This week’s episode explores key developments across the global coffee market.

• In Brazil, regenerative coffee farming practices are gaining momentum, led by companies like Ilsa Brazil. Techniques such as the use of cover crops and organic fertilizers are improving soil health and mitigating climate challenges. These methods have become particularly relevant amid fluctuating market conditions and shifting rainfall patterns in key regions like Minas Gerais, where recent rain temporarily eased dry spells and caused a dip in Arabica prices. However, Brazil’s exports continue to face headwinds due to a 50% U.S. tariff, which has contributed to a drop in Arabica inventories to their lowest point in 18 months. Innovations such as drip irrigation are showing yield improvements, demonstrating adaptive capacity among producers.
• Vietnam, the leading Robusta producer, expects a 6% increase in output for the 2025–26 season, reaching 1.76 million metric tons, supported by favorable weather. Export performance has also been strong, with a 7.8% increase in shipments between January and August 2025. Notably, exports to the European Union surged following the EVFTA, growing from USD 64 million to USD 466 million over five years.
• China’s coffee export landscape has been mixed in 2025. While July saw a decline, total exports through the first seven months reached USD 230 million, even with a 23.8% drop in volume. On the import side, China’s demand is surging, with a 46% year-on-year increase in coffee imports, largely driven by Brazilian supply. The state of Santa Catarina is emerging as a hub for specialty coffee, fueled by family-owned farms and research-backed development, including Arabica cultivar trials supported by the International Finance Corporation.