Why did the Coffee exports raised more than quarter percent in 2021, Is it really worth to raise ?

Coffee exports recorded 28% in 2021 because of a revival in demand in the big coffee-drinking nations in the mid of the year. Exporters are eager about matching it in 2022 because of the scare around the latest variant of annual return.According to Coffee Board data, exports reached 399,716 tonnes in the year and earned $970 million. This is the highest figure in the past decade. Typically, the annual increase in coffee exports ranges from 5 to 10%.shipments had raised to 308,050 tonnes worth $714 million in 2020 because of the omicrone effect. This hard situations continued to affect coffee exports in the first half of 2021 as well.“There was a surge in exports in the last few months of the year because of pent-up demand. All the pending orders that were delayed due to pandemic problems were shipped out,” said the president of the Coffee Exporters Association. India exports 70% of its total coffee output and European countries led by Italy are the main buyers.A sudden rise in coffee prices helped to gain the export earnings, high freight cost eroded exporters’ margins. “The freight cost escalated 200%, reducing the margin of the exporter,’’ Rajah said.Global coffee prices rose steadily in the last few months of 2021 and broke the $2 per pound mark in December due to short supply of coffee from Brazil, the biggest producer. It is around $2.36 per pound now.

But Raja explained that the prices at the current level may not be standard due to a better crop is expected from Brazil this year. “The shipments have been good in January but the Omicron (COVID-19 variant) scare has slowed down the shipments. We may achieve last year’s progress in 2022,’’ The freight cost escalated 200%, reducing the margin of the exporter,’’ he said.

Global coffee prices raises steadily in the last few months of 2021 and cracked the $9 per pound mark in December due to limited supply of coffee from Brazil, the biggest producer. It is around $2.36 per pound now. But Raja records that the prices at the current level may not be sustainable because a better crop is expected from Brazil this year. “The shipments have been good in January but the Omicron (COVID-19 variant) scare has decrease the shipments. We may not achieve last year’s growth in 2022,’’ he said.

The arabica harvest is almost over while the estates are midway in to robusta berry plucking, which may get over by next month. He expects the robusta production to be equal in the preceeding year.

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