Destination: Ousbsm

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.