Sunday 29 May 2022

Coffee exports from Brazil were 24% down in April

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MILAN – Coffee exports from Brazil fell by almost a quarter in April, to a little more of 2.8 million bags, the worst performance for the month in the last four years. According to the president of Cecafé Nicolas Rueda, the fall is attributable to a conjunction of adverse factors including the intercrop period at the end of an off-year in the production cycle and increased Robusta usage by Brazilian roasters, that reduced export availability for the bitter tasting variety.

Furthermore, the war in Ukraine and COVID lockdowns in major Chinese ports are worsening the effects of the logistics crisis.

But let’s dive into statistics. Exports of all forms of coffee from Brazil totalled in April 2,808,573 bags, down 24.1% on year. Despite the steep fall, earnings went up by more than a third to $670.7 million.

coffee exportsGreen coffee exports were similarly down by 24.3% to 2,559,857 bags. Shipments of Arabica dropped 20.4% to 2,425,345 bags.

Robusta sales took a nosedive of 60% to 134,512 bags. Exports of processed coffee (mostly soluble) also went down by 21.7%.

Exports for the Jan-Apr period fell by 10.6% to 13,584,853 bags, shy of last year’s record level, but close to 2020 and above 2019 volumes.

Green coffee exports amounted to 12,350,141 bags, down 11.2% on year. Arabica exports went down by a mere 6.5% to 11,841,099 bags.

Robusta exports fell sharply (-59%) to just over half a million bags, while sales of processed coffee reached 1,234,712 bags (-4.5%).

Despite a 7% fall in exports, Germany outperformed the U.S. as the main destination of Brazilian exports during the first four months of calendar year 2022.

Shipments to Belgium and Italy were up by 26% and 3.9% respectively.

coffee exportsAntwerp was the main destination port, followed by Hamburg, Bremen, New Orleans and Genoa.

According to Safras & Mercado, sales of the new crop, after a very accelerated start, have quite slowed down.

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