Brazil’s coffee exports rise 29.4% compared to Aug/22 to 3.7 million bags

Brazil’s coffee exports reached 3.673 million 60 kg bags in August this year, marking a 29.4% growth compared to the same month in 2022. In terms of foreign exchange revenue, there was a 7.5% increase in the same comparative period, with income from shipments reaching $723.8 million. These figures come from the monthly statistical report of the Brazilian Coffee Exporters Council (Cecafé).

Last month’s strong performance reflects a significant increase in shipments of conillon and robusta coffee, along with a partial recovery in arabica coffee exports.

“The exports of canephora coffees abroad skyrocketed by 443%, totaling 699,000 bags in August, resulting in the best performance for this variety in a single month. Arabicas increased by 11.2% to 2.65 million bags, consolidating the monthly growth and the resumption of shipments with the arrival of the new crop,” said Márcio Ferreira, President of Cecafé.

Ferreira added that Brazilian canephora coffees remain highly competitive and in strong demand, as other major producers of this variety, especially Vietnam and Indonesia, have faced adverse weather conditions and reduced production.

With a significant recovery in the 2023 arabica crop in Brazil, there has been a decrease in the percentage of canephora coffees in domestic blends. This has increased the availability of this variety for the international market, enhancing its competitiveness.

Regarding arabica coffee, Ferreira noted that with the end of the harvest, there has been an increase in volumes received in warehouses, as expected due to the good yield observed in the pre-harvest period, especially in areas that were severely affected by drought and frost in the past two years.

“With greater availability compared to 2021 and 2022, the flow of coffee trade has increased significantly, both for future delivery and new contracts. This has put pressure on the NY Stock Exchange in recent months. Despite narrower differentials compared to the New York platform overall, the quality reported is very good, and Brazil is regaining its share of arabica exports, with volumes exceeding those seen in the last months of the first half, i.e., at the end of the 2022/23 season,” he explained.

With the performance of Brazil’s coffee exports in August, shipments in the first two months of the 2023/24 crop year increased to 6.672 million bags, generating foreign exchange revenue of $1.354 billion. This performance represents a 24.5% increase in volume and a 6.6% rise in values.

Calendar Year

From January to the end of August this year, Brazil shipped 22.904 million bags of coffee abroad, still 9.7% below the levels recorded in the first eight months of 2022. In foreign exchange revenue, there is a 17.3% decrease, with income falling from $5.926 billion last year to the current $4.903 billion. This reflects the reduction in market prices, as the average price of the exported bag declined by 8.3%, from $233.55 to $214.08.

Top Destinations

In the first eight months of 2023, the United States remains the leading importer of Brazilian coffees, purchasing 3.885 million bags, a 26.6% decrease compared to the same cycle in 2022. This amount represents 17% of Brazil’s total exports in the recent period.

Germany, with an 11.8% share, bought 2.699 million bags (-40.5%) and ranked second. Italy followed with the purchase of 1.715 million bags (-15.3%), then Japan with 1.509 million bags (+33.4%), and Belgium with 1.309 million bags (-38%).

It’s worth noting, however, the substantial increase in shipments to China, a nation that, with the acquisition of 602,000 bags in the first eight months of 2023, jumped to ninth place in the ranking of Brazil’s main coffee partners, increasing its purchases of Brazilian coffee by 146.5%.

By continents and economic blocs, notable increases of 101.7% and 48.1% were recorded, respectively, for Arab Countries and the Middle East. “In these regions, there is a strong preference for drinking Rio coffee, and Brazil is practically the only country that produces arabica with this type of flavor profile. We are a reliable supplier to these destinations, providing ample quantities of this variety,” concluded the President of Cecafé.

Ports

The maritime complex of Santos (SP) remains the primary exporter of Brazilian coffee in the current calendar year, with 16.968 million bags sent abroad, accounting for 74.1% of the total. Following that, there are the ports of Rio de Janeiro, responsible for 21.3% of the shipments, having sent 4.871 million bags, and Paranaguá (PR), which exported 324,122 bags, representing 1.4%.

The chart below shows Brazil’s coffee exports by the ports that most handled this type of cargo between 2019 and 2023. It should be noted that the data for 2023 only extends until July. The data is from DataLiner.

Coffee exports by port | 2019 – 2023 | TEU

Source: DataLiner (click here to request a demo)

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