Brazilian Coffee Exports Surge 22% in October

Brazilian coffee exports reached 4.356 million 60 kg bags in October, generating a foreign exchange revenue of $847.2 million. The performance indicates a 21.8% increase in volume but a slight 2.5% decline in value compared to the same month in 2022.

These figures are part of a report from the Brazilian Coffee Exporters Council (Cecafé). According to Márcio Ferreira, president of the organization, the performance was “quite positive,” making last month the second-best October over the previous five years. The most significant highlight was conilon and robusta coffees, which, with 662,000 bags exported, had their second-best performance for a single month in history, growing by 479.5% compared to October 2022.

“Challenges in the crops of important producers of this variety have directed attention to our canephora coffee, which remains very competitive in the global market. Vietnam and Indonesia themselves are seeking our coffees, with exports to these producer countries growing by 565.3% and 123.2%, respectively, from January to October this year,” explains Ferreira. He also noted the high percentage growth in shipments to Mexico. “Also significant producers, Mexicans increased imports of our green coffees by 432.4%, already acquiring 341,500 bags of the product throughout 2023,” he reveals.

The president of Cecafé explains that the export performance was positive considering the intensification of logistical challenges in recent months, such as the reduced availability of containers and, mainly, recurring delays in ship arrivals and problems with gate openings.

“These problems result in regular shipment delays and container-crowded yards in the Santos port terminals, which are struggling to receive cargoes due to physical space limitations in the terminal. With substantial and growing shipments of sugar, cotton, soybeans, and corn in the second semester, for example, the obstacles have worsened and continue to cause concerns about the return to normal operations,” analyzes Ferreira. He adds that the origin of these ship delays in the Port of Santos was the occurrence of cyclones and tropical storms in the Southern Region of Brazil. “These weather adversities are preventing vessels from docking at southern ports, causing cargo logs in other Brazilian ports, such as the Santos port complex,” he explains.

The chart below, designed with Datamar’s DataLiner data, shows Brazilian exports of coffee (hs 0901) in the period between Jan 2020 and Sep 2023.

Brazilian coffee exports | Jan 2020 – Sep 2023 | WTMT

Source: DataLiner (click here to request a demo)

2023/2024 Harvest

With the performance in October, shipments in the four months of the 2023/24 harvest rose to 14.394 million bags, showing a 16% growth over the same period in the previous season and registering the second-best result in the last five years. However, revenue declined by 3.9% in the same comparative interval, reaching $2.854 billion.

Calendar Year

From January to the end of October 2023, Brazil’s coffee exports abroad totaled 30.624 million bags, yielding $6.403 billion in foreign exchange. Compared to the performance in the first ten months of 2022, volume dropped 5.5%, while foreign exchange revenue decreased 16%. “This result likely reflects the logistical problems that have been gradually increasing throughout this year,” notes the president of Cecafé.

Main Destinations

The United States remains the primary destination for Brazilian coffees in the year-to-date, despite a 25% reduction compared to 2022. Americans imported 4.961 million bags, representing 16.2% of total shipments between January and October. With a 12.2% share, Germany purchased 3.748 million bags (-34.7%), second in the ranking. Italy follows with 2.484 million bags (-10%), Japan with 1.883 million bags (+22.7%), and Belgium with 1.640 million bags (-34.9%).

Ranked tenth among Brazil’s main trading partners for coffee, the Chinese imported 918.9 thousand bags during the period, increasing their purchases by 187.3% compared to the same period last year. Continent-wise, the positive performance of China, Japan, and Turkey (+37.5%) favored the recovery of Brazil’s coffee exports to Asia, which advanced by 37.5% in the first ten months of 2023, reaching 6.629 million bags, equivalent to 21.6% of the total product exports so far.

Coffee Types

From January to the end of October 2023, arabica coffee remains the most exported variety, with 24.237 million bags, representing 79.1% of the total. The canephora variety (conilon + robusta) had the equivalent of 3.265 million bags shipped in the period, with a 10.7% share, followed by the soluble segment, with 3.081 million bags (10.1%), and roasted and ground coffee, with 41,733 bags (0.1%).

Coffees with superior quality or certifications of sustainable practices accounted for 16.9% of Brazil’s total coffee exports in the year-to-date (January-October), with the shipment of 5.183 million bags abroad. This volume represents a 9.6% decrease compared to the same period in 2022.

The port complex of Santos remains the leading exporter of Brazilian coffees in 2023, with the shipment of 22.179 million bags abroad, accounting for 72.4% of the total. Next are the ports of Rio de Janeiro, accounting for 23.4% of shipments by sending 7.156 million bags, and Paranaguá (PR), exporting 406.4 thousand bags with a 1.3% share.

Source: Compre Rural

Click here to read the original publication: https://www.comprerural.com/exportacoes-de-cafe-cresceram-22-em-outubro/

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