Brazilian coffee exports reach new heights despite port strain and geopolitical pressures

Brazilian coffee exports reached a historic high of 47.300 million 60 kg bags in the 2023/24 harvest year, a 32.7% increase over the previous year’s 35.632 million bags recorded from July 2022 to June 2023. This new record shipment to 120 countries represents a 3.6% increase over the last peak of 45.675 million bags in the 2020/21 cycle, according to the Brazilian Coffee Exporters Council’s (Cecafé) monthly statistical report.

In terms of foreign exchange revenue, Brazil saw a remarkable 20.7% increase over the past 12 months (ended June), rising from US$8.142 billion in the 2022/23 season to a record US$9.826 billion. This figure marks a new milestone in the history of Brazilian coffee exports, which have been recorded since 1990.

June alone witnessed the shipment of 3.573 million bags of coffee, the highest ever recorded for that month, generating US$851.4 million in revenue, also a record for June.

In the first half of 2024, Brazilian coffee exports totaled 24.286 million bags, bringing US$5.331 billion in revenue. These figures reflect increases of 49.6% and 50%, respectively, compared to the same period last year, setting new historical benchmarks for this six-month interval.

Márcio Ferreira, president of Cecafé, attributes Brazil’s export success to various factors, including improved harvest conditions following two smaller cycles, which allowed Brazil to expand its global market share. He notes that Brazil filled gaps left by reduced supplies from other producers like Indonesia and Vietnam, particularly in terms of robusta beans.

He also emphasizes another positive aspect: the unprecedented foreign exchange earnings, reflecting strong growth in the international market throughout the 2023/24 harvest. “Arabica and canephora coffees (robusta + conilon), as well as soluble products, achieved their highest-ever foreign exchange revenues. This resulted in a significant influx of foreign currency into the country, providing some relief from the high costs impacting exporters’ cash flow, and notably, substantial transfers of the FOB value (Free on Board) to producers, averaging 85%,” he explains.

“However,” Ferreira reflects, “we continue to confront severe logistical challenges, both internationally due to ongoing geopolitical conflicts and domestically with the overburdened Santos Port in São Paulo. This situation has led to unforeseen and substantial costs for exporters who nonetheless strive to uphold their commitments to international customers, ensuring Brazil maintains its position as a key global player.”

The chart below shows the volume of coffee beans exported from Brazil each month, from January to May, every year since 2021. The chart features data from DataLiner, a maritime intelligence service powered by Datamar.

Coffee Beans Export Volume | Jan-May 2021 x Jan-May 2024 | WTMT

Source: DataLiner (click here to request a demo)

Ports 

In terms of ports, the Port of Santos retained its position as Brazil’s primary coffee exporter in the 2023/24 harvest, shipping 32.607 million bags, accounting for 68.9% of total exports. Yet, this represents a historically low percentage due to operational strains, hinting at potential difficulties ahead as containerized cargo exports increase in the second half of the year.

Following Santos, the Rio de Janeiro maritime complex expanded its market share to 28.1%, handling 13.269 million bags, partly compensating for cargo leaks from Santos. Meanwhile, the Port of Paranaguá shipped 465,770 bags, representing 1% of the total.

Top destinations

Among the top destinations, the United States led with imports of 7.062 million bags, a 2.8% increase from the previous cycle, comprising 14.9% of total exports. Germany followed closely with a 26.1% rise, purchasing 6.508 million bags (13.8% of the total), while Belgium, Italy, and Japan also expanded their purchases significantly during the 2023/24 harvest.

The complete report on coffee exports from Brazil in the 2023/24 harvest year is available on the Cecafé website: https://www.cecafe.com.br/.

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