Rio de Janeiro, Aug 2 (EFE) .- The impact of last week’s frosts on coffee crops in Brazil, the world’s largest producer and exporter of the bean, was lower than initially expected, which made the price of coffee Product will drop slightly this Monday in international markets.
Grain prices had reached their highest in seven years after the frosts of July 20 in Brazil, which caused huge losses in production expected for the 2022 harvest, and it was feared that the frosts of July 29 and 30 would further aggravate plus the situation, which apparently did not occur.
“The frosts on Thursday and Friday affected practically the same areas as the frosts on July 20, apparently at the same level or to a lesser degree,” said Vanusia Nogueira, director of the Brazilian Association of Specialty Coffee (BSCA), in a statement released Monday by the entity.
“However, it is still early to calculate the real projections of the impact and talk about numbers,” he added.
The situation was reflected in the markets this Monday. Arabica coffee contracts on the New York Stock Exchange futures market fell 3.8% to $ 1,728 a pound – they were already down 8.6% on Friday – due to less concern about the impact of prices. last frosts, the largest in almost 30 years in Brazil.
Despite the lower intensity of the frosts last week, the Brazilian authorities are still trying to assess their impact on production and government bodies continue to receive reports from each producer.
“The moment demands rationality. All those involved are in search of solutions to continue fulfilling the commitments already assumed in the national and international market, ”said Nogueira.
“We are permanently pending the weather forecasts. The 2022 harvest will have losses due to the effect of the prolonged drought on the coffee plantations and the impact of the frosts, but we still have to wait to see how the coffee plantations will react, ”he added.
This is due to the fact that meteorologists forecast at least three new frosts in Brazil in August.
According to initial projections released last week by the Rural Technical Assistance and Extension Company (Emater) of Minas Gerais, the state most affected by frosts and the main producer of coffee in Brazil, the frosts affected 173,600 hectares planted with the grain, the 19.1% of the total area planted.
Those 173,600 hectares impacted in Minas Gerais are equivalent to 9.65% of the 1.8 million hectares with Arabica coffee crops throughout Brazil, according to the National Supply Company.
Emater estimates that the phenomenon affected about 9,500 producers in 80% of the 194 municipalities analyzed and that, as it had different impacts on the coffee plantations, the losses can vary between 4 and 11 million bags of the bean (60 kilos each). ), that is, between 8.2% and 22.4% of this year’s production.
Brazil estimates that in the 2020-2021 season it harvested a harvest of 49 million bags of grain, which represents a drop of 22.6% compared to the 2020 record (63 million bags), but, for the biannual cycle, it expected initially for 2022 a harvest higher than that of 2020, which is now in doubt.
Damage caused by frost will mainly impact the 2022 harvest, since the phenomenon occurred after a long period of drought and when harvesting of the 2020-2021 crop had practically concluded.