Preview 2023

From SMC Specialty Coffees / Brazil

Today follows the next part of our outlook on coffee year 2023 from the perspective of our producers. We‘ve asked the farmers of your favorite coffees in #brazil what the situation looks like at their farms/origins. How the harvest turned out or will turn out, what the weather conditions have been or currently are, and what the actual shipping situation looks like. We also wanted to know about new coffees or projects we can look forward to this year...

In the following you can therefore get a brief insight from Brazil. what awaits us in 2023 referring to the coffees in the different origins. If you have any further questions, please do not hesitate to contact us.

We asked SMC Specialty Coffee / Brazil about the outlook for 2023:

„The coffee culture situation that we’ve observed in the last few years in Brazil stands out for its difficult moments, especially when comes to production level. We faced great climatic challenges such as frosts and droughts, which seriously impacted the harvests of the 2021 and '22. The hailstorm that we previously had at the end of 2022 can impact 23’s harvest. Normally, even years, in Brazil, indicate higher harvests, as observed in 2020. With the problems mentioned above, the 2022 harvest ended below expectations, with a decrease in the order of 10 to 15% in relation to the 2021 harvest. Therefore, we had two years of low harvest in a row. Regarding 2023, a better harvest it’s been expected (we hope it will be better than '21 and '22), but still lower than 2020, so we can’t fully consider it a good crop in terms of volume. Although there was a good blooming season, the flowers did not bear as much fruits as it was expected to. We are in the rainy season and in the grain filling phase. The volume of rains so far is very good. We need to follow it and hope it stays steady during the whole grain filling phase.

In terms of production costs, over the last few harvests we have seen significant increases in the prices of inputs used in the plantations, taking costs per hectare to levels never seen before. As an aggravating factor, productivity has declined a lot (due to the climatic problems mentioned above), so the costs per bag of coffee produced have increased even more, giving this combination: higher cost + low productivity. There are a few of our partner farms that’s been in the specialty coffee market for a while. They can be considered references within specialty coffee production in Brazil, more specifically in our region, and great examples of efficiency, balancing volume and quality. Considering the level of technology and cultural treatments these farms carry on, they have historical potential to maintain productivity levels higher than 35 bags per hectare. Now, considering 2022 harvest, they’ve got the numbers below 25. These long-time partner farms stand out among the others for their pioneering role in the production of specialty coffees. Their history and experience make them growers who can deliver excellence with consistency. Furthermore, their investments in technology, equipment, differentiated processes and specialized teamwork make the production costs of one bag of specialty coffee higher than the others.

Within our specialty coffee program, Especialíssimo, we have a continuous process of identifying "new talents" who, with time and experience, have the potential to reach the levels of the older partners (considering their individual reality, adapting procedures and expectations so specialty coffee production with consistency can be something attainable). These producers who do not yet have a history suppling specialty coffee every year have most recently discovered their potential with SMC through Especialíssimo and have not yet invested in specific inputs or processes that can establish better conditions to produce specialty coffees. They are in the beginning of a turning point, if we may say so.

Our projects: The Especialíssimo program has grown exponentially over the years and brought more opportunities to the Cooxupé cooperative families. In addition to identifying the specialty coffees that come through the cooperative, the program also provides lectures on agronomic development, on the pillars of sustainability and on how to achieve a more profitable coffee production and receive more recognition. We have great expectations for 2023, as the program grows in the producing regions. In February, we will be attending Femagri - Agricultural Input and Machinery Fair, promoted by Cooxupé, where we can be closer to the cooperative members, talking to them about the specialty coffees world.

Our Donas do Café project has also been a success. With the proposal of bringing women’s name to forefront, Donas do Café is a vehicle for the transmission of knowledge and experiences on several topics - from post-harvest to consumption in coffee shops and market demands. Our first meeting of 2023 will take place at the end of January, where we will address Cooxupé's new sustainability program – "Gerações”- which aims to develop ESG practices. There will also have a workshop about how to extract the best from specialty coffees in each preparation method.“

Thank you for answering our questions to SMC Specialty Coffee! We are curious to see what further news there will be to report from Brazil this year...

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