Brazilian coffee exports increased by 5.4% year-on-year in November!

Recently, according to a report by the Brazilian Association of Coffee exporters (Cecaf é), a total of 4.662 million bags (60 kg / bag) of Brazilian coffee were exported in November, an increase of 5.4 per cent compared with 4.422 million bags in the same period last year. On the revenue side, it increased by 62.7% from $825 million in the same period last year to $1.343 billion.

In the first five months of the 2024A25 coffee crop year (July to November), Brazilian coffee shipments increased to 22.017 million bags, with an output value of US $5.955 billion, an increase of 16.5 per cent and 61.4 per cent respectively over the same period last year. In addition, Brazilian coffee exports reached a record of 46.399 million bags in the first 11 months of 2024, exceeding the record of 3.78 per cent of coffee exports for the whole of 2020 (44.707 million bags). And compared with the first 11 months of last year, it also increased by 32.2%.

In terms of export revenue, the performance is even more outstanding, thanks to the recent rise in coffee prices. In the first 11 months of this year, the foreign exchange earnings of Brazilian coffee reached US $11.302 billion, a sharp increase of 56% compared with the first round of last year and 22.3% higher than the record high of US $9.244 billion in 2022.

Although Brazilian coffee exports reported a good performance in November, coffee exports and revenues declined compared with October this year, mainly due to the rise in international coffee futures, concerns about the economy and the dollar, and uncertainty about Brazil's future coffee harvest, making producers more cautious in selling coffee and slowing sales of Brazilian coffee.

In addition, the biggest problem remains the logistics obstacles in Brazilian ports, which, according to some exporters, have been looking for alternatives, such as the transport of bulk goods, but due to the lack of infrastructure, exporters still bear more than a million extra costs in the export process, increasing operating costs.

In addition, Brazilian coffee has been hit by a strike at the port to affect exports. At the end of November, customs auditors from Brazil's Federal Revenue Service began an indefinite nationwide strike to demand pay adjustments. The strike has been going on for more than a week, but there is still no sign of stopping, while the union Sindifisco Nacional, which represents auditors, said the strike would continue indefinitely.

It is reported that the cause of the strike is that trade unions and the federal government have failed to agree on corresponding wage adjustments, and have been mobilizing actions such as strikes since July this year. This strike will be the largest so far. However, according to the union statement, 30% of employees will continue to work, such as live animals, drugs, dangerous products and food clearance will not be interrupted.

However, shipping agents, importers and agricultural commodity traders are all worried about the strike, all because the strike will lead to delays in customs clearance, disruptions in audit and inspection, increased logistics costs, and affect the operation schedule. Eventually affect the transport of goods in ports such as Santos, Brazil.

The executive director of the Federation of Maritime Navigation institutions of the State of Sao Paulo (Sindamar) warned that this would seriously damage the Brazilian economy. Due to delays in customs clearance, container terminals are piling up, resulting in an imbalance in the supply of containers, which will eventually affect the export of Brazilian goods. If the strike continues, it will increase the cost of storage, container demurrage, equipment maintenance and market competitiveness, and these additional costs may be passed on to consumers.

At present, even though Brazil reports that coffee exports remain high, the futures prices of Arabica and Robusta coffee have been rising recently, as the two major coffee producing countries, Brazil and Viet Nam, are affected by drought and other adverse weather, resulting in poor coffee production and affecting coffee supply next year. However, the current climate is still unstable, and Brazil has begun to slow down coffee exports because of problems such as price, inventory and currency exchange rate, so prices remain high in the short term.

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