Nirmal Bang: Global Coffee Activity Tracker - Vietnam Soluble Coffee On Track; Brazil Showing Some Weakness

Nirmal Bang Report

We track trade data for Brazil, India, Vietnam and Colombia, which together account for approximately 63% of world coffee exports in volume terms and have approximately 55% share in world soluble coffee exports volume.

Rising overall coffee exports realisation in August 2020 in Vietnam confirms the trend that the soluble coffee segment has been growing ahead of green coffee beans and roast and ground segment.

Overall realisation growth in Vietnam in August 2020 was approximately 7% YoY as against approximately 3% YoY increase in Robusta prices.

We highlight that while overall coffee exports from Brazil remained stable in August 2020, soluble coffee segment declined by approximately 13% YoY after showing some improvement in June-July 2020.

In Brazil, realisation was under pressure in August 2020 despite increase in Arabica prices because of two reasons - greater decline in instant coffee business and downtrading to some extent within the same.

India reported growth in both soluble coffee segment (approximately 9% YoY) and overall coffee exports (approximately 31% YoY) in August 2020.

Exports to Turkey from India were solid in August 2020, which led to the better performance.

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