Challenges and Incentives for Brazilian Coffee Exports

Coffee, one of the most widely consumed beverages in the world, drives a robust and dynamic market, in which Brazil stands out as the world's largest exporter. Every day, approximately 1.4 billion cups are consumed, consolidating coffee as an essential commodity in international trade. Brazil, which is responsible for around 30% of world production, needs to go beyond just volume: quality and compliance with strict international standards are essential.

The Challenges of the Brazilian Coffee Sector

Brazilian exporters face a number of challenges, especially related to food safety. As demanding markets such as Europe and the United States increase their demands for traceability, quality and safety, Brazil needs to adapt to keep its product competitive.

Brazil in the Global Coffee Market

Brazil is a benchmark in the global coffee market, leading in both quantity and quality. The country grows mostly arabica (64%) and conilon (36%) coffee, serving different niche markets, from gourmet and specialty coffee to blends and soluble coffee, exported to large markets such as the US and Europe.

Recently, the price of a bag of brewed coffee (60 kg) reached R$1,100, the best value in 13 years, highlighting the attractiveness of the sector. However, the competitiveness of the market, competition from other producing countries, such as Vietnam, and climate change are imposing growing challenges on Brazil, which needs to balance quality and productivity.

Coffee Export Requirements and Challenges

In order to export coffee to such demanding markets, it is necessary to meet strict international standards, such as those of the Rainforest Alliance (sustainability) and FSSC 22000 (food safety). The main challenges include

• Logistics and transportation: With 80% of production concentrated in the Southeast, the Port of Santos is the main outlet. Although strategic, it faces frequent congestion, increasing costs and delays. Most of Brazil's coffee is exported by sea, requiring attention to storage and transportation time to ensure quality is maintained.

• Geopolitical conflicts and sea freight: The international scenario directly affects the cost of exports, with diverted routes and extended delivery times.

• Phytosanitary requirements and traceability: Markets such as Europe and the US require traceability systems, which implies providing detailed information on the origin of the coffee and the production processes, certificates and quality control, such as defect control and the absence of chemical, physical or biological contaminants to guarantee the safety of the product, especially mycotoxins (produced by fungi), physical and cross-contamination and pesticide residues.

• Regulatory changes: Food safety standards are constantly evolving, such as those imposed by the European Food Safety Authority (EFSA) and the US Food and Drug Administration (FDA), forcing Brazil to adapt continuously.

Incentives for coffee exports

Despite the challenges, Brazil has a number of incentives. Among the main ones is the Drawback regime, which exempts or suspends taxes on inputs used in the production of goods destined for export, reducing costs and increasing competitiveness. Reintegra, which refunds part of the taxes levied on exported production, also strengthens Brazil's competitiveness. Regions such as the Manaus Free Trade Zone offer specific tax benefits, exempting federal taxes to encourage exports.

Opportunities and growth

International demand for Brazilian coffee continues to grow, especially in markets such as the USA, Canada and South Korea. The specialty coffee segment, with higher added value and certifications, offers producers greater profitability and recognition. Cooperatives and associations also help small and medium-sized producers overcome logistical and financial barriers, facilitating exports.

The global coffee market offers vast opportunities for Brazil, but also requires extra attention to regulatory, compliance and food safety aspects. In this scenario, specialized legal advice plays an essential role, ensuring that Brazilian exporters are in compliance with international standards and prepared to face logistical and regulatory challenges, minimizing risks and maximizing competitiveness.

Logistical modernization and tax incentives such as Drawback and Reintegra offer competitive advantages, but it is essential that companies have the legal backing to correctly interpret the legislation and certifications required by importing markets. In addition, the strategic work of lawyers can help mitigate risks related to traceability issues, licensing and safety standards, protecting the interests of exporting companies and ensuring business continuity on the international stage.

Expanding into new markets requires not only commercial expertise, but also a solid legal base that ensures compliance with regulations and the protection of exporters' rights. Thus, having specialized legal support is essential if the Brazilian coffee sector is to continue to grow in a sustainable and competitive manner on the global stage.