Coffee prices have reached their highest levels in years, with a staggering 38.8 percent increase recorded in 2024, according to the latest report released by the Food and Agriculture Organization of the United Nations (FAO) this March. The surge is driven by ongoing supply disruptions caused by extreme weather conditions in major producing countries, including Viet Nam, Indonesia, and Brazil. Arabica and Robusta prices have risen sharply, narrowing their price gap for the first time since the 1990s. Dry weather in Viet Nam, excessive rains in Indonesia, and heatwaves in Brazil have led to steep production declines and lower export volumes.
As 2025 unfolds, FAO warns that prices may continue to climb if weather volatility persists. Consumers are already seeing price increases—6.6 percent in the U.S. and nearly 4 percent in the EU. The organization underscores the urgency of investing in climate-resilient coffee farming, noting that 80 percent of global production depends on smallholder farmers. FAO calls for stronger collaboration across the coffee value chain to ensure long-term sustainability, protect rural livelihoods, and enhance resilience in the face of climate change.

Link: https://www.fao.org/newsroom/detail/adverse-climatic-conditions-drive-coffee-prices-to-highest-level-in-years/en