# The coffee turnaround: why the world's largest commodity producer wants to industrialize at origin

Backed by projections of up to a 30% jump in instant coffee exports and by the terms of the Mercosur–European Union agreement, Brazil's export sector seeks to go beyond green beans and expand its higher value-added products in the European bloc.

- Section: Agribusiness
- Published: October 19, 2026
- Address: https://ceoone.com.br/en/article/the-coffee-turnaround-why-the-world-largest-commodity-producer-wants
- Em português: https://ceoone.com.br/artigo/a-virada-do-cafe-por-que-a-maior-produtora-de-commodities-do-mundo-que.md

![Roasted coffee beans in an open burlap sack](https://pub-b80e49b2737940b3ab5d3f20d0578192.r2.dev/artigos/a-virada-do-cafe-por-que-a-maior-produtora-de-commodities-do-mundo-que-foto.webp)

Photo: Kenneth Surillo/Pexels

## Key points

- Brazil exports an average of US$ 5.3 billion a year in coffee to the European Union, US$ 5.1 billion of it in green coffee, from 2022 to 2025.
- The Mercosur–European Union agreement eliminates the 7.2% and 10% tariffs on instant coffee over four to seven years, and the 6% tariff on roasted coffee over four years.
- ApexBrasil projects up to a 30% rise in instant coffee exports; the European Union requires deforestation-free origin and geolocation of farms.

Brazil's historic position as the world's largest supplier of raw coffee beans is going through a strategic redefinition in light of foreign trade figures. With average coffee exports of US$ 5.3 billion a year to the European Union (of which US$ 5.1 billion a year was green coffee alone between 2022 and 2025), the national production chain is stepping up efforts to increase the share of processed products on the continent. The move reflects Brazilian industry's plan to capture more attractive margins in the supply chain, evolving from supplying agricultural commodities to selling processed products directly to European retail.

The data show the asymmetry between the large volume of raw material shipped and the small share of finished products processed in Brazil on the European market. Breaking this structural dependence requires a transition that ranges from investment in modernizing factories to building new distribution routes and partnerships with large international retail chains.

## Tariff agreements, the end of duties and the timetable for domestic processing

Signed early this year, the trade agreement between Mercosur and the European Union emerges as the main institutional lever to unlock this expansion by correcting historical barriers. While green coffee already enters the European bloc duty-free, processed products face tariffs that make competing from origin more expensive. According to a diagnosis presented by ApexBrasil to business owners and industry representatives in Brussels, the treaty provides for the gradual elimination of the 7.2% and 10% tariffs on instant coffee over four to seven years. For roasted coffee, the current 6% tariff will be fully eliminated over four years.

The tariff relief creates a favorable economic environment for Brazil's industrial base to compete for shelf space on equal terms. Sector plans presented by the agency estimate an increase of up to 30% in Brazilian instant coffee exports once the agreement is consolidated. At the same time, industry bodies are designing strategies to place the product in high-margin channels, such as supplying private labels for supermarket chains, specialized e-commerce and serving niches such as coffee shops and convenience stores.

## Regulatory requirements, sustainability and the challenge of full traceability

The expansion plan for Brazilian coffee comes as social and environmental rules tighten in the European Union. The requirement to prove deforestation-free origin and the mandatory full geolocation of farms set a new operational bar for access to the European market. Meeting these criteria requires continuous investment in monitoring technology and in ensuring full transparency in supply chains from the field onward.

Brazil's productive sector responds to these requirements backed by strict domestic environmental laws and by the advance of digital traceability on farms. The ability to demonstrate sustainable production acts as a competitive differentiator and a reputational shield with international buyers. The combination of regulatory compliance and technological progress strengthens the country's position in an increasingly regulated and competitive global environment.

## Strategic mapping and a new position in global agribusiness

The ongoing transition signals the maturity of a sector willing to move beyond the sole role of supplier of basic inputs and gain relevance in global industrialization. Allocating capital to high-tech factories and acting directly in the European consumer market mark a new phase for Brazilian agribusiness.

The success of this cycle will depend on continued coordination between trade diplomacy, private investment capacity and agility in adapting to consumer preferences. By turning its productive strength in the field into a relevant industrial presence abroad, Brazilian coffee sets a new benchmark for profitability and institutional positioning in international trade.

## Sources and editorial notes

- Reference reporting and data: Exame Agro, ApexBrasil presentation (Brussels), International Coffee Organization (ICO), European Coffee Federation (ECF), European Union Deforestation Regulation (EUDR).

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