Worst drought in 40 years puts Brazil’s major crops at risk

First came wildfires that scorched sugar cane fields. Now, the worst drought in more than four decades is threatening coffee and soybean crops in Braz...

First came wildfires that scorched sugar cane fields. Now, the worst drought in more than four decades is threatening coffee and soybean crops in Brazil.

From May through August, some key agriculture areas faced the driest weather since 1981, according to natural disaster monitoring center Cemaden. And there is no relief in sight: there’s no rain in the forecast for at least two more weeks, a period when coffee trees usually flower and farmers start planting soy.

The lack of rainfall poses risks for global crop supplies in a world that’s become increasingly dependent on Brazil for everything from sugar to coffee and soybeans. Losses could amplify financial stress for Brazilian farmers already contending with a steep decline in prices.

"This is one of the worst droughts in the history of coffee,” said Regis Ricco, a director at RR Consultoria Rural, which provides agronomic services to several producers in the largest-growing areas of Brazil.

The long-lasting drought in areas that produce arabica coffee, the type favored by Starbucks Corp., likely will damage buds before trees can flower ahead of the next crop, according to Ricco. There hasn’t been any significant rain in arabica regions since March, he said.