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July 2023 Sees $44M Increase in Decaffeinated Coffee Import to United States

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Global Trade Daily, United states news

July 2023 Sees $44M Increase in Decaffeinated Coffee Import to United States

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U.S. Decaffeinated Coffee Imports

In July 2023, decaffeinated coffee imports into the United States contracted to 6.7K tons, falling by -5.9% on the previous month’s figure. Overall, imports showed a pronounced setback. The growth pace was the most rapid in January 2023 when imports increased by 30% month-to-month.

In value terms, decaffeinated coffee imports expanded to $44M (IndexBox estimates) in July 2023. Over the period under review, imports saw a perceptible contraction. The growth pace was the most rapid in January 2023 with an increase of 21% against the previous month.

Imports by Country

Germany (1.4K tons), Brazil (1.3K tons) and Mexico (891 tons) were the main suppliers of decaffeinated coffee imports to the United States, together accounting for 54% of total imports. These countries were followed by Colombia, Vietnam, Honduras and Peru, which together accounted for a further 29%.

From July 2022 to July 2023, the most notable rate of growth in terms of purchases, amongst the main suppliers, was attained by Honduras (with a CAGR of +2.0%), while imports for the other leaders experienced a decline.

In value terms, the largest decaffeinated coffee suppliers to the United States were Brazil ($8M), Germany ($6.9M) and Colombia ($5M), with a combined 45% share of total imports. Mexico, Honduras, Vietnam and Peru lagged somewhat behind, together comprising a further 23%.

In terms of the main suppliers, Honduras, with a CAGR of +1.2%, recorded the highest growth rate of the value of imports, over the period under review, while purchases for the other leaders experienced a decline.

Imports by Type

In July 2023, unroasted decaffeinated coffee (6.1K tons) was the main type of decaffeinated coffee supplied to the United States, with a 92% share of total imports. Moreover, unroasted decaffeinated coffee exceeded the figures recorded for the second-largest type, roasted decaffeinated coffee (552 tons), more than tenfold.

From July 2022 to July 2023, the average monthly rate of growth in terms of the volume of import of unroasted decaffeinated coffee stood at -2.4%.

In value terms, unroasted decaffeinated coffee ($34M) constituted the largest type of decaffeinated coffee supplied to the United States, comprising 76% of total imports. The second position in the ranking was taken by roasted decaffeinated coffee ($11M), with a 24% share of total imports.

Import Prices by Country

In July 2023, the decaffeinated coffee price amounted to $6,642 per ton (CIF, US), rising by 8.3% against the previous month. In general, the import price saw a relatively flat trend pattern. As a result, import price attained the peak level and is likely to continue growth in the immediate term.

There were significant differences in the average prices amongst the major supplying countries. In July 2023, the country with the highest price was Canada ($10,874 per ton), while the price for Vietnam ($3,742 per ton) was amongst the lowest.

From July 2022 to July 2023, the most notable rate of growth in terms of prices was attained by Brazil (+1.1%), while the prices for the other major suppliers experienced mixed trend patterns.

Source: IndexBox Market Intelligence Platform 

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Archives, Global Trade Daily, Market insight

U.S. Decaffeinated Coffee Price Fluctuated Mildly over 2022

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U.S. Decaffeinated Coffee Import Price per Ton July 2022

In July 2022, the decaffeinated coffee price per ton amounted to $6,601, growing by 2% against the previous month. Over the period from January 2022 to July 2022, it increased at an average monthly rate of +2.4%. The most prominent rate of growth was recorded in March 2022 an increase of 13% m-o-m. The import price peaked at $6,602 per ton in May 2022; afterwards, it flattened through to July 2022.

There were significant differences in the average prices amongst the major supplying countries. In July 2022, the country with the highest price was Colombia ($6,656 per ton), while the price for Vietnam ($3,492 per ton) was amongst the lowest. From January 2022 to July 2022, the most notable rate of growth in terms of prices was attained by Colombia (+4.3%), while the prices for the other major suppliers experienced more modest paces of growth.

U.S. Decaffeinated Coffee Import Prices by Type

Prices varied noticeably by the product type; the product with the highest price was roasted decaffeinated coffee ($20,453 per ton), while the price for unroasted decaffeinated coffee stood at $5,687 per ton.

From January 2022 to July 2022, the most notable rate of growth in terms of prices was attained by unroasted decaffeinated coffee (+2.5%).

U.S. Decaffeinated Coffee Imports

Decaffeinated coffee imports into the United States amounted to 8.8K tons in July 2022, with an increase of 15% on the month before. Overall, imports continue to indicate a modest expansion. The most prominent rate of growth was recorded in April 2022 with an increase of 20% against the previous month. As a result, imports attained the peak of 9.1K tons. From May 2022 to July 2022, the growth of imports remained at a lower figure.

