Coffee prices to go up as harvests failed

Coffee prices have been falling for 4 months straight, after record 150% rise during the Biden admin.
Gee - how much do people here want to bet this mush head didn't make a single post about Coffee prices the past 4 years and said a word about Biden.

Laughing-Emoji.webp
 
Coffee prices have been falling for 4 months straight, after record 150% rise during the Biden admin.
Gee - how much do people here want to bet this mush head didn't make a single post about Coffee prices the past 4 years and said a word about Biden.

View attachment 1144701
The current reality:

U.S. Chamber of Commerce, July 23, 2025
 
Let's not forget the dollar vs the Real. As the Real gains strength (from GDP increases) the dollar will not have as much purchasing power.
Brazil and Columbia both are having issues with Coffee growers. Not enough young men are going into the farming of coffee due to the fact that there is insufficient $$ for long days of hard work at high elevations each year.
Even if green coffee garners $8/lb and sold for $18-20 (specialty grade) roasted....the farmers will be lucky to get 0.50-$2.00/lb for their product. All this equals labor shortages....even institutional grade coffee (machine harvested and bulk roasted) is going to see increases. (Fertilizer and fungicide prices constantly rising....also a version of rust virus is destroying whole farms)


All this making coffee even more expensive. A trifecta of conditions.
 
From AI:

    • Rising temperatures, changes in rainfall patterns (including droughts and floods), and increased frequency of extreme weather events are severely impacting coffee yields in major producing countries like Brazil and Vietnam.
    • Brazil, the world's largest Arabica coffee producer, has been hit by severe droughts and frosts in recent years, impacting both quality and quantity.
    • Vietnam, the second largest producer (predominantly Robusta), has also experienced droughts and heatwaves, affecting harvests.
  • Pests and Diseases: Warmer climates are expanding the range and impact of pests like the coffee berry borer and diseases such as coffee leaf rust.
  • Labor Shortages and Rising Production Costs:
    • Labor shortages in key coffee-producing regions, particularly in Latin America, are impacting efficient harvesting and processing.
    • Rising costs of labor, fertilizers, pesticides, equipment, and transportation are further squeezing farmers' margins.
 
Global warming is a significant factor, but not to be ignored in accounting for the soaring coffee prices in the U.S.:
  • Brazil: A 50% tariff on green coffee takes effect August 6, with no exemption granted. The increase is tied to recent political tensions and was confirmed by Commerce Secretary Lutnick, who also stated no extension will be offered.
  • Indonesia: Although a new trade framework was announced, the 19% tariff reduction referenced under Executive Order 14257 is not yet legally binding. Coffee was named as a potential candidate for future relief, but as of today, the 32% tariff remains in effect.
  • Nicaragua: Now officially set at 18%, aligning with the revised rate reflected in recent customs filings.
  • India: Tariffs have settled at 25%, slightly down from earlier projections but still a significant jump from baseline.
 
The petty lowlife is driving up coffee prices for Americans because a kindred sleazebag is being held to account by the Brazilian justice system.
Products imported to the U.S. from Brazil — including almost a third of the supply relied on every day by America’s coffee drinkers — are subject to a 50% tariff beginning Friday, not because of Brazil’s trade policies, but because of ] Trump’s relationship with the country’s former strongman president Jair Bolsonaro, and because of the actions of one of the justices of Brazil’s supreme court...
The U.S. actually has a trade surplus with Brazil of hundreds of billions of dollars over more than a decade, not a deficit.
 
Coffee is one of the most manipulated commodities and Columbia has a true fascist regime cartel over the coffee trade there.
BUT
Where Brazil is the Elephant in the room....coffee is grown in Africa as well. (It's where it originated).

However....green coffee languished in warehouses (as is often the case) and has been stored in warehouses along the gulf coast and Atlantic ports. Especially the "specialty" grade coffee.

Wholesale Coffee merchants (60kg bags) are accustomed to the fluctuations of coffee and are ALWAYS prepared. Tariffs will make a small drive in price down. (Buying opportunity) But they will settle up soon.

Vietnam produces European coffee. But like South Korea they have an inverted pyramid for age demographics (no children) they are having a severe labor shortage. No farmers to grow, harvest, or process the coffee.

Thank God for African coffee.
 
Every time I go to Peru with my wife, my inlaws send me home with a few pounds of some stellar Peruvian coffee. It is SO aromatic and pungent, all I have to do to find my bags at the carousel at the airport is follow the luscious smell of that coffee! 🤩
 
Every time I go to Peru with my wife, my inlaws send me home with a few pounds of some stellar Peruvian coffee. It is SO aromatic and pungent, all I have to do to find my bags at the carousel at the airport is follow the luscious smell of that coffee! 🤩
My church has been making mission trips to Peru....wanting me to go with. I know what I'll bring home as a souvenir just like what I did when in Brazil. Just a bit different.
 
Back
Top Bottom