IPEP-C 2025.4 – Producer Export Participation Index – Conilon Coffee

Conilon IPEP

The Conilon Producer Export Participation Index (IPEP-C) reached 98.1% in 2025, once again confirming the strong competitiveness, efficiency, and transparency of Brazil’s Conilon coffee export sector.

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 Conilon coffee exports, based on the three-month weighted CEPEA/ESALQ price series.

An annual average of 98.1% indicates a gap of just 1.9% between the domestic price paid to producers and the FOB export value. This margin is clearly insufficient to cover total export operating costs, including coffee preparation and reprocessing, financial costs, inland and port logistics, and operational and commercial expenses.

The sector operated under severe conditions, with extremely compressed margins while simultaneously maximizing the value passed on to producers.

Prices in 2025 were also exceptional, reaching the highest levels on record for Conilon coffee. Both domestic Conilon prices and FOB values reached record levels, reflecting Brazil’s strong commercial efficiency.

Even at record price levels, producer participation remained exceptionally high, underscoring Brazil’s position as a global benchmark in the pass-through of international prices to the domestic market.

Compared with other producing countries, Brazil continues to stand out as the market where the largest share of FOB value is passed directly on to producers, reflecting the structural and commercial efficiency of the national coffee supply chain.

METHODOLOGY

Domestic prices are based on the price series published by CEPEA (Center for Advanced Studies in Applied Economics at ESALQ).

Using the monthly average CEPEA price, expressed in U.S. dollars, a three-month weighted average of the domestic market price (P) is calculated, according to the following formula:

P = (Price in month p × 0.2) + (p-1 × 0.5) + (p-2 × 0.3)

Where p−1 and p−2 correspond to prices observed in the two preceding months. This formulation accounts for the time lag typically observed between contract pricing and shipment, as exports in the current month are generally contracted or priced one to two months in advance. The IPEP-C is then calculated by dividing the weighted price (P) by the average FOB price.