Guide

Coffee Bean Guide

Raw Common Coffee Bean

Customs & Tariffs

What Are the Main Customs & Tariffs Applied in the Most Common Markets for Cameroon Coffee?


What Are the Main Customs & Tariffs Applied in the Largest Markets for Indonesian Raw Coffee Bean?

HS code 0901

Coffee, whether or not roasted or decaffeinated; coffee husks and skins; coffee substitutes containing coffee in any proportion.

090111

-- - Not decaffeinated :

09011120

- - - Arabica

09011130

- - -Robusta

Import Duty MFN (Most Favored Nation): 5.00 %

VAT : 11.00 %

Income Tax PPH: 2.50 % (With Import License, API) or 7.50 % (No Import License, NON-API)

Other Taxes: N/A

Regulation:

PMK 26/PMK.010/2022

PMK 41/PMK.010/2022

Tariff Preferences:

AIFTA (ASEAN India Free Trade Agreement)

2023: 0.00%

RCEP-Australia (Regional Comprehensive Economic Partnership Agreement - Australia)

2023: 3.5%

2024: 3%

RCEP-Korea (Regional Comprehensive Economic Partnership Agreement - Korea)

2023: 3.5%

2024: 3%

AJCEP (ASEAN-Japan Comprehensive Economic Partnership)

2023: 0.00%

2024: 0.00%

AKFTA (ASEAN Korea Free Trade Agreement)

2023: 0.00%

ATIGA (ASEAN Trade in Goods Agreement)

2023: 0.00%

IACEPA (Indonesia-Australia Comprehensive Economic Partnership Agreement)

2023: 0.00%

2024: 0.00%

ACFTA (ASEAN - China Free Trade Area)

2023: see the regulation

ICCEPA (Indonesia-Chile Comprehensive Economic Partnership Agreement)

2023: 0.00%

2024: 0.00%

RCEP-New Zealand (Regional Comprehensive Economic Partnership Agreement - New Zealand)

2023: 3.5%

2024: 3%

IJEPA (Indonesia - Japan Economic Partnership Agreement)

2023: 0.00%

IECEPA (Indonesia-European Free Trade Association Comprehensive Economic Parthership)

2023: 0.00%

2024: 0.00%

AHKFTA (ASEAN-Hong Kong Free Trade Agreement)

2023: 0.00%

2024: 0.00%

RCEP-Japan (Regional Comprehensive Economic Partnership Agreement - Japan)

2023: 3.5%

2024: 3%

IMPTA (Indonesia-Mozambique Preferential Tariff Agreement)

2022: 3%

RCEP-China (Regional Comprehensive Economic Partnership Agreement - China)

2023: 3.5%

2024: 3%

AANZFTA (ASEAN Australia New Zealand Free Trade Agreement)

2023: 0.00%

2024: 0.00%

RCEP-ASEAN (Regional Comprehensive Economic Partnership Agreement - ASEAN)

2023: 3.5%

2024: 3%

IKCEPA (Indonesia-Korea Comprehensive Partnership Agreement)

2023: 0.00%

2024: 0.00%

Production Supply Chain

What is the Supply Network Structure for Colombian Raw Common Coffee Beans?

Small growers sell their coffee either to cooperatives or middlemen, who are individuals or companies located in villas near coffee-producing regions who then sell coffee to exporters. Middle and or large-size growers tend to be on long-term contracts with multinational companies. The overall coffee supply chain and coffee-related activities from production to export in Colombia are overseen by a highly centralized governing body, the Federation of Coffee Growers of Colombia (FNC). 

How is the value chain formed in Brazil?

Growers -> First Processing (Traders, Cooperatives) -> Second Processing (Soluble coffee companies, Roasting companies, Cooperatives) -> National Seller (Exporters, Cooperatives) -> International Buyer -> National and International Retail

  • First Processing: Removing the cherry part of the coffee
  • Second Processing: Milling (removing any remaining fruit or parchment from coffee

Does Coffee Production in Indonesia Come from Independent Farmers or Corporate Plantations?

