Rise in Coffee Prices Due to Climate Change
Global Coffee Prices Surge due to Climate Change
The global price of arabica coffee has more than doubled over the past year, with 25% of that surge coming since the start of 2025. This price increase is largely driven by climate-change-fueled weather patterns that have disrupted agricultural production around the world.
Climate Change Impact on Coffee Production
Climate change is causing average temperatures to rise and precipitation patterns to change, leading to droughts and floods in coffee-growing regions. This has resulted in a severe drought in Brazil, the world’s top coffee producer, and severe flooding in Vietnam, the world’s second-largest producer. These changes can increase the prevalence of diseases in coffee crops, reducing overall yields for farmers.
Retail Coffee Prices Expected to Increase
Bank of America analysts warn that retail coffee prices will continue to rise, despite "consumers showing signs of price fatigue." Major food companies, such as J.M. Smucker and Keurig Dr Pepper, will likely pass on some of the cost increases to consumers. While coffee prices have not yet fully percolated into consumers’ mugs, instant coffee prices have been rising, with a 7.1% increase last month from a year earlier.
Coffee Production and Yields
Coffee production is struggling to keep up with demand, with the global coffee shortage driving U.S. imported coffee bean supplies to their lowest level since November. Arabica coffee production in Brazil is set to decline by 12.4% this year from last year, according to the Brazilian ministry of agriculture.
Experts’ Views
Jeffrey Sachs, a sustainable economist at Columbia University, notes that as the long-term climate changes, these weather conditions are far more likely to hit extremes and cause losses in coffee yields as well as volatility to coffee production.
Conclusion
The rising cost of coffee is a result of climate change’s impact on coffee production and trade. As the world grapples with the effects of climate change, it is essential to reduce greenhouse gas emissions and invest in agricultural resiliency systems to mitigate the impact on global food supplies.
FAQs
Q: Why are coffee prices rising?
A: Coffee prices are rising due to climate-change-fueled weather patterns that have disrupted agricultural production around the world.
Q: What is the impact of climate change on coffee production?
A: Climate change is causing average temperatures to rise and precipitation patterns to change, leading to droughts and floods in coffee-growing regions, resulting in reduced yields for farmers.
Q: What is the expected impact on retail coffee prices?
A: Retail coffee prices are expected to continue rising, with major food companies likely to pass on some of the cost increases to consumers.
Q: What is the current situation with coffee production and yields?
A: Coffee production is struggling to keep up with demand, with the global coffee shortage driving U.S. imported coffee bean supplies to their lowest level since November. Arabica coffee production in Brazil is set to decline by 12.4% this year from last year.
