Tag: Coffee Prices

Indonesian Coffee Output Drops 8% to 11.38 Million Bags

Posted on by Qahwa World

Author: Qahwa World – Jakarta
Source: USDA Foreign Agricultural Service – Jakarta Office
Report Number: ID2026-0021
Date: May 15, 2026

Executive Summary
• Indonesian coffee production for MY 2026/27 is forecast at 11.38 million 60-kg bags, down 8% from the previous year.
• Robusta output falls to 10 million bags, a drop of 1 million bags, due to excessive rains in southern Sumatra and Central Java.
• Arabica production for 2025/26 is revised down to 1.37 million bags following Typhoon Sinyar floods in Aceh and North Sumatra.
• Farmgate prices: Robusta down 16% from 2025 peaks; Arabica down 14% since October 2025.
• Exports are forecast at 7 million bags in 2026/27, down 11% due to lower supplies and strong domestic demand.
• European imports of Indonesian coffee jumped 72% to 2.4 million bags in 2025/26.
• Domestic consumption is projected at 4.83 million bags, driven by soluble coffee and the kopi susu trend.
• Some Arabica plantations in Aceh may require 2-3 years to fully recover from flood damage.

1. Overview: Indonesia in the Global Coffee Market

Indonesia is the world’s fourth-largest coffee producer, after Brazil, Vietnam, and Colombia, and ahead of Ethiopia and Uganda. Approximately 75 percent of Indonesian coffee production is exported. Robusta accounts for nearly 88 percent of total output, making Indonesia the largest Robusta producer in Asia and a key supplier to European and US markets.

According to the USDA FAS report from the Jakarta office, Indonesia’s coffee sector faces significant climate-related challenges. Excessive rainfall during the flowering and fruit development phases in late 2025 and early 2026 has severely damaged Robusta crops in southern Sumatra and Central Java. Meanwhile, Arabica-growing areas in Aceh and North Sumatra are still recovering from floods and landslides caused by Typhoon Sinyar in November 2025.

Key insight: Robusta dominates Indonesian coffee production at 88 percent. Smallholders farming 1-2 hectares represent about 98 percent of total coffee area, making the sector highly vulnerable to weather shocks and infrastructure disruptions.

2. Production Forecast: MY 2026/27

FAS Jakarta forecasts Indonesian coffee production for MY 2026/27 at approximately 11.38 million 60-kg bags (682,800 metric tons), comprising 1.38 million bags of Arabica (82,800 tons) and 10.00 million bags of Robusta (600,000 tons). This represents an 8 percent decline from the revised 2025/26 estimate of 12.37 million bags.

Table 1: Indonesian Coffee Production (million 60-kg bags)

Category 2021/22 2022/23 2023/24 2024/25 2025/26 Revised 2026/27 Forecast
Arabica 1.30 1.40 1.40 1.40 1.37 1.38
Robusta 9.30 10.50 6.80 9.30 11.00 10.00
Total 10.60 11.90 8.20 10.70 12.37 11.38

3. Climate Challenges: Rains and Typhoon Damage

The main driver of Indonesia’s production decline is abnormal rainfall during flowering and fruit development. In mid-2025, excessive rains disrupted Robusta flowering in the southern Sumatra highlands. In Central Java, farmers reported heavy rains that caused flowers to drop and pollen to wash away, interrupting pollination and reducing fruit set.

In Aceh and North Sumatra, Arabica areas continue to suffer from flooding caused by Typhoon Sinyar in late November 2025. As of April 2026, infrastructure recovery remains incomplete, keeping transport costs high. Several processing facilities and warehouses were also damaged. Some Arabica plantations may need 2-3 years to recover. The main harvest in Aceh, normally from October to November, was delayed into early 2026.

Looking ahead, Indonesia’s National Weather Agency (BMKG) projects that the 2026 dry season will be significantly drier and longer than average due to a weak El Niño expected to strengthen to moderate levels in the second half of 2026. In Sumatra, the dry season will begin in April-May 2026, starting in Aceh and North Sumatra, then spreading to Lampung and South Sumatra, peaking around August 2026. El Niño conditions typically increase drought risk, which can further disrupt flowering.

Table 2: Rainfall Impact on Key Regions (2025-2026)

Region Event Impact Recovery Timeline
Southern Sumatra Highlands Excessive rains (mid-2025) Disrupted Robusta flowering Lower yields in 2026/27
Central Java Heavy rains, pollen washout Poor fruit development Lower harvest expected
Aceh & North Sumatra Typhoon Sinyar floods (Nov 2025) Damaged Arabica farms, destroyed infrastructure 2-3 years

4. Yield Projections

For MY 2026/27, Robusta yields are expected to decline due to rainfall disruptions, though the report did not provide specific yield per hectare figures. Historically, Indonesian Robusta yields remain below one metric ton per hectare and vary significantly by region. Arabica yields in Aceh and North Sumatra are expected to stay low until infrastructure and farms recover.

Adoption of improved, higher-yielding seedlings remains limited because most farmers rely on locally sourced planting material. Government distribution of subsidized seedlings and farmer training programs also remain limited in geographic coverage.

5. Price Dynamics: Decline from 2025 Peaks

Farmgate and spot prices for both Robusta and Arabica have declined significantly from their 2025 highs. According to spot price data from Lampung (Robusta) and Medan (Arabica), prices have moderated due to improved global supply expectations and weaker demand from some roasteries.

Robusta spot prices in Lampung peaked above 104,000 IDR/kg in February 2025 but fell to around 66,661 IDR/kg by April 2026, a drop of roughly 36 percent from the peak. Year-on-year (April 2025 to April 2026), Robusta prices fell 32 percent. Compared to October 2025 (84,128 IDR/kg), the decline is about 21 percent.

Arabica spot prices in Medan peaked above 229,835 IDR/kg in November 2025 but fell to around 174,162 IDR/kg by April 2026, a drop of roughly 24 percent from the peak. Compared to October 2025 (219,802 IDR/kg), the decline is about 21 percent.

Table 3: Robusta Spot Prices in Lampung (IDR/kg) – Selected Months

Month 2024 2025 2026 Change (Oct 2025 to Apr 2026)
January 56,069 94,724 78,595 -21%
February 55,854 104,371 70,862
March 59,018 102,373 69,785
April 72,712 98,659 66,661

6. Export Outlook: Lower Supplies, Stronger European Demand

FAS forecasts green bean exports for 2026/27 at 7 million bags, down 11 percent from 2025/26, due to lower exportable supplies and continued strong domestic demand. Total exports (including roasted and soluble) are forecast at 8.05 million bags.

Despite the overall decline, shipments to European markets rose 72 percent to 2.4 million bags in 2025/26 compared to the previous year. This reflects renewed demand for Indonesian beans, particularly from Belgium and Germany, supported by recovered supplies, competitive pricing, and EUDR compliance readiness.

The United States remains among Indonesia’s top five destinations, with steady demand between 680,000 and 950,000 bags over the past five years. In 2025/26, shipments to the US ranked third at 797,000 bags. These shipments typically consist of 60-80 percent Arabica beans, mostly exported through the Port of Belawan in North Sumatra.

