Coffee prices still high – will Brazil save the global market? [World News]

Author
Foodcom Experts
02.04.2025
2 min reading
Coffee prices still high – will Brazil save the global market? [World News]
Summary
Table of contents
  • Brazilian farmers are investing in irrigation to counter the effects of drought and increase crop yields.
  • Small farms are not keeping up with the changes – they lack the funds for technology and access to water.
  • Vietnam is struggling with a water crisis, while Colombia is seeing an increase in harvests and exports.
  • The coffee market remains unstable, and its future depends on adapting to climate change.

Brazil invests in irrigation – but small growers get left behind

Until recently, Brazilian growers, especially in the key states of Bahia and Minas Gerais, relied mainly on rainfall. However, climate change and the historic drought of 2023-2024 have forced a change in approach. Today, many are investing in modern irrigation systems to significantly increase yields.

Rodrigo Brondani, owner of a farm in Bahia, expects to harvest up to 80 bags of coffee (60 kg) per hectare – double the national average – thanks to irrigation. However, availability remains a problem; the high cost of installation and, in some regions, the difficulty of obtaining water mean that such investments can be afforded mainly by the big players.

Meanwhile, in southern Minas Gerais, where water is deeper, many smaller growers are still struggling with limited productivity.

Technology versus climate – the future of the coffee market in uncertainty

Although Brazil is increasing investment in agricultural technology and irrigation systems, experts warn that long-term security of supply depends on the entire sector adapting to climate change. One development is so-called regenerative agriculture – practices that improve soil quality and increase plantation resilience.

The situation in other coffee exporting countries continues to affect global supply. Vietnam – the world’s second largest producer – is facing severe water shortages. Farmers have increased the number of irrigation cycles to seven or even eight, and many wells have begun to dry up, raising the risk of reduced yields in the coming months. Colombia, on the other hand, has seen strong production growth, with the January 2025 harvest up 41% year-on-year to 1.35 million bags and exports up 23%. This is the only positive exception compared to other countries, where the market continues to struggle with uncertainty.

For the time being, however, most of the investment is being made by larger farms. Small growers still lack access to finance, which could exacerbate inequalities in the sector in the long term.

We encourage you to click on the link and read the article: Brazilian coffee – a unique taste and rich tradition

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