From powering one-third of the world's morning brew to facing the sobering realities of climate change, Brazil's coffee industry, with its staggering 66 million bags produced in a single year, is a titan of taste, trade, and transformative challenges.
Key Takeaways
- Brazil produced 66.34 million 60-kg bags of coffee in the 2022/23 crop year, accounting for 39.6% of global production
- Arabica coffee production in Brazil reached 44.80 million bags in 2022/23, up 10.2% from the previous year due to favorable weather
- Robusta coffee output in Brazil was 21.54 million bags in 2022/23, representing a 29.7% increase driven by recovery from drought
- Brazil exported 47.6 million 60-kg bags of coffee in 2022, 42% of global exports
- United States imported 8.2 million bags from Brazil in 2022, largest destination
- Germany received 5.1 million bags of Brazilian coffee in 2022
- Average export price for Brazilian Arabica was $2.45/kg in 2022
- Robusta export price averaged $2.12/kg in 2022
- Brazil's ICO Indicator Price average was 152.5 US cents/lb for Arabica in 2022
- Coffee employs 1.7 million direct jobs in Brazil's rural areas
- Coffee sector contributes 2.5% to Brazil's agricultural GDP
- 8 million people indirectly dependent on coffee chain in Brazil
- Brazil certified 45% of coffee production sustainable in 2022
- 1.2 million ha of coffee farms under Rainforest Alliance certification
- Water usage in coffee production: 140 liters per kg green bean average
Brazil's record coffee harvest fuels its dominance in the global export market.
Employment and Economic Contribution
- Coffee employs 1.7 million direct jobs in Brazil's rural areas
- Coffee sector contributes 2.5% to Brazil's agricultural GDP
- 8 million people indirectly dependent on coffee chain in Brazil
- Minas Gerais coffee farms employ 800,000 workers seasonally
- Coffee generates R$50 billion annual revenue for Brazilian economy
- 400,000 family farms produce 70% of Brazil's coffee
- Espírito Santo coffee sector supports 300,000 jobs
- Coffee exports sustain 1,200 cooperatives with 500,000 members
- Rural income from coffee: R$15,000 average per farm in 2022
- Coffee industry pays R$10 billion in taxes annually
- 25% of Brazil's rural labor force tied to coffee production
- Coffee processing plants employ 150,000 workers nationwide
- Sector invested R$2.5 billion in modernization 2017-2022
- Coffee contributes $7 billion to trade balance yearly
- 70% of coffee farms are family-run, employing 1.2 million
Employment and Economic Contribution Interpretation
One might call Brazil's national beverage a 'job-o-chino,' given how the steaming economic engine of its coffee industry pours direct livelihoods for millions, froths with billions in revenue, and percolates supporting roles for nearly a quarter of the country's rural workforce.
Export Volumes and Destinations
- Brazil exported 47.6 million 60-kg bags of coffee in 2022, 42% of global exports
- United States imported 8.2 million bags from Brazil in 2022, largest destination
- Germany received 5.1 million bags of Brazilian coffee in 2022
- Japan imported 2.3 million bags from Brazil in 2022, mainly Robusta
- Brazil's green coffee exports to Europe totaled 20.4 million bags in 2022
- Soluble coffee exports from Brazil reached 6.7 million bags in 2022
- Exports to Belgium (re-export hub) were 4.8 million bags in 2022
- Brazil shipped 12.5 million bags of Arabica to the US in 2023 YTD
- China imported 1.1 million bags from Brazil in 2022, growing market
- Roasted coffee exports totaled 1.2 million bags in 2022
- Brazil's coffee exports to Italy were 2.9 million bags in 2022
- Exports to Russia hit 1.4 million bags pre-sanctions in 2022
- Green Arabica exports: 33.4 million bags in 2022
- Top 10 destinations absorbed 70% of Brazil's 2022 coffee exports
- Brazil's coffee export revenue reached $10.8 billion in 2022
Export Volumes and Destinations Interpretation
While Brazil's coffee empire could power the world's offices and cafés single-handedly, the sobering truth is that its fortunes remain steeped in the volatile brew of shipping raw beans abroad, with the frothy profits of roasting and brewing largely enjoyed elsewhere.
