Brazilian boutique coffee producing area information Brazilian coffee production reduction stimulates Arabica coffee price to rise
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The price of Arabica coffee reached a 14-month high at the end of February. Although prices fell at the end of February and early March, they also exceeded pre-COVID-19 levels.
Dr MichaelaHelby-Kuhl, a research agricultural analyst at the Commercial Bank, said: the average monthly price of Arabica coffee beans was maintained at around $1.00 per pound due to the impact of COVID-19 on coffee consumption and Brazilian coffee production reaching an all-time high in 2020.
Until mid-February 2021, the International Coffee Organization Coffee Composite Price Index continued its upward trend, with the average price of Arabica coffee beans reaching $1.19 / lb in February 2021, the highest since it reached $1.20 / lb in October 2017.
Analysts believe that in addition to the positive impact of COVID-19 vaccination and fiscal stimulus on consumption, as well as the fact that the containers used to transport coffee and other products are still in short supply and the high price has caused the price of Arabica coffee to soar, it is likely that the Brazilian coffee 2021x22 production season will be due to the impact of last year's dry season and entering a biennial low-yield cycle. The price spike was driven by predictions that Brazil's Arabica coffee beans would be reduced during the 2021 / 22nd production season.
Conab, a Brazilian forecaster, estimates that Brazil may produce less than 50 million bags of coffee in the 2021-22 season and expects only 43.85 million to 49.59 million bags, a decrease of 21 per cent by 31 per cent compared with the same period. Brazilian Arabica coffee production is expected to be between 30 million and 33 million bags in the 2021User22 season, a decrease of 35 to 40 per cent compared with the same period, a 10-year low.
Among them, the famous boutique coffee producing area of Minas Gerais in Brazil has reduced its production by 20.7% due to the adverse weather last year, and this year is a low yield cycle. The technical assistance and rural extension company (Emater-MG) of Minas Gerais state of Brazil and the agriculture and animal husbandry industry of Minas Gerais state said that the total coffee production of this region was reduced by 42%.
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