From the Field, News
Monday, June 6, 2022
Brazil Harvest Update 2022
This year’s harvest in Brazil looks promising, say Marco Godinho, Trader at Sucafina Brasil, and Luis Fernando Esteves Joaquim, Head of Research & Trader at Sucafina North America. We checked in with them to get the latest on crop size, quality and farmer profitability.
Farms are recovering well from the frost last year, Marco says. This is thanks to their focus on Good Agricultural Practices and the very good weather conditions Brazil has been experiencing since October 2021. The 2022/2023 crop is ‘on cycle’, meaning it’s a higher yield year, and we’re expecting around 63 to 64 million bags, Luis Fernando says. Due to bad weather conditions (frost and drought) in Brazil in 2021, the Arabica numbers will be smaller than originally projected, resulting in the smallest on-cycle crop since 2016/2017. However, the crop is 21% larger than the 2021/2022 crop. The Conilon crop is expected to be much higher than previous crops, reaching a new record of nearly 23 million bags.
Internal coffee prices skyrocketed in 2021, more than doubling during the last quarter due to the NY market rise. This change helped farmers get good margins even as lower production due to the frost affected crop size, Marco explains.
At the same time, farmer profitability has been restrained by the rise in inputs and fuel prices. Fertilizers have seen a 60% increase since the previous year and fuel has increased by more than 15% over the same time period.
To support farmers, Sucafina Brasil founded its sustainability department in July 2021. “Today the department has 3 multidisciplinary professionals who visit farmers and support them with environmental, social and economic changes they can make to improve profitability and sustainability,” Marco says. Sucafina Brasil’s research team also visits farmers and provides technical support regularly.
“We have been facing unprecedented times with producers concerned with the latest weather events and that undermines their confidence about forward business,” Marco says. “That’s where knowing your supplier and working directly with farmers and cooperatives makes all the difference.” Sucafina is working hand in hand with producers and cooperatives to help maintain coffee quality and yield in the face of environmental changes and to ensure that producers receive fair prices for their hard work.
Now is the time to prebook Brazilian coffees. While it’s smaller than originally projected, we’re still expecting a significant harvest from Brazil this year. Provided that optimal weather conditions continue, we’re expecting a high-quality harvest with a sizable number of microlots and Fully and Semi washed lots. Get in touch with your trader to sample and pre-book today.