2 March 2025
You may have noticed your morning cappuccino or flat white is costing more.
Coffee ☕ prices have been increasing recently. A major reason is frost ❄️ and drought 🥵 in Brazil.
Brazil is the world's 🌍 number 1 producer of coffee. In 2024 it produced 38% of the world's total- 3.98 million kg.
Vietnam was number 2 - 17% - 1.81 million kg.
Columbia was number 3 - 7% - 0.77 million kg.
Coffee production in Brazil peaked in 2020 at 4.2 million kilograms. Frost in 2021 caused huge damage, reducing production that year.
Frost and drought since then has made it hard for the industry to recover.
Demand has increased - think of all the new Starbucks opening - and with constrained supply, prices have increased.
(Source production figures: US Dept of Agriculture, Foreign Agricultural Service https://www.fas.usda.gov/data/production/ )
(Source Brazil coffee industry: Global Coffee Report 31 Oct 2024 https://www.gcrmag.com/reality-hit-brazils-coffee-industry-still-struggling-to-recover/)