Colombia's Coffee Industry In Turmoil As Brazilian Turnaround Imports Jeopardize Colombia's Premium Brand – CoffeeTalk

Colombia’s coffee sector is facing turmoil as Brazilian beans flood into the country in response to Donald Trump’s crippling tariffs. Growers are calling for stricter import controls, fearing that Colombia’s premium brand is at risk if Brazilian beans are re-exported as though they came from the Andean nation. Brazilian coffee shipments to Colombia surged 578% in August from a year earlier, to 113,000 60 kilogram bags, according to Cecafé, which represents Brazilian exporters. Sales to Mexico rose 90%. Brazil’s coffee exports to the US dropped 47% during the same period.

Since early August, Brazilian beans face a 50% tariff from the US, while Colombian beans are subject to only a 10% duty. Colombia’s federation of coffee growers warned of a market “distortion” caused by this differential, as unscrupulous exporters might try to mix cheaper Brazilian beans with their own pricier product, labeled “100% Colombian Coffee.”

Brazil is the world’s largest coffee producer, while Colombia is the third biggest. Colombian beans sell for a premium over the price of arabica futures in the New York exchange since they are considered of superior quality, whereas Brazil’s typically trade at a discount. Cecafé president Marcio Ferreira said that Colombia is taking advantage of the situation to export as much of its coffee as it can.

Trump announced the tariffs on Brazil in July due to political persecution of his ally, former President Jair Bolsonaro. Brazil’s Supreme Court jailed Bolsonaro for 27 years for his participation in a coup attempt against President Luiz Inacio Lula da Silva.

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