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December 20, 2023

Origin Profile: Brazil Coffee

Royal NY Traders
Royal NY Traders
Trader Group

Explore the source of Brazil coffee! At Royal New York we pride ourselves in sourcing the finest coffee from around the world. Learn more about the history of coffee from Brazil below!

Brazil coffee farm

Overview of Brazil Coffee Production

Production: 59.3 60-kilo bags

Primary Varieties: Caturra, Catuai, Obata, Mundo Novo, Bourbon

Average Farm Size: 7.5 hectares

Notable Growing Regions: Minas Gerais, Cerrado & Mogiana

Harvest Season: April – September

Export Season: January – December

History of Brazil Coffee

Brazil coffee production was started by Francisco de Melo Palheta in the state of Para in 1727. French Guiana was unwilling to trade coffee seeds with the Portuguese in Brazil. However, after successfully settling a border dispute, Palheta seduced the Governor’s wife. Upon his departure, the wife gifted Palheta a bouquet of flowers with coffee seeds hidden inside.

Coffee spread from Para to Rio de Janeiro and as American and European demand increased, so too did Brazil’s production. Coffee plantations grew in Minas Gerais, Sao Paolo, and Rio de Janeiro. Vast numbers of enslaved people were brought into the country to work on them. By 1840, Brazil was the worlds largest producer of coffee.

When the foreign slave trade was outlawed in 1850 and slavery was abolished completely in 1888, the coffee industry nearly collapsed in Brazil. At the time, Brazil’s coffee economy was drawing attention from European investors. Because of this, immigrants were migrating from Europe to make a new life in the country. These European immigrants and freed slaves would be the backbone of Brazil’s next coffee boom.

Cafe com Leite

1880 to 1930 is a period in the political history of Brazil known as cafe com leite or coffee with milk. This refers to the dominance and power of the plantation owners over Brazillian politics at the time. Coffee plantations and dairy farms in Sao Paolo and Minas Gerais were growing rapidly with influx of migrants of Europe and Asia. As the industries continued to be subsidized and expand, over production and supply began to drive the prices lower. The government stepped in to buy the excess coffee for sale on the international market. Over the short term, this stabilized the price until the Great Depression decimated global coffee demand.

The Interamerican Coffee Agreement

To combat falling prices, the IACA or Interamerican Coffee Agreement was signed between the United States and Latin American coffee producing countries during WWII. The agreement set export quotas on producers and import limitations on the United States, effectively stabilizing the price. This agreement would later become the ICA or International Coffee Agreement between global coffee producers and consumers which to stabilized the price. The agreement fell apart because of a growing demand for washed Arabica coffee which increased its value in the proposed new agreement of 1983. They believed they did not need price protection under the ICA because it was a extremely efficient at producing large quantities of coffee. Unable to come to an agreement, the ICO suspended the quota system and since then, global prices and Brazil’s market share have declined.

The Future of Brazil Coffee

While other countries have invested heavily in quality and certified coffee, Brazil continues invest in increasing production. With increasing global supply, it is becoming increasingly more difficult for Brazil to maintain its dominance.

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