Brazilian coffee gets a jolt across the region

What's Up: Imports of Brazilian coffee to Arab countries is on the rise, but the price of Arabica has been slid more than a third since the start of the year.

Workers select arabica coffee beans in the state of Minas Gerais, Brazil. Mauricio Lima / AFP

Imports from the world's largest coffee-producing country, Brazil, are on the rise across the region.

Last year, the region imported US$214 million worth of coffee - an increase of almost 36 per cent on 2010, according to statistics from the Arab-Brazilian Chamber of Commerce. The trend continued in the first half of this year, although the pace slowed.

In the first six months of 2012, countries across the Arab region imported $106.9m worth of Brazilian coffee, a rise of just 1.5 per cent compared with the same period last year, according to new figures released by the Brazilian Coffee Exporter Council.

Brazil exported a total of 526,464 60-kilogram coffee bags to various markets in the region from January to June this year.

"Brazilian coffee exporters are stepping up efforts to satisfy the preferences and needs of consumers in the Arab region, where coffee has always been a very popular beverage," said Michel Alaby, the general secretary and chief executive of the Arab-Brazilian Chamber of Commerce.

He added that the increase in revenue in the first half of the year is a "strong indication" that relationships are headed in the right direction.

"In this regard, the Arab-Brazilian Chamber of Commerce remains firmly committed to provide strategic support to further expand the market share of Brazilian coffee exporters in the lucrative Arab market."

However, the price of coffee fell in New York yesterday on the back of fears that supplies from Latin America, including Brazil, face overwhelming demand.

Colombia's coffee crop is expected to grow from 8 million bags this year to 10 million next year, according to Bloomberg News.

Arabica coffee for March was up 1 per cent Friday to $1.525/lb on ICE Futures US, after earlier dropping as much as 1.1 per cent.