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Logistical bottlenecks impact Brazilian coffee exports amid calls for automation and modernization

2025-05-23 Food Ingredients First

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Rising logistic costs and export delays are impacting Brazilian coffee exports, raising concerns over meeting future demands, supply reliability, and cost effectiveness. Consequent impacts on coffee growers due to unpredictable timelines and expenses on infrastructure issues are also a concern, demanding modernization and digitization.

The current vessel capacity of 234 million tons will not meet the projected demand of 238.9 million tons by 2028, according to Mario Veraldo, CEO of global logistics company MTM Logix.

“Brazilian ports are operating at full capacity — outdated equipment, lack of maintenance, and underinvestment have created an unsustainable situation.”

The country invested only 2.2% of its GDP in infrastructure in 2024, when nearly double that — around 4.3% — would be required to meet projected demand over the next three decades, he adds.

“Ripple effect” of inefficiencies

In March 2025, Brazil failed to ship 637,767 bags of coffee due to logistical bottlenecks, leading to a loss of nearly US$1.568 million, according to the Brazilian Coffee Exporters Council (Cecafé).

Since June 2024, the council reports inefficiencies at major coffee-exporting ports have led to an additional US$11.72 million in extra costs

Rodrigo Reis, logistics manager at the Cerrado Coffee Growers Cooperative (Expocacer), says the bottlenecks are impacting operational planning and the income of cooperative members. 

“These added operational costs could be used to increase the value of the coffee. Instead, we are spending with infrastructure failures.”

While Expocacer uses early-stage logistics planning and carefully selecing shipping lines to overcome these hurdles, Reis explains that the cooperative still faces recurring issues like container shortages, sudden changes to vessel deadlines, and high toll costs on single-lane highways.

“The lack of predictability affects the entire supply chain. When a ship is delayed — or arrives early — we have to reposition containers, pay detention fees, and deal with missed deadlines. It creates a ripple effect of inefficiencies and extra costs,” he adds.

Leveraging digitization

According to MTM Logix, the situation calls for coordinated action among the government, private sector, and producers. 

“Digitization and automation are emerging as strategic tools to transform Brazil’s port logistics, which are currently plagued by inefficiencies and high costs,” says Veraldo.

“Smart technologies can speed up processes, reduce operational errors, and improve information management across the entire supply chain. Automated systems streamline everything from cargo clearance to inventory management, cutting wait times and boosting terminal productivity.”

Policies that expand infrastructure investment, incentivize private participation, reduce regulatory red tape, integrate different modes of transport, and improve workforce training are “urgently” needed to unlock the system and prepare Brazilian ports for future logistics challenges,” he concludes.

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