Table 4: Indonesian Green Bean Exports by Destination (1,000 60-kg bags, 2025/26)

Rank Destination Volume (1,000 bags) Share
1 Europe (total) 2,400 ~30%
2 United States 797 ~10%
3 Others ~3,800 ~60%

7. Trade Agreements and Policy Environment

Unlike India, Indonesia has no newly ratified free trade agreements specifically targeting coffee exports to Europe. However, the country continues to benefit from existing Generalized System of Preferences (GSP) facilities. Exporters have reported higher freight costs and shipping delays linked to the Middle East conflict in the last quarter of 2025/26, which affected some shipments.

Rupiah depreciation against the US dollar supported stronger demand toward the end of 2025/26. Prices for lower-grade Arabica strengthened through March 2026 as access improved, though transport costs reportedly doubled in affected areas.

8. Domestic Consumption: A Growing Market

FAS forecasts domestic consumption for 2026/27 at 4.83 million bags (289,800 metric tons), up 20,000 bags from the previous year, supported by continued demand from roasteries and processors. Local roasteries have faced squeezed margins as green bean prices rose since 2024, and weaker purchasing power in 2025/26 shifted some demand toward low- to medium-grade coffee. With green bean prices easing in early 2026, demand from roasteries should remain strong.

At the consumer level, low-priced coffee sold by street vendors remains popular among workers and low- to middle-income consumers. Coffee outlets in public venues serve higher-end consumers, including Gen-Z. Kopi susu (coffee with milk) remains a popular entry-level drink, widely available in coffee shops and ready-to-drink products.

Table 5: Indonesian Domestic Consumption (million 60-kg bags)

Category 2024/25 2025/26 2026/27 Forecast
Roast & Ground Domestic 3.343 3.270 3.280
Soluble Domestic 1.530 1.540 1.550
Total Domestic Consumption 4.873 4.810 4.830

9. Long-Term Vision and Recovery Outlook

Indonesia has no publicly stated long-term production target comparable to India’s 2047 vision. However, the government and the Coffee Board of Indonesia (under the Ministry of Agriculture) have promoted sustainability programs and EUDR compliance support. The BMKG’s El Niño forecast for the second half of 2026 poses additional risks. Recovery for Arabica plantations in Aceh is expected to take 2-3 years, while Robusta areas may rebound in 2027/28 if normal rainfall returns.

10. Imports: Filling the Gap

FAS forecasts green bean imports for 2026/27 at 1.42 million bags (85,200 metric tons), up slightly from 1.415 million bags in 2025/26. Indonesian green bean imports are closely tied to production and local demand, jumping from around 230,000 bags in 2020/21 to a peak of 942,000 bags in 2023/24, then dropping to around 372,000 bags in 2025/26. The 2023/24 spike reflects weak domestic supply and strong demand for specialty beans and the growing ready-to-drink sector.

Green beans account for approximately 94 percent of total imports and are primarily sourced from Nicaragua, Vietnam, Brazil, and Kenya for processing and re-export.

11. Key Challenges Facing Indonesian Coffee Sector

  • Climate variability: Excessive rains during flowering (mid-2025) followed by El Niño drought (late 2026) create extreme weather shocks.
  • Infrastructure damage: Typhoon Sinyar destroyed roads, bridges, processing facilities, and warehouses in Aceh and North Sumatra. Recovery remains incomplete as of April 2026.
  • Smallholder vulnerability: 98 percent of coffee area is farmed by smallholders with limited access to credit, improved seedlings, or crop insurance.
  • Fertilizer costs: Rising input costs and fertilizer supply uncertainty continue to pressure farmer margins.
  • Freight disruptions: The Middle East conflict has increased shipping costs and caused delays, affecting export competitiveness.
  • Limited replanting programs: No major replanting or expansion programs have been implemented recently, leaving aging trees in place.

12. Opportunities

  • EUDR preparedness: Indonesian exporters have prepared for EU deforestation regulations, potentially gaining market share in Europe.
  • Growing domestic market: Rising coffee culture among Gen-Z and the popularity of kopi susu and ready-to-drink products.
  • Soluble coffee demand: Domestic soluble consumption is projected to remain strong at 1.55 million bags.
  • Rupiah depreciation: A weaker rupiah supports export competitiveness despite lower prices.
  • Recovery potential: Once infrastructure is rebuilt and rainfall normalizes, Indonesian Robusta production can rebound quickly.

Frequently Asked Questions

  • How much coffee will Indonesia produce in 2026/27?

According to the USDA FAS report, Indonesia is forecast to produce 11.38 million 60-kg bags (approximately 682,800 metric tons) in MY 2026/27, comprising 1.38 million bags of Arabica and 10.00 million bags of Robusta. This is an 8 percent decrease from the previous year.

  • Why is Robusta production expected to decline?

Robusta production is projected to fall by 1 million bags (to 10 million bags) due to excessive rains in mid-2025 that disrupted flowering in southern Sumatra highlands and heavy rains in Central Java that caused flowers to drop and pollen to wash away, interrupting pollination.

  • What happened to Arabica production in Aceh and North Sumatra?

Typhoon Sinyar in late November 2025 caused severe floods and landslides, damaging Arabica plantations, processing facilities, and infrastructure. Recovery is expected to take 2-3 years. The main harvest in Aceh was delayed into early 2026.

  • How have coffee prices changed in Indonesia?

Robusta spot prices in Lampung fell from a peak above 104,000 IDR/kg in February 2025 to around 66,661 IDR/kg in April 2026 (down 36% from peak). Arabica spot prices in Medan fell from above 229,835 IDR/kg in November 2025 to around 174,162 IDR/kg in April 2026 (down 24% from peak).

  • What are Indonesia’s main coffee export markets?

Europe is the largest destination, with shipments rising 72 percent to 2.4 million bags in 2025/26, led by Belgium and Germany. The United States ranks third at 797,000 bags. Other markets include Japan, Canada, and the Middle East.

  • How much coffee does Indonesia consume domestically?

Domestic consumption is forecast at 4.83 million bags in 2026/27, with soluble coffee accounting for about 1.55 million bags. Kopi susu (coffee with milk) remains a popular entry-level drink.

Author: Qahwa World – Jakarta
Source: USDA Foreign Agricultural Service – Report ID2026-0021
Date: May 15, 2026
Report Availability: The full USDA report can be accessed through the USDA PSD Online Advanced Query system.

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Coffee Prices Decline as Expectations of Ample Brazilian Crop Weigh on Market

Posted on by Qahwa World
Author: Qahwa World
Source: Barchart (Rich Asplund)
Date: May 18, 2026 Coffee prices decline ample supplies is the main story as the market experiences significant changes.
Executive Summary:

  • July arabica coffee fell to a 1.5 year low on Monday, closing down 1.01 percent. July robusta posted a 4 week low, closing down 1.75 percent.
  • The Coffee Trading Academy projects Brazil’s 2026/27 harvest will increase 12 percent year on year to 71.4 million bags.
  • Marex Group and StoneX both forecast record Brazilian crops exceeding 75 million bags for 2026/27.
  • StoneX projects the 2026 global coffee surplus will expand to 10 million bags, the largest in six years.
  • Vietnam coffee exports rose 15.8 percent in the first four months of 2026 compared to the same period last year.
  • ICE robusta inventories fell to a two year low last Friday, while arabica inventories dropped to a 2.75 month low.
  • The closure of the Strait of Hormuz continues to disrupt global coffee supplies, supporting prices.

