Supply and Demand Dynamics
Severe droughts and heat have significantly impacted coffee production in and , the world's largest coffee producers, leading to a forecasted global production increase that's below market expectations and driving prices up.
The price of Brazilian coffee beans has surged to $5.50 per pound in early March, more than double the cost from September, with specialty coffees facing even higher price hikes due to the scarcity and high demand.
Tariffs and Market Reactions
's 10% tariffs on coffee from major producing countries, including Brazil, , and , are expected to further escalate costs for American consumers, with some tariff threats reaching as high as 46%.
American coffee roasters, facing the dual pressures of rising bean costs and uncertain tariffs, are reconsidering their supply chains. Some, like Reneé Colón of Fuego Coffee Roasters, ponder the viability of starting their own coffee farms.