The Brazilian Ambassador to Cairo Antonio Patriota speaks during the celebration of the International Coffee on Saturday 1 October, 2022.
“As Brazilians, we hope to bring different varieties of high-quality coffee to the Egyptian consumers knowing that Egypt is a country that loves to drink coffee,” said Deputy Head of Mission of Brazil in Cairo Bernardo Henrique during the celebration.
Egypt imports 100 percent of its coffee for local consumption from several countries, including Brazil, the world’s largest coffee producer and supplier. Egypt imports around 70,000 tons of coffee annually, Hassan Fawzi, head of the coffee division at the Cairo Chamber of Commerce, said in August.
In the 2021/2022 harvest season, Brazil has produced 58.1 million coffee bags, of which 37.992 million were exported, said the Brazilian diplomat.
Egypt’s coffee imports increased to around $100 million during the first five months of this year compared to around $74 billion during the same period last year, said Mohamed Rostom, an official at the Federation of Egyptian Chambers of Commerce (FEDCOC).
In 2021, Egypt imported 145,000 tons of coffee, Rostom said, citing figures from Egypt’s official statistics agency.
Adverse climate conditions have dramatically affected coffee output around the world, including in Brazil. According to a new report by Bloomberg, Brazilian arabica coffee stockpiles may reach a record low by next year.
In TV remarks late in August, Fawzi said global coffee prices have increased due to the loss of around 25 percent of the coffee crop owing to the chilly weather that hit Brazil late last year and the disruption in global supply chains in light of the Ukraine war.
Fawzi also blamed a current shortage in coffee reserves in Egypt on a delay in the release procedures at the Egyptian ports amid an import backlog. In mid-August, Fawzi called for the quick release of more than 200 coffee containers stuck at ports.
In a bid to resolve the import backlog that contributed to increasing prices, the Central Bank of Egypt reportedly decided in September to ease foreign-currency restrictions.
As per the decisions, banks have been allowed to use balances of foreign currency held in company accounts before 19 September in order to open new letters of credit or inward documentary credits.