Coffee Farmers in Central America Struggle to Survive Falling Prices

Dubai – Qahwa World

The Guardian published a lengthy report titled “‘Everyone feels like they are being scammed’: can Central America’s small coffee growers survive as global prices fall?”, which discussed the growing pressures facing coffee farmers in parts of Central America, particularly in El Salvador and Honduras. The report explores how climate instability, rising production costs, labour shortages and volatile global markets are reshaping coffee farming across the region.

According to the report, many small producers who have depended on coffee cultivation for generations are now confronting increasingly unpredictable conditions. Weather patterns that once followed a familiar seasonal rhythm have become less reliable, making it difficult for farmers to plan their harvest cycles and manage their farms effectively.

The report begins on a hillside in western El Salvador, where coffee farmer Oscar Leiva observes rainfall arriving in December, a month that traditionally marked the beginning of the dry season. During the latest harvest cycle, flowering occurred early and then stalled, followed by a period of intense heat. As a result, the remaining crop is uneven in quality and more expensive to produce than previous harvests.

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For Leiva’s family, coffee is not simply a crop but a long-standing way of life. His mother, Esperanza Marinero, remembers when the rainy season arrived on time and harvests could be planned months ahead. Today, that certainty has disappeared. Farmers must make decisions about pruning, fertilising and hiring workers without reliable seasonal patterns, increasing the financial risks they face.

Coffee has historically played a major role in El Salvador’s economy. In the mid-1970s the country ranked among the world’s leading coffee producers, with harvests exceeding five million quintales, a unit equal to about 46 kilograms. Today, national production struggles to reach one million quintales.

The report notes that this decline reflects more than market cycles. Decades of land restructuring, climate shocks and rural migration have weakened the coffee sector and altered the agricultural landscape. Increasing climate volatility has disrupted flowering cycles, reduced yields and affected the quality of coffee, particularly for small farmers who lack financial reserves to absorb repeated losses.

Read also: Shock in the Coffee Market: Colombia’s Production Drops 36%

Cecibel Romero, a researcher focusing on coffee production, explained that the sector is experiencing overlapping challenges that extend beyond climate change alone. Rising temperatures, irregular rainfall and plant diseases such as coffee rust have exposed long-standing vulnerabilities in traditional production systems.

Romero noted that past production models often focused on maximising yields and implementing short-term solutions rather than building long-term resilience. After severe rust outbreaks in the early 2010s, many producers replanted their farms with varieties believed to be resistant. However, some of these varieties produced lower-quality beans or did not maintain their resistance over time.

As coffee’s economic importance declined in El Salvador, public support systems for the sector were also reduced. Agricultural services weakened, renovation programmes became fragmented and access to affordable credit narrowed. As a result, many producers have been left to cope with climate risks, disease outbreaks and market volatility largely on their own.

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Similar pressures are being felt in Honduras, the largest coffee producer in Central America. Although overall production remains higher than in El Salvador, farmers there are also dealing with rising costs and climate-related challenges.

Juan Luis Hernández, a forest engineer who has worked on environmental projects connected to the Honduran Coffee Institute, said adapting to changing conditions requires investment, time and labour. Measures such as managing shade trees, restoring soil health, protecting water sources and monitoring plant diseases all require resources that are not equally available to all farmers.

In the Honduran region of Copán, farmer Gerardo Vásquez manages an eight-hectare family farm while also advising other growers. Trained through the Honduran Coffee Institute, he works on soil analysis, selecting coffee varieties and developing agroforestry systems.

Even with this technical background, Vásquez says the economic reality of coffee farming remains difficult. Establishing one manzana of coffee — roughly 0.7 hectares — now costs about 200,000 lempiras over a period of three years.

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Production costs have risen significantly in recent years. Fertiliser prices increased sharply after the pandemic, while labour shortages have pushed wages for harvest workers higher. When harvesting, processing and transport are included, farmers may spend more than 3,000 lempiras to produce a single quintal of parchment coffee.

Weather conditions can further complicate the process. Continuous rainfall makes drying coffee difficult, forcing some farmers to sell freshly picked cherries directly from the field at lower prices. Others depend on intermediaries who provide advance payments, which can limit farmers’ ability to negotiate prices later.

Climate change is also affecting where coffee can be grown successfully. Farms located below 1,000 metres above sea level are becoming more vulnerable to heat stress, pests and diseases. As a result, coffee cultivation has gradually moved to higher elevations over time.

However, relocating production to higher ground is not feasible for many smallholders, who may not have access to suitable land or the financial means to make such changes.

At Café San Rafael in Honduras, co-owner Carlos Guerra explained that the flowering cycle of coffee plants has become increasingly irregular. What once occurred within a predictable timeframe now happens in stages, extending the harvest period and raising labour costs.

Labour itself has become one of the most pressing challenges for producers. Coffee harvesting requires careful selection of ripe cherries, a process that cannot easily be mechanised. Younger workers are increasingly leaving rural areas, making it harder for farms to recruit enough labour during harvest season.

Farmers are experimenting with various adaptation strategies, including planting additional shade trees and improving soil management practices. While these measures can help protect coffee plants from heat stress, they may also reduce yields, creating a difficult balance between environmental resilience and economic viability.

