China OKs Export Of Coffee By 183 Brazilian Firms

China has approved 183 new Brazilian coffee companies to export products to the Chinese market, according to a social media post by the Chinese embassy in Brazil, Ana Mano and Ella Cao reported for Reuters late.

Brazilian coffee exports to the U.S. totaled 440,034 60-kilo bags—7.87 times more than Brazil’s sales to China. I Photo: Cooxupé

The measure, a boon to local exporters after the U.S. government’s announcement of steep tariffs on Brazilian coffee and other products, took effect on July 30. The new Chinese export permits are valid for five years, according to the post.

The U.S.'s 50% tariff on certain Brazilian products will begin on August 6.

The levy presents a challenge for commodities traders and Brazilian coffee exporters, who must now find alternatives for the roughly 8 million bags sold to U.S. coffee processors each year.

China is Brazil's top overall trade partner, while the U.S. remains a major buyer of Brazilian beef, orange juice, and other products.

In June, Brazilian coffee exports to the U.S. totaled 440,034 60-kilo bags—7.87 times more than Brazil’s sales to China, which amounted to nearly 56,000 bags that month, according to trade data compiled by industry lobby Cecafe.

Brazil supplies about one-third of U.S. coffee demand annually—a trade valued at $4.4 billion in the 12 months ending in June.