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09/08/2017 - 13:13hs

Coffee exports to Arab countries up 30%

Sales from Brazil to the region soared to USD 122 million year-on-year from January to July as shipped volume increased by 1.2%. Lebanon is the top Arab buyer of goods from Brazil.

São Paulo – Revenue from exports of coffee from Brazil to Arab countries increased by 29.7% to USD 112 million in the first seven months of this year from the comparable period in 2016, the Brazilian Coffee Exporter Council (Cecafé) reported this Wednesday (9).

The volume of coffee exports to Arab countries was up 1.2%, from roughly 653,200 bags shipped from January to July this year from roughly 645,100 bags a year ago.

The single leading buyer of Brazilian coffee in the Arab world was Lebanon at USD 29.8 million in imports, followed by Syria at USD 20.4 million, Jordan at USD 14.6 million, Saudi Arabia at USD 12.9 million and the United Arab Emirates at USD 10.2 million. Coffee was also sold from Brazil to Algeria, Djibouti, Libya, Egypt, Tunisia, Sudan, Morocco, Oman, Qatar, Kuwait, Iraq, Bahrain, the Comoro Islands and Yemen.

Overall, international coffee exports from Brazil were up 7.2% in revenue to USD 2.9 billion but dropped by 8% in volume to 16.7 million bags. This stemmed from both higher prices and weaker sales. Average price per bag shipped abroad from Brazil was up 16.5% from USD 147.8 to USD 172.25.

The month of July saw 1.7 million bags of coffee exported from Brazil, grossing USD 283.4 million. Green coffee made up the bulk of foreign sales at 1.5 million bags, which is down 8.1% from July 2016.

A Cecafé press release quoted chairman Nelson Carvalhaes as saying sales volume dropped because leftover inventories from last year are running low. “Besides, the new crop came in slowly, and that made for low availability,” he said. Carvalhaes hopes, however, that by September exports will have returned to usual levels as the harvest hits the market, albeit gradually.

Although exports to Arab countries are going up, the region is not the top buyer of coffee from Brazil. From January to July, the United States topped the list with a 20% share in total exports from Brazil. Germany came second with 17.5%, followed by Italy with 9%, Japan with 7.1%, and Belgium with 6%. Cecafé pointed out that sales were up by 43% to Turkey and by 15.8% to Russia.

*Translated by Gabriel Pomerancblum

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