Coffee plantations in Indonesia is a labor intensive industry. There are about 1.34 million independent coffee farmers in Indonesia that contribute to over 96% of the national production. State-owned farms only contribute 1.5% and the rest is private company corporate plantations.

There is a total 1.2M hectares of the farmer coffee plantations and only 14.5K hectares managed by the state own plantation and 9.71K hectares by private corporation. 

The value chain of the Indonesian Coffee: 

1. Farmer: producing the coffee cherry or green beans 

2. Cooperation, Farmer Group, Collector, trader: buying & processing the cherry or buying the green beans from farmer  

3. Local trader, producers: processing the green beans, grading & screening, and packing. 

4. Exporter 

5. Local Coffee industry

Trade Overview

What Are the Main Industrial Crops in Ghana?

1. Cocoa

Ghana is the second-largest producer of cocoa in the world with a 2019 production of 850,000 tons. Cocoa provides the second-largest source of total export earnings, representing 30% of GDP. The Ghana Cocoa Board (COCOBOD) determines the domestic buying price of cocoa beans and the purchasing season as a way to monitor and regulate the operations of the cocoa industry in Ghana. 


COCOBOD currently purchases a ton of cocoa at GHS 8,240 (GHS 515 per bag). Cocoa is grown in the Ashanti, Eastern, Western, Western North, Ahafo, Bono, Bono East, and Volta regions represented by families, communities, or cooperatives.Cocoa is mainly processed for export but there is a relatively small domestic market for Ghanaian finished cocoa products.

This is predominantly supplied by Golden Tree (the Ghana Cocoa Processing Company for confectionery and cosmetic products), Nestle, and Unilever (chocolate and drink products).


2. Coffee

Ghana is the third-largest coffee producer in sub-Saharan African just behind Liberia and the Central Africa Republic. Ghana produced 735 tons of coffee in 2018. Coffee is grown in the Ashanti, Bono, Ahafo, Eastern, Central, and Volta regions of Ghana. Coffee yield in Ghana was estimated at 2.0 tons per hectare in 2014. 12,250 tons of green coffee were exported in 2015 and currently, there is a 65% supply deficit that needs to be filled.


Through effective regulations and stakeholder engagements, the average farm-gate price of coffee rose from GHS 40 per 65 KG in 2010 to GHS 250 per 65 KG in 2016. In addition, under good farm management practices, an average net income of about GHS 6, 988.30 (US$ 1,767.50) per hectare is estimated to be obtained by the farmer.

Currently, there are 30 Licensed Buying Companies (LBCs) registered to engage in internal purchasing and exports of coffee in Ghana. There are about 10 major roasters of Coffee in Ghana. Regulatory bodies for the coffee industry are COCOBOD, CRIG, and International Coffee Organization.


3. Shea

The Shea industry in Ghana is as old as the cocoa industry. Northern Ghana is the farm belt of shea and its products. The shea industry is currently dominated by women and children who pick and process shea into nuts for sale directly, or as butter on a small scale. The industry is currently assuming a large-scale commercial status with the advent of large-scale shea (nut and butter) buyers and exporters who have in recent years discovered the high value of shea on the international market and are cashing in on it as quickly as possible.


Ghana is currently collecting 130,000 metric tons of shea nuts but has the capacity to do 200,000. Ghana recorded USD 33,572,000 in value of exported processed or industrial shea nuts.

The most active stakeholders in the shea industry are Civil Society Groups comprising the Shea Dealers Associations in all the regions of Northern Ghana, individuals as well as NGOs such as SNV, a Dutch Development Organization, TechnoServe, a US-oriented Food Security organization, the Association of Church Development Projects (ACDEP) and its subsidiary, Savanna Farmers Marketing Company, Ghana Nuts, and PBC.


4. Oil Palm

Oil Palm is the most important edible oil crop in Ghana and in the whole West Africa region. Oil Palm and palm kernel oil represent 2% of the total agricultural production value of Ghana. Ghana exported USD 71.3 million worth of oil palm in 2018. The most suitable areas identified for oil palm cultivation are the Western, Central, and Eastern regions. Large nucleus estates are sited in these regions. The total area under oil palm cultivation is 300,000 hectares. The average yield is 6.3 tons. Major exporters of Crude Palm Oil are Wilmar Africa Ltd, Avnash Industries Ghana Ltd, Praise Export Services Ltd, Ghana Oil Palm Development Company Ltd, etc.


