee, and their share continues to grow. Leading is Brazil, which supplies the world market with 37 percent of coffee and, for the sixth consecutive year, has achieved record highs. Vietnamese production is also growing. This season, Brazil plans to increase its coffee yield by about 14 percent over the previous year, which suggests that the coffee market is still fairly stable, and will hopefully remain so despite the problems caused by the coronavirus pandemic.
Is the production at Grand Coffee facilities going according to plan? Do you have enough raw materials and supplies in stock?
– The production plant of our factory, as well as the procurement, as I said, are working according to plan and at the moment we are covered with a sufficient amount of raw materials and raw materials for the coming period. Atlantic Grupa otherwise implements protocols to the highest standards of food safety and security, both in production and distribution logistics processes, and in the conditions of the epidemic additional strict measures and special protocols were introduced to protect the health of all employees and our partners in accordance with the recommendations of health organizations and national headquarters. We are connected with suppliers of other raw materials through a dedicated platform and database, which makes it much easier for us to communicate, especially now that most of the employees who can do it from home.
Global manufacturers and retailers do not announce delays in contract deliveries, though, do you have a backup strategy in case you face such a scenario? Can you estimate how the price of raw coffee will fluctuate and how this will affect the price of coffee in retail stores in Serbia?
– Contracted procurement and supplies provided us with the assurance that we will be able to provide a stable supply and sufficient quantity of products, but we are also preparing for possible market disruptions. And while it is ungrateful to forecast price movements in the stock market in the long run, the fact is that in the event of any turbulence, as before, we will strive to depreciate prices to consumers as long as possible, does not affect our business. Lastly, I would like to emphasize especially the efforts of all our employees in production, logistics, distribution, quality control and all other processes that carry out their work in the field or on the premises of the company, and thus make maximum contribution to maintaining regular production and chain supply, and therefore the sustainability of the company, Danas reports.
