Brazil starts 2023 with a drop in coffee exports

The monthly statistical report by the Brazilian Coffee Exporters Council (Cecafé) points out that shipments
of the product totaled 2.843 million 60 kg bags in January this year, a volume that implies
drop of 16.8% compared to the first month of 2022. In foreign exchange revenue, the decline is 17.8% in the
same comparative range, with remittances generating US$ 612.8 million.

“We are in the off-season, after two smaller harvests, impacted by strong weather adversities in the
last years. There is still some resistance on the part of producers to sell their 2022 harvest stock in the
current price bases, which have dropped significantly since October, facts that justify the observed decrease
in January”, analyzes Márcio Ferreira, president of Cecafé.

With the sharp drop in international prices four months ago, whose movement registered the lowest
in January, he explains that the differentials of Brazilian Arabica coffees tightened a lot, once
the prices on the physical market did not follow the external decline in the same proportion, given the
resistance of producers in the off-season.

“Importers have preferred to postpone new purchases or opted for specific coverage in the market
spot abroad, leaving, only as a last resort, new acquisitions in view of these more expensive differentials”, he says. Ferreira adds that this behavior “is natural in the off-season, especially
when you come from two consecutive years of smaller harvests”.

Another factor impacting shipments is the greater demand from national industries, mainly by
canephora. “This demand interferes with the export of the variety, which has declined over the last year. In January, the decline was 12.3%. In addition, although we still see a good remainder of the 22/23 harvest, this variety stock has been directed, mostly, to the roasted and ground industries, for internal consumption”, he explains.

Regarding foreign exchange earnings, the decline exactly reflects the scenario of international prices, which entered a negative route since October last year. “In addition to exporting less in volume, we also had a lower average price per bag in January, which was US$ 215.56, or 1.2% less than the US$ 218.18 per bag
measured in January 2022”, compares the president of Cecafé.

MAIN DESTINATIONS
In January 2023, the United States maintained its position as the main buyer of coffee in Brazil, by
acquire 512,402 bags, a volume 30.7% lower than that registered in the same period of 2022.
is equivalent to 18% of total Brazilian shipments last month.

Germany, representing 15.6%, imported 442,430 bags (-19.5%) and ranked second
in the ranking. Next come Italy, with the purchase of 193,671 bags (-3.4%); Belgium, with 175,790 bags
(-50.7%); and Japan, with the acquisition of 144,649 bags (-19.7%).

Among the positive highlights are coffee exports from Brazil to France and the Netherlands (countries
Basses). Seventh among the main destinations for the product in January, the French purchased 91,317 bags,
which represents a substantial increase of 179.6% compared to the volume acquired in the first month of
2022. The Dutch come next, increasing their imports by 33.2%, to 83,189 bags.

PORTS
The maritime complex in Santos (SP) was the main exporter of coffee in Brazil in January 2023,
with the shipment of 2.275 million bags abroad, which is equivalent to 80% of the total. Next, come
the ports of Rio de Janeiro, which account for 16.3% of shipments by shipping 463,910 bags, and
Paranaguá (PR), with the export of 36,031 bags and a representativeness of 1.3%.

TYPES OF COFFEE
Arabica coffee was the most exported in January this year, with shipments of 2.432 million bags to the
abroad, which corresponds to 85.6% of the total. The soluble segment had 320,287 bags shipped, with
representation of 11.3%, followed by the canephora variety (robusta + conilon), with 87,584 bags (3%)
and the roasted and roasted and ground product, with 2,219 bags (0.1%).

See below the volume of soluble coffee (hs 21010000) exported from Brazil between January 2019 and December 2022. Data is from DataLiner.

Soluble coffee exports | Jan 2019 – Dec 2022 | WTMT

Source: DataLiner (click here to see a demo)

DIFFERENT COFFEE
Differentiated coffees, which have superior quality or some certification of sustainable practices,
accounted for 19.8% of total Brazilian exports of the product in January 2023, reaching
563,945 bags. This amount represents an increase of 0.7% compared to the 559,851 bags shipped
across the country in the first month of last year.

The average price of the differentiated product was US$ 261.19 per bag, providing revenue of US$
147.3 million in January, which corresponds to 24% of total shipments. in the comparative
year, the value is 10% lower than that calculated in the same period of 2022.

In the ranking of the main destinations for differentiated coffees last month, the United States is in the
end, with the import of 139,511 bags, equivalent to 24.6% of the total of this type of product exported.

Following, come Germany, with 109,792 bags and representation of 19.4%; Belgium, with 58,799
bags (10.4%); United Kingdom, with 29,371 bags (5.2%); and Italy, with 27,739 bags (4.9%).

CROP YEAR
In the first seven months of the 2022/23 harvest, Brazilian coffee shipments reached
22.227 million bags, numbers that imply a drop of 3.8% compared to the 23.096 million
bags exported from July 2021 to January 2022.

This amount sent abroad generated a total of US$ 5.197 billion for Brazil in this period, showing
23% growth in foreign exchange revenue. “This performance in billing reflects the quotations
highest between July and October last year, which still maintains this high over the season
previous coffee tree”, concludes the president of Cecafé.

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