Coffee lovers may want to brace themselves for higher prices in the near future, experts are warning. Arabica coffee beans, which are used in most of the coffee shops and restaurants we frequent, have seen a major price jump recently. The cost of these beans has soared to $3.50 a pound, marking a 70% increase this year alone—the biggest rise in prices since 1977.
When adjusted for inflation, this price would be around $0.66 in 1977. Back then, the spike was caused by a devastating frost that wiped out more than a billion coffee trees. Today, however, experts say the culprit is climate change.
David Ortega, a professor who studies the food supply chain, explains that climate-related weather events, like droughts and floods, have significantly reduced coffee yields in major producing countries such as Brazil and Vietnam. Brazil, the world’s top coffee exporter, has been hit particularly hard by droughts, while Vietnam has also faced challenges with its robusta beans, which are of lower quality and often used in instant coffee.
Ortega warns that these extreme weather events are likely to become more frequent in the future, making it essential for the agricultural industry to adapt and invest in solutions to combat climate change. Unfortunately, one of the immediate consequences of this shift is a rise in costs, which ultimately get passed down to consumers.
This price hike is felt not only by coffee drinkers but also by roasters and distributors. Jackie Newman, a vice president at World of Coffee Inc., explains that the climate crisis is the main factor causing the price increase. With supply dropping and demand remaining high, the cost of raw coffee beans is rising.
Newman’s company supplies coffee beans to thousands of businesses across the country, and she says they’ll try to absorb as many of the increased costs as possible. However, she predicts that customers can expect a price increase of about $0.50 to $1 per cup. “We want to keep coffee affordable for people,” she says, “but we also have to account for rising costs in everything from the beans to packaging and labor.”
The price hike is a ripple effect that affects everyone in the coffee supply chain. From farmers facing low crop yields to roasters struggling with high bean costs, the rising prices trickle down to everyday consumers. “There just isn’t enough coffee to go around,” Newman says.
And coffee isn’t the only crop being impacted by climate change. Ortega points out that floods in Europe recently harmed the Valencia region, a major producer of oranges. Similarly, a severe drought in California a couple of years ago led to increased prices on crops like lettuce and even beef.
The message is clear: climate change is shaking up global agriculture, and the price tag on your morning cup of coffee is just one example of the far-reaching effects.
