Brazil’s coffee stocks are running low as farmers sell nearly all their beans ahead of the upcoming harvest, driven by soaring global coffee prices. The current situation has created a significant gap in coffee supply that is expected to affect prices and availability for consumers. The coffee industry is adapting by exploring sustainable practices to combat climate change challenges.
Brazil, the world’s largest coffee producer, is experiencing a significant decline in its coffee stocks, which have been primarily depleted due to high demand and substantial global prices that have nearly doubled in the past 14 months. Coffee farmers have sold nearly all their beans in anticipation of record exports for the 2024 season, following a recovery from a historic drought that previously hampered production. As a result, the country’s coffee warehouses, typically filled with millions of bags, are now largely empty and may run out by May, ahead of the new harvest set to begin late May or June.
The price surge has affected both Arabica and Robusta coffee varieties, with Arabica prices increasing by 70% in 2024 and Robusta seeing a rise of 72%, leading to record highs. Farmers are facing challenges due to the depleted stocks, creating a gap in supply that will not be filled until July, when the first shipments of fresh beans are expected. This situation has intensified volatility within the global coffee market, impacting not only producers but also consumers and international buyers who depend on affordable coffee imports.
Weather-related challenges have also affected Vietnam, the second-largest coffee exporter, where exports decreased by 17.2% as robusta producers faced adverse conditions. Both Cooxupe, the largest coffee production cooperative, and Cocapec, Brazil’s third-largest, report that while their warehouses appear full, virtually all of their coffee stocks have been sold and are awaiting shipment.
The current market dynamics suggest coffee prices are likely to continue rising due to the ongoing shortage, influencing negotiations between farmers and international buyers. The coffee industry is actively exploring sustainable farming practices and resilient varieties to adapt to the challenges posed by climate change, which threatens crop yields globally.
In summary, Brazil’s coffee stocks are critically low due to increased demand and skyrocketing prices, resulting from a recent drought recovery. As the country prepares for exports, current inventories may deplete by May, leading to anticipated price hikes. The volatility in the coffee market underscores the need for adaptation strategies in light of climate change, which continues to impact global production dynamics.
Original Source: www.azernews.az
