Coffee prices are increasing rapidly, and the days of an inexpensive cup of “Joe” may be past. Dry conditions in Brazil and in Vietnam have led to decreased production. Arabica, the most used premium blend, has seen a sharp decline with the Brazilian Minas Garias region experiencing a zero rainfall total for the week ending August 16.

The Vietnam crop of robusta coffee was down 20% in 2023/24 with persistent dry conditions expected to continue. Farmers there are switching crops to help their profits. The 50% tariffs the U.S. has imposed on many Brazilian goods has dramatically tightened supplies. Higher prices for fertilizer, production, packaging, and transportation has added to high labor costs in both countries. Hopes of ending drought conditions have led to speculation that 2026 crops

See Full Page