Brazil’s Coffee Farmers Invest Heavily in Irrigation Amid Drought, Driving Global Price Surge

Brazilian coffee farmers are increasingly turning to costly irrigation systems to combat severe droughts and meet soaring global demand, as climate change disrupts traditional rain-dependent cultivation. While industrial-scale farms in regions like Bahia thrive with advanced irrigation, water scarcity in traditional growing areas like Minas Gerais threatens yields, exacerbating a global coffee shortage that has driven prices to record highs.

Key Developments:
Industrial-Scale Irrigation: Farms in Bahia’s savanna, such as Rodrigo Brondani’s 900-hectare Joha plantation, use pivot irrigation to achieve 80 bags/hectare yields (double Brazil’s average). These systems, while costly, are becoming critical as drought frequency rises.

Water Scarcity Crisis: In Minas Gerais, groundwater levels have plummeted, forcing farmers to drill 300-meter-deep wells—a risky and expensive endeavor. Some municipalities restricted irrigation in 2024, slashing output for smallholders.

Global Supply Deficit: The world has consumed 12.5 million bags more coffee than produced since 2022, pushing 2025 prices up 25% after a 70% surge in 2024. Major brands like Starbucks and Nestlé have raised retail prices.

Challenges & Innovations:
High Costs: Central pivot irrigation systems cost
263,000 each,while drip irrigation runs 6,991/hectare—prohibitively expensive for small farmers. Cooxupe, Brazil’s largest coffee co-op, partners with Israel’s Netafim to offer financing via future coffee sales.

Environmental Strain: Bahia’s Urucuia aquifer, a key water source, lost 31 cubic km of water (2002–2021) due to agricultural overuse. Researchers warn of “super exploitation” as irrigated area could triple to 1 million hectares.

Market Impact:
Price Volatility: Arabica futures hit $4.40/lb in February 2025, straining global supply chains. Farmers are depleting reserves to meet demand.

Shift to New Frontiers: Western Bahia, with its shallow aquifer, has become a hotspot for corporate farms like AFB&IOB, which prioritizes water access when acquiring land.

Brazil’s Coffee Farmers Invest Heavily in Irrigation Amid Drought, Driving Global Price Surge
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