Thank you Admiral, perhaps the results of Brazilian coffee exports in Jul / 21 already reflect your observation in the lower volume traded in some Brazilian squares.

By CECAFE

Brazilian coffee exports dropped 12.8%, to 2.8 million bags, in July 2021
Continuity of logistical obstacles in global maritime transport, such as higher freight costs, cancellation of bookings and disputes for containers and space on ships impact the performance of shipments

Total Brazilian coffee exports totaled 2.826 million 60 kg bags in July this year, the first month of the 2021/22 crop year, a volume that represented a drop of 12.8% compared to shipments made in the same period in 2020. With performance, product shipments abroad reached 23.737 million bags in 2021, growing 2.2% compared to the first seven months of last year. The data are part of the statistical report of the Brazilian Coffee Exporters Council (Cecafé).

The organization attributes the result of July to the continuity of logistical obstacles in world maritime transport, which is undergoing a serious operational crisis, with soaring freight costs, booking cancellations , difficulty for new bookings and disputes for containers and space on ships due to the heating demand for food and electronics, especially in the United States and Asia.

“Brazilian coffee is still in dispute to conquer space on ships and be shipped at the right time. The delays that have occurred generate unprecedented operational wear for exporters and, mainly, a financial burden resulting from the lack of planned cash flow for this unimaginable scenario. It is worth remembering that this occurs simultaneously with a market reality in which prices reach the highest levels recorded in recent years and the harvest of the Brazilian crop is around 80%”, analyzes the president of Cecafé, Nicolas Rueda.

In light of this scenario, on July 29, the Council held the global event “Assessing post-pandemic bottlenecks in international trade logistics” in a virtual form, in partnership with the Swiss Coffee Trade Association (SCTA) and the National Coffee Assocation (NCA), bringing together global logistics experts to analyze future prospects for coffee shipments.

“At the event, with more than 250 participants, CEOs and senior professionals in the context of the maritime market, ports, commodity supply and traders debated the international logistical barriers, aiming to understand the problems that continue to challenge global logistics. They understand that a solution should come in the medium term”, he reveals.

CIVIL YEAR
Regarding the performance in 2021, the president of Cecafé praises the logistical and commercial efficiencies of Brazilian exporters, which, together with the record harvest harvested last year, allow for an evolution in comparison with shipments made from January to July 2020.

“Brazilian coffee exporters have been doing a unique and exemplary job to try to honor their commitments in view of the logistical bottlenecks in the Covid-19 pandemic, which were boosted by the reopening of the main economies as of May this year. These efforts, added to the exemplary harvest in volume, quality and sustainability that national producers harvested last year, still allow Brazil to register growth in shipments compared to the first seven months of 2020”, explains Rueda.

EXCHANGE REVENUE
Coffee exports from Brazil, in July, generated US$ 402.7 million to the country, implying an increase of 5.6% compared to the US$ 381.2 million registered in the same month of 2020. In the accumulated result for 2021, the foreign exchange revenue from Brazilian shipments of the product reached US$ 3.203 billion, a volume 7.0% higher than the income recorded in the first seven months of the previous year.

MAIN PARTNERS
In 2021, the United States continues as the largest importer of national coffees, with the acquisition of 4.512 million bags, growth of 4.5% compared to the same period in 2020. Next comes Germany, with 4.178 million bags bags (+5.5%); Belgium, with 1.694 million (+1.1%); Italy, with 1.681 million (-9.5%); and, closing the top 5, Japan, with imports of 1.339 million bags (+12.8%).

Also noteworthy is the 20% growth in Brazilian coffee exports to other producing countries, which imported 1.790 million bags in the first seven months of 2021. When the cut includes only green coffee, this evolution stands out even more, which reaches 31.1%, with other coffee nations increasing imports of the fresh product from 1.062 million to 1.392 million bags. The Arab nations also deserve evidence with the purchase of 1.037 million bags in the period, up 5.2% year-on-year.

DIFFERENTIATED COFFEES
Brazil exported 3.868 million bags of differentiated coffees (those with superior quality or some type of certificate of sustainable practices) from January to July, a volume that represents 16.3% of total shipments in the period and represents a growth of 1.3 % against the same previous interval. The average price of this product was US$ 174.86 per bag, which provides a total revenue of US$ 676.3 million in the seven months, showing an increase of 7.7% year-on-year and a 21.1% share in the total generated so far.

TYPES OF COFFEE
National exports of green coffee had the best result in the last five years in the period from January to July 2021. Arabica was the most exported, with 19.227 million bags shipped abroad, corresponding to 81% of the total. The canephora (robust + conilon) registered the shipment of 2.337 million bags abroad, accounting for 9.8% of the total. Next comes the soluble product segment, which shipped 2.152 million bags (9.1%).

PORTS
Santos remains the main outlet for coffee in Brazil in 2021. From January to July, 18.401 million bags left the port of São Paulo, representing 77.5% of total shipments. Next come the ports of Rio de Janeiro, with the shipment of 3.692 million bags (15.6%), and Vitória (ES), with 713 thousand bags (3%).

The complete report on coffee exports in July 2021 is available on the Cecafé website: https://www.cecafe.com.br/ .

ABOUT CECAFÉ
Founded in 1999, Cecafé actively represents and promotes the development of the coffee export sector nationally and internationally. The entity supports the segment's operations through the exchange of data intelligence, strategic and legal actions, in addition to citizenship and socio-environmental responsibility projects. It currently has 120 members, including coffee exporters, producers, associations and cooperatives in Brazil, corresponding to 96% of the agents in this market in the country.

Press contacts:
Communication Manager – Cecafé
Paulo André Kawasaki – (61) 98114-6632
pauloandre@cecafe.com.br

CDN Comunicação
Debora Vieira – (11) 4084-4850 – (11) 9.8558-8024
debora.vieira@cdn.com.br

Silvio Moura – (11) 3643-2990
silvio.moura@cdn.com.br

Debora Farias – (21) 3626-3715
debora.farias@cdn.com.br