Brazil drought punishes coffee farms and threatens to push prices even higher
Brazilian coffee farmers are grappling with above-average temperatures as the country, the world’s largest coffee producer, faces its worst drought in more than seven decades
CACONDE, Brazil — Silvio Almeida’s coffee plantation sits at an ideal altitude on a Brazilian hillside, whose clay-rich soil does well at retaining moisture from rainfall and a nearby reservoir.
Lately, though, water is scarce on Almeida's modest farm in Caconde, a town in one of Sao Paulo state’s key growing regions. He can’t get his coffee to grow the way it should.
In Brazil, the world's largest coffee producer, Almeida and other farmers have started grappling with the nation's worst drought in more than seven decades and above-average temperatures. Almeida expected to harvest 120 sacks of coffee beans this harvest season, but instead managed just 100.
“Given the conditions here, the 2025 crop is already affected," he told The Associated Press, pointing to a part of his plantation where flower buds died before blooming. «I won’t say it’s doomed, because with God anything is possible. But based on the situation, it’s already compromised.»
Brazil's harvest season that ends this month was virtually flat from last year, and exports surged, but the ongoing drought is already complicating the start of the 2025/2026 season, according to a report Monday by the Center for Advanced Studies on Applied Economics at the University of Sao Paulo’s agribusiness school.
At the same time, Vietnam, the world’s second-biggest coffee producer, is experiencing heat and drought, affecting its crops. Potential supply shortages in both countries have started driving up global coffee prices, according to the report.
The market is closely monitoring how Brazilian
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