Global coffee prices soared by 38.8 percent in 2024, marking one of the sharpest increases in recent years, according to the Food and Agriculture Organization (FAO).
The surge was driven by extreme weather conditions disrupting production in major coffee-growing regions.
Arabica coffee prices climbed by 58 percent, while Robusta surged by 70 percent in real terms by December 2024.
This narrowing gap between the two coffee varieties is the first of its kind since the mid-1990s.
The supply chain disruptions were particularly severe in Vietnam, Indonesia, and Brazil, where droughts and heavy rains took a toll on production and exports.
Vietnam, the world’s largest Robusta producer, suffered a 20 percent decline in output due to prolonged dry conditions, with exports dropping for the second consecutive year.
Indonesia’s production shrank by 16.5 percent following excessive rainfall, while Brazil’s projected growth of 5.5 percent was revised downward to a 1.6 percent decline due to drought and high temperatures.
Rising shipping costs have compounded the crisis, pushing consumer prices higher in key markets such as the United States and the European Union.
“The high prices should provide incentives to invest more in technology and research and development in the coffee sector – which relies largely on smallholder farmers – to increase climate resilience,” said Boubaker Ben-Belhassen, Director of FAO’s Markets and Trade Division.
He warned that climate change remains a significant long-term threat to global coffee production.
FAO cautioned that unless major coffee-producing regions recover from supply disruptions, prices could climb even higher in 2025.