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Brazilian Coffee Coffee Price Surge Are Brazilian Coffee Prices Expensive

Published: 2026-01-27 Author: FrontStreet Coffee

Last Updated: 2026/01/27, For professional coffee knowledge exchange and more coffee bean information, please follow Coffee Workshop (WeChat public account cafe_style) Generally speaking, in the coffee supply chain, coffee growers have the smallest carbon emissions, while transportation, roasting, and sales have the largest. However, because coffee cultivation requires specific climate conditions, coffee growers have become the most directly and severely affected in this supply chain

Professional coffee knowledge exchange | For more coffee bean information, please follow Coffee Workshop (WeChat official account: cafe_style)

Typically, in the coffee supply chain, coffee growers have the smallest carbon emissions, while transportation, roasting, and sales have the largest. However, because coffee cultivation requires specific climate conditions, coffee growers have become the most directly and severely affected group in this supply chain.

Brazil Faces Severe Drought

Due to the La Niña phenomenon globally in 2020, Brazil experienced drier weather. Most regions of Brazil have now experienced consecutive months without rainfall. The rainfall at the end of last month can only be described as "a drop in the bucket," insufficient to rescue Brazil from its drought state of multiple months without precipitation. Brazil is experiencing its most severe drought in 91 years.

This drought weather has seriously affected this world's largest supplier of raw sugar and coffee. Coffee and raw sugar have become commodities whose prices have reached multi-year highs, with coffee futures prices pushed to new highs. Coffee futures prices touched a four-and-a-half-year ceiling this Friday. Brazil's current climate situation is also very concerning, as the soil moisture in Minas Province is not at ideal levels, all of which affects the 2022 coffee production. Brazil's Ministry of Mines and Energy stated that this drought situation will continue in the coming months, especially in the southeastern and central-west regions.

Impact on Coffee Production

According to a commodity report released by Commerzbank, the Paraná basin, where Minas Gerais, Brazil's largest coffee-producing region, is located, has experienced drought, which is expected to continue until August.

According to data provided by Safras & Mercado consulting firm, Brazil's coffee harvest progress is estimated to be 20% complete. Coffee crops will begin flowering in September, and Brazil's current drought climate is not a good sign for the 2022/23 harvest. Meanwhile, protests in Colombia have also affected Brazil's transportation costs.

Rising Coffee Prices

Among soft commodities, July Arabica coffee bean futures prices rose 4.05 cents, a 2.6% increase, to $1.6165 per pound; July Robusta coffee bean futures prices rose 1.4% to $1,612 per ton. The International Coffee Organization (ICO) stated that the composite index in May rose 10.4% to 134.78 US cents per pound, the highest level since February 2017.

As the world's largest coffee-producing country, Brazil's continued drought climate has severely impacted coffee production, and coffee prices have subsequently skyrocketed. When will this situation end?

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