Brazilian coffee exports drop 24% compared to April 2021; revenue rises 34%

Brazilian coffee exports totaled 2,809 million 60 kg bags in April 2022, generating foreign exchange revenue of US$670,7 million. The performance implies a 24,1% drop in volume, but a 34,1% increase in value compared to the same month last year, according to data published in the monthly statistical report of the Brazilian Coffee Exporters Council (Cecafé).

With the performance in April, shipments in the calendar year reached 13,585 million bags, 10,6% below the 15,195 million shipped abroad between January and the fourth month of 2021. Revenue increased 56,3% in the same comparison range, going from US$ 2,008 billion to the current US$ 3,138 billion.

Harvest Year

In the period from July 2021 to April 2022, the performance of Brazilian coffee exports is similar to that recorded in the calendar year, with shipments falling 16,7%, from 39,927 million bags to the current 33,251 million, and foreign exchange revenue growing 30,9%, from US$5,055 billion to US$6,616 billion, compared to the performance measured in the first 10 months of the 2020/21 harvest.

The president of Cecafé, Nicolas Rueda, explains that the higher value recorded in shipments is the result of the high level in international and domestic prices for the product, as well as the dollar's appreciation against the real in the foreign exchange market, which increases the inflow of resources into the country .

The decline in volume shipped reflects, according to him, a combination of factors, including the approaching end of the 2021/22 coffee season and a rearrangement observed in the blends of Brazilian industries.

"The month of April is the peak of the off-season of a lower production cycle, with less availability of coffees. Furthermore, the much greater spike in the price of arabica in relation to that of conilon (robusta), caused the industrial sector to increase the percentage of the second variety in the preparation of its coffees, significantly reducing shipments of camphor abroad", he explains.

Rueda also points out that the global maritime scenario remains challenging for exporters, with logistical bottlenecks being intensified by the war in Ukraine.

"Russia, which usually ranked sixth in the ranking of the main destinations for Brazilian coffee, dropped to 10th place in 2022. Its imports of the national product fell 35,2% from January to April this year in relation to the same period of 2021, going from 421.382 bags to the recent 273.151 bags. This directly affects shipments from Brazil to Eastern Europe, which registered a drop of 35,6% in a similar period", he reveals.

The president of Cecafé also adds that logistical obstacles were worsened by the Covid-19 situation in China. “With the worrying outbreak of numerous cases of coronavirus in the Asian country, the port of Shanghai, the largest in the world, had its operations limited due to the lockdown decree imposed in the city, generating, as consequences, tension in all supply chains. , slow flow of imports, maritime congestion in China and rising inflation around the world", he details.

Rueda adds that the problem at the Chinese port has increased bottlenecks in terms of the availability of containers and the reduced supply of ships, resulting from maritime congestion, previously on the American west coast and now also in China, keeping freight prices at historically high levels.

"This scenario brings major challenges to the sector and puts a huge burden on exporters as a whole, who need to work hard to consolidate their shipments due to the reduced supply of containers and space on vessels. In the case of coffee, this can be seen in the reduction of our exports to important partners, such as the United States, Asia and Arab countries, in addition to the already explained (war) decline for Eastern Europe", he concludes.

main destinations

From January to the end of April 2022, Germany took the lead in the ranking of the main buyers of coffee from Brazil, surpassing the United States, which dropped to second place. The Germans purchased 2,542 million bags, a volume 6,8% lower than that recorded in the same period in 2021 and which represented 18,7% of total shipments to date.

North Americans, representing 18,4%, purchased 2,501 million bags, a decrease of 14,2%. Next comes Belgium, with the purchase of 1,419 million bags (+26,1%); Italy, with 1,194 million bags (+3,9%); and Japan, with imports of 641.751 bags (-22,4%).

Ports

The Santos (SP) maritime complex remains the main exporter of coffee from Brazil in the first four months of 2022, with shipments of 11,332 million bags abroad, which is equivalent to 83,4% of the total. Next come the ports of Rio de Janeiro, which account for 12,3% of shipments, sending 1,675 million bags, and Paranaguá (PR), with exports of 156.258 bags and representing 1,2%.

Coffee types

Arabica coffee was the most exported between January and April this year, with 11,841 million bags shipped abroad, which corresponded to 87,2% of the total. The soluble segment had 1,222 million bags shipped, representing 9%, followed by the canephora variety (robusta + conilon), with 509.042 bags (3,7%) and by roasted and ground coffee, with 13.109 bags (0,1 %).

differentiated coffees

Differentiated coffees, which have superior quality or some type of certificate of sustainable practices, accounted for 14,7% of total Brazilian exports in the first four months, with 1,999 million bags sent abroad. This volume represents a decline of 8,6% compared to the 2,186 million bags shipped by the country in a similar period in 2021.

The average price of this product was US$310,63 per bag, providing revenue of US$620,8 million, which corresponds to 19,8% of the total obtained from general shipments last month. In comparison with the first four months of 2021, the value is 65,8% higher.