Coffee prices extended their sharp losses from last Friday on May 18, 2026. July arabica coffee futures closed down 1.01 percent, reaching a one and a half year low. July robusta coffee fell 1.75 percent, hitting a four week low. The declines were driven largely by expectations of a larger Brazilian coffee crop and surging exports from Vietnam.

Market analysts are forecasting a record harvest in Brazil for the 2026/27 season. On May 7, the Coffee Trading Academy projected Brazil’s crop would increase 12 percent year on year to 71.4 million bags. Earlier forecasts from Marex Group and StoneX were even higher. Marex projected a record 75.9 million bags, while StoneX raised its estimate to 75.3 million bags. StoneX also predicted that the global coffee surplus would expand from 1.8 million bags in 2025 to 10 million bags in 2026, the largest surplus in six years.

Vietnam, the world’s largest robusta producer, is also adding to supply pressure. According to Vietnam’s National Statistics Office, coffee exports in the first four months of 2026 rose 15.8 percent year on year to 810,000 metric tons. For the full year 2025, Vietnam’s coffee exports jumped 17.5 percent to 1.58 million metric tons. Production for the 2025/26 season is projected to climb 6 percent to a four year high of 1.76 million metric tons, equivalent to 29.4 million bags.

Inventories and Supply Disruptions

ICE coffee inventories have trended lower over the past two months, which typically supports prices. ICE robusta inventories fell to a two year low of 3,631 lots last Friday. ICE arabica coffee inventories dropped to a 2.75 month low of 462,777 bags on Monday. Despite these declines, the broader supply outlook remains bearish.

Meanwhile, smaller exports from Brazil are providing some support. On May 12, Cecafe reported that Brazil’s April green coffee exports fell 1.3 percent year on year to 2.76 million bags. Additionally, the ongoing closure of the Strait of Hormuz has disrupted global coffee supplies. The closure has increased shipping rates, insurance costs, fertilizer and fuel prices, raising costs for coffee importers and roasters. This factor remains bullish for prices.

Key Market Data

Indicator Value
July arabica coffee close (May 18) Down 1.01% to 1.5 year low
July robusta coffee close (May 18) Down 1.75% to 4 week low
Brazil 2026/27 crop forecast (Coffee Trading Academy) 71.4 million bags (+12% y/y)
Brazil 2026/27 crop forecast (Marex Group) 75.9 million bags (record)
Brazil 2026/27 crop forecast (StoneX) 75.3 million bags (record)
Projected 2026 global coffee surplus 10 million bags (largest in 6 years)
Vietnam coffee exports (Jan-Apr 2026) 810,000 MT (+15.8% y/y)
ICE robusta inventories (May 15) 3,631 lots (2 year low)
ICE arabica inventories (May 18) 462,777 bags (2.75 month low)

Global Export and Production Outlook

On November 7, the International Coffee Organization reported that global coffee exports for the current marketing year (October to September) fell 0.3 percent year on year to 138.658 million bags. This decline is a bearish factor for prices.

The USDA Foreign Agriculture Service released a bi-annual report on December 18 projecting that world coffee production in 2025/26 would increase 2.0 percent year on year to a record 178.848 million bags. Within that total, arabica production is expected to decrease 4.7 percent to 95.515 million bags, while robusta production is forecast to rise 10.9 percent to 83.333 million bags. The USDA also forecast that Brazil’s 2025/26 coffee production would decline 3.1 percent to 63 million bags, while Vietnam’s output would rise 6.2 percent to a four year high of 30.8 million bags. Ending stocks for 2025/26 are projected to fall 5.4 percent to 20.148 million bags from 21.307 million bags in 2024/25.

Frequently Asked Questions (FAQ)

1. Why are coffee prices falling?

Coffee prices are under pressure mainly due to expectations of a larger Brazilian coffee crop for 2026/27 and surging exports from Vietnam, which point to a global surplus.

2. How low did arabica coffee prices go?

July arabica coffee futures fell to a one and a half year low on May 18, 2026, closing down 1.01 percent.

3. What is the projected Brazilian coffee crop for 2026/27?

Forecasts vary, but the Coffee Trading Academy projects 71.4 million bags, while Marex Group and StoneX project record crops above 75 million bags.

4. How much did Vietnam’s coffee exports increase?

Vietnam’s coffee exports rose 15.8 percent in the first four months of 2026 compared to the same period last year, reaching 810,000 metric tons.

5. What is the expected global coffee surplus for 2026?

StoneX projects the 2026 global coffee surplus will expand to 10 million bags, the largest surplus in six years.

6. How does the Strait of Hormuz closure affect coffee prices?

The closure disrupts global coffee supplies by increasing shipping rates, insurance, and fuel costs, which is a bullish factor supporting prices.

Qahwa World – Based on market reports from Barchart by Rich Asplund.
Published: May 18, 2026

Iran’s café culture buckles as everyday life contracts

Posted on by Qahwa World
Source: Iran International
Author: Maryam Sinaiee
Date: May 16, 2026, 08:37 GMT+1The Iran café crisis economic collapse has been making headlines in recent months.

Executive Summary

  • Café operating costs in Tehran have more than doubled, while customer numbers have fallen by up to 50 percent in recent months.
  • The head of Tehran’s coffee shop union says up to 40 percent of cafés have shut down.
  • Tehran alone had around 6,000 cafés before the crisis, but many can no longer survive.
  • Coffee bean prices in Iran have nearly doubled compared to pre-war levels, while a cup of coffee costs up to four times more in some cafés.
  • Many young people and women have lost their jobs due to closures and downsizing, with hiring frozen even at surviving cafés.
  • Advertising companies have stopped buying coffee for office kitchens for the first time in 20 years, as work freezes and projects get canceled.

Rising costs and widespread café closures

Iran’s deepening economic crisis is pushing cafés and coffee culture toward collapse. Soaring prices and falling incomes force both businesses and customers to cut back. Mohsen Mobarra, head of the union overseeing coffee shops in Tehran, told economic daily Donya-e-Eqtesad that café operating costs have more than doubled. Meanwhile, customer numbers have dropped by as much as 50 percent in recent months, with up to 40 percent of cafés shutting down.

Mobarra explained that continuing operations does not mean profitability. The profits of these businesses are steadily shrinking. As a result, cafés that rent their locations or lack strong financial backing are heading toward closure.

From social spaces to memories

Over the past two decades, cafés became an important part of urban life in Iran. They took root in Tehran before spreading across the country. With affordable entertainment options limited, they emerged as some of the few accessible spaces where young Iranians could socialize, work and spend time outside the home.

Many cafés evolved into more than places to drink coffee or eat light meals. They hosted poetry nights, small music performances, photography exhibitions and informal gatherings. They became rare spaces for social interaction at a time when few other public spaces remained accessible. Until a few months ago, Tehran alone had around 6,000 cafés of different sizes in operation. But the collapse in consumers’ purchasing power has hit the industry hard.

Real stories: Young workers losing hope

Sanaz, a 28-year-old receptionist at a private company, said she and her friends used to visit cafés several times a week. But now, with sharp increases in the costs of food, transportation and housing, even such small pleasures require careful calculation. She added: “I have to calculate every expense, even this simple form of entertainment, just to make it to the end of the month — assuming I don’t lose my job. If I lose my job, after years of financial independence, I’ll have to move back to my parents’ home in my hometown.”

