Coffee Has Never Cost This Much Since 1972

The price of coffee, understood as beans or raw materials, reached its highest level since 1972 on Tuesday, December 10, rising to $3.4 per pound (about 450 grams). As traders point out, a kilogram of this delicious “raw material” costs $7, which is almost four times the 2020 price.

The price increase can be attributed to two main reasons. On the one hand, markets reacted to production problems, especially in the two major supplying countries: Brazil (Arabica) and Vietnam (Robusta). In 2024, coffee plantations in these two very distant countries were subjected to very unfavorable weather conditions. Volcafe, one of the world’s largest traders, has lowered its forecasts for Brazilian production, which next season is expected to reach 34.4 million “sacks” (pictured is the traditional measurement in “jute sacks,” which on average weigh 60 kilograms, – ed.) of Arabica, or 11.1 million sacks less than estimated in September.

Equally serious problems await producers in Colombia, Costa Rica, and Honduras. That is, for the fifth consecutive year, demand for coffee will significantly exceed supply in 2025-2026. As a consequence, already in 2024, the price for the Arabica variety has already increased by more than 70 percent.

The second reason for the rise in coffee prices in Europe is related to the fact that many importers of coffee as a raw material are in a hurry to purchase it before the new EU regulations come into force, according to which starting 2026, the import of coffee from “deforested lands” will be prohibited.