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High Prices Guarantee Healthy Performance of Brazilian Coffee

Brazilian coffee exports grew 31.2% in October this year when compared to the same month last year, reaching US$ 328.9 million, according to figures supplied by the Brazilian Coffee Exporter Council (CeCafé).

Last month, Brazil exported the equivalent to 2.7 million 60-kilogram bags of coffee. The volume also represented an increase over the result in October 2005, but in that case the expansion was 25%. The good performance of coffee exports is mainly due to coffee price increases.

From January to October, Brazil exported 21.4 million bags of coffee, a reduction of 0.7% over the same months in 2005. In terms of revenues, there was an increase of 7.2%. This information was disclosed by the CeCafé.

A study by the National Food Supply Company (Conab) had forecasted in August that Brazil would produce 41.6 million 60-kg bags of coffee this year.

That volume would represent growth of 26.2%, or 8.6 million bags more than in the previous harvest, which totaled 32.94 million bags. Now those estimates seem to have been quite exaggerated.

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