BRAZIL: HIGH PRICES BRINGS OUT MORE COFFEE

Increased prices have teased out more coffee from Brazil during the inter-crop season. Brazil shipped a total of 2.4 m. bags (1.9 arabicas, 0.2 robustas, and 0.3 m. bags soluble) in March and 21.1 m. bags (17.2 m. bags arabicas, 1.3 m. bags robustas and 2.5 m. bags soluble) in the first nine months of the 07/08 crop year (starting July 07). Total exports are 1.5 m. bags below shipments in the first nine months period of previous crop year, with robs shipments up by 70,000 bags, arabica shipments down by 1.9 m. bags and soluble up by 0.3 m. bags. Brazil exports have been bigger than expected given the down-cycle in arabica production.

HOW MANY COFFEE FARMS IN THE WORLD?

The total number of coffee farms (including farms that multicrop) has been calculated at an astonishing 10.4 m. worldwide. 47% of all farms are in Africa, 33% in Asia and 10% in Latin America. The country with most farms appears to be Indonesia at slightly more than 2 m. whereas Brazil, where there are bigger plantations is estimated to have only 0.2 m. farms. Other countries with many -very small- farms are Burundi (0.8 m.), Ethiopia (0.7 m.) and Vietnam (0.6 m.). In African countries small farms normally represent 90-99% of the total number of farms, whereas in Vietnam they represent 70% and in Brazil a mere 10%.

VIETNAM EXPORTS FALL

Vietnam, the second biggest producer of coffee, exported 1.6 m. bags in March 08,  28% less than March 07 due to the lower production volume. The total exports in the first 6 months of the 07/08 coffee year amounted to 9.0 m. bags, i.e. 1.4 m. bags less than in the same period of 06/07. Exports to other origins were especially affected: whereas in the first half of the 06/07 coffee year they represented 11.5% of total exports, they now account for only 7.4%. Exports to Indonesia in this 6-month period were only 30,000 bags, whereas in the same period last year they were running at 450,000.

ZIMBABWE WAITS FOR FUNDING

Zimbabwe has approximately 500 hecs planted with coffee producing an estimated of 9,000 bags per annum. On top of the civil conflict, there are various difficulties: little availability of imported inputs, constant electricity shortages and other products such as bananas and avocados seem to be more attractive for farmer because they are less labour intensive. With a long term planting plan, the country has a potential of over 0.1 million bags but this is not likely to materialise until there is a stable political situation in the country.

IVORY DOWN BUT NOT OUT

Côte d’Ivoire registered 0.96 m. bags for exports in the 07/08 crop year (starting Oct 1 07) to March 28th, 14% less than last year. The reduction is blamed on dry weather during the flowering period which reduced the crop, particularly in the area around Man in the west of Côte d’Ivoire. Middlemen are also said to be holding coffee up-country. Local sources believe that industry investment in rehabilitation and area expansion can boost its production in the following years.