What’s going on with the coffee market?
Coffee growers are dealing with a lot right now. Most immediately, the Trump administration’s tariffs, which threaten their sales, add to the ongoing challenges of pests and diseases for coffee production. In the longer term, experts say the coffee industry can’t continue with business as usual. The cost of coffee is on the rise, thanks to recent tariffs. In response, members of Congress have introduced a bill to scrap the tax—a move that’s likely to win favor as more Americans reach for a cup.The market is valued at USD 23. USD 28. Coffee pods and capsules lead growth with a projected 5. CAGR through 2030 while ground coffee remains the largest segment.Coffee Inflation That report showed that packaged whole bean/ground and instant coffee cost consumers nearly 21% more in August 2025 compared to a year earlier.Coffee prices are continuing to fall according to Intercontinental Exchange (ICE), with the price registered on 17 June 2025 the lowest recorded in almost five months.
Why is Ethiopian coffee more expensive?
High-Quality Standards: The meticulous process of handpicking, sun-drying, and natural processing contributes to its exceptional taste but also adds to the cost. Limited Yields: Unlike mass-producing coffee nations, Ethiopia’s production is smaller in scale, making its coffee a rare and valuable commodity. But by 2050, rising temperatures could shrink the global area suitable for growing coffee by half. And at least 60 percent of all coffee species — including arabica, the most popular bean — are at risk of going extinct in the wild due to climate change, deforestation and disease.Brazil is unquestionably the king of coffee producing countries. It is the world’s largest producer and exporter of Arabica variety coffee, with an ideal climate and a vast territory. The Brazilian regions of Minas Gerais and São Paulo are famous for their high-quality coffee plantations.Climate-wise, most of the United States doesn’t offer favorable growing conditions for coffee (for Arabica plants, these factors include mild temperatures with high humidity, rich soil, rainy and dry seasons, and altitude—the plants usually prefer a more mountainous terrain.Arabica coffee beans are easily the most popular type of beans, making up about 60% of the world’s coffee production. These beloved beans originated in Ethiopia, where they’re still grown today. They offer a sweet, complex flavour and are known for their smoothness.
Why are coffee beans suddenly so expensive?
Prices for coffee have soared, fueled largely by volatile weather that’s reduced crop harvests among major growers like Brazil and Vietnam, according to analysts. This shortage has impacted farmers, traders, and coffee lovers worldwide. Moreover, this shortage has also raised other concerns such as coffee prices. In 2024, global coffee prices surged by 147%, with premium Arabica beans reaching USD 3. USD 5,200 per metric ton.What is changing about the Fairtrade Minimum Price for coffee? The Fairtrade Minimum Price for coffee is increasing. As of 1 August 2023, the new Fairtrade Minimum Price for washed Arabica beans is $1.
Why do coffee farmers stay poor?
Globally, there are approximately 30 million farming families growing either coffee or cocoa. Most of these families farm on small plots of land and live in poverty. This is mainly because the supply chains — all the steps from the farm to the final product — involve many people like processors and exporters. Coffee can transform Uganda’s economy if handled well. For example, one acre if managed well can give you an average of Shs9m.With proper management, coffee can earn a farmer over Ksh 300,000 per acre annually, making it a smart long-term investment. This guide aims to help Kenyan farmers understand the steps involved in switching from maize to coffee farming and how they can grow coffee profitably.