This has been a great year for Brazilian coffee, which seems strange considering the circumstances we are in globally. The Covid pandemic has without a doubt brought a level of instability to our market and there has been a lot of volatility in the market price. However due to the way a good proportion of coffee is harvested in Brazil there has been less impact here on the harvest and the qualities available. The FX has also meant that we have been able to pay good prices internally and still keep the USD per LB price at a reasonable level considering the qualities we are working with.
Brazil is without a doubt the producing country we work with the largest proportion of its harvest picked mechanically. Even in cases where producers are doing a combination of hand picking and mechanical picking, there is often quite advanced machinery in place to sort the ripe from the over and under ripe cherries post harvest. This has been a great advantage for Brazil this year, while many other coffee growing countries have suffered from a lack of pickers who could not travel to coffee growing regions due to restrictions imposed during the pandemic. We have not seen the quality drop either.
A good advantage we have had in Brazil is the effect of the FX in holding prices at relatively low levels in relation to the qualities. The USD to BRL exchange rate during this purchasing season so far has ranged from $1/BRL5.74 to the current rate of $1/BRL5.08, compared to the range in 2019 which was $1/BRL3.78 to $1/BRL4.17. This has meant we have been able to pay good prices internally while still maintaining reasonable prices in USD/LB.
While the harvest is coming to an end there are still good volumes available for shipment now and throughout January. Get in touch to arrange samples.