Some farms attempt to offset these challenges by focusing on higher-value markets. At Café San Rafael, careful management of fermentation and drying processes helps maintain coffee quality even when harvest conditions are uneven. Operating a roastery also allows the business to manage fluctuations in supply.

However, many small farmers do not have access to such opportunities. Entering specialty coffee markets often requires certification, processing infrastructure and export connections that remain beyond the reach of numerous producers.

Emeric Seguin, director of sourcing and sustainability at a specialty coffee company working with producers in Central America, told the newspaper that mistrust is widespread within the supply chain. Farmers often feel undervalued, while buyers worry about inconsistent supply, leaving cooperatives caught between both sides.

Several initiatives are attempting to promote more resilient farming practices. In El Salvador, a coffee production school known as Renacer encourages ecological approaches that focus on soil health, shade restoration and long-term stability rather than maximising short-term yields.

Agronomist Sigfredo Corado explained that the goal is to reduce extreme fluctuations in harvests. While farms may not achieve exceptionally high yields in strong years, they are also less likely to experience severe drops in production.

Despite these efforts, the report notes that global market conditions could add further pressure. Rabobank has predicted that increasing coffee surpluses in the coming seasons could push international prices lower, potentially making coffee production less viable for smallholders.

As profitability declines, some land previously used for shaded coffee is being converted to other crops or sold for development, gradually altering landscapes that have long been associated with coffee cultivation.

For farmers such as Oscar Leiva, planning for the next season remains unavoidable despite the uncertainty. Each harvest now requires decisions to be made without the reliable patterns that once guided coffee farming.

Across Central America, producers continue searching for ways to adapt to changing environmental and economic realities, while the long-term sustainability of smallholder coffee farming remains an open question.

Shock in the Coffee Market: Colombia’s Production Drops 36%

Dubai – Qahwa World

Coffee production in Colombia, the world’s largest producer of washed Arabica coffee, recorded a sharp drop in February 2026. Production reached 869,000 bags, with each bag weighing 60 kilograms, marking a decline of 36% compared with the same month last year. This decrease reflects a continuing negative trend that is putting pressure on the global coffee supply.

  • Noticeable Drop in Annual Production

When looking at the total production over the last 12 months, from March 2025 to February 2026, the total reached 12.72 million bags. This represents a decline of 14% compared with the previous cycle.

German Bahamon Jaramillo, the general manager of the National Coffee Federation (FNC), said that the current situation requires urgent action to protect the stability of the sector and maintain farm productivity, according to the Argentine newspaper Infobae.

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The main recommendations include improving fertilization to restore plant strength and renewing coffee farms to ensure sustainable production in the medium term. There are also calls for direct support measures for farmers to help them deal with lower profits caused by reduced production.

  • Exports Also Decline

The drop in production has also affected exports. Coffee exports in February fell by 32%, reaching 807,000 bags.

During the beginning of the agricultural season, from October to February, total exports reached 5.06 million bags. This is a decline of 14% compared with the same period in the previous cycle.

  • Production Under Pressure

Experts say this decline shows how vulnerable coffee production is to climate changes and farm management problems. It also puts pressure on global prices and may increase the cost of coffee for consumers. At the same time, it makes it more difficult for small farmers to maintain sustainable businesses.

  • Main Reasons for the Decline

Several factors are behind the drop in production.

Climate changes:
Continuous heavy rain and thick cloud cover affected flowering and plant growth. This also led to the spread of diseases such as coffee leaf rust, although detection rates remain low thanks to resistant coffee varieties.

Read Also: Historic Colombian Coffee Harvests Face Labour Shortages

Farm management challenges:
Coffee plants are showing signs of exhaustion after several years of strong production. The 2024/2025 season recorded the highest production level in 30 years. In addition, higher costs for inputs such as fertilizers and labor have increased pressure on farmers.

Weak start to 2026:
The decline follows a 34% drop in January 2026, when production reached 893,000 bags, making the start of the year one of the weakest in recent years.

  • Suggested Actions

Experts suggest several steps to address the situation.

Short term:
Improve fertilization to strengthen plants and provide direct financial support for small farmers, who produce about 70% of the country’s coffee, to help offset income losses.

Medium term:
Renew coffee farms to ensure long-term sustainability and adopt varieties that are more resistant to climate conditions. Price-stabilization mechanisms are also recommended to reduce market volatility.

Long term:
Address climate change through global strategies. A report from the International Coffee Organization (ICO) and other groups expects that global coffee production could be affected by up to 50% by 2050 if adaptation measures are not taken.

  • Impact on Global Supply

Colombia represents about 10% to 12% of global Arabica production. Because of this, any decline in its output puts pressure on the global supply, especially when production also drops in countries like Vietnam or Indonesia during some periods.

However, some of this pressure may be eased by expectations of a record Brazilian crop in the 2026/2027 season, estimated at 66.2 million bags, an increase of 17.2%. This could push global production to around 180 million bags.

Still, climate volatility keeps supply fragile. As a result, major international buyers, including the United States and Europe, may look for temporary alternatives.

  • Price Movements

Arabica prices recently fell from record levels above $4 per pound in November 2025 to about $2.80 to $3.00 per pound today, mainly because of strong crop expectations in Brazil.

