The coffee industry is changing as wholesale prices reach a 50 year all time high. In recent years, climate disasters have impacted the price of coffee, temporarily causing spikes in the cost of both Arabica and Robusta beans. As these weather related events continue to become more frequent, we are seeing a consistent rise in the global coffee market that could take years to recover.
Brazil is one of the top coffee producers in the world, producing around 35% of all coffee. This past year in 2024, Brazil's most severe drought in history devastated the summer harvest which could also affect next years harvest and are affecting the world coffee market. The last time Arabica beans traded that high was in the late 1970's when many Brazilian crops were destroyed by snow. Similarly, severe droughts followed by heavy rains affected many areas of Vietnam, which comes in second for the largest coffee producer in the world.
But what does this mean for us, the buyer, and you, the consumer? Many coffee roasters are trying their best to absorb the extra cost instead of putting that on their customers. Unfortunately, with the price nearly doubling for many green coffees in the last year alone, it's pushed many roasters into raising prices. While we are trying our best to minimize the cost on the consumer, prices on all ends of the coffee industry will rise.
While this may be discouraging to many, our goal is to be transparent about these changes and continue to provide great service and great coffee. We have always worked towards sustainability and minimizing waste which is important now more than ever. We will continue to monitor the market and keep you informed.