Coffee shipments from Brazil fall 18% in July – Secex

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Brazilian coffee exports totaled 2.68 million bags (green + soluble) last July, according to Secex. This corresponds to an 18% decline from both the month of June and the same period last year. The global logistical bottleneck, the high international price of coffee, and smaller Brazilian production in 2021 explain the external performance in the start of the business season. However, even with the decline in the volume shipped in July, the volume exported in the first seven months of the year reached 24.87 million bags, up 11% from the same period last year. The record crop reaped in 2020 and the aggressive demand, looking for stock replenishment and protection against the lower Brazilian supply of 2021, justify this performance in the first months of the year.

The Cecafé’s numbers differ a little from those from the Foreign Trade Secretariat (Secex). The exporters’ council indicated shipments of 2.83 million bags in July. Thus, Brazil accumulated shipments of 23.73 million bags between January and July 2020. Green coffee shipments amounted to 21.56 million bags, out of which 19.23 million bags of arabica (89%) and 2.34 million bags of conillon (11%). The poor performance is attributed to logistical problems, such as more expensive international freight, cancellation of bookings, and difficulties with containers and space in ships. All this leads, besides the higher cost, to operational problems with global purchasing industries due to the delay in coffee delivery.