Material Insights · Understanding the Material World

Coffee: Extraction

Arabica highlands versus Robusta lowlands

What this tab covers How it is mined, drilled or grown, and processed into a tradeable form: the main methods compared, their unit economics, by-products, and the companies that do this work globally and in India.

Coffee grows on shrubs in the tropics. Arabica prefers cool highlands and is prized for flavour; Robusta tolerates heat and lowlands and goes mostly into blends and instant coffee. New plants take a few years to bear, and frost or drought can damage trees for more than one season. Cherries are picked by hand on hillsides or by machine on flat Brazilian farms. They are washed and fermented, or dried whole, then hulled to green beans. Tilton & Guzmán note that the best coffee land is scarce, while poorer land is plentiful.

Coffee is a tree crop grown in the tropics in two main species. Arabica needs altitude and cooler conditions; robusta grows lower, hotter and yields more. Supply cannot respond fast: a new tree takes about three years to bear, so frosts or droughts in Brazil or Vietnam cause multi-year price spikes. The main split is between mechanised large farms in Brazil, intensive irrigated robusta in Vietnam, and smallholder hand-picked coffee across Colombia, Central America, East Africa and India. Primary processing at origin (natural or washed) shapes quality; roasting and soluble manufacture happen mostly in consuming countries, though India, Brazil and Vietnam also export instant coffee.

Methods compared

MethodShare of supplyTypical scaleRecovery / efficiencyBy-productsUnit cost
Brazil: large mechanised arabica farms (natural process) plus conilon robusta30.0% of world green coffee in 2024 (FAOSTAT); 26.1% of world coffee export value (UN Comtrade 2024)n/a n/a husks used for fuel and fertilisern/a
Vietnam: intensive irrigated robusta smallholdings17.9% of world green coffee in 2024 (FAOSTAT)n/a n/a husksn/a
Smallholder washed arabica (Colombia, Central America, Ethiopia, East Africa)Colombia 7.4%, Ethiopia 5.1%, Uganda 3.6% (robusta and arabica) of world green coffee in 2024 (FAOSTAT)n/a n/a pulp, wastewatern/a
India: shade-grown arabica and robusta with intercropsabout 3.6% of world green coffee (403,000 t Coffee Board estimate for 2025-26 against 11.28 Mt world output in 2024, FAOSTAT)Karnataka 280,275 t of the 2025-26 estimaterobusta 1,239 kg/ha, arabica 452 kg/ha (2026-27 projection)pepper and other intercrops add farm incomen/a
Roasting and soluble (instant) manufacturen/a n/a n/a spent grounds (boiler fuel), chaff, caffeine from decaffeinationn/a

How each method works

Brazil: large mechanised arabica farms (natural process) plus conilon robusta

Arabica on flat land in Minas Gerais and Sao Paulo is machine-harvested and dried whole on patios or dryers. Conilon robusta is grown in Espirito Santo and Rondonia. Output follows a biennial on-off cycle.

Lowest-cost arabica at scale, but frost and drought risk sets world prices.

FAOSTAT 2024; UN Comtrade 2024; ICO Vietnam: intensive irrigated robusta smallholdings

Robusta grown on small, densely planted and irrigated farms in the Central Highlands, with heavy fertiliser use and dry processing. Vietnam is the main robusta exporter and supplier to instant coffee plants.

High yields and low cost, but groundwater stress and competition from durian and other crops.

FAOSTAT 2024 Smallholder washed arabica (Colombia, Central America, Ethiopia, East Africa)

Cherries are hand-picked several times a season on small, steep farms, pulped, fermented and washed at farm or at central washing stations, then dried. Cooperatives and exporters aggregate small lots; quality premiums are paid over ICE.

High quality and premium prices, but high labour cost and many farmers with low incomes.

FAOSTAT 2024 India: shade-grown arabica and robusta with intercrops

Coffee grows under a two-tier shade canopy, often with pepper, cardamom and areca as intercrops, mainly in Karnataka, Kerala and Tamil Nadu. Robusta is over 70% of output. Planters sell parchment or cherry to curing works; about 70% of the crop is exported.

Shade coffee is valued for quality and biodiversity, but yields are below Vietnam and Brazil and estimates are disputed (USDA put 2025-26 at 360,000-384,000 t).

Coffee Board of India post-blossom estimate 2025-26 (StoneX, Feb 2026); USDA FAS Mumbai (BW Retail World, 2026) Roasting and soluble (instant) manufacture

Roasters blend green coffees and roast them in drum or fluid-bed roasters. Soluble plants brew roasted coffee under pressure, concentrate the extract and spray-dry or freeze-dry it, which favours robusta.

Value is added mostly in consuming countries; India and Vietnam are building export-oriented soluble capacity.

StoneX Insights, 2026 (India instant share) Unit economics are indicative ranges from the sources named; costs vary widely by deposit, region and year.

Who does it: global

CompanyCountryActivityVolumeYearSource
NestleSwitzerlandroasting and soluble (Nescafe, Nespresso, Starbucks at-home)not published n/a not available
JDE Peet'sNetherlandsroasting and solublenot published n/a not available
StarbucksUScafes and roastingnot published n/a not available
Neumann Kaffee GruppeGermanygreen coffee trading and exportnot published n/a not available
Louis Dreyfus CompanyNetherlandsgreen coffee merchandisingnot published 2025World Grain, LDC 2025 results

Who does it: India

CompanyCountryActivityVolumeYearSource
Coffee Board of IndiaIndiastatutory board under the Commerce Ministry: crop estimates, export registration, research403,000 t production estimate (118,125 t arabica, 284,875 t robusta) 2025-26Coffee Board post-blossom estimate (StoneX Insights, 9 Feb 2026)
Tata Consumer Products (incl. former Tata Coffee)Indiaplantations in Karnataka, instant coffee plants in India and Vietnam, Tata Coffee Grandnot published n/a not available
CCL ProductsIndialargest Indian private-label instant coffee maker and exporter (plants in Andhra Pradesh, Vietnam, Switzerland)77,000 t a year instant coffee capacity (India and Vietnam), about 60% utilised FY2026ICRA rating rationale, CCL Products

India grew about 3.6% of world coffee and exports about 70% of it; exports reached a record 407,000 t worth $2.13 billion in FY2025-26 (Coffee Board data via Commodity Board, April 2026). Italy takes about 18% and the EU about 60% of exports. Instant coffee is about one-third of export earnings, and India also imports about 80,000 t of green robusta a year for processing and re-export.