Why Coffee Prices Are Rising – What It Means for Coffee Lovers
At The Coffee Advocates, we take pride in delivering the finest coffee beans to your doorstep. As passionate coffee enthusiasts, keeping you informed about the coffee world is important.
Recently, coffee prices have surged to unprecedented levels, with Arabica futures nearing $3.20 per pound—the highest price since 1972. But why is this happening, and what does it mean for you, the coffee lover?
Let’s break it down.
The Factors Behind the Price Surge
The rise in coffee prices is largely due to unfavourable crop conditions in major coffee-producing countries, especially Brazil, which accounts for 40% of the world’s coffee supply. And they are the core of the beans we use in our Barista Blend.
Drought and Low Rainfall in Brazil
Brazil’s coffee-growing regions have been experiencing a prolonged dry spell, with below-average rainfall since April. This lack of rain has affected the flowering phase of Arabica coffee trees, which is crucial for the 2025/26 coffee crop. Consequently, the outlook for future coffee production has become very bad.
Lower Production Projections
According to the United States Agricultural Service (FAS), Brazil’s coffee production for the 2024/25 season has been revised down to 66.4 million metric tons from the earlier estimate of 69.9 million metric tons. Lower supply naturally drives up prices.
Costa Rica’s National Emergency
Heavy rains in Costa Rica have compounded the issue, destroying nearly 15% of the country’s annual coffee harvest. This crisis has further strained the global coffee supply chain.
A Global Ripple Effect
The challenges Brazil and Costa Rica face are not limited to these countries; they also have implications for other coffee-producing nations such as Vietnam, Indonesia, and Ethiopia. These countries are grappling with unpredictable weather patterns, which hinder their capacity to address the existing supply gap. This situation is especially worrying considering Arabica coffee constitutes 75% of the world's coffee production, while robusta accounts for the remaining 25%.
As also use both Vietnamese and Ethiopian beans in our Barista Blend
For coffee lovers, this means that their morning cup of coffee is more expensive than ever, highlighting the dedication and resilience of coffee farmers everywhere.
What This Means for You.
At The Coffee Advocates, we collaborate closely with trusted suppliers to ensure a consistent supply of high-quality beans, even during challenging times. Although rising prices pose a significant hurdle, we remain dedicated to providing exceptional value and sustainability in every bag of coffee. Unfortunately, we must raise our prices to maintain our business's viability. We try to delay this decision for as long as possible, but it has become necessary to increase our prices.
Although coffee prices may increase, our commitment to providing the finest coffee beans remains unwavering. By supporting sustainable and ethical coffee practices, we can collectively navigate these challenges, ensuring a brighter future for coffee lovers and farmers.
Stay informed, stay caffeinated, and, most importantly, savour every sip. Explore our range of premium coffee beans today and taste the difference that passion and purpose bring to your brew.
Marco and the Coffee Advocates Jan 2025