In value terms, decaffeinated coffee imports soared to $58M (IndexBox estimates) in July 2022. The total import value increased at an average monthly rate of +3.4% over the period from January 2022 to July 2022; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. The most prominent rate of growth was recorded in March 2022 when imports increased by 32% m-o-m. Imports peaked in July 2022.

U.S. Decaffeinated Coffee Imports by Type

In July 2022, unroasted decaffeinated coffee (8.2K tons) was the main type of decaffeinated coffee supplied to the United States, accounting for a 94% share of total imports. Moreover, unroasted decaffeinated coffee exceeded the figures recorded for the second-largest type, roasted decaffeinated coffee (543 tons), more than tenfold.

From January 2022 to July 2022, the average monthly rate of growth in terms of the volume of import of unroasted decaffeinated coffee was relatively modest.

In value terms, unroasted decaffeinated coffee ($47M) constituted the largest type of decaffeinated coffee supplied to the United States, comprising 81% of total imports. The second position in the ranking was held by roasted decaffeinated coffee ($11M), with a 19% share of total imports.

U.S. Decaffeinated Coffee Imports by Country

Brazil (1.8K tons), Germany (1.5K tons) and Mexico (1.3K tons) were the main suppliers of decaffeinated coffee imports to the United States, together accounting for 52% of total imports.

From January 2022 to July 2022, the biggest increases were in Brazil (with a CAGR of +7.1%), while purchases for the other leaders experienced more modest paces of growth.

In value terms, Brazil ($9.6M), Germany ($8.8M) and Colombia ($8.5M) appeared to be the largest decaffeinated coffee suppliers to the United States, with a combined 47% share of total imports.

Colombia, with a CAGR of +10.3%, saw the highest growth rate of the value of imports, among the main suppliers over the period under review, while purchases for the other leaders experienced more modest paces of growth.

Source: https://www.indexbox.io/blog/decaffeinated-coffee-price-per-ton-july-2022/

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Coffee Prices to Stumble After Surging 30% in 2021

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IndexBox has just published a new report: ‘World – Coffee (Green) – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

Coffee prices remain highly volatile. In 2022, the average annual price for Arabica is forecast to decline thanks to expected production growth, while Robusta price will go up on skyrocketed demand from consumers, preferring cheaper alternatives to more expensive counterparts.

Key Trends and Insights

In 2022, the coffee price for Arabica is forecast to drop by about -2% y-o-y to $4.2 per kg, while Robusta will rise by 2% y-o-y to $2.0 per kg, the World Bank’s October forecast states. Expected production growth in Brazil is to push Arabica prices down. The price increase for Robusta is caused by heightened demand after many consumers began to seek cheap alternatives to more expensive Arabica.

The average annual price for Arabica coffee rose by 36% y-o-y to $4.51 per kg in 2021, while Robusta went up by 31% y-o-y to $1.98 per kg over the same period. The average monthly price in December 2021 reached $5.91 per kg for Arabica and $2.48 per kg for Robusta.

Brazil, the world’s largest supplier of coffee with a 35% share of global exports, shipped 1.7M tonnes of coffee abroad from January through September 2021, which was +5.8% higher than in the same period of 2020. In monetary terms, Brazil’s coffee exports totalled $3.95B, increasing by 17% compared to the same period a year earlier. The average export price for Brazilian coffee jumped from $2.10 per kg in January to $2.77 per kg in September 2021.

Global Coffee Exports

In 2020, global exports of coffee in its unroasted (green) form declined modestly to 6.7M tonnes, approximately reflecting the previous year. In value terms, supplies expanded to $16B (IndexBox estimates).

Brazil was the key exporting country that supplied 2.4M tonnes of coffee abroad, approx. 35% of global volume. Viet Nam (1,208K tonnes) occupied an 18% share (based on tonnes) of total exports, which put it in second place, followed by Colombia (10%), Indonesia (5.6%) and Uganda (4.9%). Ethiopia (231K tonnes), Peru (213K tonnes), Germany (211K tonnes), India (206K tonnes), Guatemala (189K tonnes), Nicaragua (149K tonnes) and Mexico (105K tonnes) followed a long way behind the leaders.

In value terms, Brazil ($5B) remains the largest green coffee supplier worldwide, comprising 31% of global exports. The second position in the ranking was occupied by Colombia ($2.4B), with a 15% share of total shipments. It was followed by Viet Nam, with a 12% share.

