Brazil's Coffee Boom - Increased Production and Revenue Forecast for 2024/25

Brazil's Coffee Boom - Increased Production and Revenue Forecast for 2024/25

Brazil is set for a significant boost in its coffee production and exports for the 2024/25 market year, driven by favorable weather conditions and higher global demand due to production shortfalls in other key coffee-producing countries like Vietnam. The USDA Foreign Agriculture Service's annual report projects a 5.4% increase in total coffee production, with Brazil expected to produce 69.9 million 60-kilogram bags. Arabica coffee output is forecasted to rise by 7.3% to 48.2 million bags, while robusta production is expected to see a modest 1.4% increase. This increase in production is likely to generate an estimated US$10.7 billion in revenue, marking a 17% increase from 2023. However, logistical challenges persist, with significant delays reported at major ports, adding costs and complicating export schedules. Despite these issues, Brazil's coffee exports have surged, particularly specialty coffee, which saw a 45% increase in early 2024. Domestic consumption is also on the rise, forecasted to reach 22.67 million bags. This comprehensive overview underscores Brazil's pivotal role in the global coffee market and highlights both opportunities and challenges for the industry.

Read the full article here.