Farmers Prepare for Increased Investment in the 2025/26 Harvest
Key Drivers of Increased Credit Demand
Rising international prices for arabica and robusta coffee and a forecasted global supply shortage in the coming year are motivating coffee farmers to boost investments in their operations. This trend is leading to increased credit uptake, particularly to finance the 2025/26 crop cycle.
Regional Highlights: Zona da Mata Mineira
João Paulo Dias da Fonseca, President of Cresol Minas Gerais’ Board of Directors, emphasized significant growth in the cooperative’s rural credit portfolio, particularly in coffee-producing regions like the Zona da Mata Mineira:
- Portfolio Size: Nearly R$ 400 million in rural credit, with 80% directed to coffee farming.
- Focus: Most loans are currently allocated to crop financing, reflecting heightened investment activity among coffee producers.
Fonseca highlighted the enthusiasm of farmers, stating, “Producers are motivated to invest more in this harvest.”
Cresol’s National Achievements
In the previous agricultural cycle, Cresol ranked as the third-largest cooperative in rural credit disbursements:
- R$ 11 billion distributed across 130,000 operations, an 80% increase over the previous year.
- For the 2024/25 season, Cresol aims to provide R$ 15 billion in rural credit, prioritizing support for small-scale farmers.
Expansion Plans
Cresol is also making significant investments in its physical presence:
- Current Network: 890 branches across 19 states, serving 900,000 members.
- Future Goals (by 2030):
- Increase to 1,500 branches.
- Expand membership to 1 million cooperators.
Outlook
As the coffee sector continues to experience favorable market conditions, Cresol’s proactive support for farmers aligns with its broader mission to foster sustainable agricultural growth, particularly for small producers.
