Russia-Ukraine war directly impacts soluble coffee exports from Brazil

Published 2022년 5월 16일

Tridge summary

The Brazilian Association of the Instant Coffee Industry (Abics) has reported a 4.7% decrease in national exports of instant coffee in the first four months of 2022, totaling 1,221,603 bags of 60 kg, due to the impacts of the Russia-Ukraine conflict. The war has significantly reduced imports of Brazilian soluble coffee by these countries, which were responsible for 13% of Brazil's total exports last year. The instant coffee sector in Brazil is expressing concerns due to logistical bottlenecks and high export raw material costs, with potential losses estimated to reach 500 thousand bags and US$ 100 million in foreign exchange this year. Despite these challenges, domestic soluble coffee consumption in Brazil slightly increased by 1.2% in the first four months of 2022.

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Original content

According to a statistical report by the Brazilian Association of the Instant Coffee Industry (Abics), national exports of the product fell by 4.7% in the first four months of 2022, totaling the equivalent of 1,221,603 bags of 60 kg. In the same period last year, the country sent 1,282,454 bags. According to the numbers collected, the negative performance reflects the impacts of the war between Russia and Ukraine, whose imports of Brazilian soluble coffee, together, fell by 66,572 bags from January to the end of April. "Considering that our total exports fell by 60,851 bags in the four-month period, this drop in performance so far is justified by the amount we stopped exporting to these Eastern European nations since the beginning of the conflict", explains the director of Institutional Relations at Abics, Aguinaldo Lime. As the war spreads, he understands that the impacts should be significant, since Russia and Ukraine are traditionally big customers of Brazilian soluble coffee. ...

Source: Portal Do Agronegocio