#017 - From Steam to AI: The Technological Evolution of Coffee Processing

Studying the past while looking for opportunities to add value in the coffee supply chain.

This is one of the most enjoyable parts of diving deeper into the coffee industry: every segment of the supply chain has its own rich history of excellence in machinery.

Brewing machinery is widely known and the most visible part for customers. It is literally a piece of quiet luxury. 

Last week, we explored post-harvest equipment, but the topic grew too extensive. So we held back on naming specific manufacturers only this time. Behind every supplier lies decades of innovation, adaptation, and continuous improvement.

On our own farm, we still maintain a Pinhalense machine, alongside a steaming machine imported from the UK. That British unit was purchased second-hand more than 100 years ago and is believed to have been in use during the Industrial Revolution.

What makes it truly fascinating is how each coffee-producing region has developed its own specificities and local suppliers. The technical demands for processing Colombia’s washed coffees differ markedly from those required for Brazil’s naturals.

The evolution of post-harvest machinery reflects the broader industry shift — from a focus on scale and raw durability to precision, sustainability, and greater accessibility. In the 19th century, early mechanical pulpers appeared. In Latin America, Colombia’s JM Estrada began producing its iconic “Estrella” pulpers in 1876 and remains the country’s oldest active manufacturer. Nearby, Penagos Hermanos, founded in 1892, pioneered wet-processing systems and low-water demucilagers, later expanding across Central America with over 125 years of innovation.

In Brazil, Pinhalense was established in the 1950s and quickly became the global benchmark. The company patented the pulped-natural process, modernized rotary dryers, developed hullers, gravity separators, and water-saving syphons. These manufacturers adapted successfully to the needs of large-scale operations by offering robust post-sales service and flexible financing options.

By the mid-20th century, optical sorting technology advanced significantly. Britain’s Sortex launched the world’s first electronic color sorter in 1947. The company was later acquired by Switzerland’s Bühler Group, which dramatically scaled throughput while integrating AI, InGaAs cameras, and Industry 4.0 connectivity for near-perfect, repeatable defect removal.

Since the 2000s, new players have entered with fresh value propositions. Chinese manufacturers such as Hefei Taiho, Satake or NSort, now deliver affordable, compact AI-powered sorters featuring edge computing - ideal for remote farms. Startups like Avercasso offer modular AI systems with upgradable, process-specific modules. Indestec developed the Eco-Enigma dryer: a closed-circuit, condensation-based system that delivers precise temperature control for targeted flavor profiles while significantly reducing energy and water consumption. Other innovators are focusing on modular, low-energy pulpers and gentle separators designed for small-batch production.

These machines transmit the confidence for us to guarantee our products’ technical specifications to our clients - if the quality does not match the agreed, the roaster just returns the coffee at no cost.

Traditional leaders emphasized durability and high yield to support financed, large-scale operations. The new generation prioritizes sustainability — through zero-water demucilage, energy-efficient drying, and reduced environmental impact — along with AI, full traceability, lower entry barriers, and modularity for mountainous or smallholder niches.

This evolution is empowering high-altitude, isolated producers to achieve consistent premium quality without sacrificing their unique terroir or needing massive scale. As a result, processing infrastructure at origin is enabling excellence from crop to cup.

At Meiero, we believe this is our next frontier for adding value across the supply chain.

There is much more to come.

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Weekly Highlights:

• Coffee Futures KC Price in NY: -2.60% weekly, closing at 301.70 cents/lb.

• Coffee Price in Brazil's B3 in USD: -1.71% weekly., closing at 402,95 USD per bag. 

• BRL/USD fx rate: +0,3% weekly, closing at 5,23 USD/BRL.

• Proxy of 20' container freight prices from Santos to Rotterdam: Flat

  • General container indices (Drewry World Container Index – WCI) showed upward movement in late March: +5% to $2,279 per 40ft container in the week ending ~26 March, with Asia–Europe routes (e.g., Shanghai–Rotterdam) rising 1–3% week-on-week due to Middle East tensions.

  • Asia–Europe routes saw modest gains or volatility linked to the Iran conflict and ongoing Red Sea avoidance.

  • Santos–Rotterdam (South America to North Europe) is a secondary / transatlantic-type lane and showed little specific weekly variation or only mild increases. No sharp drop was reported, and it did not experience the same pressure as main Asia–Europe trades. Specific public data for the exact 20' container rate on this route is less granular than for Shanghai–Rotterdam, but the overall picture supports stable to slightly higher rates rather than a significant decline.

• Private forecasts for Brazil’s 2026/27 coffee crop continued to be revised upward: Marex projected a record 75.9 million 60-kg bags (+15.5% year-over-year), exceeding recent estimates from StoneX (75.3 million bags) and others, maintaining strong downward pressure on prices during the week.

• Certified arabica stocks monitored by the ICE rose to levels near recent highs (above 570,000 bags), reinforcing the scenario of greater near-term supply availability.

• Lavazza reported growth in annual revenue and profit despite higher green coffee costs and softer demand in some markets, demonstrating operational resilience by the major Italian roaster.

• Bernstein upgraded its recommendation on J.M. Smucker shares (owner of Folgers and Dunkin’ brands in the coffee segment), citing lower green coffee costs and positive activist pressure as supportive factors.

• Royal Cup Coffee and Tea announced an agreement to acquire Farmer Brothers Coffee for approximately US$ 28 million, representing a strategic consolidation move in the U.S. foodservice coffee segment.

• Discussions regarding potential logistical disruptions, including the impact of tensions in the Middle East on maritime routes, continued to influence market sentiment, although the primary focus remained on abundant Brazilian supply prospects.

• Consumption trends in 2026 continue to favor functional coffees, cold brew, and ready-to-drink (RTD) formats, with consumers prioritizing convenience, health benefits, and premium experiences both at home and away-from-home.

• Starbucks progressed with its “Back to Starbucks” plan, including store remodels and menu innovations, although the most recent financial highlights refer to its first fiscal quarter of 2026.

Meiero explores the intersection of heritage and innovation in coffee machinery, tracing the journey from 19th-century mechanical pulpers to modern AI-driven optical sorters. We analyze how established leaders like Pinhalense and Bühler are being joined by a new generation of sustainable innovators focusing on zero-water demucilage and energy-efficient drying. This technical shift allows smallholder and high-altitude producers to preserve their unique terroir with professional-grade precision, ensuring that excellence is no longer restricted to large-scale operations.