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Daterra 2025 Update

As conversations swirl around Brazil’s coffee crop, we wanted to provide you with the latest insights from one of our key partners, Daterra, who shared an in-depth look at the current challenges and realities on the ground.  

Brazil, the world’s largest coffee producer, has faced a series of unprecedented climate and logistical challenges over the last few years, and 2024 has been no exception. Here’s what Daterra has shared: 

Extreme Climate Conditions in Brazil 

Brazil’s coffee-growing regions, including the Cerrado, have been severely impacted by extended drought and record-high temperatures. Between May and September, some areas experienced over five months without rain, resulting in one of the most severe fire seasons in the country’s history. Over 22 million hectares—an area the size of the UK—burned, with coffee farms narrowly escaping the worst of the damage. 

Though the rains have now returned, triggering a promising flowering in coffee trees, many producers are concerned about the long-term impact. Some trees can lose up to 70% of their leaf coverage during the drought and could start prioritising leaf regrowth over flowering, which could influence the development of cherries and, subsequently, the 2025 crop. 

Challenges in Logistics & Shipping 

Like many other coffee-producing regions, Brazil is facing significant logistical issues, including port delays, container shortages, and last-minute shipment cancellations by shipping companies. This global cascade effect is impacting delivery schedules and increasing costs for everyone along the supply chain. 

For European markets, additional complexities arise from EUDR (EU Deforestation Regulation) requirements. Each client demands unique documentation formats for compliance, further increasing the workload and time needed for shipping approvals. Daterra, like us at DRWakefield, is working tirelessly to mitigate these challenges and ensure smooth deliveries, despite circumstances beyond our control. 

Port of Santos

Climate Resilience at Daterra 

Daterra faced a period where they had not experienced rain for over 170 days, making it one of their longest droughts. Daterra’s proactive investments in climate resilience stand out in the face of these challenges. Over the years, they have expanded irrigation systems to cover 70% of their farms (rising to 78% next year), built water reclamation structures, and established dams to store rainfall during the wet season.  

Their Tree_llion Project is another example of their dedication to sustainability. Focused on reforesting the Cerrado, this initiative involves planting native trees, creating windbreaks, and regenerating natural vegetation. These efforts not only combat rising temperatures by assisting in cooling down their farms but also ensure long-term productivity and environmental health. 

As demand for Daterra coffee grows faster than the supply, Daterra is having to cautiously choose who they supply to and have implemented a framework to encompass ethics, social and environmental attention and financial sustainability. Our shared focus on these matters strengthens our partnership and ensures we are able to source coffee from one of Brazil’s most forward-thinking producers. 

The situation in Brazil underscores the importance of long-term planning, collaboration, and resilience. We are committed to keeping you informed and ensuring that the coffees you love remain accessible, even in challenging times. 

Thank you for being part of the journey with us. If you have any questions or want to discuss how these updates might affect your sourcing, please don’t hesitate to reach out to your trader.