However, the decline in Colombian production has helped push prices up by about 2% to 5% in recent weeks. This increase is linked to concerns about global supply and geopolitical tensions, including shipping disruptions in the Strait of Hormuz.

The World Bank expects Arabica prices to fall by 13% to 15% during 2026 overall. But this outlook could change if production in Colombia continues to decline.

For consumers, coffee prices in the market may rise by about 5% to 10% in the short term, especially in Europe and the United States.

Vietnam’s Coffee Crisis Could Disrupt Global Supply Chains

Dubai – Qahwa World

A report published by BeverageDaily warns that challenges facing coffee production in Vietnam could trigger new volatility in global coffee markets, potentially affecting supply chains and prices in the coming years.

Although global coffee prices have recently shown signs of easing, the difficulties confronting Vietnamese coffee farmers may reverse that trend if production declines continue.

  • Vietnam’s Key Role in the Global Coffee Market

Vietnam is the world’s second-largest coffee producer after Brazil and the leading global producer of Robusta coffee. This variety accounts for more than forty percent of global production and plays a central role in commercial coffee blends widely used by major manufacturers such as Nestlé.

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According to figures cited in the report, Vietnam exports more than 1.5 million metric tons of coffee annually. In 2025, the country’s coffee exports reached approximately 8.92 billion dollars, representing a 58.8 percent increase compared with 2024, largely driven by high Robusta prices.

  • Climate Pressures and Rising Land Costs

Coffee production in Vietnam’s Central Highlands has been increasingly affected by extreme weather conditions. Severe floods and prolonged rainfall last year reduced yields and created concerns among traders, given Vietnam’s central role in global Robusta supply.

At the same time, rising land prices in coffee-growing regions are adding further pressure. Infrastructure development and expanding investment in agriculture have pushed land values higher, encouraging some farmers to sell their farms rather than continue production under tightening profit margins.

Industry observers say coffee farmers today must simultaneously manage climate risks, financial pressures and rising production costs, making the sustainability of farming operations more difficult.

  • Tax Policy Changes

The report also highlights regulatory challenges faced by the Vietnamese coffee sector during 2025 after the introduction of a five-percent value-added tax on certain semi-processed agricultural products, including coffee beans.

Exporters argued that the measure complicated trade procedures and tied up cash flow because exported green coffee is typically zero-rated. Vietnamese authorities later amended the legislation, and the previous tax treatment was restored starting in early 2026.

  • Smaller Roasters May Feel the Impact First

According to the report, disruptions in Vietnam’s coffee sector may initially affect smaller and medium-sized roasters, particularly in Europe, Asia and Australia, which rely heavily on stable supplies of affordable green coffee.

Yoc also read: How Vietnam Turned Coffee Into a Way of Life?

Large multinational companies generally have greater flexibility through diversified sourcing and long-term contracts. Nevertheless, price increases may eventually reach consumers, often with a delay ranging from twelve to twenty-four months.

  • A Possible Shift Toward Higher Value Production

With climate and land constraints limiting expansion in production volume, Vietnam’s coffee industry may increasingly focus on quality improvement and value-added activities.

Some producers may expand into roasting and semi-processed coffee products rather than exporting raw beans alone, a development that could diversify global supply chains over time.

Read also: Brazil Rain and Vietnam Surplus Sink Coffee Futures

The report also notes growing international interest in high-quality Robusta coffees, sometimes referred to as fine Robusta, as climate pressures make Arabica production more vulnerable in certain regions.

  • Investments to Strengthen the Supply Chain

Major coffee companies, including Nestlé, continue to invest in Vietnam’s coffee sector in an effort to strengthen supply chains and promote sustainable farming practices.

Programs supporting drought-resistant coffee seedlings, farm renovation and regenerative agriculture aim to improve productivity and resilience among thousands of farmers in Vietnam’s Central Highlands.

Despite these initiatives, the report suggests that the global coffee industry may still face recurring supply pressures if climate challenges and production costs continue to rise in key producing countries.

Coffee Prices Rise on Supply Concerns

Dubai – Qahwa World

Global coffee prices moved higher on Thursday as renewed concerns about supply disruptions supported the market. Arabica futures climbed to their highest level in about two weeks, while robusta contracts also posted modest gains.

Market sentiment was influenced by fresh export data from Brazil. The country’s Ministry of Trade reported that Brazilian coffee exports in February declined by 17.4 percent compared with the same month a year earlier, totaling about 142,000 metric tons. The drop raised questions about near-term supply availability from the world’s largest coffee producer.

Shipping conditions in global trade routes also contributed to the cautious mood in the market. Disruptions affecting shipping lanes through the Strait of Hormuz have increased transportation costs, including higher freight rates, insurance premiums and fuel expenses. These factors are expected to add pressure to import costs for coffee traders and roasters.

Despite the upward move in prices, a stronger U.S. dollar limited the extent of the gains. A firmer dollar generally makes dollar-denominated commodities such as coffee more expensive for buyers using other currencies.

Weather developments in Brazil continue to play an important role in shaping market expectations. Recent rainfall has improved soil moisture conditions in Minas Gerais, the country’s main arabica-producing region. According to meteorological data, the area received significantly above-average precipitation during the week ending February 20, helping improve crop prospects.