Market Prices and Values
- Average export price for Brazilian Arabica was $2.45/kg in 2022
- Robusta export price averaged $2.12/kg in 2022
- Brazil's ICO Indicator Price average was 152.5 US cents/lb for Arabica in 2022
- Domestic green coffee price in Santos port: $220/sack in Dec 2022
- Conilon (Robusta) farm-gate price averaged R$650/60kg bag in 2022
- Arabica farm-gate price in Minas Gerais: R$1,050/60kg in mid-2022
- International C-market price for Brazilian Naturals: 180 cents/lb in 2023
- Soluble coffee wholesale price: $4,500/ton FOB in 2022
- Brazil's coffee auction premiums for specialty lots averaged 40% above commodity in 2022
- CEPEA/ESALQ Index for Arabica: R$1,120.50/60kg on Jan 2023
- Robusta price volatility index rose 25% in 2022 due to weather
- Futures price for 1st position Arabica: $1.85/lb in Oct 2022
- Brazil's coffee export value per bag: $227 in 2022, up 45% YoY
- Specialty coffee premiums: up to $5/kg for Cup of Excellence winners 2022
- Domestic retail price for roasted coffee: R$45/kg average 2022
- Santos port differential for STAB Arabica: -10 to -20 points in 2022
- Brazil coffee stocks at exporters: 5.6 million bags end 2022
Market Prices and Values Interpretation
Brazil's coffee industry is enjoying a frothy premium at home and abroad, but while exporters are cashing in on record-high prices, the farmers are left with grounds for complaint as volatile costs squeeze their profits from bean to cup.
Production Volume and Yield
- Brazil produced 66.34 million 60-kg bags of coffee in the 2022/23 crop year, accounting for 39.6% of global production
- Arabica coffee production in Brazil reached 44.80 million bags in 2022/23, up 10.2% from the previous year due to favorable weather
- Robusta coffee output in Brazil was 21.54 million bags in 2022/23, representing a 29.7% increase driven by recovery from drought
- Average coffee yield in Brazil's Minas Gerais state was 28.5 bags per hectare for Arabica in 2022
- Brazil's coffee harvested area totaled 2.12 million hectares in 2022/23, with 1.57 million ha for Arabica
- In 2021/22, Brazil's coffee production dropped to 50.99 million bags due to adverse weather in key regions
- São Paulo state contributed 12.3 million bags of Arabica coffee in 2022/23
- Brazil's coffee productivity averaged 31.2 bags/ha nationally in 2022/23, up from 25.4 in prior year
- Espírito Santo produced 15.2 million bags of Conilon (Robusta) coffee in 2022/23
- Paraná state's coffee production was 2.1 million bags in 2022, mainly Arabica varieties
- Brazil's 2023/24 coffee production forecast at 69.9 million bags, per USDA
- Rondônia contributed 1.8 million bags of Robusta in 2022/23
- Bahia state's coffee output reached 1.2 million bags in 2022, focusing on Conilon
- National coffee planting area expanded by 1.5% to 2.15 million ha in 2023
- Brazil's fine cup Arabica yield hit 35 bags/ha in high-tech farms in 2022
- Drought reduced Minas Gerais Arabica yield to 22 bags/ha in 2021/22
Production Volume and Yield Interpretation
Brazil's coffee industry, having weathered a storm of bad weather to bounce back with a robusta rebound and an arabica ascension, now firmly holds the world's caffeine supply in a death grip, producing nearly 40% of it from its sprawling, increasingly productive fields.
Sustainability Practices and Challenges
- Brazil certified 45% of coffee production sustainable in 2022
- 1.2 million ha of coffee farms under Rainforest Alliance certification
- Water usage in coffee production: 140 liters per kg green bean average
- 30% reduction in pesticide use achieved via IPM on 500,000 ha
- Brazil's coffee rust incidence dropped 40% with resistant varieties
- Carbon footprint of Brazilian Arabica: 12 kg CO2e per kg roasted
- 60% of exports carry sustainability labels like UTZ/RA
- Deforestation rate in coffee zones: 0.5% annually 2018-2022
- Organic coffee production: 150,000 tons yearly, 2% of total
- Climate change projected to reduce suitable areas by 25% by 2050
- 80% of farms adopt shade-grown practices in Minas Gerais
- Recycling of coffee cherry pulp: 70% in sustainable projects
- Female participation in coffee sustainability programs: 35%
- Drought affected 20% of coffee area in 2021/22 season
- Investment in irrigation: R$1 billion on 200,000 ha
- Biodiversity index in certified farms: 15% higher than conventional
- Soil erosion control implemented on 1 million ha
- Energy from biomass in processing: covers 90% of needs sustainably
- Projection: 15% yield loss from climate by 2030 without adaptation
- 4C certification on 800,000 tons exported in 2022
Sustainability Practices and Challenges Interpretation
Brazil's coffee industry has one foot planted firmly in the burgeoning sustainability of its impressive certifications and one foot still nervously tapping in the face of relentless climate threats, a precarious but determined stance summed up by their 45% sustainable production, looming yield losses, and the 25% of suitable land projected to vanish by 2050.
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