5. Coconut

Ghana is endowed with the ideal climatic conditions for increased production of coconut for both domestic and foreign markets. It is usually grown in smallholder plantations in 8 out of the 16 regions of the country. The total annual production of coconut currently stands at approximately 229 million pieces of coconuts, equivalent to between 350 and 400 thousand MT (2017). Currently, the majority of coconut is consumed domestically, within Ghana. However, there is currently a deliberate effort by the Ghana Government to promote the expansion of the acreages under coconut cultivation to take advantage of the increasing demand in the international markets. Ghana made about USD 1,808,718 in exports of dried or fresh coconut. Coconut is also processed for its oil and shell used for charcoal. Local processors of coconut are Zaacoal, Makola coconut oil, and GKV investments.


6. Cashew

The Bono, Ahafo, Bono East regions account for about 90% of cashew production and exports in Ghana. Ghana controls 43.8% of global in-shell cashew exports. Ghana produced about 70,000 metric tons in 2016. Cashew exports earned the country USD 981M in 2016. There are about 13 processing companies in Ghana with an installed capacity of 35,000 metric tons per year but they process less than 10% of cashew produced in Ghana because farmers claim they get more value in selling raw cashew on the international market than selling it to local processors. The Kristo Buase monastery is the largest cashew plantation In Ghana.


7. Rubber

Ghana has 19,000 hectares of rubber plantations, including 12,000 hectares of industrial plantations. Out of the 7,000 are village plantations and 3,600 are recently planted plantations. Current production stands at some 12,000 tons a year, ranking Ghana in the fifth position in Africa. Ghana Rubber Estate Limited (GREL) is the rubber production company that owns the largest industrial rubber plantation in the country, controlling 98 percent of the domestic rubber market. It holds a 36-year concession of 15,000 ha, of which 9,034 ha are under tapping (of 13,377 ha are planted). GREL’s processing plant produces 15 MT dry rubber content (DRC) of rubber per annum with 5 TM DRC coming from out-growers.


8. Cotton

The production of cotton in Ghana covers the five northern regions and part of the Bono and Ahafo regions specifically, the Kintampo and Atebubu areas. It is purely done by smallholders (peasants) and an out-grower system, typically featuring a farmer and his household. Cotton production has dropped drastically from 45,000 tons in 1998 to 13,000 in 2017 hence contributing very little to the country's GDP. 

Which country is the largest exporter of coffee?

Currently, Brazil is the top exporter of coffee with an export value of USD 4.9 billion in 2020, accounting for 24.1% of world's total coffee export in 2020. Brazil's annual export value averaged USD 4.7 billion in 2016-2020. Colombia (USD 2.4 billion, 11.9%) and Veitnam (USD 1.8 billion, 9.2%) were the next two top exporters of coffee in 2020. 

As for coffee that is roasted (and not decaffeinated), Switzerland is the largest exporter with 23.3% of the export market share in 2020. Switzerland’s 2020 export amounted to USD 2.6 billion in value and 89,000 metric tons in quantity, exporting with the highest unit value compared to other competing countries, such as Italy (USD 1.6 billion, 236,000 metric tons) and Germany (USD 1.6 billion, 234,000 metric tons). 




Who Are the Biggest Importers of Indonesian Coffee?

According to the 2023 Indonesian Statistics report from the Central Statistics Agency (BPS), In 2022 Indonesia exported 434.19 thousand tons, an increase of 12.92% from the previous year (year-on-year). The total export value reached USD 1.13 billion.

The United States (US) is the main destination for Indonesia coffee exports in 2022, with a volume reaching 55.75 thousand tons or 12.84% of total national exports with total value reached USD 268.04 million.

