Brazil's 2020 Coffee Exports Hit Record 44.5 Million Bags as Production Crisis Looms

EU and UK Open Global Consultation on Agricultural Imports to Fight Deforestation

According to foreign media reports, the European Union and the United Kingdom have held a global public consultation on agricultural commodity imports, a move meant to compel large companies to ensure that no further deforestation or forest degradation takes place. The UK's "Forest Risk Commodities Due Diligence" consultation, which closed in early October this year, focused on agricultural and livestock farming tied to deforestation, such as soybeans and beef cattle. Coffee was not mentioned in this consultation.

The consultation has introduced a controversial principle into the UK's trading relationship with agricultural exporters like Brazil, because the process could legitimize the "private restriction of agricultural trade" - behavior that may raise the cost of agricultural products in future markets. Efforts are therefore under way during this consultation to pass a new law that would force large companies to adopt complex verification procedures at the origin of agricultural products in order to rein in that behavior.

Purpose and Goals of the Consultation

The aim of the consultation is to minimize forest degradation from deforestation by encouraging EU consumers toward supply-chain products unconnected to deforestation. Since 2019, the European Commission has announced goals to strengthen the fight against deforestation and has been studying and adopting public policies to limit consumption of products from deforested areas. Its commitments include submitting legislative proposals and additional measures - both regulatory and non-regulatory - in 2021.

Brazil's Response and Position

The Brazilian Coffee Exporters Association has taken a proactive line on the issue, engaging in long-term dialogue with agriculture and livestock suppliers, foreign affairs departments, and other organizations that represent Brazilian agribusiness. Agribusiness's position is that the use of land already illegally deforested should be judged according to each country's own environmental laws, rather than through any other form of deforestation.

Brazilian agribusiness adds that incentives should be offered to promote good practices and to encourage recognition of existing agricultural certification standards, rather than creating new ones. The Brazilian government has already staked out a position on forests that were deforested in the past, pointing to growth in productivity and agricultural income and to a balance between sustainable production and environmental protection.

Amazon Fires and Deforestation Concerns

Other reports note that in August 2019 multiple fires broke out in the western Amazon, with some areas burning for days. At the time, Brazilian President Bolsonaro, who advocated vigorous development of the Amazon, came under external criticism, but he rejected the allegations and suggested the fires may have been set by environmental organizations. Research by Global Forest Watch found that deforestation in Brazil's Amazon region rose significantly in 2019. Data for January 2019 alone showed 1,330 square miles of rainforest lost - 40% higher than the same period in 2018. Most of these fires appear to have burned on previously cleared forest farmland.

Brazil's Coffee Export Performance

According to a comprehensive report from the Brazilian Coffee Exporters Council (Cecafe), Brazil exported 44.5 million bags of coffee (60 kg per bag) in 2020, covering green, soluble, and roasted and ground coffee. That figure is a 9.4% increase over Brazil's coffee exports the previous year.

Future Challenges for Brazilian Coffee Production

Despite the growth in 2020, 2021 will be a year of reduced coffee production in Brazil. Data from the Brazilian National Supply Company shows that Brazil's coffee planting area in 2021 was 1.76 million hectares - the smallest in 20 years and a 6.8% decrease from 2020. This makes clear that Brazil's coffee planting area has run into a bottleneck. Even so, with technological upgrades, yield per unit area has risen as well. Once technology and planting area both fall short, Brazilian coffee production may also hit a ceiling in the years to come.

FrontStreet Coffee Recommendation

As the world's largest coffee producer, Brazil grows an enormous range of coffee, and its beans share an appealing signature: moderate acidity with a fine balance of sweetness, bitterness, and body. That makes them a natural fit for a medium roast, which draws out a rich nutty aroma, a smooth, full palate, and a gentle acidity. Brazil beans work equally well as a single origin or in a blend.

If you just want a first taste of Brazil, FrontStreet's Cerrado Red Bourbon is a classic single origin. Cerrado is a well-known local region prized for high-quality beans, and this lot is the Red Bourbon variety common in South America. Roasted medium, it shows a deep aroma of creamy peanut, toasted bread, caramel, and hazelnut, with a rounded body, no sourness, and a light bitterness. It is versatile enough for pour-over as well as a moka pot, espresso SOE, siphon, or French press.

FrontStreet's other Brazilian single origin, Queen's Estate, comes from Mogiana near South Minas, where fertile red volcanic soil lets the fruit absorb abundant nutrients and develop a full aroma. Some farms in the area keep to traditional operations and others have adopted more modern, standardized management, which has markedly improved local quality. The estate grows the rare Yellow Bourbon, a natural mutation of Red Bourbon whose fruit character is cleaner; brewed as pour-over, in a moka pot, or on a home espresso machine, FrontStreet's Queen's Estate coffee reveals a sugarcane sweetness found in no other region, alongside fruit and chocolate notes.

Brazil's low acidity, balanced palate, and approachable price have also made it a first choice for many specialty espresso recipes. FrontStreet's espresso blend lineup - the Classic Blend with its rich crema, the nut-forward Premium Blend, the balanced FrontStreet Black Cocoa favored by many baristas, and FrontStreet Coffee's Commercial Blend built specifically for cafe use - all contain Brazilian beans. The Brazilian component supplies chocolate and cream aromas along with a soft sweet-sour-bitter balance, and that even temperament helps keep extraction stable.