Logistical bottlenecks cause 25% drop in Brazil’s August 2021 coffee exports

According to a monthly report by the Council of Coffee Exporters of Brazil (Cecafé), total shipments of coffee totaled 2.7 million kilo bags in August 2021, down 25.2% compared to 3.6 million bags year-on-year. In value terms, there was a 1.6% drop last month from US$ 427.5 million to US$ 420.5 million.

In the first two months of the 2021/22 harvest, exports totaled 5.5 million bags, a volume 18.7% lower than that registered in July and August of the previous cycle. Revenues meanwhile rose 2.8% during the period, reaching US$ 831.7 million. In the calendar year, the performance is similar, with Brazilian coffee exports falling 1.8% compared to 2020, to 26.30 million bags, but rising 5.8% in value, yielding US$ 3.618 billion in the first eight months of 2021.

The turnaround in the performance of Brazilian coffee exports, which was positive until July, reflects the continuity of logistical bottlenecks in maritime transport, a structural problem that goes beyond the borders of Brazil and the product, according to the president of Cecafé, Nicolas Rueda.

“This serious operational crisis has generated soaring freight costs, constant cancellations of bookings – container space on ships –, difficulty in making new appointments and disputes for containers and places on the ships”, he explains.  According to a survey carried out by Cecafé amongst exporters, the difficulties have caused a loss in revenues for Brazil of approximately $500 million.

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