A quick look at the semi-annual report on Brazilian coffee
The Ministry of Agriculture, Livestock, and Food Supply has released a comprehensive report on the current state of the Brazilian coffee sector, titled “Coffee Semi-annual Report 2023/24″ (Report Number: BR2023-0031). Prepared by Marcela Formiga and approved by Joseph Degreenia, the report provides an in-depth analysis of commodity and trade issues related to coffee, offering valuable insights into production, supply, distribution, and consumption trends.
Key Highlights from the Report:
Production Forecast:
The ministry projects Brazilian coffee production for the Marketing Year 2023/24 to reach 66.3 million 60-kg bags. Notably, arabica production is expected to increase by 12.8% to 44.9 million bags, driven by an expansion in planted area and higher yield. However, robusta/conilon production is projected at 21.4 million bags, a 1.4% decrease from the previous estimate.
Regional Insights:
Minas Gerais: The leading coffee producer experienced favorable weather conditions, leading to optimism about high production numbers for the 2023/24 season.
São Paulo: The state concluded the 2022/23 harvest with higher productivity potential and plans to expand crop renewal for the upcoming season.
Espírito Santo: Despite challenges in workforce availability, the state is investing in the mechanization of the harvest, which is expected to positively impact the 2023/24 season.
Bahia: The state strategically decreased production area for crop renewal, anticipating a positive effect on production in the upcoming season.
Paraná: Favorable weather conditions and increased investments contributed to higher production and yield.
Coffee Prices and Trade:
Arabica coffee prices averaged R$ 829.44 in October 2023, prompting cautious negotiations due to low sales and high production costs.
Total coffee exports for MY 2023/24 are projected at 43.85 million 60-kg bags, a 22.3% increase from the previous season. Robusta coffee exports have surged by 111% from January to August 2023.
Consumption and Trends:
Brazil’s total domestic coffee consumption for MY 2023/24 is forecasted at 22.56 million bags, with an increasing preference for specialty and certified coffees.
The report highlights a shift in consumer behavior, with a focus on quality, food safety, and a growing interest in specialty coffee.
Government Support and Policies:
The Brazilian government, through the National Supply Company (CONAB), continues to implement policies to ensure producers receive minimum guaranteed prices. For the 2023/24 marketing year, CONAB set the minimum price for arabica coffee at R$ 684.16 and robusta at R$ 460.02.
The government’s Coffee Economy Defense Fund (FUNCAFE) allocates a record amount of R$ 6.38 billion for the 2023/24 financial year, providing support for marketing financing, crop management, FAC, working capital, and recovery of damaged coffee plantations.
Conclusion:
Despite challenges, the Brazilian coffee sector is adapting and displaying resilience. The Ministry of Agriculture’s comprehensive report offers valuable insights for stakeholders, providing a holistic view of the industry’s current status and future prospects.
For more detailed information and a complete overview, the Coffee Semi-annual Report 2023/24 can be accessed on the official website of the Ministry of Agriculture, Livestock, and Food Supply.
