A report released by a Brazilian government department at local time on July 24 shows that Brazil is currently suffering from severe drought, with more than 1,000 cities across the country in a state of exceptional or severe drought.

In addition, the report says that affected by the drought, fires are occurring frequently across Brazil, and the number of fires currently occurring has set the highest record in nearly a decade, while according to an assessment by a team of experts from the Federal University of Rio de Janeiro, the current drought is considered the most severe in the past 70 years, and rainfall is far below average.

At present in Brazil, the areas most severely affected by the disaster are Amazonas state and Mato Grosso do Sul state in northern Brazil. In Amazonas state, due to severe drought, all 62 administrative areas of Brazil's Amazonas state have entered a state of alert.

In Manaus, the capital of the state, the water level of the Rio Negro dropped by 54 cm in July. As a result, the state declared a 180-day environmental state of emergency. Moreover, because the drop in water levels caused disruptions to domestic shipping in Brazil, some areas have faced difficulties in the supply of goods and water.

In Mato Grosso do Sul state, which has the world's largest Pantanal wetland, according to the latest satellite monitoring data released by Brazil's National Institute for Space Research (Inpe), from July 1 to 23 this year, 619 fires occurred in the Pantanal wetland, 40% higher than the historical average (441 fires). In addition, the area of fires in the Pantanal wetland this year is expected to be 5,992 square kilometers to 7,946 square kilometers, equivalent to 5 times the area of the city of Sao Paulo.

Moreover, the report notes that although the areas currently suffering the most severe drought are in the north and west of the country, the problems in other regions are equally serious, all affected by high temperatures. According to the meteorological department, temperatures in south-central Brazil are higher than in previous years, and in Minas Gerais, the main coffee-producing state, the average temperature in July was 33°C, while rainfall for the entire month was only 10 mm.

In addition, earlier reports pointed out that due to the very low rainfall recorded since May, water levels in some rivers have dropped, and soil water deficits need attention. Some of Brazil's main coffee-producing regions have recorded water deficits exceeding 20 mm above the historical average for the same period, and in some areas the deficit exceeds 40 mm, triggering drought warning signals, and the situation is currently worsening.

As drought conditions take a toll on coffee plants, coffee-growing regions in Brazil are accelerating their harvest, and according to data from the investment bank Safras, Brazil has already harvested 74% of this year's coffee crop.

And because of strong market demand, in the 2023/24 season Brazil's coffee exports reached a record 47.3 million bags of coffee (60 kg/bag), so Brazil's domestic stocks have declined, and combined with the current drought conditions affecting the new season's harvest, the market expects that in the 2024/25 season Brazil's coffee supply will also decrease by 4%.