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The global price of coffee beans affected by drought in Brazil is likely to rise by another 50% this year.

Published: 2026-08-05 Author: World Gafei

Last Updated: 2026/08/05, Brazil supplies one-third of the world's coffee demand, but Brazil's coffee harvest in 2014 was the worst in three years. Coffee prices rose further, rising above $2 a pound, and large coffee chains such as Starbucks quickly followed suit to raise the price of coffee drinks. The two major varieties of coffee, the most popular in the market is Arabica coffee beans, which are produced in Latin American countries, including Brazil

Brazil supplies one-third of the world's coffee demand, but Brazil's coffee harvest in 2014 was the worst in three years, coffee prices rose further, once rising above two dollars per pound, Starbucks and other large coffee chains, soon followed by higher coffee drink prices.

The two main varieties of coffee, the most popular market is Arabica coffee beans, this coffee production in Latin American countries, including Brazil and Colombia, the United States ICE Exchange coffee futures, is from 19 countries Arabica coffee beans as trading.

Robusta is the second largest variety of coffee produced in the world, accounting for about 20% of the world's coffee production. It has a sour taste and is mainly grown in tropical countries such as Indonesia. Most of it is used as instant coffee.

Colombia is the world's third largest coffee producer and the world's second largest Arabica coffee bean producer. Although Colombia has accelerated its production to meet the global demand for coffee, Colombia's coffee production is only about a quarter of Brazil's. Even if the production increases, it will only temporarily relieve the coffee supply shortage.

Coffee farmers in coffee-producing countries need to earn at least $1 per pound of coffee beans. If the price of coffee beans falls below $1, the income of coffee-producing countries may be affected and production needs to be adjusted to support coffee prices. Coffee prices are influenced by harvest and supply and demand, while climate and coffee diseases are the main factors affecting harvest.

The market is worried about insufficient rainfall in the planting area

Brazil, which produces the world's largest crop of coffee, harvests from april to august, and investors worry that bean prices could return to as high as $2 a pound if rainfall in brazil's coffee-growing regions continues to be inadequate.

Arabica beans rose 3.2 percent to $1.6455 a pound Friday. Commodity investment managers are bullish on coffee in 2015, expecting coffee prices to rise 40% to 50%, coffee futures prices to easily rise to $3 per pound, and coffee futures to rise above $3 per pound in May 2011.

Coffee production is in short supply, and prices naturally rise. Coffee traders and consumers have to pay high prices for coffee. Sales fell immediately after J. M.Smucker raised the price of its Folgers coffee brand.

Coffee roaster and trader Socafe said it was concerned about Brazil's coffee harvest in May and June and feared coffee prices would rise further.

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