Egypt is the 2nd largest buyer with a volume of 37.61 thousand tons and a value of USD 82.17 million, followed by Germany ( USD 80.93 million), Malaysia (USD 53.25 million), Italy (USD 48.98 million), Russia (USD 44.16 million), Belgium (USD 65,04 million), UK (USD 48,25 million), Japan (USD 59,05 million), Canada (USD 15,6 million) and other countries (USD 370,78 million). 



Seasonality of Main Producing Regions

What Regions of Indonesia Produce Coffee?

Based on the 2023 Indonesian Statistics report from the Central Statistics Agency (BPS), Indonesia's coffee production reached 794.8 thousand Mt in 2022, an increase of around 1.1% compared to the previous year. 

South Sumatera Province is the largest producers of the Robusta coffee, contributing 36% of the total national production. Followed by Lampung (21%), Bengkulu (11%). These 3 regions are contributing to 69% of the Indonesian Robusta coffee production. The other region is East Java province that contributed to 6%.

While the biggest producing region of the Arabica coffee are Aceh and North Sumatra provinces with shares of approximately 33% and 32% to the national production respectively. South Sulawesi and West Sumatra provinces, each share contribution is 12% and 6%. 

For Arabica coffee, around 80% harvested from May to June, then followed by the Robusta coffee harvest period.

In a year, Robusta harvesting can be done twice in stages from February to March and the main harvest season is from April to September. The main harvest period usually lasts 4-5 months with a frequency of fruit picking every 10-14 days. 

What are the main types of coffee beans?

  1. Arabica (Coffea arabica): Arabica coffee beans account for more than 60% of the world’s coffee production. Arabica beans are grown at high altitudes, in areas that receive steady rainfall and have a plentiful amount of shade. Arabica trees are generally easy to care for because the trees are small and easy to prune. Arabica is one of the most delicate varieties, as the beans are easily influenced by the environment and are prone to disease. If Arabica plants are grown in climates where the variety doesn’t naturally thrive, it can take double the effort to keep them healthy. Since Arabica is some of the more popular beans, Arabica is grown in large quantities (called “monoculture”).
  2. Robusta (Coffea caniphora): The robusta variety is very tolerant to its environment and practically immune to disease. Robusta coffee can withstand myriad altitudes, but particularly requires a hot climate where rainfall is irregular. Robusta coffee beans have almost double the amount of caffeine compared to Arabica beans, and the high caffeine content is what makes the plant able to self-defend against disease. As the name suggests, Robusta coffee beans have a strong and robust flavor. A good quality Robusta won’t lose flavor when added to milk or sugar.
  3. Liberica (Coffea liberica): Liberica is a less common variety of beans but still has an important place in the world’s coffee history. When coffee rusts decimated more than 90% of the world’s Arabica stock in 1890, farmers and government agents turned to the Liberica plant as an alternative. The first country to begin producing these beans were the Philippines and this helped the country’s economy as the country was the only coffee supplier of the time. Liberica beans are characterized by their larger size than other varieties, which are shaped asymmetrically and are the only coffee beans to have an irregular shape. The beans are known for their unique aroma, consisting of floral and fruity notes.
  4. Excelsa: Although Excelsa has recently been re-classified as a member of the Liberica family, it differs from Liberica beans in many aspects. Excelsa grows mostly in Southeast Asian regions and accounts for just 7% of the world’s coffee circulation. It is largely used in blends to give the coffee an extra boost of flavor and complexity. Excelsa has a tart and fruity body, which are flavors reminiscent of a light roast. The unique characteristics of this bean make it highly sought out by coffee lovers all around the world.

Where Are the Main Producing Regions of Cameroon Coffee?

Coffee production is very important and grown extensively in the country. Due to its high altitude, rich volcanic soils and ample rainfall coffees from Cameroon are of good quality. They are full-bodied flavor with a well-rounded finish with chocolate characteristics.

The Coffee farming in Cameroon dates to 1884 with first trial gardens in Victoria, Ebolowa, Nkongsamba and Dschang then expanded to Yokadouma, Abong-Mbang, Doumé, Lomié and Akonolinga. Then to the West Region of the country.  