Coffee prices have experienced notable volatility in recent weeks. Earlier in the month, both arabica and robusta futures fell sharply amid expectations of a large Brazilian harvest. Brazil’s national crop supply agency projected that the country’s coffee output in 2026 could reach a record 66.2 million bags, driven by stronger arabica production and a moderate increase in robusta volumes.

Global supply forecasts have also pointed to expanding production. Banking sector estimates suggest worldwide coffee output may reach around 180 million bags in the 2026/27 season, an increase of roughly eight million bags compared with the previous year.

Meanwhile, Vietnam continues to expand its presence in the robusta market. Official data show the country recorded strong export growth at the start of the year, with shipments rising sharply compared with the same period last year. Vietnam remains the world’s largest producer of robusta coffee, and its production is expected to grow further in the current crop cycle.

Coffee inventories monitored by the Intercontinental Exchange have also shown signs of recovery after reaching multi-month lows late last year. Higher stock levels can weigh on prices because they signal improved supply availability in the market.

At the same time, production trends in other origins remain mixed. Colombia, the world’s second-largest arabica producer, recently reported a significant decline in January coffee output compared with the previous year, a factor that provided some support to global prices.

Overall, the coffee market continues to balance opposing forces: concerns over logistics and regional production setbacks on one side, and expectations of larger global harvests on the other. Traders are closely watching weather conditions, export flows and shipping developments for further direction in the weeks ahead.

Global Coffee Production Is Rising; Prices Are Falling

An Industry Perspective from Ethiopia

By Gizat Worku Kebede, General Manager of the Ethiopian Coffee Exporters Association.

Global coffee production is increasing; its price, meanwhile, is decreasing.

According to the new global coffee production forecast released on February 25, 2026, the world is set to produce a volume it has never seen before. Rabobank forecasts production of 180 million 60-kg bags global consumption, signaling continued supply expansion and potential downward pressure on prices.

Additional analyses highlight speculative fund liquidation and surplus conditions as contributing factors to price volatility. HedgePoint Global Markets forecasts Brazil’s 2026/27 exports at 47 million bags — a historical high — reinforcing expectations of softer price conditions.

The average price of Brazilian Natural coffee in the New York market declined from USD 3.43 per pound in January to USD 3.09 in February. This movement reflects prevailing market dynamics and broader supply-demand conditions.

The World Bank projects an average 13% price adjustment in 2026 compared to 2025 levels.

For Ethiopian exporters and suppliers, alignment between domestic pricing and global market trends remains essential for competitiveness and sustainable market participation. Price structures that reflect international benchmarks help safeguard export flows and foreign currency earnings in a volatile market environment.

This perspective is offered as an industry contribution to informed discussion on global coffee market developments.

Saudi Arabia: 1.3 Million Coffee Trees Produce More Than 870 Tons Annually

Dubai – Qahwa World

Saudi Arabia’s Ministry of Environment, Water and Agriculture has announced that the Kingdom is home to more than 1.3 million productive coffee trees, with annual output exceeding 870 tons of green coffee. The trees are concentrated across the southern and southwestern regions of the country.

According to the ministry’s data, coffee cultivation is spread across Jazan, Asir, Al Baha, Makkah, and Najran. The mountainous highlands in these regions provide favorable growing conditions, supported by suitable climate patterns and fertile soil, contributing to the quality of the harvest.

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Jazan leads in the number of productive coffee trees, with more than 966,000 trees generating over 642 tons annually. Asir follows with more than 243,000 productive trees, producing upwards of 175 tons per year.

In Al Baha, the number of productive coffee trees stands at around 72,000. Makkah region accounts for more than 12,000 productive trees, yielding over 10 tons annually, while Najran hosts more than 9,000 productive trees with output exceeding 7 tons per year.

The ministry described Saudi coffee as one of the country’s key national crops, highlighting its cultural and social significance, particularly in traditional hospitality and during Ramadan, when preparation methods vary across regions.

Read also: Saudi Arabia Announces First-Ever Detection of Coffee Rust Epidemic in Jazan

The figures were released as part of the ministry’s “خير أرضنا” (“The Goodness of Our Land”) campaign, aimed at promoting local agricultural products, supporting farmers, and strengthening food security in line with Saudi Vision 2030 objectives.

The ministry also encouraged consumers to support locally produced coffee, noting that increased demand contributes to rural development and the long-term sustainability of the agricultural sector.

Russian Coffee and Roasted Coffee Market 2026

MOSCOW – QAHWA WORLD

The Russian coffee market continues to reach record sales levels, driven by strong domestic demand and rising per capita coffee consumption. According to analysis by Roif Expert, the market volume increased by approximately 300 billion rubles in recent periods, marking the highest level recorded since monitoring began.

Analysts note that this growth is supported by increased domestic production of both regular and roasted coffee. Major Russian producers are expanding their production capacities to meet rising consumer demand. At the same time, coffee imports continue to show a stable upward trend, making the Russian market attractive to foreign companies, while exports, despite some international restrictions, have potential for expansion.

Growth in Roasted Coffee Production

The roasted coffee sector has seen a significant increase in production, driven by rising local demand and the need to partially replace imported products. Production is concentrated in key regions, and the market shares of major companies remain relatively stable compared to previous periods.