The closures and downsizing have also eliminated jobs for many workers, most of them young people and women. Shana, 26, completed professional barista training before finding work at one of the branches of the well-known Saedi Nia café chain. In January, the chain’s branches were abruptly shut down after the owner voiced support for opposition protesters. Shortly afterward, war broke out. She says: “Even cafés that have survived the economic downturn are not hiring new staff anymore. Many are actually laying off existing employees. I have no hope that even by learning new skills like cooking or other work, I’ll be able to find a job. The economy keeps getting worse every day, and the job market is shrinking.”

Indicator Previous Level Current Level Change
Operating cafés in Tehran About 6,000 40% drop ~2,400 closed
Café operating costs Baseline More than double Increase >100%
Customer numbers Normal level Up to 50% drop Sharp decline
Coffee bean price Pre-war level Nearly double Increase ~100%
Price per coffee cup Regular price Up to 4 times higher Increase up to 300%

Coffee itself becomes a luxury

Tea remains Iran’s dominant traditional drink, but coffee consumption expanded rapidly in recent years. Now, however, the sharp rise in foreign currency prices and disruptions to imports have pushed coffee prices so high that many households are cutting consumption or abandoning it altogether. Although global coffee prices have declined, the cost of coffee beans in Iran — largely imported through the United Arab Emirates before the war — has nearly doubled compared to pre-war levels.

The increase has directly affected café prices. With rents and other expenses also rising, the price of a cup of coffee in some cafés has climbed by as much as four times. One café owner told Donya-e-Eqtesad that even cafés specializing in basic coffee drinks are seeing falling demand because many people can no longer justify going out even for coffee.

Impact on other sectors: Offices and companies

Tara, the manager of an advertising company with ten employees, said coffee has become so expensive that even buying it for office use is increasingly difficult. She adds: “For the first time in the past twenty years, I’ve had to stop buying coffee for the office kitchen, where it was always available for employees alongside tea. It’s not just about coffee prices. Since last summer’s war, work has effectively been frozen. Clients have even canceled half-finished projects, and everyone knows the company is taking its last breaths. If this situation continues, we’ll have no choice but to shut down.”

Frequently Asked Questions (FAQ)

1. What percentage of cafés have closed in Tehran due to the economic crisis?

According to the head of Tehran’s coffee shop union, up to 40 percent of cafés have shut down in recent months.

2. How much have customer numbers dropped at Iranian cafés?

Customer numbers have fallen by as much as 50 percent compared to previous periods, severely impacting revenues.

3. How have coffee prices changed in Iran?

Coffee bean prices have nearly doubled compared to pre-war levels, while a cup of coffee costs up to four times more in some cafés.

4. Why did the Saedi Nia café chain close?

The chain’s branches were abruptly shut down in January after the owner voiced support for opposition protesters, and war broke out shortly afterward.

5. Is there hope for improvement in the café job market?

Reports indicate that even cafés that have survived the downturn are not hiring new staff, and many are laying off existing workers as the crisis worsens daily.

6. How has the crisis affected coffee availability in workplaces?

Some companies, including advertising firms, have stopped buying coffee for their office kitchens for the first time in 20 years due to rising prices and frozen work.

Author: Maryam Sinaiee  |
Source: Iran International  |
Publication date: May 16, 2026

Kazakhstan Coffee Culture: Rising Consumption and Health Effects

Posted on by Qahwa World
Author: Coffee World
Source: El.kz
Date: May 17, 2026
Executive Summary:

  • Coffee consumption in Kazakhstan rose by approximately 24 percent over the past year.
  • In the capital Astana, sales increased by 31 percent, while Almaty recorded a 16 percent rise.
  • The most coffee-consuming age group is between 18 and 40 years old.
  • Cappuccino and latte account for 77 percent of coffee shop sales.
  • The average price of a cappuccino is now 1160 tenge, an 8 percent increase from last year.
  • Scientific studies suggest coffee may protect against chronic diseases by interacting with NR4A1 receptors.
  • Doctors warn against excessive coffee consumption due to effects on sleep and the nervous system.

Coffee culture in Kazakhstan has seen a notable shift in recent years, becoming part of the daily routine for residents of major cities. Data indicates a rise in coffee consumption of nearly 24 percent over the past year, with even higher figures in major cities. In the capital Astana, sales increased by about 31 percent, while Almaty saw a 16 percent rise, making the capital one of the country’s most active coffee markets.

According to industry sources, a significant portion of urban residents choose coffee daily, especially those between 18 and 40 years old. Many buy at least one cup per day, and some consume several cups. Kazakhs often order coffee in the morning and the first half of the day when they need to focus on work and maintain concentration.

Shifts in Kazakhstan’s Coffee Culture

Coffee shop owners note that the primary audience consists of young and active citizens up to 35 or 40 years old. Drinks are often purchased on the way to work, during working hours, or in the evening after the day ends.

Classic milk-based drinks remain the most popular. Cappuccino and latte sales account for about 77 percent of total sales. Americano and black coffee hold a smaller share, but interest in filter coffee and alternative brewing methods is gradually growing.

Coffee experts confirm that many customers have become regular visitors. People increasingly return to the same coffee shops at specific times, whether in the morning, at lunchtime, or after work.

Coffee Prices in Kazakhstan

Drink prices in coffee shops have increased by about 8 percent over the past year. The average price of a cappuccino is currently about 1160 tenge, while a latte costs approximately 1200 tenge, and an Americano costs about 880 tenge.

Despite the price increase, the number of customers has not decreased. Industry insiders explain this by noting that coffee has become part of many people’s daily rhythm. Even with rising prices, people continue to buy their usual drinks, though some may choose smaller sizes or more affordable establishments.

Coffee from a Scientific Perspective

Interest in coffee from researchers is also growing. Scientists are studying how compounds in coffee can help the body fight age-related changes.

Research suggests that coffee may provide protective effects through interaction with the NR4A1 receptor, a protein associated with stress, inflammation, and cell regeneration. It was previously known that moderate coffee consumption is linked to a lower risk of chronic diseases, but the exact mechanism of this effect remained unclear for a long time.

Researchers at the Texas A&M University College of Veterinary Medicine and Biomedical Sciences have proven that polyphenols and chlorogenic acid can influence processes related to aging and inflammation. However, specialists emphasize that the effect depends on individual characteristics and is not universal.

Doctors remind about the importance of moderation. In small amounts, coffee can aid concentration and reduce fatigue, but excessive consumption can cause sleep problems, anxiety, and increased stress on the nervous system.

Most Popular Drinks in Kazakhstan

Drink Sales Rank Approximate Price (tenge)
Cappuccino First 1160
Latte Second 1200
Americano Third 880

Classic milk-based drinks remain at the forefront in Kazakhstan. Cappuccino holds first place, followed by latte, then Americano, which is preferred by lovers of strong flavors.

Coffee experts note that Americano is especially popular in the morning. Customers often order it to go on their way to work or during short breaks.

Women tend to choose milk-based drinks and seasonal offerings, while men prefer stronger options like Americano and espresso. At the same time, tastes are gradually diversifying, with a growing number of customers trying filter coffee, cold drinks, and alternative brewing methods.

