SÃO PAULO, Oct 26 – Brazil‘s specialty coffee sector is facing a bitter brew as U.S. tariffs, initially intended to address unrelated trade imbalances, are impacting sales and prompting producers to seek alternative markets, even as a unique byproduct - Jacu bird excrement-fertilized coffee - remains largely unaffected.
The tariffs, ranging from 25% to 35% on certain coffee products, were imposed in 2018 during a trade dispute and have continued to weigh on Brazilian exports to the United States, a key consumer of the country’s high-end beans. While overall Brazilian coffee exports remain robust, driven by demand from other regions, specialty coffee growers are feeling the pinch. “The tariffs have definitely made it harder to compete in the U.S. market,” said Marcos Croce, a coffee producer in Minas Gerais, Brazil’s largest coffee-growing state. ”We’re having to absorb some of the cost, and it’s impacting our margins.”
The situation highlights a broader challenge for Brazil’s coffee industry: navigating complex international trade dynamics while maintaining the quality and reputation of its beans. Brazil is the world’s largest coffee producer, accounting for roughly 40% of global production, and its specialty coffee sector has been growing rapidly in recent years, fueled by increasing demand for high-quality, sustainably produced beans.
However, a niche segment of Brazil’s coffee production appears to be weathering the tariff storm: coffee beans processed after being eaten and excreted by the Jacu bird. This rare and expensive coffee, known as Café Jacu, fetches prices upwards of $1,000 per kilogram due to its unique flavor profile and limited availability. Producers of Café Jacu report minimal impact from the U.S. tariffs, as their product is primarily sold to discerning consumers willing to pay a premium, often through direct channels that bypass customary import routes.
“The Jacu coffee is a very specific market,” explains Henrique Sloper, owner of Fazenda Santa Inês, a farm that produces Café Jacu. “It’s not about volume; it’s about exclusivity. The tariffs haven’t really affected us because our customers understand the value and are willing to pay for it.”
Despite the resilience of the Café Jacu market,the broader specialty coffee sector is actively diversifying its export destinations,focusing on Europe,Asia,and the Middle East to mitigate the impact of the U.S. tariffs. industry analysts predict that unless the tariffs are lifted or revised, Brazilian coffee producers will continue to seek alternative markets, possibly reshaping the global coffee trade landscape.