Roif Expert highlights that the entry of new players intensifies competition, especially for companies with the resources to expand geographically and increase production volumes. Additionally, the market is directly influenced by the overall economic situation, regional factors, and geopolitical conditions, making adaptability crucial for companies to maintain their market share.

Imports and Exports of Roasted Coffee

  • Imports: Determined by domestic demand and price fluctuations between Russian and foreign producers, imports show a steady growth trend.

  • Exports: Primarily directed to international markets, although global restrictions can affect the attractiveness of Russian roasted coffee abroad.

Key Market Trends

According to Roif Expert, the main trends in the Russian coffee market include:

  • Growth in production of both regular and roasted coffee to meet domestic demand.

  • Continued increase in per capita coffee consumption.

  • Steady import growth with potential for expanding exports.

  • Stability in market shares of major producers alongside rising competition from new entrants.

  • Coffee prices are increasing faster than sales volumes.

Market Outlook

Analysts expect the Russian coffee market to continue its growth in the coming years, driven by increasing domestic production and expanding roasted coffee exports. The market remains attractive to investors due to high profitability and growing consumption, particularly in the roasted coffee segment, where competition among major players is strong.

Roif Expert’s analysis confirms that the Russian coffee and roasted coffee market is flexible and capable of adapting to changes in demand and pricing, enhancing its growth potential both domestically and internationally in the medium and long term.

Coffee Prices Rise as Demand Returns After Sharp Decline

DUBAI – QAHWA WORLD

Coffee prices rose for a second consecutive day at the end of the week, following recent declines that prompted roasting companies to return to the market and rebuild their low inventories.

March arabica contracts recorded a slight increase, while robusta contracts rose to a one-week high, signaling strong renewed demand.

  • Sharp Declines Trigger Buying

Over the past two weeks, coffee faced significant pressure. Robusta prices fell to a six-month low, while arabica prices reached the same level, amid expectations of a plentiful Brazilian crop.

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Brazil’s National Supply Agency Conab announced that the country’s coffee production in 2026 is expected to rise by 17.2 percent compared to last year, reaching a record 66.2 million bags. Arabica production is projected to increase by 23.2 percent to 44.1 million bags, while robusta output is expected to rise by 6.3 percent to 22.1 million bags.

  • Rainfall Improves Crop Outlook

Heavy rainfall has eased drought concerns and improved expectations for Brazil’s coffee harvest. Minas Gerais, the country’s largest arabica-growing region, received 72.6 millimeters of rain for the week ending February 6, or 113 percent of the historical average, according to Somar Meteorologia.

  • Vietnam Increases Supply

Meanwhile, rising exports from Vietnam have added pressure on robusta prices. Vietnam’s January exports rose 38.3 percent year-on-year to 198,000 metric tons, while full-year 2025 exports increased 17.5 percent to 1.58 million metric tons.

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Vietnam’s coffee production for the 2025/2026 season is expected to rise six percent to 1.76 million metric tons, the highest level in four years, further boosting global robusta supply.

  • Inventory Recovery Limits Gains

Coffee inventories monitored by international exchanges have recovered from previous lows, moderating price gains. Arabica stocks rose from a one-and-a-half-year low, and robusta inventories recovered from a thirteen-month low to reach a two-month high.

  • Price Support Factors

Despite abundant supply in some regions, supportive factors remain. Brazil’s trade data showed January exports fell 42.4 percent year-on-year.

Colombia’s coffee production fell 34 percent in January to 893,000 bags, supporting arabica prices, as Colombia is the world’s second-largest producer of arabica coffee.

READ THIS RELATED STORY: Coffee Prices Rise as Brazilian Real Strength Sparks Short Covering 

Globally, the International Coffee Organization reported that world coffee exports during the marketing year from October to September declined 0.3 percent to 138.658 million bags, reflecting a slight tightening of global supply.

  • Global Production Forecast

The United States Department of Agriculture’s biannual report projects that world coffee production in the 2025/2026 season will rise two percent to a record 178.848 million bags. Arabica production is expected to decrease 4.7 percent to 95.515 million bags, while robusta output will rise 10.9 percent to 83.333 million bags.

Global ending stocks are projected to fall 5.4 percent to 20.148 million bags from 21.307 million bags in the previous season.

This data shows that the coffee market is balancing between ample supply in some countries and declining production and exports in others, alongside renewed demand at low price levels, keeping prices volatile and closely watched in the coming weeks.

 

Coffee Prices Rise as Brazilian Real Strength Sparks Short Covering

DUBAI – QAHWA WORLD

Coffee futures climbed sharply on Thursday following a surge in the Brazilian real, which encouraged traders to cover short positions. March arabica contracts closed up 1.65%, while March robusta contracts rose 2.02%.

The real reached its highest level against the U.S. dollar in nearly two years, prompting caution among Brazilian coffee exporters and contributing to the price gains.

Over the past two weeks, coffee prices had been under pressure. Arabica and robusta recently hit six-month lows amid expectations of a strong Brazilian crop. According to Brazil’s crop agency Conab, total coffee production in 2026 is projected to reach 66.2 million bags, up 17.2% from 2025. Arabica output is expected to increase 23.2% to 44.1 million bags, while robusta production is forecast to grow 6.3% to 22.1 million bags.