Coffee is grown in seven regions of Cameroon; West, Northwest, Littoral, Southwest, South, Centre and East Region.  Robusta, which is contributing to more than 80% of the crop of the country, is grown in middle elevations in western region and also to some degree in Abang Mbang. 

Bamileke and Bamaoun are the high plateau areas where Arabica plantations are located. These area are located on Cameroon’s high plateau. The cool climate, heavy rainfall, and nutrient-rich volcanic soil mean that its best for growing great the Arabica coffee beans.

Coffee is primarily grown by smallholder farmers.  The farming and harvesting coffee in Cameroon is truly a labor intensive industry. 

After the harvest, the coffee cherries undergo processing to extract the beans. Traditionally, Cameroon employs mostly the Dry/Natural and some quality is with the wet processing method. 

The production of Cameroon’s coffee is placed under the responsibility of the Ministries of Agriculture and Rural Development (MINADER) and that of Scientific Research and Innovations (MINRESI). 

Coffee is a non-seasonal product in Cameroon and is produced all year round, but the peak season is from September to December.



Main Varieties

What Are the Most Common Varieties of Exported Indonesian Coffee?

In 2022, according to ITC Trade Map data, Indonesia exported 377 thousand mt raw coffee beans of the Robusta type, 49 thousand mt of the Arabica type, and 8 thousand mt of other types. Thus, 98% of Indonesian exports correspond to Robusta and Arabica types. 

What Species of Coffee Does Cameroon Produce and Export?

Robusta dominates in the Cameroon coffee industry, of approximately 85% of coffees grown in the country. It is mainly grown in the Littoral provincial area and in the Adamawa, East, Southwest, and West provinces. Cameroon Robusta coffee taste note are balanced, chocolatey, earthy, and  distinct nutty taste. It has a medium quality and is generally used for a coffee mixture. 

While Arabica mainly grown and produced in the Western highlands and the Northwest province. The varieties are Bourbon, Typica, and Java. Java has only recently been introduced to Cameroon, known for its higher yield and resistance to coffee berry disease. The Arabica coffee produced in Cameroon is  high quality with a sweet and balanced taste and frequently used for gourmet whole coffee beans. The taste character are acidic, fruity, floral, and sweet notes.

The harvest period is from September to December. For Robusta, the most popular processing method is the Dry/Natural processing while the Arabica in this country mostly using wet-processed method. 

The growers of both Robusta & Arabica dominated by smallholding plantation and only 25% by estates. The average farmer holdings are 0.5 to 1.9 ha per farmer. 

Specification of coffee grades 

The commercial classification of coffee in Cameroon is determined by the number of defects identified, on the one hand, and by granulometry, on the other. Defects are counted on a final average sample of 300 grammes for all botanical species, classified  in accordance with national standards NC 225 and NC 226, as follows:

• Café gragé (Arabica coffee only).

• Extra-prima: 8 defects with no sour beans

• Prima: 16 defects with no sour beans.

• Superior: 32 defects with no sour beans.

• Courant: 64 defects with no more than three sour beans

• Café Limite, except for Liberica.

What Are the Key Varieties of Colombian Raw Coffee Beans?

According to Cenicafe, the main types of coffee produced in the world are Arabica coffee and Robusta coffee. Nevertheless, Colombia only produces Arabica coffee which produces a soft drink, which has the best prices and is more widely accepted globally. Moreover, the varieties of Arabica coffee that are sown in Colombia are Tipica, Bourbon, Maragogipe, Tabi, Caturra, and Colombia variety.

Packaging

What Is the Standard Packaging for Coffee Trade in Indonesia?

The common packaging standard for coffee beans export is in a 60 KG bag or 132,276 pounds. Some exporting countries use bags of 70 KG or other weights. Coffee commodities can be transported using standard dry sea containers (20 ft or 40 ft in size) or airfreight.

What Is the Industry Norm Packaging for Coffee Export from Colombia?

Green coffee packaging is in 35.70 KG bags or bulk. Usually, 35 KG bags are used for specialty coffees. Moreover, if a buyer wants to ensure the shelf-life of the product, it can be sent with a grain pro bag inside the fique bag.

