Brazil coffee volumes fall as Africa’s production rise 3.2% to fill gap

UK – The world’s leading coffee producer Brazil’s total exports declined 10.5% to 2.52 million tonnes in March and this is offset by increasing coffee production in Africa and other countries, according to the International Coffee Organisation.

Brazil is also said to be declining in coffee output in crop year 2017/18 estimated at 51 million bags.

The report said that between October 2017 and March 2018, it shipped 16.57 million bags, 7.7% lower than the same period one year ago.

While world production in 2017/18 is estimated at 159.66 million bags, 1.2% greater than last year, output from South America offset by higher output from other regions.

Production in Africa is estimated 3.2% higher at 17.66 million bags, Asia & Oceania 10% higher at 49.49 million bags, and Mexico & Central America, 7.1% higher at 21.92 million bags.

“Uganda’s exports declined by 18.7% to 0.33 million bags in March 2018, but its shipments for the first six months of 2017/18 are up by 3.7% compared to the same period one year ago, reaching 2.34 million bags,” the report showed.

According to the Monitor Uganda, the performance was as a result of efforts taken to improve the coffee value chain as the country looks to increase production to an ambitious 20 million bags by 2025.

According to Emmanuel Iyamulemye, the Uganda Coffee Development Authority executive director, the efforts were bearing fruit but the sector could be boosted further by investing in agronomical practices such as research, high yielding and disease free-varieties and use of fertilizers to increase production.

He said interventions in the sector including introduction of coffee production to new areas plantation of more than 500 million seedlings may increase volumes even as Uganda looks at increasing the capacity of country’s exports for coffee to 20 million bags per year by 2020.

According to the report, growers can realise a price premium through product differentiation, higher quality, certification or improved contracts.

Prices for all Arabica groups fell in April, although the largest month-on-month decrease occurred for Brazilian Naturals, which fell by 0.9% to 118.76 cents.

Global coffee exports amounted to 10.81 million bags in March compared to 10.91 million in March 2017, driven by reduced shipments of Arabica, particularly Colombian Milds.

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