Exports of instant coffee negatively impacted by increase in domestic demand for robusta coffee

The increase in demand in the domestic market for robusta coffee – to supply the Arabica/Robusta blend given the drastic drop in supply and significant appreciation – negatively impacted production and exports of instant coffee.

After three consecutive years of expansion, shipments of industrialized grains, which mostly carry the canephora species (conilon and robusta), have dropped 7.4% compared to the same period in 2020. It is not expected to change in the remainder of the second half of the year.

See below a history of Brazilian coffee exports since 2018. Data are from DataLiner:

Brazilian Coffee Export (HS 0901 and 2101) | Jan 2018 to June 2021 | TEU

Source: DataLiner (To request a DataLiner demo click here)

For ABIC (the Brazilian coffee industry association), the projection of growth of 3% was reversed, further amplified by logistical problems in the world’s lack of containers, according to Aguinaldo Lima, Institutional Relations Director at the entity.

In 2019, and even in the full force of the pandemic in 2020, Brazilian instant coffee broke records of 4 million bags (60 kg) per year in exports to more than 100 countries, with a foreign exchange income of US$ 600 million.

The exchange rate in 2021 was not as good as in 2020, according to Lima.

And for 2022, ABIC already warns that it will review expansion projections since the fallout from the Brazilian crash this year will extend to next year’s coffee plantations.

Source: Money Times

To read the full original article, visit the link:

https://www.moneytimes.com.br/quebra-do-cafe-arabica-derruba-exportacoes-do-soluvel-e-2022-nao-sera-nada-bom-tambem/

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