Loss of 300 million US dollars! Brazilian coffee bean exports severely delayed

According to the July coffee export report released by the Brazilian exporters' committee Cecafe, in July this year, the total quota of Brazilian coffee exports was 3.774 million bags (60 kg / bag), an increase of 25.7% compared to the same period last year, an increase of 3.002 million bags. Foreign exchange earnings were US $932.5 million, an increase of 47.9% over the same period.

Among them, Robusta coffee performed well, up 82.2% over the same period last year, and about 900000 bags were exported, the second largest in a single month in history, second only to 902000 bags in November 2023. Arabica coffee exports also increased by 13 per cent to 2.491 million bags.

In the first seven months of 2024, Brazilian coffee exports totaled 2.8146 million bags, an increase of 46.3 per cent compared with the first seven months of last year. In addition, coffee prices have been rising wildly due to the poor performance of global coffee production. Earlier, Brazil has been affected by drought and little rain, coffee production and quality have declined, a number of Brazilian institutions have reduced Brazilian coffee production in the new season, coffee prices are likely to remain high for a long time.

At present, the average spot price of coffee in Brazil has risen to its highest level in February 2022, with the spot price of Arabica at 1419.72 reais per bag (60 kg per bag), up 5.22 per cent from June this year and 73.2 per cent from July last year.

Meanwhile, the average spot price of robusta coffee in Brazil is 1270.41 reais per bag (60 kg per bag), up 4.6 per cent from June and 95.66 per cent from July last year. As a result, Brazil's foreign exchange earnings from coffee exports reached US $6.277 billion between January and July this year, an increase of 50 per cent over July 2023.

However, at present, the Brazilian Association of exporters is still concerned about the export of ports, affecting the export of coffee. The delay rate at Santos, Brazil's largest export port of coffee, has remained above 80 per cent since 2022, although it eased somewhat in July, with a delay rate of 77 per cent. However, in July alone, a loss of 1.735 billion reais (approximately US $313 million) was reported due to unshipped 1.262 million bags of coffee (the exchange rate of the United States dollar to the real in July was about 5.54).

It is understood that the delays in Brazilian ports are mainly due to ship delays, weather effects, changes in deadlines, overturning of goods, reduced availability of containers and insufficient space at the port terminals. In addition, the additional and unforeseen costs of pre-stacking, additional storage charges, withholding and early customs clearance resulted in cumulative losses of 7.456 million reais for traders and exporters.

And at the end of July, the Brazilian state of Santa Karina was shrouded in sea fog, leading to the closure of the port, while in mid-August, waves continued to appear in the waters of Esp í rito Santo, with waves as high as 4 meters. This led to the suspension of cargo ships entering and leaving the port of Santos due to poor weather conditions, which once again aggravated the delays at the port. This is not conducive to the development of the local coffee industry, direct economic losses, unable to deliver on time, declining reputation, may reduce international traders to buy Brazilian coffee, but also affect the international influence of Brazilian coffee.

In addition, in March this year, Brazilian Port and Airport Minister Silvio Costa Filho and Santos Port Authority Director Pomini announced that the Brazilian Port and Airport Ministry would work with government departments at all levels and private enterprises to launch a number of projects in the port of Santos between 2024 and 2028. It involves tunnels, waterways, parking lots, ship positions, roads, etc., to promote the logistics and transportation development of the port, with an estimated total investment of 12.6 billion reais (US $2.53 billion), but so far, no obvious results have been achieved.

Therefore, the president of the Brazilian exporters Committee said that in the second half of the year, the largest transport period for the export of bulk goods such as coffee, cotton and sugar, if the port problem is not solved, it will lead to all Brazilian exporters, especially agricultural exporters, suffer a lot of damage, which is not conducive to the development of Brazilian coffee and other crops.

For more information about coffee producing areas, please scan the code directly and follow: coffee comments.

Long press the QR code to follow: