(NewsNation) — Americans can expect to pay a bit more for their cup of coffee as factors impacting the supply chain increase prices.
In February, the price of wholesale arabica coffee broke a previous record of $4.30, which was double the price compared to last year, according to futures contracts traded in New York.
Coffee roasters could now pass the rising costs on to customers. Companies usually invest in the futures market to try and secure a lower price, but the price keeps increasing.
According to government data, the average price of ground roast coffee rose to a record high of $7.25 a pound.
Factors like tariffs, weather and crop growth have significant impacts on coffee prices. In 2024, some of the largest coffee producers saw an increase in climate-related impacts on their crops.
Green coffee bean exports from Brazil dropped 11.3% in December following a season of severe droughts and frost. Vietnam’s exports fell nearly 40% after a drought in October.
Coffee exports from Asia and Oceania also saw a reported 31.2% drop in 2024.
Additional shipping times through the Suez Canal have also caused coffee-producing companies to increase their costs, according to the International Coffee Organization.
The U.S. Department of Agriculture has also found that China expanded its countrywide coffee consumption, with Chinese consumers expected to purchase 6.3 million bags of coffee by the end of 2025.
Read: Read More