Brazilian coffee exports are likely to reach a smaller than expected volume in 2017 due mainly to slow farmer sales, the head of exporters association Cecaf told Reuters late on Wednesday. Nelson Carvalhaes said final exporting volumes for the year should be around 5 percent below Cecaf's previous projection of 32 million 60-kg bags, considering shipments of green, soluble and ground roasted coffees.
Speaking on the sidelines of an industry conference in northern Bahia state, Carvalhaes said total exports will stay between 30 and 31 million bags. He did not provide a number for green coffee shipments alone. "There was a smaller offer this year. Production did not come to market aggressively because farmers held on to beans. There was an expectation for better prices, which didn't materialize," he said.
Accumulated exports from the world's largest producer as of end-October are 24.75 million bags considering green, instant and ground roasted coffees, 10.7 percent less than at the same time a year earlier. Considering only green coffee, exports in the year to end-October were 21.92 million bags, 10.5 percent less than a year ago. Carvalhaes said shipments usually increase when arabica prices in New York go above 130 cents per pound. On Thursday morning it was quoted at 124.5 cents.
Brazil had some quality problems this year as well, due to strong dry spells and infestations of berry borer beetles, which helped reduce inventories of export-quality beans. On top of that, exporters fear difficulties at port with coffee shipments. Vessel operators reduced scales of trips between South America and Europe recently, and a strike by internal revenue inspectors at major Brazilian ports could affect clearance of cargos.
Joso Roque, a director at a union of shipping agencies in major transit hub Santos in Sao Paulo state, said there are many containers with imported goods currently stuck in ports, waiting for clearance from inspectors. "That could hit exports of products that need those containers for the way back, from Brazil to other destinations," he said. Coffee exports are almost entirely done using containers. Carvalhaes said that so far the strike had not disturbed coffee exports and it was still unclear what its impact could be.
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