The Arabica Producer Export Participation Index (IPEP) closed 2025 at 93.0%, confirming the strong competitiveness of Brazilian coffee in the international market, albeit under extremely tight operating margins for exporters.

Calculated and released on a semiannual basis by Cecafé, the index compares the average domestic price received by producers with the FOB value of Brazilian Arabica coffee exports.

From a pricing perspective, 2025 was an exceptional year. The annual average domestic price (Average 1 = the weighted average of Arabica qualities) reached USD 392.14, while the average FOB price stood at USD 415.31, both representing the highest levels on record.

Despite record prices, a gap of just 7% between domestic prices and the FOB value, equivalent to an IPEP of 93%, was insufficient to absorb coffee preparation, financing, storage, and logistics costs amid heightened price volatility.

Monthly performance further underscores this exceptional scenario. February saw the highest domestic prices in 2025, with the weighted average across Arabica coffee quality categories reaching USD 446.08 and the average price of hard-cup Arabica coffee—based on Brazil’s traditional cup quality classification—according to ESALQ, reaching USD 455.87.

Throughout the year, the IPEP reached critical levels, at times approaching or exceeding 100%, signaling periods in which domestic prices matched or surpassed FOB values. Under these conditions, exporter margins were severely compressed and, in specific instances, operations became economically unviable.

High prices do not necessarily translate into greater profitability for the export sector.

The combination of record prices, rising costs and narrow margins increases financial and operational exposure, heightens the risk of cash-flow mismatches, and limits the sector’s ability to absorb logistical or exchange-rate shocks.

Against this backdrop, the Arabica IPEP for 2025 underscores the need for rigorous planning, efficient risk management, and structural policies to ensure the economic sustainability of Brazilian coffee exports over the medium and long term.