Global Coffee Market Summary

• Vietnam recorded a sharp increase in domestic coffee prices as tightening supplies and reduced trading activity pushed bean prices to seasonal highs. Limited availability of Indonesian coffee has further constrained regional supply, supporting robusta prices despite relatively subdued demand.
• In Brazil, unflavored instant coffee was exempted from a proposed 25 percent United States import tariff, preserving an estimated US$2 billion to US$2.5 billion in annual export revenue. At the same time, untimely rainfall has slowed harvesting progress and increased operating costs by 12 to 16 percent. Although Brazil is still forecast to produce a record 71.9 million bags during the 2026-27 season, harvest progress remains behind the five-year average, creating a disconnect between expected production and the coffee currently reaching the market.
• Indonesia is pursuing major reforms to expand the value of its coffee exports by improving farm productivity, upgrading marketing systems, and distributing 17 million high-yield coffee seedlings. The strategy aims to strengthen farmer returns, increase export value, and enhance the country's influence within the global coffee trade.
• The European Union has expanded its deforestation regulations to include soluble coffee, introducing stricter traceability requirements across supply chains. The changes are expected to have a significant impact on robusta exporters, particularly Vietnam and Brazil, as exporters adapt to new compliance standards.