China increases imports of Brazilian coffee; understand the reasons for growth
Raw Common Coffee Bean
China
Brazil
Market & Price Trends
Published Feb 21, 2024
Tridge summary
China is steadily becoming a significant importer of Brazilian coffee, holding its 6th position in January, despite accounting for only 4% of Brazil's coffee exports. This trend is influenced by China's shift to net imports since the 10/11 cycle and its low per capita consumption of 0.21kg annually, compared to the global average of 1.3kg. However, with a current average annual per capita growth rate of +12%, China could potentially rise to the 5th position in global coffee consumption. The dynamics of Chinese supply and demand are strengthening, with domestic consumption divided between roasted and ground coffee.
Disclaimer: The above summary was generated by a state-of-the-art LLM model and is intended for informational purposes only. It is recommended that readers refer to the original article for more context.
Original content
Recent export data reveals China as a key importer of Brazilian coffee, maintaining 6th position in January. • Despite representing 4% of Brazil's coffee exports, the increase in imports by China, which began in the second half of 2023 with the diversion of availability from Ethiopia, challenges traditional destinations. This change is driven by variations in differentials and places China as a potential important coffee destination in the coming years. • Factors influencing the coffee market in China include the shift in production to net imports since the 10/11 cycle and low per capita consumption (0.21kg annually), compared to the global average (1.3kg). Chinese supply and demand dynamics are strengthened with the predominantly Arabica coffee production, an almost equal internal division between roasted & ground coffee and soluble coffee, and a potential growth in the share of global demand if +12% growth in consumption per capital is maintained. Still, cultural barriers, such ...
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