Share your coffee stories with us by writing to info@comunicaffe.com.
PIRACICABA, São Paulo, Brazil – The announcement of import tariffs from the United States government on the Brazilian coffee, from 10% to 50%, which will start on August 1st, has boosted uncertainties in the global sector. This abrupt change increases instability in Brazil, the global leader in arabica exports, and influences quotations abroad.
Brazil is the origin of circa 25% of US coffee imports, and a 50% tariff is a major disadvantage for the national product, bringing uncertainties about the flowing of the Brazilian production.
Colombia, the second supplier to the United States (participating with 20% of the US imports) continues tariff free, while Vietnam, a major robusta exporter, has a 20% tariff.
The arabica harvesting had reached 50% of the total in the South of Minas Gerais, and in the Northwest of Paraná, 60%. In Alta Mogiana Paulista and Cerrado Mineiro, activities had totaled 40% of the expected production.
As for robusta, the harvesting is close to the end. In EspÃrito Santo and in Rondônia, activities reached from 90%-95% and from 85%-90% of the total, respectively.
Between June 30 and July 15, the CEPEA/ESALQ Index for the arabica coffee type 6, delivered to São Paulo city, decreased 2.69%, closing at BRL 1,785.02 per 60-kg bag on July 15.
The CEPEA/ESALQ Index for the robusta coffee type 6, screen 13, EspÃrito Santo, dropped 8.93% in the same comparison, closing at BRL 1,006.39 per bag.
