Global coffee exports grew by 1.2% on a year earlier in August, ICO data shows, making the slowest rate of expansion since July 2015’s marked contraction. A 34.8% slump in shipments from Vietnam was the main driver. It had previously supported the shortfall from Brazil, which in turn saw a 5.7% slide in exports, the 11th drop in the past 12 months. That looks set to continue after pest damage may lead to further poor harvest conditions, Agrimoney reports. The continuing growth was the result of increased shipments from Indonesia, Honduras and India among others. The latter expanded by 37.6%, the fastest rate of growth since November.
Source: Panjiva
Brazil’s decline is equivalent to 25.1% for the three months to August 31 on a year earlier, Panjiva data shows. That has led buyers in Germany and Italy in particular, led by Tchibo and Lavazza, to find alternative supplies with the imports falling by 36.7% and 38.8% respectively in the three months to July 31. U.S. buyers, led by JM Smucker’s Folger, had been more aggressive in securing volumes, with a decline of just 14.3% in the past quarter.
Source: Panjiva
As a consequence of Brazil’s decline U.S. buyers have turned to Colombian suppliers, which accounted for 22.8% of supplies after rising 61.8% on a year earlier to become the largest source of coffee. U.S. consignees, including JM Smucker as well as Chiquita, have also increased shipments from Guatemala with a 39.3% increase in shipments.
Source: Panjiva