Frequently Asked Questions (FAQ)

1. How much did coffee consumption increase in Kazakhstan over the past year?

Coffee consumption in Kazakhstan rose by approximately 24 percent, with a 31 percent increase in Astana and a 16 percent increase in Almaty.

2. What is the most coffee-consuming age group?

The age group from 18 to 40 years old consumes the most coffee in Kazakhstan.

3. What are current coffee prices in Kazakhstan?

The average price of a cappuccino is about 1160 tenge, a latte is 1200 tenge, and an Americano is 880 tenge, an 8 percent increase from last year.

4. What are the potential health benefits of coffee?

Studies suggest coffee may protect against chronic diseases by interacting with the NR4A1 receptor, a protein associated with stress, inflammation, and cell regeneration.

5. What are the harms of excessive coffee consumption?

Excessive coffee consumption can cause sleep problems, anxiety, and increased stress on the nervous system, so doctors recommend moderation.

6. Which drinks do women prefer and which do men prefer?

Women prefer milk-based drinks and seasonal offerings, while men prefer stronger drinks like Americano and espresso.

Qahwa World – Report based on data from the El.kz.Published: May 17, 2026

Coffee Prices Fall Sharply as Brazilian Real Weakens

Posted on by Qahwa World

Source: Barchart | Author: Qahwa World | Date: May 15, 2026 Coffee Prices are the focus of this article.

  • July arabica coffee fell 3.12% to a nine-month low, while July robusta declined 3.58% during Friday trading.
  • The Brazilian real dropped to a five-week low against the U.S. dollar, prompting domestic producers to accelerate export sales.
  • Multiple industry analysts forecast a significant year-over-year increase for Brazil’s upcoming 2026/27 harvest, reaching up to 75.9 million bags.
  • Forecasters expect the global coffee surplus to expand dramatically to 10 million bags in 2026, up from 1.8 million bags in 2025.
  • Tight ICE inventories provided early-week support before supply pressure reversed market gains.
  • Vietnam expanded coffee exports by 15.8% year over year from January to April 2026, adding further bearish weight to robusta prices.
  • Ongoing shipping disruptions near the Strait of Hormuz raise international concerns regarding elevated freight and insurance expenses.

Coffee prices moved sharply lower on Friday, with July arabica coffee falling 3.12% and July robusta declining 3.58%. Arabica futures dropped to a nine-month low, while robusta reached a one-week low. A major factor behind the decline was weakness in Brazil’s currency, which significantly shifted market dynamics at the close of the week.

The Brazilian real fell to a five-week low against the U.S. dollar, encouraging Brazilian producers to increase export sales. A weaker real typically makes Brazilian coffee more competitive in global markets. Consequently, this currency movement put heavy downward pressure on international prices as supply availability accelerated.

Larger Brazilian Crop Expectations Pressure the Market

Forecasts for Brazil’s upcoming coffee harvest continue to weigh heavily on market sentiment. The Coffee Trading Academy recently projected Brazil’s 2026/27 coffee crop at 71.4 million bags, representing a 12% increase year over year. However, other major market projections indicate even higher numbers for the upcoming season.

Forecasting Institution Projected 2026/27 Crop Size Market Notes
Marex Group 75.9 million bags Projected record-high harvest
Sucafina 75.4 million bags Indicates strong export potential
StoneX 75.3 million bags Raised from the previous estimate of 70.7 million bags
Coffee Trading Academy 71.4 million bags Up 12% compared to the prior year

Furthermore, StoneX expects the global coffee surplus to expand to 10 million bags in 2026. This figure marks a sharp increase from the 1.8 million bags recorded in 2025. If realized, this expansion will represent the largest global surplus seen in the coffee industry in six years.

Tight ICE Inventories and Shipping Conditions

Despite the overall bearish outlook, tight exchange inventories provided some support earlier in the week. ICE robusta inventories fell to a two-year low of 3,631 lots, while ICE arabica inventories declined to a two-and-a-half-month low of 471,831 bags. These lower stock levels helped robusta reach a seven-week high and arabica a one-week high before prices reversed lower.

Meanwhile, Brazilian export data offered limited support to the market. Cecafe reported that Brazil’s April green coffee exports fell 1.3% year over year to 2.76 million bags. Additionally, reports of continued disruptions around the Strait of Hormuz have raised concerns about global shipping costs. Higher freight, insurance, fertilizer, and fuel costs could increase long-term expenses for coffee importers and roasters worldwide.

Vietnam’s Rising Exports Pressure Robusta Prices

Vietnam, the world’s largest robusta producer, continues to expand its exports and total production. According to Vietnam’s National Statistics Office, coffee exports during January–April 2026 rose 15.8% year over year to 810,000 metric tons. This follows full-year 2025 exports, which increased 17.5% to 1.58 million metric tons.

Furthermore, Vietnam’s 2025/26 coffee production is expected to rise 6% to 1.76 million metric tons, which is equivalent to 29.4 million bags. The steady increase in Vietnamese supply remains a primary bearish factor for global robusta prices.

Global Production Expected to Reach Record Levels

The U.S. Department of Agriculture’s Foreign Agricultural Service forecasts global coffee production in 2025/26 will rise 2% year over year to a record 178.8 million bags. Market trends vary by region and coffee type, as outlined by the international agency data.

Region or Coffee Variety Production Forecast (2025/26) Year-over-Year Change
Global Arabica Production 95.5 million bags Down 4.7%
Global Robusta Production 83.3 million bags Up 10.9%
Brazil Production Total 63.0 million bags Down 3.1%
Vietnam Production Total 30.8 million bags Up 6.2% (four-year high)

The Foreign Agricultural Service also forecasts that global ending stocks will decline 5.4% to 20.1 million bags in 2025/26. While ending stocks show a slight contraction, the massive production volumes from major growing hubs continue to dictate the downward path of exchange prices.

Frequently Asked Questions

Q1: Why did coffee prices decline significantly at the end of the week?

A1: Prices fell because the Brazilian real weakened against the U.S. dollar, which incentivized Brazilian coffee producers to increase their export sales to international markets.

Q2: What are the crop expectations for Brazil’s 2026/27 harvest?

A2: Analysts project a very large harvest. Estimates range from 71.4 million bags from the Coffee Trading Academy up to a record 75.9 million bags from Marex Group.

Q3: How large is the projected global coffee surplus for 2026?

A3: StoneX projects that the global coffee surplus will expand to 10 million bags in 2026, a major increase from the 1.8 million bags seen in 2025.

Q4: What role do Vietnam’s export numbers play in the robusta market?

A4: Vietnam increased its coffee exports by 15.8% during January–April 2026. This rising supply continues to apply downward price pressure specifically on robusta futures.

Q5: What logistical challenges are currently affecting the global coffee supply chain?

A5: Ongoing disruptions around the Strait of Hormuz have raised worries over shipping operations, which could increase expenses for freight, insurance, fertilizer, and fuel worldwide.

Source: Barchart | Author: Market Desk | Date: May 15, 2026

Coffee Prices Supported by Shrinking ICE Inventories as Supply Tightens

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Author: Qahwa World – Dubai. This article reviews ICE coffee inventories and coffee prices projections for 2026.

