(Reuters) -Brazil is positioning itself to overtake Vietnam as the world's largest robusta coffee producer, driven by the crop's climate resilience and growing global demand, according to a report by Dutch bank Rabobank released on Thursday. 

Robusta coffee production in Brazil has grown steadily in recent years, and is estimated to reach 24.7 million 60-kg bags in 2025, according to Rabobank's projection, up from 19 million bags in 2020. Vietnam is expected to produce around 30 million bags of robusta in 2025/26, according to the U.S. Department of Agriculture.

Robusta has a more intense taste profile and higher caffeine content compared to arabica coffee, which is milder. Robusta is largely used to make instant coffee, but also in espresso blends and iced beverages, while arabica is preferred by high-quality brands such as Starbucks and Nespresso.

The crop demonstrates superior resilience to heat, drought and disease compared to arabica, making it increasingly attractive as climate change constrains traditional coffee production.

Maximum temperatures in key Brazilian coffee regions have risen 1.3 to 1.6 degrees Celsius over the past 50 years, while average rainfall has declined by 93 to 211 millimeters, the report said.

Irrigation has emerged as a critical adaptation strategy, the bank said, adding that an estimated 71% of Brazil's robusta fields are now irrigated, with projections showing this could reach 363,800 hectares by 2040.

The report said implementation costs for robusta plantations are high at around $15,700 per hectare. The crop's significantly higher productivity - nearly 170% greater yields per hectare than arabica - helps offset the costs, with payback estimated at around four years, Rabobank said.

Brazil has approximately 28 million hectares of degraded pastureland suitable for agricultural conversion, enabling deforestation-free expansion, it added.

The exemption of instant coffee from EU deforestation rules is expected to further boost demand for robusta-based products, potentially accelerating Brazil's production growth, the report said.