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Brazil Coffee Exports See 29% Decline In September

Published on Oct 14 2021 6:55 AM in Supply Chain tagged: Brazil / United States / September / Coffee Exports

Brazil Coffee Exports See 29% Decline In September

Brazilian exports of green coffee fell 29% in September compared with a year earlier, to 2.74 million 60-kilogram bags, exporters association Cecafe said on Wednesday, as shipping difficulties continued to hamper the commodity's flow.

Cecafe's head, Nicolas Rueda, said there was no change regarding shipping, with exporters struggling to get bookings for containers and vessels, as well as facing frequent loading postponements from shipping companies.

"There is intense competition among exporters to secure containers and to book loadings. And it is all very costly," Rueda said in a statement, adding that the situation is testing the planning capacity of exporters.

Supply Chain Disruptions

He said importers in the main consuming countries such as the United States, Brazil's top client for coffee, are suffering as well, having to manage the disruptions in the supply chain.

Brazilian exports of arabica coffee, the milder variety, fell 24% to 2.42 million bags, while shipments of robusta coffee, the type used in blends and by the instant coffee industry, fell 51% to only 326,045 bags.

There is strong demand for robusta coffee in the Brazilian domestic market as roasters increase the use of that coffee in their blends since arabica prices have jumped to all-time highs after the frosts in July.

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Beyond being the world's largest coffee exporter, Brazil is the second largest consumer of the beverage behind the United States.

In August, exports of green coffee from Brazil fell 27% in August from a year earlier to 2.33 million 60-kilogram bags as difficulties to find containers and space at vessels increased.

Elsewhere, coffee farmers in Colombia, the world's No. 2 arabica producer, have failed to deliver up to 1 million bags of beans this year or nearly 10% of the country's crop, leaving exporters, traders and roasters facing steep losses, industry sources told Reuters.

News by Reuters, edited by ESM. For more Supply Chain news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.

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