COFFEE PRICES — THE REALITY

What the heck has happened?

Global coffee prices have hit historic highs.

The cost of raw coffee (known as the C-market price) has doubled — in some cases tripled — over the past few years.

And it’s not just specialty. It’s the entire market.

Why?

A few reasons:

• Climate disruption — Brazil, the world’s largest coffee producer, suffered a major drought followed by frost in 2024. Vietnam, a leading robusta producer, faced flooding. Crop yields are down globally.

• Rising costs — Fuel, freight, fertiliser, labour, storage — every part of production and transport now costs more than it used to.

• Market speculation — Coffee is a traded commodity. When traders see supply risks, prices spike — whether coffee is physically short or not.

• Global demand — More countries now drink more coffee than ever before. Supply is struggling to keep up.