(Bloomberg) — In the coming years, Brazilian coffee may start to taste a little different. The South American country is the world’s largest producer of Arabica coffee, a milder bean variety. However, with climate change making it difficult to grow these grains, some producers are investing in Robusta, which produces a more bitter grain, but which tolerates higher temperatures and is more resistant to disease.
Traditional coffee-growing regions in Brazil, which mostly produce arabica, have faced more intense and frequent droughts, as well as higher temperatures. Arabica is still the country’s main coffee export, but Robusta production has been growing at a faster pace: more than 81% in the last 10 years, according to the United States Department of Agriculture, which monitors global coffee production.
For Brazil, Robusta represents an opportunity to remain the world’s largest coffee supplier in the future, even with the worsening effects of climate change, says Fernando Maximiliano, Coffee Market Intelligence Manager at StoneX, a financial services company.
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“It wasn’t necessarily demand that drove the growth in Robusta production,” he adds. “In fact, climate problems and Arabica losses were the main factors that stimulated Robusta growth.”
Over the past three years, Arabica coffee production in Brazil has grown at an annual rate of about 2% to 2.5%, while Robusta production has increased by approximately 4.8% per year. In this year’s harvest, Robusta recorded growth of almost 22%, a record harvest, according to StoneX.
This demonstrates that Robusta production stands out for its greater ability to face adverse weather conditions and also for its profitability, according to analysts.
In warmer regions of Brazil, where arabica cannot thrive, coffee producers are finding ways to grow Robusta and mitigate the impact of high temperatures. One of these techniques is the planting of coffee trees under the shade of native trees and other species.
“This way, the plant remains productive, maintains a little more humidity and does not degrade as easily”, explains Jonatas Machado, commercial director of Café Apuí, an agroforestry producer of Robusta coffee in the Amazon region.
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A different grain
Vietnam is the world’s largest producer of Robusta, but Brazil is catching up and could overtake the Southeast Asian country due to a well-structured supply chain, according to analysts at Rabobank, a financial services company.
Robusta has a higher concentration of caffeine and a stronger flavor than Arabica. However, younger generations place less importance on the type of coffee or degree of roasting, preferring personalized options, which include the addition of milk, creams and syrups, which mask the flavor of the beans.
“They don’t care as much about origin or tasting notes,” says Matthew Barry, global insights manager for food, cooking and dining at market research firm Euromonitor International.
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If coffee prices continue to rise, consumers may also turn to Robusta, which is cheaper.
In Europe, the price difference between Robusta and Arabica is likely to be even greater in the coming years. A new law will require imported commodities to be certified to prove they did not originate from recently deforested or degraded areas, although the implementation date has not yet been set. Instant coffee, which is mostly made with Robusta, is excluded from these rules. This exception could increase demand for Robusta-based products, according to Rabobank.
The European Union is the largest consumer of instant coffee, accounting for almost 50% of global revenue, according to consultancy Grand View Research.
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Although Robusta is usually cheaper than Arabica, its prices have reached record levels.
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Overall, Robusta has lower prices
These higher prices, combined with the fact that Robusta cultivars are almost twice as productive as Arabica varieties, have convinced a growing number of Brazilian producers to invest in planting Robusta, says Alexsandro Teixeira, a coffee researcher at the Brazilian Agricultural Research Corporation (Embrapa).
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Robusta producers are also improving the quality of the beans, which has made the variety more attractive to consumers and raised its prices, he adds.
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