Brazil May Sell Coffee Stockpile to Curb Rising Prices

Coffee buyers and roasters around the world are watching Brazil closely as global coffee prices climb to multi-year highs. With futures up over 80% since 2014 and a severe drought threatening the upcoming harvest, the pressure is on to prevent further price spikes. The world’s largest coffee producer is now considering a direct intervention: releasing part of its government coffee reserves.

Yes, Brazil is prepared to sell up to 400,000 bags of stored coffee if the price per 60kg bag remains above 400 Brazilian reais (about £50 or $63) after the main harvest ends in July. That’s the key threshold triggering the release, according to two unnamed industry sources.

Why Are Coffee Prices So High Right Now?

The price of a 60kg bag of Brazilian coffee hit 473.80 BRL (approximately £59 or $74) as of the latest data from São Paulo University’s Cepea research institute. That’s well above the 400 BRL level that could prompt government action. Meanwhile, New York coffee futures have surged more than 80% since 2014, reflecting global supply tightness and growing demand.

Adding to the pressure, Brazil—the world’s top coffee grower—is facing a major drought, which could significantly impact this year’s yield. With global inventories already lean, any drop in Brazilian output threatens to push prices even higher.

What’s Behind the Proposed Stockpile Release?

Brazilian coffee roasters have been actively pushing the government to use part of its 1.6 million bag stockpile to stabilise the domestic market. They argue that releasing some of these reserves could ease inflationary pressure and bring down retail and wholesale costs.

So far, the Brazilian Ministry of Agriculture has confirmed it has received requests but stated via email that no final decision has been made regarding the use of government inventory. Industry observers expect a decision to come after the new harvest begins in May and more data on yields is available.

When Could Brazil Release Its Coffee Reserves?

Brazil’s next coffee harvest is set to start in May. If, after the harvest concludes in July, prices remain above 400 BRL per 60kg bag, the government is prepared to authorise the sale of 400,000 bags from its strategic reserves. That would mark a significant intervention aimed at stabilising both local and potentially global coffee pricing.

Frequently Asked Questions

What is the current price of Brazilian coffee per 60kg bag?

As of the latest report, a 60kg bag of Brazilian coffee is priced at 473.80 Brazilian reais, which is roughly equivalent to £59 or $74. This is above the 400 BRL threshold that could trigger a government stock release.

How much coffee might Brazil sell from its reserves?

Brazil is considering selling up to 400,000 bags of coffee from its government stockpile if prices stay high after the July harvest. These reserves are part of a larger 1.6 million bag stock held by the state.

When is the next Brazilian coffee harvest due?

The next Brazilian coffee harvest is scheduled to begin in May, with the main harvest period typically concluding in July. Market decisions, including possible stock releases, will depend on post-harvest price levels.

Why are global coffee futures so high?

New York coffee futures have risen over 80% since 2014 due to tight global supplies, increasing demand, and now potential supply threats from drought conditions affecting Brazil, the top-producing country.

Has Brazil officially decided to sell its coffee stockpile?

No, the Brazilian Ministry of Agriculture has confirmed it has received requests to use the stockpile but has not yet made a final decision. Any release is contingent on July harvest prices remaining above 400 BRL per bag.

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