Brazil's CECAF É released coffee bean export report, export performance is good and production is expected to pick up
Recently, the Council of Brazilian Coffee exporters CECAF É released the export of Brazilian coffee. Brazil exported 3.961 million bags of 60 kg coffee, an increase of 39 per cent compared with the same period last year. Foreign exchange earnings also increased by 30.4%, jumping from $615.5 million to $802.5 million.
Among them, in January, overseas shipments of Robusta varieties increased by 503.5% to 457787 bags, accounting for 11.56% of the total. In addition, there were 3.288 million bags of Arabica varieties, accounting for 80.98%, 293467 bags of instant coffee, accounting for 7.41%, and 1888 bags of roasted coffee beans, accounting for 0.05%.
As a result, the President of CECAF É said that Brazilian exports performed well in January, especially given the global geopolitical conflicts, which led to a number of crises, such as shipping problems in the Red Sea, a severe drought in the Panama Canal area that reduced the flow of ships, and continued logistics bottlenecks in Brazil, but these had little impact on Brazilian coffee exports.
Among them, the greater impact is the continuing logistics bottleneck in Brazil, as in mid-to-late January, Brazil's largest export port, Santos Port and Guaruluz International Airport, was hit by a strike by tax declaration staff. This has led to port congestion, delays in ships and short opening hours, and exporters have faced high costs.
Despite logistics bottlenecks and infrastructure problems, Brazilian coffee exports increased, mainly driven by Robusta's performance. Brazil's Robusta remains competitive in the world market and has been providing deficits caused by crop breaks to important Robusta producing countries such as Vietnam and Indonesia. In addition, due to the impact of the drought, Vietnam's Ministry of Agriculture predicts that Vietnam's coffee production will be reduced by 10 to 1.656 million tons in 2023. 24. And traders have shunned buying coffee beans in Vietnam because of producers' refusal to deliver coffee beans and problems in the Red Sea.
Although Brazil is also affected by weather changes, with extremely high temperatures and unstable rainfall in some areas, coffee production is expected to be guaranteed by 2024 with the help of water storage facilities, with the possibility of a small increase. In addition, Ita ú BBA, an international investment bank, predicts that the weather is expected to improve in the future, with Brazilian coffee production reaching 69.4 million bags of 60 kg coffee in 2024 in 25, an increase of 4.6 per cent over the previous year.
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