Brazilian state on track to surpass Vietnam’s coffee output – Markets

CAMPINAS, (Brazil): Brazilian coffee exporter Grupo Tristao sees coffee production in Espirito Santo state potentially exceeding that of Vietnam in the coming years, as it plans to build a large new warehouse in the region to meet the supply increase.

Espirito Santo is Brazil’s second-largest coffee-producing state, behind only Minas Gerais, but while the latter is a large arabica producer, the former focuses more on robusta, a generally cheaper variety primarily used to make instant coffee.

If it were a country, Espirito Santo alone would rank third globally in coffee output, behind Brazil and Vietnam. But the head of Grupo Tristao, a leading exporter of green and instant coffee, believes that the state will soon close the gap with the Asian country, which also produces mostly robusta.

“It is not impossible to imagine that five years from now, Espirito Santo will be producing more than Vietnam,” Sergio Tristao told Reuters in an interview on Thursday.

He pointed to advanced technology and irrigation, as well as room to expand planting on degraded pastures, as factors behind the projected increase. Market participants have voiced surprise at the quick growth in Brazil’s robusta coffee production.

The US Department of Agriculture expects Vietnam to produce 31 million 60-kg bags of coffee in 2025/26, while Espirito Santo’s output was estimated at 21.5 million bags – also, including some arabica output.

Brazil’s total coffee production is seen at 65 million bags in the season. Family-run Grupo Tristao plans to build a large warehouse for at least 1 million bags in Espirito Santo to improve logistics as supply grows, Tristao said.

The warehouse will be located near the brand-new Imetame Port in the city of Aracruz, whose operations are slated to begin in 2027. “We are going to buy land near the port and plan our future there,” Tristao said.

The group currently owns a warehouse for about 300,000 bags in Espirito Santo and another one in Minas Gerais state.

Continue Reading