Brazilian coffee exports reach second highest volume on record in July

Data released by Brazil´s Council of Coffee Exporters (Cecafé) shows that in July, the country exported 3 million bags of coffee.  This includes green, soluble, as well as roasted & ground coffee. The volume represents the second historical record of Brazilian coffee exports for the month of July ever recorded despite the current coronavirus pandemic.

The foreign exchange revenue generated by the shipments came to US$356.8 million, equivalent to R$1.9 billion, which represents an increase of 22.3% in relation to July 2019. The average price of a bag of coffee was US$117.4. Regarding the varieties shipped in the month, arabica coffee accounted for 74.4% of the total volume of exports, equivalent to 2.3 million bags. Conilon (robusta) coffee reached
14.7%, with 446,400 bags shipped, while soluble represented 10.9% of exports, with 331,800 bags exported.

In the period from January to July this year, coffee exports reached 22.9 million bags. During this period, the volume exported also represents the second historical record of Brazilian coffee exports during this period.  During this period, Brazil exported coffee to 118 countries and the foreign exchange revenue generated reached US$3 billion, equivalent to R$14.7 billion – a growth of 29% in reais compared to the previous period. The average price was US$128.9 / bag, registering a 3.2% growth.

.
Among the varieties shipped from January to July, arabica coffee represented 78.4% of the total volume exported, equivalent to 18 million bags, while Conilon coffee (robusta) reached 11.2%, with the shipment of 2.6 million bags, and soluble represented 10.3%, with 2.4 million bags. Conilon exports stood out in the period, registering a growth of 15% in relation to January to July 2019.

Top destinations

During the first seven months of this year, the top ten Brazilian coffee destinations were the United States, which imported 4.3 million bags of coffee (18.6% of the total shipped in this period); Germany, with 3.9 million bags imported (17.1% of total participation in the period); Italy, with 1.8 million bags (8.1%); Belgium, with 1.7 million (7.2%); Japan, with 1.2 million bags (5.1%); Russian Federation, with 755,800 bags (3.3%); Turkey, with 736,400 bags (3.2%); Spain, with 568,000 bags (2.5%); Mexico, with 537,400 bags (2.3%) and Canada, with 482,500 bags (2.1%). Among the main destinations, Mexico and the Russian Federation registered the highest growth in Brazilian coffee consumption in the calendar year, with an increase of 31.3% and 22.2%, respectively.

Among the continents and economic blocs, notable growth came from exports to other South American countries which rose or 21.1%; 49.8% for Africa; 94.8% for Central America; 24.5% for the BRICS countries; 15.6% to Eastern Europe, in addition to the 41.3% increase in shipments to coffee-producing countries.

Exports of differentiated coffees also stand out  In the calendar year, Brazil exported 3.8 million bags of differentiated coffees (which are coffees that have superior quality or some kind of certificate of sustainable practices). The volume, which was the second-largest shipped for the period in the last five years, corresponds to 16.6% of the total coffee exported from January to July this year.  The main differentiated coffee destinations were: the USA, which imported 660,700 bags (17.3% of the total volume of the type of coffee shipped in the calendar year); Germany, with 551,200 bags (14.4% share); Belgium, with 486,000 bags (12.7%); Japan, with 326,000 bags (8.5%); Italy, with 271,600 bags (7.1%); Spain, with 176,400 bags (4.6%); the United Kingdom, with 140,700 bags (3.7%); Sweden, with 127,600 bags (3.3%); Canada, with 112,500 bags (2.9%) and the Netherlands, with 100,700 bags (2.6%).

The foreign exchange revenue generated with the export of differentiated coffees from Brazil was US$625.6 million, representing 21.1% of the total generated by Brazil in export revenue during the seven month period.

Ports

The Port of Santos continues to lead the majority of exports in the seven months of 2020 so far, with 79.9% of the total volume exported via the port (equivalent to 18.3 million bags). In second place are the ports of Rio de Janeiro, with 12.6% of shipments (2.9 million bags).

The following chart shows Brazilian coffee exports month by month since 2017:

Brazilian coffee exports: January 2017 to June 2020 (in TEU)