Rainfall in Brazil has also improved crop prospects. Minas Gerais, the country’s largest arabica-growing region, received 72.6 mm of rain during the week ending February 6, exceeding the historical average. This eased earlier concerns over dry conditions that had pressured prices.

Vietnam’s coffee exports, particularly robusta, are increasing, exerting downward pressure on prices. January exports rose 38.3% year-on-year to 198,000 metric tons, while total 2025 exports climbed 17.5% to 1.58 million metric tons. Production for 2025/26 is projected at 1.76 million metric tons (29.4 million bags), the highest in four years.

ICE coffee inventories have also recovered, limiting price gains. Arabica stocks, which fell to a 1.75-year low in November, rose to a three-month high by early January. Robusta inventories, previously at a 13-month low in December, similarly increased in January.

On the upside, Brazil’s coffee exports fell 42.4% year-on-year in January, reducing global supply pressure. Smaller production in Colombia, the second-largest arabica producer, also supported prices, with January output down 34% year-on-year.

Globally, the International Coffee Organization reported a slight decline (-0.3%) in exports for the current marketing year, signaling tighter supplies. Meanwhile, USDA forecasts indicate that total global coffee production in 2025/26 will reach a record 178.848 million bags, with arabica slightly down and robusta up. Brazil’s 2025/26 production is expected to decrease by 3.1%, while Vietnam’s output is projected to rise 6.2%, reaching a four-year high. Ending stocks are forecast to decline by 5.4%.

Brazil’s Canephora Coffee Cultivation Moves Beyond Traditional Regions

DUBAI – QAHWA WORLD

Brazil’s production of canephora coffee—covering conilon and robusta varieties—is spreading into states that have historically focused little on these crops. The expansion is being fueled largely by firm prices and growing demand, according to industry representatives and official data.

While Brazil remains the world’s leading producer of arabica coffee, canephora output has gained momentum in recent years. Canephora beans, typically used in espresso blends and instant coffee, offer higher yields compared to arabica and have become increasingly attractive to growers. Brazil is currently the second-largest canephora producer globally and continues to narrow the gap with Vietnam, the leading producer.

Traditionally, the state of Espírito Santo has dominated Brazil’s canephora production, particularly conilon. However, data from Companhia Nacional de Abastecimento (Conab) show that since 2020, other states—including Mato Grosso and Minas Gerais—have significantly increased their output.

  • Prices Encourage New Plantings

Strong international prices over the past year have encouraged farmers to plant canephora outside its traditional strongholds. Although prices have eased from last year’s highs, they remain above long-term averages, sustaining producer interest. Improvements in bean quality have also contributed to broader acceptance in both domestic and export markets.

Minas Gerais, best known as Brazil’s largest arabica producer, is projected to nearly double its canephora production between 2020 and 2026, reaching more than 600,000 60-kilogram bags, according to Conab forecasts.

  • Mato Grosso Eyes Productivity Gains

In Mato Grosso, a state better known for soybeans and corn, efforts are underway to boost canephora cultivation. Agronomists are drawing inspiration from neighboring Rondônia, a key robusta-producing state with higher average yields. Current productivity in Mato Grosso trails Rondônia’s levels, but local research and extension agencies are working to close the gap.

Conab estimates that Mato Grosso’s canephora production will approach 300,000 bags this year, nearly doubling compared with 2020 levels.

  • Ceará Explores New Opportunities

Further north, Ceará is evaluating the potential for both conilon and robusta Amazonica, a variety commonly cultivated in Rondônia. Although Ceará’s current production is modest and grouped with smaller producing states such as Acre and Pará in official statistics, combined output from these regions is projected to increase substantially by 2026.

Ceará’s proximity to ports and transport infrastructure is seen as an advantage for export-oriented growth. State officials anticipate an initial expansion of planted area in the coming years, with room for further development if market conditions remain favorable.

Overall, Brazil’s canephora sector is undergoing geographic diversification, supported by price incentives, productivity gains, and broader market demand.

Coffee in China: From the “Terroir” of Yunnan to the Skyscrapers of Shanghai

Dubai – Coffee World

In a land where time has been measured by tea harvest seasons for millennia, the rise of coffee appears as an economic and cultural miracle achieved in record time. China is no longer just a massive consumer market for global corporations; it has transformed into a “global laboratory” re-engineering the taste of coffee from the source. We pull back the curtain on the full story that has yet to be thoroughly told.

Forgotten Roots: How “Coffee” Saved the Highlands

The story began modestly in 1892 in the village of “Zhujula” in Yunnan Province, when a French missionary planted the first tree. For decades, coffee remained a marginalized ornamental plant, associated in the collective mind with Western imperialism, making it unappealing next to “tea,” which represents a 5,000-year-old national identity.

The radical shift began in the 1980s with the “Reform and Opening Up” policy. The Chinese government, in partnership with the World Bank and the United Nations Development Programme, launched an ambitious project to diversify the crops of poor farmers in mountainous regions as an alternative to traditional crops. Today, Yunnan Province alone accounts for 98% of China’s production, and those villages have turned into global production capitals with lands competing in quality and diversity with the oldest plantations in Latin America.

The Geography of Chinese “Terroir”

China enjoys unique agricultural regions that give its coffee a distinct identity, where mineral-rich volcanic soil meets high altitudes that force slow growth of the coffee cherries, allowing for the concentration of complex sugars within the bean.

