Photo courtesy of: Luckin Coffee

Luckin Coffee, one of China’s leading coffee chains, has signed a Memorandum of Understanding with the Brazilian Export and Investment Promotion Agency procure to a total of 240,000 tons of coffee beans from Brazil over the next five years. This marks the largest coffee bean purchase plan in the company’s history.

The agreement, valued at 10 billion yuan (about $1.4 billion), was signed in Brazil’s capital, Brasília, on November 19.

Building on a previous agreement signed in June this year for the purchase of 120,000 tons of coffee beans over two years, this new agreement will see Luckin Coffee increase its purchases by an additional 120,000 tons, spanning from 2025 to 2029. 

Luckin’s increased imports of Brazilian coffee beans reflect the growing mutual benefits of the cooperation between China and Brazil. Thanks to the agreement, Chinese consumers have greater access to high-quality Brazilian coffee, while Brazilian farmers, traders, and exporters benefit from expanded demand in China’s booming coffee market.

The deal also highlights the rapidly growing trade relations between China and Latin American countries in recent years. Brazil, for example, saw its exports to China reach $105.75 billion in 2023, with agricultural products such as soybeans, sugarcane, and corn making up a large portion of that total. 

Brazilian coffee exports to China surged by over 250 percent in 2023, driven in part by the rapidly growing presence of Chinese coffee brands like Luckin Coffee.