Source: Industry reports and exchange data
Date: May 14, 2026

Executive Summary

  • July arabica coffee gained 0.21%, while July robusta rose 2.24% to a seven-week high
  • ICE robusta inventories fell to a two-year low of 3,642 lots
  • ICE arabica stocks dropped to a 2.5-month low of 471,831 bags
  • Brazil April green coffee exports declined 1.3% year-over-year to 2.76 million bags
  • Vietnam January-April coffee exports surged 15.8% to 810,000 metric tons
  • Global coffee surplus projected to reach 10 million bags in 2026, largest in six years

Coffee futures settled higher in Wednesday trading as shrinking exchange inventories continued to provide market support, with robusta prices climbing to their highest level in nearly two months.

July arabica coffee on the New York exchange rose 0.60 points, or 0.21 percent, while July robusta coffee on the London exchange advanced 78 points, or 2.24 percent, reaching a seven-week peak.

Tightening stocks on the Intercontinental Exchange remained the primary bullish factor for the market. Robusta inventories fell to a two-year low of 3,642 lots on Wednesday, while arabica stocks dropped to a two-and-a-half-month low of 471,831 bags earlier in the week.

Reduced shipments from Brazil also provided price support. The country’s April green coffee exports declined 1.3 percent compared to the same period last year, totaling 2.76 million bags, according to industry data.

Disruptions in key shipping routes have raised concerns over global coffee supply chains, contributing to higher costs for freight, insurance, fertilizers, and fuel for importers and roasters.

On the bearish side, rising shipments from Vietnam, the world’s largest robusta producer, continued to weigh on the market. Vietnamese coffee exports during the first four months of 2026 increased 15.8 percent year-over-year to 810,000 metric tons. The country’s total coffee exports for 2025 also rose 17.5 percent to 1.58 million metric tons.

Supply outlook: Vietnam coffee production for the 2025/2026 season is projected to increase 6 percent to 1.76 million metric tons (29.4 million bags), which would mark a four-year high for the Southeast Asian producer.

Expectations of a larger Brazilian harvest are also placing downward pressure on prices. Recent projections indicate Brazil 2026/2027 coffee harvest could rise 12 percent year-over-year to 71.4 million bags.

Several trading firms have issued forecasts pointing to record production levels. A major commodities brokerage projected Brazil 2026/2027 crop at 75.9 million bags, while another trading firm raised its estimate to a record 75.3 million bags.

The global coffee surplus in 2026 could expand to 10 million bags, compared with 1.8 million bags in 2025, which would represent the largest surplus in six years, according to industry analysts.

Global coffee exports for the current October-September marketing year slipped 0.3 percent year-over-year to 138.66 million bags, based on data from the International Coffee Organization.

Looking further ahead, the United States Department of Agriculture Foreign Agricultural Service projects that global coffee production in 2025/2026 will rise 2 percent year-over-year to a record 178.85 million bags. The agency forecasts arabica production to decline 4.7 percent to 95.52 million bags, while robusta production is expected to increase 10.9 percent to 83.33 million bags.

Brazil production for 2025/2026 is forecast to fall 3.1 percent to 63 million bags, while Vietnam output is projected to rise 6.2 percent to a four-year high of 30.8 million bags.

The USDA also expects ending stocks for the 2025/2026 season to decline 5.4 percent to 20.15 million bags, down from 21.31 million bags in the previous season.

Frequently Asked Questions

Why did coffee prices rise recently?
Coffee prices moved higher primarily due to shrinking ICE inventories. Arabica stocks fell to a 2.5-month low, while robusta inventories dropped to a two-year low, tightening available supply.

How did Brazil coffee exports perform in April?
Brazil April green coffee exports declined 1.3 percent year-over-year to 2.76 million bags, providing some support to coffee prices.

What is happening with Vietnam coffee exports?
Vietnam coffee exports surged 15.8 percent in the first four months of 2026 to 810,000 metric tons, which has weighed on prices due to increased supply from the world largest robusta producer.

What is the global coffee surplus forecast for 2026?
The global coffee surplus in 2026 could expand to 10 million bags, up from 1.8 million bags in 2025, marking the largest surplus in six years.

What does the USDA forecast for global coffee production?
The USDA projects global coffee production will reach a record 178.85 million bags in 2025/2026, a 2 percent increase year-over-year, with robusta driving the growth.

How are Strait of Hormuz disruptions affecting coffee prices?
Disruptions in the Strait of Hormuz have raised concerns over global coffee supply chains, increasing shipping, insurance, fertilizer, and fuel costs for importers and roasters, which supports higher coffee prices.

Author: Qahwa World – Dubai
Source: Industry reports and exchange data
Date: May 14, 2026

 

Strong Dollar Weighs on Coffee Prices

Posted on by Qahwa World
Dubai – Qahwa World

Coffee futures closed lower on Tuesday as a stronger U.S. dollar pressured commodity markets. This is a clear example of how a Strong Dollar Weighs on Coffee Prices. July arabica coffee contracts (KCN26) fell 0.76%, while July robusta futures (RMN26) declined 0.63%.

Losses were limited by tightening certified coffee inventories. ICE arabica stocks dropped to a 2.5-month low of 471,831 bags, while robusta inventories fell to a two-year low of 3,664 lots.

The ongoing closure of the Strait of Hormuz continued to disrupt global coffee trade flows, increasing shipping, insurance, fuel, and fertilizer costs for importers and roasters.

Brazil’s weaker export performance also supported prices. Cecafe reported that Brazil’s March green coffee exports declined 10% year-on-year to 2.65 million bags, while the country’s Trade Ministry said total March coffee exports fell 31% to 151,000 metric tons.

Meanwhile, rising supplies from Vietnam weighed on robusta prices. Vietnam’s coffee exports during January–April 2026 increased 15.8% year-on-year to 810,000 metric tons, according to the National Statistics Office. The country’s 2025/26 coffee production is expected to rise 6% to a four-year high of 1.76 million metric tons.

Expectations of a larger Brazilian crop also added bearish pressure. Recent forecasts from the Coffee Trading Academy, Marex Group, Sucafina, and StoneX all point to strong production in Brazil’s 2026/27 season, with estimates ranging from 71.4 million to 75.9 million bags.

StoneX also expects the global coffee surplus to expand to 10 million bags in 2026, compared with 1.8 million bags in 2025.

The USDA’s Foreign Agricultural Service forecasts global coffee production in 2025/26 will reach a record 178.848 million bags, driven by stronger robusta output, while global ending stocks are projected to decline 5.4% to 20.148 million bags.

International Coffee Organization Releases 2024/25 Annual Report

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Author: Qahwa World – Dubai | Source: International Coffee Organization | Date: May 11, 2026The following article provides an overview of the International Coffee Organization annual report 2024 2025 and its key findings. Moreover, this analysis highlights the importance of the International Coffee Organization annual report 2024 2025 for industry professionals and stakeholders.

The International Coffee Organization has released its Annual Review for coffee year 2024/25, a comprehensive official document covering sector performance and institutional developments from October 2024 to September 2025. This Annual Review forms a core part of the International Coffee Organization annual report 2024 2025 series.

