Revenues reached an all-time high, but number of bags shipped decreased 9% year-over-year, to 3.7 million
01/26/2023
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Revenues from shipments reached a record of $705.7 million, up 24.5% year-over-year, thanks to higher prices — Foto: Divulgação/FAF
Brazilian soluble coffee exports reached record revenues last year, but volumes declined due to problems affecting global logistics, including the consequences of the war in Ukraine. Brazil exported 3.7 million 60-kilo bags to 100 countries in 2022, down 9% from 2021, according to the Brazilian Soluble Coffee Industry Association (Abics).
Revenue from shipments reached a record of $705.7 million, up 24.5% year-over-year, thanks to higher prices.
“The decrease in volume reflects the global economic scenario, which was affected by the Covid-19 pandemic, logistical hurdles, high logistics costs, high raw material prices in Brazil, and the impact caused by the Russia-Ukraine war,” said Aguinaldo Lima, director of institutional relations at Abics, in a statement.
Eastern European countries are important consumers of this type of coffee. Purchases from Russia, which has been at war with Ukraine since last February, fell 64% in 2022, and the country imported just over 135,000 bags. The Russian market fell from second to eighth place in the ranking of the largest buyers of Brazilian soluble coffee, according to Abics. Ukraine, which was the seventh largest importer, was not even among the top 15 buyers in 2022.
Among the top importers is the United States, with purchases of 770,000 bags, up 8.4% from 2021. This is followed by Argentina with 303,000 bags (-14.6%); Indonesia with 269,000 bags (-3.3%); and Japan with 188,000 bags (-30.3%).
The high prices do not mean more income for the segment, said Mr. Lima. “The raw material – Arabica and Robusta coffees – reached prices never seen before, and at certain moments the values in Brazil were much higher than international prices,” he said. As a result, competing countries took the market share left by Brazilian exporters.
The Brazilian domestic market, on the other hand, consumed nearly 998,000 bags last year, up 1.4% year-over-year. According to Mr. Lima, this is the highest historical level of sales. He recalled that the industries have expanded their plants and diversified their products to attract Brazilian consumers.
*By Érica Polo — São Paulo
Source: Valor International