Here’s Why Brazil is One of the Biggest Coffee Exporters in the world

Brazil has been one of the largest coffee producers in the world for several years, decades, and centuries now. Brazil has actually been the world’s largest producer of coffee for the last 150 years and that’s really saying something. Things peaked for Brazil somewhere in the 1920s when it used to account for around 80% of all the coffee production in the world. Cut to a century later, Brazil now accounts for around one-third of all the coffee production in the world, which means that it is still head and shoulders ahead of any other country in terms of coffee production. The main reason why Brazil is such a dominating force in worldwide coffee production is that it has very large plantation areas that have climates that are very conducive for the production of the finest-quality of coffee known to man. Make no mistake, the amount of coffee produced by Brazil might have been on a downward slope in the past couple of years but still its numero uno position in coffee production remains unchallenged. 

Why does Brazilian coffee appeal to so many people around the world?

This is mainly because Brazilian coffee is of a very high-quality with very low acidity levels. This is perhaps one of the biggest reasons why Brazil is one of the biggest coffee exporters in the world. The United States of America is one of the biggest importers of Brazilian coffee accounting for 22% of all imports and then we have Germany on the second spot with around 18% of all imports. On the third-spot is Italy which accounts for nearly 10% of all imports of Brazilian coffee. Brazilian coffee has a lot of fans around the world and it is mainly because of it’s high-quality. Brazilian coffee has a lot of appeal in global markets around the world and it is mainly because of the perceived notion that Brazilian coffee is the best that coffee can get.

Let’s have a look at the coffee production in Brazil

There are actually four main variants of Brazilian coffee and they all happen to be a staple of Brazil. Here we are talking of the four main varieties of coffee found in Brazil like Typica, Bourbon, Caturra and Mundo Nova. Minas Gerais, Bahia, Sao Paulo, Parana and Espirito Santos happen to be some of the biggest coffee producing states and regions in Brazil. It is estimated that the coffee plantation area in Brazil is around a staggering 2.23 million hectares and it is grown mainly in regions where the environment and climates are ideal for producing some of the finest coffee beans known to man.

Here’s a look at the coffee industry in Brazil

Just a few years ago, the overall coffee production in Brazil was around 3.13 million tones or roughly around 52.1 million bags. (60 kgs per bag). Arabica remains the most produced type of coffee in Brazil with around 41 million bags of arabica coffee estimated to have been produced in the fiscal of 2017-2018. It is estimated that for this for fiscal (2021-2022) Brazil will account for nearly 31% of all the coffee produced in the world. Over the past couple of years it has been observed that technological advancements have been the reason for the increased production of coffee in Brazil. 

Coffee Exports : Why Brazil continues to remain King

Around 5 years ago, in the year of 2016, Brazil exported around $5 billion worth of coffee and made up for around 16% of all coffee exports making Brazil one of the largest coffee exporters in the world. Brazilian coffee has a lot of fans around the world and Germany, USA, Italy, Japan and Belgium happen to be 5 of the largest exporting destinations for Brazilian coffee.  One of the main reasons driving these exports is that there are ZERO taxes for exporting coffee from Brazil. That being said processed coffee like roasted beans, instant coffee and decaffeinated is taxed by around 7.5% in the European Union and by around 10% in Japan. One of the main reasons why USA remains one of the biggest importers of coffee from Brazil is the fact that the governments of both the countries are in a tariff-free, preferential trade agreement and this is one of the main reasons why USA accounts for over 22% of Brazilian coffee imports.