Top Largest Coffee Importers

In 2020, the U.S. (1.3M tonnes) and Germany (1.1M tonnes) represented the major importers of coffee in unroasted form across the globe, together mixing up 37% of total volume. Italy (565K tonnes) and Japan (390K tonnes) accounted for a further 15% of global international purchases. Spain (287K tonnes), France (229K tonnes), Russia (198K tonnes), Switzerland (180K tonnes), the Netherlands (174K tonnes), South Korea (157K tonnes), the UK (156K tonnes), Belgium (146K tonnes) and Poland (128K tonnes) occupied relatively small shares of the total volume.

In value terms, the largest green coffee importing markets worldwide were the U.S. ($4.2B), Germany ($2.6B) and Italy ($1.2B), together accounting for 45% of global purchases. These countries were followed by Japan, Switzerland, France, Spain, the Netherlands, South Korea, the UK, Russia, Belgium and Poland, which together accounted for a further 30%.

Source: IndexBox Platform

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Archives, Global Trade Daily, Ocean Ports

PORT OF VIRGINIA PUT SUFFOLK ON THE COFFEE MAP

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Coffee’s contribution is not peanuts

Established in 1742, the little town of Suffolk, Virginia served as a port along the Nansemond River in Virginia’s Tidewater region, eventually becoming a hub for railroad transportation. An Italian immigrant put Suffolk on the food production map, establishing the Planters Nut and Chocolate Company in 1912. A Peanut Queen is still crowned at the annual peanut festival.

These days, Suffolk has a newer claim to fame in the food industry. Home to several large coffee roasters including Massimo, Zanetti USA, Keurig Green Mountain, J.M. Smucker — and soon — Peets Coffee, Suffolk has become the most caffeinated city east of the Mississippi. The coffee industry has built out a cluster of related activities that generate significant employment and revenue for the people of Suffolk.

A deep commitment to Virginia coffee

Until the 1960s New York City was the undisputed home to the coffee industry. Since then, coffee has been imported through a variety of ports on the East Coast and elsewhere throughout the country, including the ports of New Orleans, Houston, Los Angeles and, of course, Seattle which is the home of Starbucks.

How did Suffolk become a coffee epicenter for the East Coast? Location and maritime advantage. Suffolk is 30 miles west of the Port of Virginia, which was the first to accept the much larger neo-Panamax ships transiting the expanded Panama Canal beginning in 2016. Port of Virginia has embarked on a $700 million expansion project of its own. By 2025, it will have a 55-foot channel depth, making it the deepest port on the East Coast, and will be able to handle an additional one million cargo containers at two of its terminals.

Centrally located on the eastern seaboard, Port of Virginia is capable of serving the major population centers east of the Mississippi. The ports of Baltimore, Savannah, Charleston and Virginia together now account for about one-third of all the green (unroasted) coffee imported into the United States. Suffolk is conveniently located to all of them.

Roasting the competition

Suffolk’s rise to roasting prominence started with one company – Hills Bros, now Massimo Zanetti. Once Hill Bros moved to Suffolk from New Jersey, others began to see its merits as an East Coast base. Building on the foundation of early investment by Lipton, which built its first plant there in 1955, the region is now the third-largest coffee and tea cluster in the country.

The City of Suffolk, together with the Virginia Economic Development Program, welcomed the industry with large industrial sites close to Port of Virginia and collaborated to have three coffee warehouse companies licensed by the International Coffee Exchange (ICE). Only beans stored under very particular, climate-controlled conditions can be certified for trading on ICE’s commodities exchange.

Bean roasting connoisseur allowing customer to smell the aroma from the coffee beans

To ensure the people of Suffolk could move into value-added jobs in the coffee industry, local educational institutions, such as Paul D. Cook Community College in Suffolk, developed training programs tailored to the industry’s needs offering new credentials such as an Industrial Technology and Electronic Controls certification.

The companies offer interesting career paths. “Cuppers” are specialized technicians who test beans for quality and taste the beans after roasting, grading their suitability and characteristics for blending. Nora Johnson came to Suffolk to work as an intern with Massimo Zanetti in 2016 as a Florida Gulf Coast University student. Upon graduating, she joined Massimo Zanetti full-time as a Commodities Analyst, analyzing customer positions on the coffee futures market and has become involved in the company’s sustainability and responsible sourcing initiatives.

Toast the roast

The coffee industry contributes approximately 10 percent of Suffolk’s gross regional product directly, and another 13 percent through indirect and induced effects. The Port of Virginia started a new annual celebration, “Coffee Day,” so everyone can toast the roast and celebrate the opportunities trade brings to the region.

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Evelyn Suarez

Evelyn Suarez is a legal expert and consultant specializing in customs compliance and anti-corruption. Ms. Suarez serves on the Virginia Maritime Association Board, and advisory boards to the George Washington University Center for International Business Education & Research and Georgetown University Law Center International Trade Update.

This article originally appeared on TradeVistas.org. Republished with permission.