What Is the Packaging for Exported Cameroonian Coffee?

For the export of coffee from Cameroon, the coffee beans are packaged in vacuum-sealed bags or polypropylene bags of 60 KG.

Regulations in Exporting Country

What Are Some of the Necessary Steps in the Colombian Coffee Export Process?

  • An exporter needs to be registered at FNC and obtain an export license. Contributions must be paid to FNC for all export sales
  • The more value-added the product is, the less contribution is required to pay to FNC

Is Coffee Regulated by the Indonesian Government?

Based on Government Regulation No. 5/2021, concerning the Implementation of Risk-Based Business Licensing, business is required to have a Business Identification Number (NIB), or company registration number, to carry out business activities in Indonesia. 

Related regulation for the export of the coffee commodity:

- Ministry Trade decree No. 19/2021

- Ministry Trade decree No. 2/ 2022


Required documents for export:

- Certificate of Origin (COO) or COO Form International Coffee Organization (ICO)

- Export documents, including: quarantine document, Certificate of Free Sale, Health Certificate & Export Notification for Food Packaging

- Documents are required by the country of destination 

Is There an Export Tax Payment Required for Coffee in Cameroon?

Cameroon levy fixed amounts of FCFA75/kg on exports of green coffee, while there are no taxes on exports of roasted or soluble coffee.


While for import, Cameroon applies duty of 5-30% (HS code 090111 ), 30% (HS code 090112) 30% (HS code 090121) and 30% (HS code 09012200)

Quality Control/Certification

How are coffee beans graded?

Below are the grades under the SCAA Green Coffee Classification:

  • Grade 1: Specialty Grade Coffee Beans - no primary defects, 0-3 full defects, sorted with a maximum of 5% above and 5% below specified screen size or range of screen size, and exhibiting a distinct attribute in one or more of the following areas: taste, acidity, body, or aroma. Also must be free of cup faults and taints. Zero quakers allowed. Moisture content between 9-13%.
  • Grade 2: Premium Grade Coffee Beans - Same as Grade 1 except a maximum of 3 quakers. 0-8 full defects.
  • Grade 3: Exchange Grade Coffee Beans - 50% above screen 15 and less than 5% below screen 15. Max of 5 quakers. Must be free from faults. 9-23 full defects.
  • Grade 4: Standard Grade Coffee Beans - 24-86 full defects
  • Grade 5: Off-Grade Coffee Beans - More than 86 full defects

What factors affect the quality of coffee beans?

There are several components that determine the quality of coffee beans, these include Climate, Soil type, Topography, and Storage.

  • Climate: Temperature, sunlight, rainfall, humidity, and wind
  • Soil Type: Fertility, acidity, drainage, and composition (volcanic soil is particularly well-suited to coffee plants)
  • Topography: Natural landscape features including mountains, valleys, and nearby bodies of water
  • Storage: Both atmosphere and temperature in association with storage time influenced chemical and sensory changes. Chemical transformations induced by storing roasted coffee beans are responsible for chemical and physical changes that may have a great influence on the quality

What Is the Quality Check Process for Indonesian Coffee Beans?


Indonesian standard & certification body has released the national 6 standards for coffee commodity and coffee related product, as following:

• SNI 01-3542-2004 Coffee powder

• SNI 2907:2008 Coffee beans

• SNI 7708:2011 Sugar & creamer coffee ready to make

• SNI 2983:2014 Instant coffee

• SNI 4314:2018 Ready to drink coffee

• SNI 8773:2019 Premix coffee


Indonesia quality standard of the coffee beans is by the defect rate which refer to the National standard SNI Standard SNI 01-2907-2008





Required Documents

What Qualification Requirements Are There for Coffee Exporters in Indonesia?

To be able to export this commodity, an exporter must already have registered as an exporter of coffee from the Ministry of Trade. Exporters can use the license for shipment of export from any port in Indonesia. Qualification of the coffee exporter company in Indonesia:

  • Must have legal business entities (CV, PT, PD, etc.)
  • Must have a general export permit
  • Registered coffee exporter license (SPEK: Surat Persetujuan Ekspor Kopi)

What Are the Required Documents to Export Coffee from Cameroon?

