As coffee prices skyrocket due to unpredictable weather conditions, shipping bottlenecks and also the war in Ukraine, some consumers have turned to robusta coffee as a cheaper substitute. This presents a great opportunity for Brazil, as much of its land can be used to grow robusta.
Vietnam has traditionally been the No. 1 supplier of Robusta, but unlike Brazilian farmers, Vietnamese farmers are running out of suitable land, so they can no longer adequately supply the market with this variety, which is now in high demand. Brazil, otherwise the second-largest Robusta producer, could fill this gap.
While Vietnam’s production is at a plateau, Brazil’s output is expected to reach an all-time high this year
While Vietnam’s production is at a plateau, “Brazil’s output is expected to reach an all-time high this year, with the US Department of Agriculture forecasting its robusta production will climb 5% this year as Vietnam inches lower.”
Historically, Robusta was used for instant coffee such as Nescafé or as a base for espresso blends, giving it the status of a lower quality coffee than the preferred arabica. In recent years, however, robusta has been making a comeback with the help of technology, “and crop treatment farmers have been applying in all production stages,” said Celirio Inacio, executive director at Sao Paulo-based industry group ABIC.
Brazilian farmers have planted robusta trees in low-lying states such as Rondonia and Mato Grosso. Guilherme Morya, an analyst at Rabobank in Sao Paulo, said that despite the favourable conditions, the growth potential could be affected by competition with grain farmers for land.
Larger robusta production in Brazil could help roasters and consumers, “especially in Europe where the natural gas crisis worsened by the war in Ukraine has compounded soaring energy costs, driving up inflationary pressures. Arabica futures prices in New York doubled in the past two years, while robusta surged 57% in London.”
The reason for this price gap could be that the production of mild-tasting arabica in the two largest producing countries, Colombia and Brazil, has declined sharply due to droughts, frosts and heavy rainfall. Shipping bottlenecks and rising fertiliser costs have only added salt to the wounds. Currently, consumers are bearing the brunt of the price increase, forcing many to turn to the cheaper robusta.
The instant and soluble coffee markets, where robusta is the norm, are also on the rise, especially in Asia and Eastern Europe. Robusta is also found in many blends, as Arabica beans are too expensive for many roasters. But thanks to better farming methods, even robusta is gaining in quality, with some highly rated coffees comprising 100% robusta, or other canephora varieties.
Photo by Steven Morris/the food passionates/Corbis
