Low supplies limit shipments in Brazil despite the start of the robusta coffee harvest

The harvest of canephora coffee, which includes robusta and conilon beans, began in Brazil’s most important producing hubs, Espírito Santos and Rondônia. Producers expect a large crop with good-quality yields.

With the harvest still in its initial phase, coffee exports in April are still slow compared to March, a month with a sharp drop in exports, according to data from the Brazilian Coffee Exporters Council (Cecafé).

For Cooabriel, the largest conilon beans-producing agricultural cooperative in Brazil, the harvest is still expected to grow even though supply remains low precisely because producers are waiting longer to harvest more mature and better quality grains.

Moreover, coffee growers are wary of closing deals, given the sharp rise in input costs.

“We may say that the harvest is still beginning… but also that it is late compared to last year,” said Cooabriel’s president Luiz Carlos Bastianello to Reuters.

“From October to now, there has been no shortage of soil moisture; it has been raining regularly, and the plants are growing soundly with numerous leaves, which delays the harvesting process as grains mature a bit later,” noted Cooabriel’s leader.

Canephora beans are expected to account for 30% of the Brazilian crop this year. The country is the largest global producer whose main cultivated variety is arabica.

According to the latest projection from state-owned Conab, the robusta and conilon crop will increase by 4.1% to 16.96 million 60 kg bags in 2021, while the Arabica crop, which farmers will harvest between May and June, will expand by 23.4% to 38.8 million bags.

“All factors point that this year’s harvest will be better than last year’s,” added Bastianello.

Until April 27, Cooabriel had received only 25 thousand bags of newly harvested coffee, far from the 1.8 million bags that it expects to receive from cooperative members in 2022, a record that would represent an increase of 300 thousand bags compared to 2021.

Brazil’s domestic market generally absorbs most of these canephora beans, and Espírito Santo is expected to produce the majority of it, totaling 11.6 million bags of conilon.

Rondônia, a robusta-producing state, has also given the green light to initiate harvest. The expectation is for production to increase by 10% there to 2.5 million bags. “The weather was favorable for coffee this year… Therefore, the robusta coffee harvest promises more productivity and quality,” said Empraba researcher Enrique Alves.

Exports and Local Demand

Local enterprises have competed for canephora beans, which are less expensive and provide a stronger drink. In contrast, exporters have focused on Arabica beans, which are more expensive and produce a smoother beverage.

“The domestic market is remunerating the producer more. The industry is absorbing the canephora demand, making the local market more attractive,” said Bastianello stressing that producers are still more cautious about closing deals despite generous invoices given the soaring costs.

With the rise in raw material price, the Brazilian roasted and ground coffee industry is increasing the share of conilon and robusta in their blends to reduce costs compared to pure-Arabica blends.

Last month’s coffee shipments from Brazil illustrate the situation. Cecafé, for example, announced that canephora exports have fallen while the local industry has taken up much of the supply.

According to preliminary data on shipments compiled by Cecafé, exports of canephora coffee in April indicate a recovery compared to March, adding up to 55,000 bags in the month up to April 27th, versus 41,000 in March.

But the still incipient harvest does not allow the country’s exports to get closer to the conilon volumes seen in April 2021 (336 thousand bags), according to Cecafé data.

In the case of Arabica exports in April, preliminary data from Cecafé indicate 1.7 million bags up to the 27th, vs. 1.98 million on the same date in the previous month.

Source: Money Times

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https://www.moneytimes.com.br/safra-de-cafe-canefora-comeca-no-brasil-mas-oferta-ainda-baixa-limita-embarques/

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