Supply Chain

USDA Cuts Projection For Brazil's 2022/23 Coffee Production

Share this article

Brazilian farmers are expected to harvest 62.6 million 60-kg bags of coffee in the 2022/23 crop (July-June), an amount that is 1.7 million bags smaller than a June projection, the United States Department of Agriculture (USDA) has said.

In its second estimate for Brazilian production, the U.S. government agency said coffee trees in the world's largest producer and exporter suffered more than initially estimated with unfavourable climate conditions, leading to smaller yields.

Arabica Coffee Reduction

The USDA said all the reduction in its projection came from a 1.7 million-bag cut in the production of arabica coffee, the milder variety favoured by coffee chains such as Starbucks and Panera.

The department now expects Brazil to produce 39.8 million bags of arabica, down from 41.5 million bags seen in June.

The U.S. is the world's largest consumer of coffee, while Brazil is its largest supplier.

Weather Impact

Brazil's coffee production has been negatively impacted by erratic weather for the last two crops, including last year's strongest frosts in 40 years and the harshest drought in decades.

The USDA kept its projection for Brazil's robusta coffee production, the type largely used to make instant coffee, unchanged at 22.8 million bags.

Arabica coffee futures on ICE rose on Tuesday as the market extended its rebound from last week's 16-month low.

Dealers said the fund selling that had helped to fuel the recent decline in prices appeared to have dried up, at least temporarily, while reports that Brazil's crop next year may be smaller than previously expected also contributed to the rise in prices this week.

News by Reuters, edited by ESM – your source for the latest supply chain news. Click subscribe to sign up to ESM: European Supermarket Magazine.

Stay Connected With Our Weekly Newsletter

Processing your request...

Thanks! please check your email to confirm your subscription.

By signing up you are agreeing to our Terms & Conditions and Privacy Policy
Enjoy unlimited digital access for 30 days
Get exclusive access to the latest grocery retail & FMCG news, interviews with industry leading executives, and expert analysis on the trends shaping the sector today
Enjoy unlimited digital access for 30 days
Enjoy unlimited digital access for 30 days
Get exclusive access to the latest grocery retail & FMCG news, interviews with industry leading executives, and expert analysis on the trends shaping the sector today
Enjoy unlimited digital access for 30 days

Copyright © 2022. All rights reserved. Developed by Square1 and powered by PublisherPlus.com