The report serves as the primary reference for policymakers, researchers, and coffee industry stakeholders, documenting key developments in the global coffee sector alongside the Organization achievements at both international and institutional levels.

annual-review-2024-2025-e.pdf – 22

Key Highlights from the Report

  • ICO composite indicator price rose 52 percent to 306.6 US cents per pound
  • Organization granted UN General Assembly observer status in December 2024
  • G7 recognized coffee as strategic sector for first time since 1970s
  • World coffee production estimated at 177.5 million bags, up 5.2 percent
  • Global consumption increased 1.4 percent to 175.1 million bags
  • ICO membership comprises 75 countries

Market Data

According to the report, the ICO composite indicator price averaged 306.6 US cents per pound during the coffee year, a 52 percent increase from the previous year. This average remains 118.3 percent higher than the ten-year average. Prices ranged between 250.5 and 354.4 US cents per pound during the period, as detailed in the International Coffee Organization annual report 2024 2025.

Brazilian Naturals saw the strongest growth among Arabica groups, rising 67 percent to 342.2 US cents per pound. Colombian Mids and Other Mids increased 57.9 percent and 58.9 percent respectively. The Robusta group indicator grew 29 percent to 225.7 US cents per pound.

World coffee production for 2024/25 is estimated at 177.5 million bags, up 5.2 percent. This comprises 102.1 million bags of Arabica and 75.4 million bags of Robusta. Global coffee consumption increased 1.4 percent to 175.1 million bags.

annual-review-2024-2025-e.pdf – 19

Institutional Achievements

In December 2024, the ICO was officially granted observer status in the UN General Assembly. Observer status recognizes the Organization relevance and enables it to contribute to international dialogue and policymaking while advocating for the global coffee sector at the highest level.

The G7 recognized coffee as a strategic sector during the Development Ministers Meeting in Pescara, Italy, in October 2024. This recognition will lead to the launch of a Global Coffee Fund aimed at leveraging blended finance solutions to catalyze private investments as outlined in the International Coffee Organization annual report 2024 2025.

Sustainability Initiatives

The Coffee Public-Private Task Force continued its work on living and prosperous income, developing a Process Guide to help Member countries understand coffee farmer incomes and implement collective action.

The Coffee Sustainability Support Database was relaunched in June 2025 with improved interface, currently tracking nearly 500 projects supporting coffee sustainability in areas including climate action, regenerative agriculture, and farmer prosperity.

annual-review-2024-2025-e.pdf – 19

2025/26 Priorities

The report identifies seven strategic priorities: strengthening governance, enhancing data transparency, promoting coffee as part of the solution to global challenges, advancing sustainability, scaling innovation, strengthening partnerships, and elevating coffee in global policy agendas including COP31.

ICO membership currently includes 75 countries, comprising 42 exporting members and 33 importing members. The Organization operates in four official languages: English, French, Spanish, and Portuguese.

Frequently Asked Questions

What is the ICO Annual Report?
It is an official document published annually by the International Coffee Organization reviewing global coffee sector performance and institutional developments.

What period does the 2024/25 report cover?
It covers October 2024 to September 2025. The report was released in May 2026. For further context, refer to the International Coffee Organization annual report 2024 2025.

What was the average coffee price according to the report?
The ICO composite indicator averaged 306.6 US cents per pound, a 52 percent increase from the previous year.

What are the key institutional achievements documented?
UN General Assembly observer status and G7 recognition of coffee as a strategic sector.

How many countries are ICO members?
75 countries, including 42 exporting members and 33 importing members.

Author: Qahwa World – Dubai | Source: International Coffee Organization | Date: May 11, 2026

Arabica Coffee Prices Drop on Outlook for Large Brazilian Harvest

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Dubai – Qahwa Word

Arabica coffee futures fell to a two-week low on Thursday, weighed down by growing expectations of a bumper crop in Brazil. These developments have had a significant impact on arabica coffee prices, especially given Brazil’s bumper crop forecasts. Meanwhile, robusta prices edged higher. In fact, arabica coffee prices may fluctuate in response to Brazil bumper crop news.

July arabica coffee (KCN26) settled down 10.60 points, or 3.73%, while July ICE robusta coffee (RMN26) gained 19 points (+0.56%).

Brazilian Production Forecasts Weigh on Prices
Several recent projections point to a significantly larger Brazilian coffee harvest in 2026/27, putting pressure on arabica markets. Notably, arabica coffee prices are closely tied to Brazil bumper crop expectations, making these forecasts crucial for analysts.

  • The Coffee Trading Academy estimated last Thursday that Brazil’s 2026/27 crop could rise 12% from the previous year to 71.4 million bags. Moreover, fluctuations in arabica coffee prices strongly reflect Brazil’s bumper crop predictions.

  • On March 19, Marex Group Plc projected a record 75.9 million bags, slightly above Sucafina’s forecast of 75.4 million bags (a 15.5% year‑on‑year increase).

  • StoneX raised its estimate for Brazil’s 2026/27 production to a record 75.3 million bags on March 12, up from a November forecast of 70.7 million bags. This kind of Brazil bumper crop forecast is a key driver for arabica coffee prices.

StoneX also predicted that the global coffee surplus in 2026 would grow to 10 million bags, up from 1.8 million bags in 2025 – the largest surplus in six years. As a result, arabica coffee prices, Brazil, and bumper crop numbers remain intertwined topics for market participants.

Vietnam’s Strong Exports Pressure Robusta
Robusta prices face headwinds from surging Vietnamese shipments. Vietnam’s National Statistics Office reported on Saturday that the country’s coffee exports from January to April 2026 rose 15.8% year‑on‑year to 810,000 metric tons. For the full year 2025, Vietnamese exports jumped 17.5% to 1.58 million metric tons. Additionally, Vietnam’s 2025/26 coffee production is expected to climb 6% year‑on‑year to a four‑year high of 1.76 million metric tons (29.4 million bags).

Strait of Hormuz Closure Creates Supply Concerns
The ongoing shutdown of the Strait of Hormuz has disrupted global coffee supply chains, supporting prices broadly. Higher shipping rates, insurance premiums, and increased costs for fertilizer and fuel have tightened available supplies, raising expenses for coffee importers and roasters. All these factors can indirectly affect arabica coffee prices, especially if Brazil expects another bumper crop.

Tight Inventories and Lower Brazilian Exports Provide Support
Signs of limited immediate supplies are also underpinning the market:

  • ICE arabica coffee inventories dropped to a 2.5‑month low of 483,292 bags on Thursday. This reduction coincides with a growing focus on Brazil bumper crop forecasts and arabica coffee prices.

  • ICE robusta inventories hit a 16.25‑month low of 3,755 lots last Tuesday.

Brazil’s export figures have also trended lower. On April 14, Cecafe reported that Brazil’s green coffee exports in March fell 10% year‑on‑year to 2.65 million bags. Earlier, on April 7, the country’s Trade Ministry noted that total March coffee exports declined 31% year‑on‑year to 151,000 metric tons. Therefore, arabica coffee prices in Brazil remain sensitive to both export volumes and bumper crop projections. It’s worth noting that Brazil’s bumper crop continues to make arabica coffee prices extremely volatile.

Global Export and Production Outlook
On November 7, the International Coffee Organization (ICO) said global coffee exports for the current marketing year (October to September) slipped 0.3% year‑on‑year to 138.658 million bags.

Looking further ahead, the USDA’s Foreign Agriculture Service (FAS) projected in its December 18 biannual report that world coffee production in 2025/26 would rise 2.0% year‑on‑year to a record 178.848 million bags. Within that total, arabica production is forecast to decline 4.7% to 95.515 million bags, while robusta production is expected to increase 10.9% to 83.333 million bags. The global market continues to monitor arabica coffee prices, Brazil, and potential bumper crop impacts for the coming years.