1. Yunnan Province (The Rising Giant):

The “Coffee Belt” in Yunnan runs through the regions of Pu’er, Baoshan, and Dehong. Altitudes here range between 1,000 and 2,000 meters above sea level.

  • Climate: Yunnan features a long dry season that facilitates the natural drying process, giving the coffee “clean” flavors and a distinct sweetness.

  • Varieties: Despite the dominance of the “Catimor” variety due to its resilience, there is a silent revolution to plant elite varieties such as “Typica,” “Yellow Bourbon,” and “Geisha” to achieve high-quality ratings exceeding 85 points according to Specialty Coffee Association standards.

2. Hainan Island and Fujian:

These regions represent the tropical side; “Fine Robusta” thrives in Hainan, while Fujian is witnessing bold experiments in planting coffee in areas that were historically exclusive to the famous “Oolong” tea, despite the challenges of typhoons and high humidity.

The Processing Revolution

What distinguishes China in 2026 is its technical audacity. Chinese farmers are no longer just peasants; they are managing innovation laboratories:

  • Anaerobic Fermentation: Leading estates use pressure tanks to control fermentation, producing aromatic notes reminiscent of tropical fruits.

  • Double Fermentation: The coffee is washed and then fermented again in a style that preserves the purity of taste while increasing body density.

Comparative Analysis: China vs. Asian Coffee Giants (Production and Growth Data 2025-2026)

Comparison Point China (Yunnan) Vietnam Indonesia
Dominant Crop Type Arabica (95%) Robusta (90%) Mixed (75% Robusta)
Annual Production Volume ~160,000 Metric Tons ~1,800,000 Metric Tons ~750,000 Metric Tons
Strategic Focus Specialty Quality Mass Production Old Genetic Diversity
Elevation 1,000 – 2,000m 600 – 1,000m 800 – 1,500m
Local Consumption Growth 15 – 20% (Surge) 3.5 – 5% (Stable) 6 – 8% (Rising)
Market Price High (Specialty Arabica) Low (Commodity Market) Medium to High

Coffee as a Symbol of Digital Transformation

In major cities like Shanghai, coffee is no longer just a beverage; it is a tool for defining cultural and technical boundaries. Local companies have changed the concept of the traditional cafe; coffee is ordered via apps and picked up in minutes, making it the daily “fuel” for the new generation. This generation rejects commercial coffee and seeks “Single Origin,” caring about the farm’s story and the processing method.

The Chinese Cup Profile

Coffee from Yunnan is characterized by a rare balance; a full, silky body reminiscent of milk chocolate, with caramel sweetness and notes of stone fruits such as peach and apricot. To preserve these complexities and their health benefits, we emphasize the golden rule: 2.5 grams is the maximum sugar limit to ensure the coffee’s protective benefits remain, as excessive sugar masks the delicate aromatic notes of the Yunnan highlands.

Roadmap for Investors and Roasters

To reach the heart of the coffee industry in China and avoid the traps of middlemen who re-export crops at double prices, the following should be observed:

  1. Direct Trade: Dealing directly with estates that own their own processing stations in Baoshan.

  2. Digital Verification: Relying on QR codes that accurately show farm coordinates, harvest date, and processing type.

  3. Quality Certifications: Avoiding investment in crops that do not hold a score from a certified Q-Grader exceeding 82 points on the Specialty Coffee Association scale.

Challenges and Future Horizons (2026-2030)

Despite incredible success, coffee in China faces real challenges such as climate change and coastal typhoons, in addition to the historical competition with tea in rural areas. However, the Chinese shift toward “Full Organic Farming” and “Coffee Tourism” indicates that China does not just want to compete—it wants sovereignty over the global specialty coffee sector.

Investigative Conclusion:

China is no longer “discovering” coffee; it has begun “exporting” its own culture to the world. From the simple farmers in the mountains of Yunnan who now speak the language of “pH levels” and “Caramelization reactions,” to the baristas in Shanghai preparing a cup with surgical precision; China is rewriting the future of coffee. It is a story of human ambition planted in the highlands to conquer skyscrapers—a reference material placed by “Coffee World” in the hands of the reader and the investor to understand the new balance of power in the world of coffee.

Bridging the Gap: An Exclusive Dialogue with Vanusia Nogueira on the Global Coffee Crisis and the Path to 2026

From regulatory hurdles like the EUDR to the volatile C-Market and climate resilience, the Director General of the International Coffee Organization (ICO) outlines a strategic roadmap for a fairer global coffee value chain.

Dubai – Ali Alzakary

The International Coffee Organization (ICO) is the primary intergovernmental body dedicated to fostering a sustainable coffee sector. At its helm stands Mrs. Vanusia Nogueira, a visionary leader whose tenure has been defined by a relentless pursuit of equity for smallholder farmers.

This exclusive interview marks a historic moment—the first dialogue granted by the Director General to an Arabic media outlet. We are profoundly grateful to Mrs. Nogueira for graciously accepting our invitation. Beyond her professional stature, her humility and the sincerity with which she approached this conversation were truly remarkable. In an industry often characterized by formal diplomacy, her transparency and candor provided a clear and honest look at the challenges facing our sector. We are deeply indebted to her for her time, her precision, and the kindness she showed throughout this significant exchange.

