Brazil’s coffee exports forecast to have another record breaking year

Brazilian coffee is popular all around the world, and last year, exports of it reached a historic record. In 2019, it was exported to 128 countries. with 40.6 million 60-kg bags sold, generating US$5.1 billion.

The president of the Brazilian Coffee Exporters Council (Cecafé), Nelson Carvalhaes, says that the sector has similar high expectations for this year. “Brazil is a leading player in global coffee exports. Over the years, the country has invested a lot in productivity, quality and sustainability, so our coffee is very well accepted abroad. We have a 38% to 40% share of global trade, and expectations remain very good. Everything indicates that the next harvest will be great.”

Official projections for production are also good. According to the National Supply Company (Conab), the country will be able to harvest up to 62 million bags of coffee (up to 45.98 million arabica and up to 16.04 million conilon). Last year, there were 49.31 million bags. Also according to Conab, Brazil’s total gross revenue from coffee production should reach R$25.5 billion, compared to R$22 billion last year.

In addition to production, world demand for coffee beans has also been growing by between 1.5%-2% per year and, according to Carvalhaes.  B the end of 2020, global coffee consumption may reach 173 million 60-kg bags.  Last year it was at 167.9 million. “Brazil is working hard to keep up with this demand and take the opportunity to increase its market share,” he explained.

Revenues

In 2019, Brazilian coffee exports (40.6 million 60-kg bags) were 13.9% higher than in 2018 (35.6 million). However, the foreign exchange revenue generated in the two years was similar at around US$5.1 billion. This was because the average price of a bag last year was US$125.49, whilst in 2018 it was at US$144.53. This year, however, prices have been improving.

“We had low prices on the international market until October 2019. In November and December 2019, as well as in January 2020, there was already a recovery. I believe that this year the revenue will be higher ”, said the president of Cecafé.

[send-gallery id = “8448”]

Sharing is caring!