For Brazil, the FAS sees 2025/26 production falling 3.1% to 63 million bags, while Vietnam’s output is projected to grow 6.2% to a four‑year high of 30.8 million bags. Ending stocks for 2025/26 are forecast to decrease 5.4% to 20.148 million bags, down from 21.307 million bags in 2024/25. In summary, arabica coffee prices, Brazil, and the bumper crop outlook will remain central themes for the global coffee market throughout 2026.

Iran War Drives Up Coffee Production Costs and Threatens Future Supply

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Dubai – Qahwa World

The ongoing war involving Iran is increasing production costs in the global coffee sector, mainly due to rising fertilizer prices. These higher costs are raising concern among producers, analysts, and financial institutions about future supply and added pressure on smallholder farmers.

Recent industry assessments indicate that the current harvest cycle is mostly secure because key inputs have already been applied. However, the bigger risk is for the 2026/27 season if disruptions continue.

The situation is closely linked to instability in energy and fertilizer markets. The conflict has disrupted trade routes such as the Strait of Hormuz, an important passage for oil, gas, and agricultural inputs. This has contributed to higher global prices for fuel and fertilizers, both essential for coffee farming.

Fertilizer markets are under strain. Prices for key inputs like urea have increased significantly since the conflict began. Because fertilizer production depends heavily on natural gas, rising energy costs are making the situation worse.

For coffee farmers, especially smallholders, these increases are serious. Fertilizer represents a large part of production costs, and many farmers do not have strong financial protection against price swings. This directly affects their profitability.

In major coffee-producing countries, many growers rely on imported inputs, which makes them vulnerable to global supply shocks. At the same time, they are also dealing with currency changes, climate pressures, and labor shortages.

If the conflict continues to disrupt supply chains and energy markets, coffee production costs may keep rising, which could affect future harvest levels and global coffee supply.

Coffee Prices Get Support from Brazilian Real Strength

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Dubai – Qahwa World

Coffee futures traded sharply higher today. Arabica coffee rose to its highest level in one week. July arabica gained 3.43 percent. July robusta added 1.5 percent.

A major supporting factor is the strength of the Brazilian real. The currency surged to a two and a quarter year high against the US dollar. A stronger real discourages Brazilian coffee farmers from selling their crops overseas, which pushes prices upward.

Additional support comes from the ongoing closure of the Strait of Hormuz. This disruption has raised global shipping rates, insurance costs, fertilizer and fuel expenses. Coffee importers and roasters now face higher costs, tightening global supplies.

On the negative side, expectations of a large Brazilian coffee crop are limiting gains. The Coffee Trading Academy projected last Thursday that Brazil’s 2026/2027 harvest will increase 12 percent year over year to 71.4 million bags.

On March 19, Marex Group Plc forecast a record Brazilian crop of 75.9 million bags for the same season. That surpassed Sucafina’s forecast of 75.4 million bags, which represented a 15.5 percent annual increase. On March 12, StoneX raised its Brazil production estimate to a record 75.3 million bags, up from a November estimate of 70.7 million bags. StoneX also projected the 2026 global coffee surplus would expand to 10 million bags from 1.8 million bags in 2025. That would be the largest surplus in six years.

For robusta coffee, soaring exports from Vietnam are a bearish factor. Vietnam is the world’s largest robusta producer. On Saturday, Vietnam’s National Statistics Office reported that the country’s coffee exports from January to April 2026 rose 15.8 percent year over year to 810,000 metric tons. Vietnam’s 2025 coffee exports jumped 17.5 percent annually to 1.58 million metric tons. In addition, Vietnam’s 2025/2026 coffee production is projected to climb 6 percent year over year to a four year high of 1.76 million metric tons, or 29.4 million bags.

Tightness in arabica supplies is supporting prices. ICE arabica coffee inventories fell to a two and a quarter month low of 494,508 bags on April 21.

Smaller exports from Brazil also help support prices. On April 14, Cecafe reported that Brazil’s March green coffee exports fell 10 percent year over year to 2.65 million bags. On April 7, Brazil’s Trade Ministry reported that March coffee exports fell 31 percent annually to 151,000 metric tons.

Robusta coffee also sees bullish signs from tighter supplies. ICE robusta inventories fell to a sixteen and a quarter month low of 3,755 lots last Tuesday.

As a bearish factor, the International Coffee Organization reported on November 7 that global coffee exports for the current marketing year, which runs October through September, fell 0.3 percent year over year to 138.658 million bags.

The USDA’s Foreign Agriculture Service said in its biannual report on December 18 that world coffee production in 2025/2026 would increase 2.0 percent annually to a record 178.848 million bags. That includes a 4.7 percent decrease in arabica production to 95.515 million bags and a 10.9 percent increase in robusta production to 83.333 million bags. The USDA forecasted that Brazil’s 2025/2026 coffee production would decline 3.1 percent to 63 million bags. Vietnam’s coffee output would rise 6.2 percent to a four year high of 30.8 million bags. The USDA also forecasts that 2025/2026 ending stocks will fall 5.4 percent to 20.148 million bags from 21.307 million bags in 2024/2025.

illycaffè Reports 12% Revenue Growth in 2025 Amid Record Coffee Prices

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Trieste, Italy — Qahwa World

Italian coffee group illycaffè S.p.A. reported a solid performance for 2025, with group revenue rising 12% to €700 million (approximately US$817.2 million), supported by higher volumes across key markets including Italy, the United States, and Europe.

The company said it achieved its fourth consecutive year of strong organic growth despite a challenging environment marked by record-high green coffee prices and geopolitical uncertainty.

Financial Performance

  • Revenue: €700 million (+12%)
  • EBITDA: €90 million
  • Net profit: €20 million
  • Net financial position: €197 million

illycaffè attributed the financial position to higher raw material costs and continued strategic investments, including acquisitions completed during the year.

Commodity Pressure Remains High

The company highlighted significant pressure from coffee bean prices in 2025. Green coffee averaged 368 cents per pound, around three times the long-term historical average and more than 50% higher than in 2024.

illycaffè said it partially offset inflation through pricing strategies and cost-efficiency measures.

CEO Commentary

CEO Cristina Scocchia said the company maintained strong momentum despite external challenges:

“2025 was the fourth consecutive period of strong organic growth for the company, despite a particularly challenging external environment and the sharp rise in raw material prices.”

She added that the company continued strengthening its position across the value chain through targeted investments and integration.

Regional Performance

  • Italy: +14%
  • Europe: +23%
  • United States: +20% (at constant exchange rates)

The United States remained a strategic priority market for the company.

Strategic Acquisitions

During 2025, illycaffè expanded its operations through two key acquisitions:

  • Full acquisition of Swiss distributor Thalwil AG to strengthen its direct presence in European markets
  • 80% stake acquisition in coffee machine manufacturer Capitani, focused on portioned coffee systems for the home segment

The company said these investments strengthen its integration across the value chain, from production to consumer-facing equipment.

Outlook

illycaffè said it expects 2026 to remain challenging due to geopolitical tensions and economic uncertainty. However, it plans to continue supporting growth through international expansion, marketing investment, and sustainable innovation.