Commodities

Volcafe Cuts Brazil Arabica Coffee Outlook on Severe Drought

  • Brazil 2025-26 arabica production seen at 34.4 million bags
  • Coffee poised for fifth year of deficits, at 8.5 million bags

Brazil is seen producing just 34.4 million bags of the premium arabica bean in the coming season, down by about 11 million bags from a September estimate.

Photographer: Patricia Monteiro/Bloomberg
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Volcafe Ltd., one of the world’s biggest coffee traders, cut its outlook for Brazil’s arabica production after a crop tour revealed the severity of an extended drought in the world’s top grower.

Brazil is seen producing just 34.4 million bags of the premium arabica bean in the coming season, down by about 11 million bags from a September estimate, according to a presentation seen by Bloomberg News. That puts global coffee production on track to fall short of demand by 8.5 million bags in the 2025-26 season, marking an unprecedented fifth year of deficits, it said.