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Brazilian coffee exports to China are expected to surge in 2024
- Coffee consumption in China has grown massively in recent years and shows no signs of slowing down
- Chinese coffee chain giant Luckin Coffee is betting big on Brazilian coffee meeting that demand with a new two-year agreement
The Brazilian Coffee Exporters Council (Cecafé) estimates that exports to China will hit 2.5 million bags in 2024, a 65 percent increase over the previous year.
The total value of Brazilian coffee purchased by China is expected to hit US$525 million this year. This growth is due in part to a memorandum of understanding signed with Luckin Coffee, the largest coffee shop chain in China with more than 16,000 stores across over 240 cities. Valued at US$500 million, the agreement with the Brazilian Trade and Investment Promotion Agency (ApexBrasil) represents a commitment to purchase 1 million bags a year over a two-year period.
This compares with the US$280 million worth of coffee sold to all buyers in China in 2023, underscoring the speed with which consumption is growing. Luckin Coffee is growing too, outpacing US giant Starbucks in terms of sales value in China in 2023.
Back in 2013, only around 190 million people in China drank coffee. That figure has surged in the decade since, up over 70 percent to 330 million – a quarter of the entire population. Cecafé CEO Marcos Mattos said young office workers, predominantly women, make up the majority of coffee enthusiasts in China.
Brazil is the world’s leading coffee producer – far outpacing Vietnam and Colombia in second and third place – with 55 million bags harvested in the last growing season. The country is also renowned for offering quality beans at a good price, diverse varieties and robust industry infrastructure, making it an ideal partner for China.
China is also a boon to Brazil. “China’s growth will drive the demand for Brazilian coffee, especially for blends,” explained Orlando Editore, head of coffee at the Datagro consultancy. Consumption globally is dominated by coffee blends, which mix beans from different sources.
Brazil's coffee exports to China reach new high
2024-08-14 17:08 Last Updated At:08-15 00:57Brazil, the world's largest coffee producer, has witnessed a rapid surge in its coffee exports to China in recent years, hitting a record high in 2023.
In the first half of 2024, over 510,000 bags (each weighing 60 kg) of Brazilian coffee were delivered to Chinese consumers.
In a coffee farm named "Santa Izabel Fazenda" in Minas Gerais state in southeastern Brazil, around 42,000 coffee trees are bearing coffee cherries of 40 different varieties. Just a few years ago, coffee beans grown in this farm started making their way to a new large market -- China.
Marquinho Florezi, the farm's manager, explained the fermentation and drying processes of fresh coffee cherries. "It's a good harvest, and we expect high-quality coffee since there was no rain during maturation. After harvesting, we wash the coffee beans and sort them by color, selecting ripe, green, and drier ones. Then, we place the beans in barrels for fermentation, which lasts 100 hours. This is the first batch to complete fermentation. After this, the coffee will be dried for another seven to ten days," said Florezi.
The processed coffee is usually sent to a nearby export company. The company began exporting coffee to China in 2017 with just 600 bags (each 60 kg) a year. In recent years, exports have increased significantly because of the rising demand and recognition of Brazilian coffee quality in the Chinese market.
"The coffee export volume to China has grown greatly. Last year, we exported about 10,000 bags of coffee (each 60 kg) to China," said Victor Vuolo, the company's manager.
In 2017, Brazil exported fewer than 100,000 bags of coffee to China, but by 2023, that number had risen to nearly 1.5 million sacks, according to data from the Council of Coffee Exporters of Brazil.
"China, which was ranked the 22nd on the list of Brazil's coffee exports until 2022, has now moved up to the sixth place, showing significant growth. Coffee has become a cultural symbol for the Chinese, and Brazil hopes to be the leading partner in supporting the expansion of the coffee culture in China," said Marcos Antonio Matos, general director of the council.