Brazil is the largest coffee-producing region in the world, accounting for about one-third of global coffee production. Expert estimates claim the country will produce around 56.3 million bags (3.4 billion kg) of coffee in the 2021/2022 crop year.
As it is responsible for such a large share of the global coffee market, changes in the Brazil coffee sector can subsequently affect coffee prices worldwide.
This has happened a number of times in the past few years; in 2019, when the C price for coffee was at its lowest in more than ten years, frost forecasts in Brazil caused it to spike temporarily. Then, again, just a few months ago, a devastating cold wave caused coffee prices to break the US $2 threshold.
So how does this happen? And what does it mean for roasters? Read on to learn more.