Brazilian coffee co-ops expect large harvest

Coffee co-operatives in Brazil will benefit from a large harvest this year, having recovered from two years of drought. In an interview with Reuters, Carlos Paulino da Costa,...

Coffee co-operatives in Brazil will benefit from a large harvest this year, having recovered from two years of drought.

In an interview with Reuters, Carlos Paulino da Costa, president of Cooxupe, told Reuters that abundant rain had helped increase the percentage of larger coffee beans, which importers tend to prefer. He added that coffee exports had suffered in the previous year because the country had not produced enough well-formed beans.

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According to statistics published by the agricultural policy office, coffee exports in Brazil increased by 147% to 2.3 million bags of 60kg in January 2016, compared with only 912 bags in January 2015. Coffee plays a key role in the country’s economy, accounting for 8% of foreign trade for Brazilian agri-businesses.

Cooxupe is the world’s largest coffee co-operative. It expects the new harvest, which starts in May, to total six million 60kg bags of coffee, a 15% increase on last year. The co-op predicts producing 4.6 million bags of this amount, which would represent 12.5% more than the current harvest.

Financial co-operative Rabobank has also recently conducted a coffee crop survey for Brazil, the world’s biggest coffee producing and shipping country. According to the bank’s forecast, Brazil’s coffee crop for 2016-2017 will reach 58 million 60kg bags, up nearly ten million bags year-on-year.

“We expect large beans of arabicas in the next season, which will compensate for the scarcity of large beans evidenced in the current season,” Rabobank said. The report also predicts that world coffee production will return to surplus in 2016-2017.

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