  • Now that we are well into 2026, how do you personally see the ICO’s role in helping smallholder farmers cope with regulations like the EUDR and other environmental requirements?

The ICO acts as a vital bridge between producing and consuming nations. With 75% to 80% of global coffee producers being smallholders, our role is to make policymakers understand the ground-level challenges. There is often a lot of good intentions behind regulations, but policymakers and consumers are often unaware of how difficult it is to comply in the field. We educate these stakeholders and bring together partners—governments, development agencies, and the industry—to provide the technical and financial support that vulnerable communities need to make these transitions feasible and viable.

  • Traceability and data systems are becoming unavoidable. How can we ensure these costs don’t end up being paid mainly by small farmers?

We are building partnerships with the consuming side—the industry and governments—to support the infrastructure needed, from geolocations to databases. In many countries, the key issue is internal infrastructure, such as internet access. We are working with partners like the German, UK, and Italian governments to implement these systems. Furthermore, we need to educate consumers on why it is fair to pay a little more. Transparency is essential; we must show that these margins are necessary for producers to survive and thrive.

  • Looking back at 2025, has the industry made progress toward a “living income,” or are we still stuck with the C-Market logic?

Vanusia Nogueira: The sector learned in the past two years that a living income is not just about price. It is about closing gaps in productivity, yield, and infrastructure like healthcare and education. While producers in some regions reached a comfortable level last year due to higher prices, others are still struggling. A key solution is for small producers to stop working in isolation; they must organize into cooperatives or associations to access new markets and technical assistance together.

  • Regarding the climate impact on specific origins—in Yemen, for example, the harvest has become fragmented into multiple stages and quantities are dropping. How do you view this?

The situation in Yemen—where you have three or four harvests from the same tree instead of one—is a clear symptom of climate change that we must analyze deeply. We have seen similar shifts in Brazil. We need to understand if the traditional varieties in Yemen—which is one of the original homes of Arabica—are still suitable for this new climate or if we need to renovate the plantations with more resilient strains. Yemen’s heritage is a global priority, and scientists must work to find solutions that protect its unique productivity.

  • There is a growing debate about responsibility. Are large roasters and traders doing enough today?

I see major roasters and traders working very closely with producing countries on “pre-competitive” actions to address these challenges. I am in constant contact with global industry leaders, and I am confident they are totally open to new solutions and are supporting the initiatives needed to stabilize the sector.

  • How should the sector approach lab-grown and alternative coffee products without losing the value of natural coffee?

Vanusia Nogueira: Communication and clarity are paramount. It must be clear to everyone what is “real coffee” and what is a substitute. Natural coffee has scientifically proven health benefits, whereas the impact of chemical or artificial alternatives is often unmentioned. In countries like Brazil and Vietnam, regulations already exist to ensure that packaging for substitutes cannot claim to be “coffee.” We must continue to express why natural coffee remains superior for health and culture.

  • Price swings have been extreme. What is actually driving this volatility?

It is a matter of a “short blanket”—supply and demand. Severe weather events since 2021—frosts in Brazil, droughts in Vietnam and Africa, and typhoons—have lowered production while consumption is surging, particularly in the Middle East and Asia. We are currently working with AI experts to create models that can better predict these events to help us protect production in the short and long term.

  • Markets like the Middle East are now shaping their own identities. How does the ICO plan to engage with them?

The Middle East is a driver of the industry. Saudi Arabia became an official member of the ICO six months ago, and I visited Riyadh recently to touch base with the situation there. I also heard incredible things about the “World of Coffee Dubai” event two weeks ago—people told me it was a truly “crazy” and amazing event. We need to be present in these markets, working as partners to improve communication and support these maturing consumer bases.

  • What role can consumer regions—including the Arab world—play in supporting producers beyond certifications?

The Arab world can play a strategic role as a “catalytic investor.” Beyond labels, their impact lies in investment, partnership, and system-building. They can help de-risk innovation and climate adaptation at the origin. By supporting logistics, research, and digital agriculture, they can help reshape how value and responsibility are shared across the sector.

  • If you could speak directly to the global sector in 2026, what would you say needs to change most urgently?

Vanusia Nogueira: What needs to change most urgently is how risk and value are distributed. Today, smallholders absorb most of the impact of price volatility and climate change. Coffee must be treated not just as a commodity, but as a global public good. If producers earn a prosperous income, the entire sector becomes resilient. That change cannot wait.

  • Editorial Highlights

“Coffee must be treated not just as a commodity, but as a global public good that supports livelihoods, ecosystems, and cultures.”

“Yemen is the cradle of Arabica; we must ensure that its historic coffee heritage survives the challenges of a changing climate.”

“The ‘World of Coffee Dubai’ was an amazing, high-energy event that proved the Arab world is now a central driver of the global coffee industry.”

“A living income is not just about prices—it is about productivity, healthcare, and education. Doubling prices is not enough if the foundation is missing.”

“We must be clear with consumers: natural coffee has scientifically proven health benefits that chemical substitutes simply cannot match.”

“The Arab world has the power to be a ‘catalytic investor,’ moving beyond labels to truly de-risk innovation at the origin.”