Brazil’s inexperienced espresso manufacturing is forecast to rise 14.1% to 71.9 million 60-kilogram luggage in market 12 months 2026/27, as favorable climate and the excessive aspect of the biennial manufacturing cycle arrange a possible document crop, in line with the most recent USDA International Agricultural Service annual report.
The report forecasts whole exports from the world’s largest coffee-producing nation to rise 29.6% to 49.07 million 60-kilogram luggage, following a 12 months by which low home shares restricted shipments.
Home consumption in Brazil, the world’s second-largest coffee-consuming nation behind the USA, is forecast to rise barely to 22.39 million 60-kilogram luggage.
The FAS forecast seems to align with a broader market view in current weeks that Brazil’s bigger crop might ease provide tightness and convey down C-market costs, though El Niño threat and low shares stay.
[Note: This is part of an ongoing series of DCN stories that explore USDA FAS country-level coffee reports, which are produced by different authors and field offices around the world.]
Manufacturing Jumps After 5 Weak Arabica Years
The 2026/27 forecast would put Brazil’s whole manufacturing above the 63 million luggage estimated for 2025/26 and the 65.5 million luggage estimated for 2024/25. FAS stated the anticipated crop might finish a five-year stretch of comparatively weak arabica manufacturing precipitated largely by adversarial climate.
Arabica manufacturing is forecast to rise 25% 12 months over 12 months to 47.5 million luggage, pushed by the optimistic biennial cycle, bigger cultivated space, higher crop administration and extra favorable climate. Robusta manufacturing is forecast to dip 2.4% to 24.4 million luggage, following a big 2025/26 crop.
Brazilian authorities businesses additionally anticipate a big crop, although their figures are decrease than USDA’s. The Nationwide Provide Firm, often called CONAB, forecasts 66.7 million luggage, whereas the Brazilian Institute of Geography and Statistics, often called IBGE, forecasts 65.1 million luggage. Each projections would nonetheless signify sharp beneficial properties from the earlier crop.
Climate Boosts Crop, however El Niño Looms
FAS stated rainfall was irregular in late 2025 however enough for the primary flowering durations in September and October. Extra common rainfall in early 2026 supported sturdy crop growth.
But the report additionally factors to a potential El Niño within the second half of 2026 as a serious uncertainty. Whereas El Niño might cut back frost threat throughout Brazil’s winter, extreme warmth or poorly timed rainfall throughout flowering and early growth might threaten the 2027/28 crop.
Exports Poised to Rebound
Complete exports are forecast at 49.07 million luggage, together with 45 million luggage of inexperienced espresso, 4 million luggage of soluble espresso and 70,000 luggage of roasted espresso. The bounce follows a gradual begin to 2026, when Brazil exported 11.5 million luggage from January via April, down 24% from the identical interval a 12 months earlier.
Germany was Brazil’s prime espresso purchaser in 2025 — a 12 months marked by market disruptions precipitated partly by the Trump administration’s tariffs on items from key espresso suppliers — adopted by the USA, Italy, Japan and Belgium.
The report stated Brazil usually provides about 32% of U.S. inexperienced espresso imports, forward of Colombia, Vietnam and Honduras.
Costs Fall, Prices Keep Excessive
Brazilian espresso costs started easing because the bigger crop got here into view. In April 2026, arabica averaged BRL 1,811.87 per 60-kilogram bag, down 28% from April 2025, whereas robusta fell 46% 12 months over 12 months to BRL 917.05 per 60-kilogram bag.
For producers, decrease espresso costs are colliding with excessive prices. FAS stated the coffee-to-fertilizer change ratio has worsened, with producers needing 4.97 luggage of arabica to purchase one ton of fertilizer in April 2026, in contrast with 2.25 luggage a 12 months earlier.
Producers Adapt as Shares Rebuild
Some farmers are turning to “Zero Crop, 100% Crop,” a pruning technique that divides farms into resting and producing blocks to handle labor, fertilizer use and plant restoration. Others are diversifying with cowl crops, meals crops, flowers or direct-to-consumer specialty espresso gross sales.
Ending shares are forecast to rise to 4.425 million luggage, up from 3.895 million luggage in 2025/26, whereas Brazil’s Espresso Economic system Protection Fund, often called FUNCAFE, is budgeted at BRL 7.37 billion (roughly US$1.46 billion) for 2026/27 to assist crop administration, advertising and marketing, espresso acquisition, plantation restoration and dealing capital.
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