The Profession of exporters is regulated by law N° 95/11, 27 July 1991, to organize the marketing of cocoa and coffee as amended and supplemented by law N°2004/025 of 30 December 2004. It shall be open to:

-Economics Operators

-Organizations set up by producers

-Local processing units


To become an Exporter, operators shall present a complete file Containing:

- Certificate of incorporation

- Tax payer card 

- Im-matriculation number of CIG 

- Attestation of non indebtness


After which the following documents shall be issued:

1. Attestation of Compliance Certificate 

2. Declaration of Existence 

3. Exporter Code

4. professional Card 

5. Adhesion to GEX



What Are the Required Documents to Export Colombian Coffee?

To export small quantities of Colombian coffee, after the registration at the FNC and preliminary processes and payments, here are some of the documents needed:

1. FNC portal documents, which include proof of payments, certificate of liquidation, and weight certificate. 

2. Other certificates, some of which depend on the export destination. 

ICO certificates (Certificate of Origin)

Quality certificate (emitted by Almacafe, part of the FNC)

ICA or INVIMA certificates (sanitary)



General Product Introduction

How is the market landscape for Brazil coffee beans?

Global Market: 

  • Global Market Size: 27 B (2020)
  • CAGR 6.7% Increase (Over the next 6 years, 2019 vs 2025)


Export Market: 

  • Brazil: 4.97 B
  • Colombia: 2.45 B
  • Vietnam: 2.24 B
  • Honduras: 1.08 B (Exporting hefty amount compared to its production volume)
  • Indonesia: 809 M


Import Market

  • US: 4.21 B
  • Germany: 2.74 B
  • Italy: 1.23 B
  • Japan: 1.05 B
  • Belgium: 763 M

** China: 158 M (5.83% 5-year CAGR) - a country with increasing demand


Key Trends 2020/21-2021/22

Production:

  • The production and export volumes are both expected to decrease due to instabilities in the coffee bean supply
  • Due to climate change, Brazil is experiencing higher temperatures and lower precipitation which are causing miscarriage of most of the coffee plant flowers
    • Another side effect of climate change is a delay in the coffee fertilization schedule. Growers typically follow well-planned crop maintenance schedules from September to March. In 2020, due to the lack of rain, fertilizer application has been delayed, and such delays may affect plants for two seasons to come

Export and Prices:

  • According to the USDA, the Brazilian coffee export is projected to decrease by a whopping number of 10 million bags recording mere 35.22 million bags in MY 2021/22 due to lower product availability
  • Market prices of coffee beans are expected to increase due to the abrupt decrease in supplies
    • Brazil coffee does have some seasonality in prices, but the increase in average prices is caused by a supply shortage
  • There is a gradual increase in the price from the huge discrepancy between the demand and the supply volume. The worldwide increase in demand and the instability of coffee bean supplies are causing the gradual increase


What is the production trend?

Due to climate change, Brazil is experiencing higher temperatures and lower precipitation which are causing miscarriage of most of the coffee plant flowers. During the flowering, temperatures above 33 Celsius impair the pollen’s encounter with the flower egg, thus reducing the number of seeds. Even if the fertilization happens, the seeds in the formation will need at least 40 millimeters of rain after the blossom develops. There’s also a higher danger of coffee crops burning due to climate change. There are cases of producers who have lost more than 20% of their coffee-growing areas to fire. Another side effect of climate change is a delay in the coffee fertilization schedule. Growers typically follow well-planned crop maintenance schedules from September to March. In 2020, due to the lack of rain, fertilizer application has been delayed, and such delays may affect plants for two seasons to come

What are the International Coffee Organization (ICO) Indicator Prices?

ICO indicator prices, which are published daily by the International Coffee Organization, represents and tracks the four main types of coffee available in the international market: 

  1. Colombian mild Arabicas
  2. Other mild Arabicas
  3. Brazilian and other natural Arabicas
  4. Robustas

These indicator prices represent spot or cash prices, quoted in the market for coffee that is more or less immediately available, or within a reasonable time span.

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