Even the large producers already import coffee from Brazil

Even the large producers already import coffee from Brazil

Some of the major competitors of Brazil in world production of coffee is coming to the country to procure the commodity. Last year, for example, four of the five largest producer after Brazil, imported Brazilian coffee. According to data from the Council of Coffee Exporters of Brazil (Cecafe), Vietnam (2), Indonesia (3), Colombia (4) and India (6) together have imported 136,200 bags, 17% more than in 2009. Among the major global producers of coffee, the only one not imported from Brazil in 2009 and 2010 Ethiopia was the fifth largest producer.

Meanwhile, in the first two months of 2011, Colombia and Indonesia are among the largest global producers, countries that have imported Brazilian coffee. Together, the two purchased almost 20 million bags, virtually the same volume of the same period last year. Indonesia imported only 18,000 bags.

As a major producer and exporter, Indonesia in January sold 345,000 bags to other countries, according to data from the International Coffee Organization (ICO), but also imported, only in Brazil, 8,100 bags. In the case of Colombia, the Brazilian presence is smaller. The Latin country imported 320 bags in January, however, exported 847,800 in the period.

"The fact that major world producers are importing coffee from Brazil is a sign that the production problems that almost all of them suffered is a bit more serious than previously imagined," said Guilherme Braga, director general of Cecafé. He notes that Colombian production has not fully recovered from breaking suffered in 2008 and the rains that hit the Asian countries at the end of last year hindered the supply of the region.

In this scenario, exports from Brazil following an accelerated pace. In February, domestic shipments totaled 2.66 million bags, volume 17.6% higher than the same period last year. "This is a high volume for a month in February, because we are almost out of season. The expectation now is that the availability decrease, which will keep prices firm," says Braga.

If the volumes are astonishing, the revenue from shipments stand out even more. Driven by price appreciation, exports yielded to Brazil last month to U.S. $ 606.15 million, 70.5% more than in February 2010. Yesterday, however, prices in New York had dropped sharply, after three consecutive rises. Contracts for May closed at U.S. $ 2.8055 per pound, down 1,430 points or 4.85%.

Source: Economic Value