The Climate Connection
Droughts, frosts, floods, and soaring temperatures are wreaking havoc on coffee yields, particularly in Brazil, the world's largest coffee exporter. Similar challenges are being reported in Vietnam, a key producer of robusta beans, often used in instant coffee.
David Ortega, a food economics expert from Michigan State University, points out that extreme weather events are becoming more frequent due to climate change. He warns this trend will have long-term impacts on global agriculture.
"We must invest in agricultural research and development to mitigate climate change's impact on crop production," Ortega said.
Impact Across the Supply Chain
The rising cost of coffee beans affects every stage of the supply chain, from farmers to roasters to consumers. Jackie Newman, Vice President of World of Coffee Inc., notes that her company is struggling to balance increased costs with fair pricing.
"We'll try to absorb as much of the cost as possible, but factors like packaging and labor costs are also rising. The impact ripples down the chain to everyday consumers," Newman said.
Price increases of $0.50 to $1 per pound are expected soon, with coffee shops and grocery stores likely passing those costs onto customers.
Broader Agricultural Implications
Coffee isn't the only crop feeling the heat. Other staples, such as oranges and lettuce, have also seen price spikes due to extreme weather events. Recent floods in Spain's Valencia region and droughts in California have damaged crops and driven up prices for fruits, vegetables, and even beef.
"The reality is that climate change is disrupting our entire food system," Ortega said.
What's Next for Coffee Drinkers?
As coffee supplies dwindle and demand remains high, experts say the cost of a morning cup could rise by $0.50 to $1 per pound in the near term. While businesses try to minimize the impact, coffee drinkers may need to prepare for higher prices as climate-related disruptions become the norm.
Whether it's your favorite espresso or a simple black coffee, the challenges posed by climate change are making your daily pick-me-up harder—and costlier—to produce.