Brazil’s export declined by 33% in February to 2.4 million bags

Brazil’s export declined by 33% in February to 2.4 million bags

March 23 - 2023

Coffee Geography Magazine

According to data from the monthly statistical report by the Brazilian Coffee Exporters Council (Cecafé), national shipments of the product, in February 2023, totaled 2.396 million 60 kg bags, generating foreign exchange revenue of US$ 505.9 million. The performance implies drops of 33.3% in volume and 38.5% in billing compared to the second month of last year, as the average price per bag, of US$ 211.13, retreats 7.9% in same interval. 

In the first eight months of the 2022/23 crop year, Brazil accumulates exports of 24.621 million bags, a volume 7.7% lower than that shipped abroad from July 2021 to February 2022. is positive, at 13% in the same comparison, with income reaching US$ 5.704 billion, with the scenario reflecting the high prices of the product in these eight months of the 2021/22 cycle. 

In January and February of this year, Brazilian coffee shipments abroad showed a decline of 25.4%, from 7.008 million, in the first two months of 2022, to the current 5.226 million bags. Revenue follows a similar path, adding up to US$ 1.117 billion, or a drop of 28.8% compared to the same previous period. According to the president of Cecafé, Márcio Ferreira, the drop in shipments is justified by the off-season, after two smaller harvests, impacted by climatic adversities in important producing regions in the coffee belt of Brazil, and by the context of the international market.

“The further away from a high harvest, like 2020, which was a record, the less remaining coffee we have, impacting supply. Despite the New York Stock Exchange having recovered in January and February, it is still well below the levels registered in September, before the beginning of the downward movement, when the producer took advantage of the favorable market and exchange rate combination, did his homework and sold what was possible”, he analyzes. 

He adds that, in the current scenario, despite the recovery of international prices in the first two months, prices are still not attractive for producers to negotiate their stock, "which is not so large due to the smaller harvests in 2021 and 2022, hence the retraction that we observed”. 

According to the president of Cecafé, with regard to arabica coffee, the levels practiced in the domestic market are above the quotation of the New York Stock Exchange and, consequently, the volume traded in Brazil is lower than the normal flow, limited, in for the most part, to the coverage of previously contracted sales and a few new businesses, impacting the performance of exports. 

“This scenario makes international customers look for coffee on the spot – in cash abroad –, which corresponds to the exchange price, or even at a discount, depending on the quality of the product in relation to the standards of the New York platform”, he explains. 

Ferreira also observes that, in this context, the continuous and growing demand of the national market for canephora coffee is combined. “With the spot abroad more attractive than our arabica ( Free on Board ) FOB and conilon and robusta mostly directed to domestic industries, Brazil loses competitiveness in exports of both varieties.

In the first two months of 2023, the United States remains the main buyer of coffee from Brazil, purchasing 978,334 bags, a volume 29.2% lower than that registered in the same period of 2022. This amount is equivalent to 18.7% of shipments Brazilian totals at halftime. 

Germany, representing 15.1%, imported 787,264 bags (-33.7%) and occupied second place in the ranking. Next, come Italy, with the purchase of 398,067 bags (-35.1%); Belgium, with 313,292 bags (-59.7%); and Japan, with the acquisition of 247,672 bags (-28.8%). 

Among the positive highlights are exports of coffee from Brazil to Colombia, Holland (Netherlands) and France. Sixth among the main destinations for the product in the first two months, the Colombians acquired 226,179 bags, which represents an increase of 7.8% compared to the volume acquired in January and February 2022. The Dutch come next, increasing their imports by 50.8 %, to 165,278 bags, and the French appear in ninth place, with imports of 138,697 bags, up 25.6% in the same comparative range.

The maritime complex of Santos (SP) continues to be the main exporter of coffee in Brazil in the first two months of 2023, with shipments of 4.228 million bags abroad, which is equivalent to 80.9% of the total. Following, appear the ports of Rio de Janeiro, which account for 14.8% of shipments by having sent 771,084 bags, and Paranaguá (PR), with the export of 72,579 bags and representativeness of 1.4%.

Arabica coffee was the most exported in January and February of this year, with 4.461 million bags shipped abroad, which corresponds to 85.4% of the total. The soluble segment had 600,184 bags shipped, representing 11.5%, followed by the canephora variety (robusta + conilon), with 159,080 bags (3%) and the roasted and roasted and ground product, with 5,251 bags (0.1 %). 

Coffees with superior quality or some type of certificate of sustainable practices accounted for 20.8% of total Brazilian exports of the product in the first two months of 2023, sending 1.086 million bags abroad. This volume represents a decline of 3% compared to the same period of the previous year. 

The average price of this product was US$ 253.88 per bag, providing revenue of US$ 275.6 million in the two months, which corresponds to 24.7% of that obtained from total shipments. In the annual comparison, the value is 18% lower than that measured in the first two months of 2022. 

In the ranking of the main destinations for differentiated coffees in the first two months of this year, the United States is at the top, with the acquisition of 297,184 bags, equivalent to 27.4% of the total of this type of product exported. Following, come Germany, with 183,612 bags and representation of 16.9%; Belgium, with 120,410 bags (11.1%); Holland, with 62,721 bags (5.8%); and Italy, with 58,530 bags (5.4%).