Home Blog The bitter taste of coffee: the drop in production in Brazil is climbing the world prices

The bitter taste of coffee: the drop in production in Brazil is climbing the world prices

by telavivtribune.com
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This article was initially published in Portuguese

The coffee price reached record levels in January. According to industry data, the value of the composite indicator has reached $ 310.12 (299 euros) per production book, an increase of 3.5 % compared to December and 75.8 % compared to to January 2024.

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THE Dispute weather conditions in Brazil and Vietnam (First and second producer of coffee in the worldrespectively) led to a significant drop in the supply of precious grains. Brazil, also the world’s leading exporter of coffee, provides a less significant harvest in 2025, which will maintain prices at a high level on the international market.

According to the latest report published by the World Café Organization (OIC), the Coffee Price Composite Price Index in January 2025 amounted to an average of $ 310.12 (298.77 euros) per book (around 453 grams) , 3.5 % more than in December and 75.8 % more than in January 2024.

According to official sources of the Brazilian Ministry of Agriculture, the country plans to collect 51.8 million bags of 60 kilos of coffee this year, a drop of 600,000 bags (-4.4 %) compared to 2024.

World coffee prices have reached unmatched levels since the 1970swhen another major climate crisis struck Brazil.

The Director General of the Brazilian Council for Coffee Exporters (Cecafé) told the Portuguese news agency Lusa that “it is still too early to estimate with precision the performance of the sector this year” because the coffee harvest does not start that in April and logistical and climatic problems may or may not have an impact on production.

The president of the Brazilian Coffee Industry Association (ABIC) added that prices on the international market “should not really decrease until 2026, when Brazil will have a greater harvest”.

Also according to the OIC report, the increase in coffee prices continued in the first weeks of February. Thursday, the price composite index reached $ 375.34 per book produced.

For the World Café Organization, threats of customs tariffs promised by the new Trump administration are also a source of uncertainty for the global economy.

International trade could affect the world coffee sector, since some of the main origins, including Brazil, India and Indonesia, are part of the current revision by the United States.

North America is currently the main destination of coffee from Brazil, with 713,348 coffee bags imported last month, followed by Germany (457,569), Italy (262,829), Japan (247 840) and Belgium (206,283).

Additional sources • ICO, Adaptation: Serge Duchêne

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