Brazil domestic coffee consumption growth 2021/22 Brazil coffee bean production insufficient demand

According to the latest news released by Brazilian consultancy Safras & Mercado, the humidity in Brazil's coffee-growing areas was very high in early March, which means that the crisis of drought and lack of rain in Brazil last year has been lifted, and Brazilian coffee-growing areas have resumed operation. Safras expects Brazil's total coffee production this year to fall by 17% compared with the same period last year, with a total output of only about 57.1 million bags, exports are also lower than the previous season, and total exports are expected to be less than 60 million bags.

Brazil, as the world's largest coffee producer and exporter, the production reduction in this quarter will have an impact not only on Brazil's own coffee supply chain, but even on the global coffee supply chain.

As of March 9, 2021, Brazilian farmers had sold 87 per cent of 2020 Coffee beans in the new season, an increase of 4 per cent over the previous month, according to SAFRAS's monthly survey. The market has also maintained a stable sales volume, and sales are almost in line with the same period last year. In addition, sales of Arabica coffee in Brazil's 2020amp 21 season are rising from a historical average of 85% in the same period last year to 86% of expected production.

Safras & Mercado predicts that Arabica coffee production is expected to fall by 30% in the 22nd season of 2021, while Robusta is expected to increase production by 18%. At the same time, data show that Brazil's domestic consumption of freshly ground coffee has also increased by 1.26% over previous years, to 20.2 million bags, which makes local growers set their sights on the Arabica coffee bean market, but they are in no hurry to seek to extend sales for the rest of the season. Sales of Conillon, Brazil's local Robusta coffee, for example, have improved to 91 per cent of crops, compared with 90 per cent in the same period last year, or an average of 88 per cent. Domestic demand and growers' interest are driving the sale of this product.

Thus it can be seen that apart from the amount of coffee beans supplied to Brazil, the total amount of coffee beans left is far from enough to be supplied to world coffee traders, so the price of Arabica coffee beans is expected to continue to rise.

* Image source: Internet