Global Coffee Prices
Jan 02, 2025
At Desert Sun Coffee Roasters, we want to share what’s going on in the coffee industry after coffee recently hit a 47 year high in price, up 70% this year. This will affect all players in the industry.
At Desert Sun Coffee Roasters, our mission has always been to provide exceptional coffee sourced sustainably. As global coffee markets face unprecedented shifts, I want to share important updates about the industry, the challenges we’re navigating, and how this impacts our pricing structure moving forward.
Why Are Prices Changing?
- Market Volatility and Historic Highs
- Coffee prices have surged to a 47-year high, with Arabica futures reaching $3.26 per pound—a 70% increase this year alone.
- Droughts in Vietnam, frost risks in Brazil, and the El Niño phenomenon have drastically reduced production, particularly for Robusta and Arabica beans.
- Global Supply Chain Pressures
- Ongoing disruptions, including port delays and increased shipping costs, are compounding the challenges for coffee buyers worldwide.
- Regulatory uncertainties, like the EU Deforestation Directive, are further impacting costs and operations.
- Shifting Dynamics Across the Value Chain
- Producers are seeing greater leverage but are also grappling with rising costs for labor, fertilizer, and other essentials. While this creates opportunities for higher incomes, volatility adds significant risks.
Looking Ahead
Despite these challenges, we remain optimistic about the future of coffee. Our focus on delivering premium coffee remains unchanged, even as we address supply chain and market uncertainties.
For more information about what's happening in the global coffee market, please try this great article from Coffee Intelligence: Coffee prices surge to 47-year highs, reshaping the industry