Brazilian Drought Sends Coffee Prices Soaring

Severe drought has ravaged the coffee crop in Brazil this season putting the squeeze on an industry already grappling with the impact of tariffs, The Washington Post reported on Saturday.

Coffee prices have nearly doubled over the past five years, making what is typically a morning staple for two-thirds of Americans into a luxury item. In 2025, the average price per pound of coffee was just over $7 per pound, a far cry from the $4 per pound in 2020. While tariffs are a factor, it’s the changing weather and vanquished crops that have primarily forced coffee farmers to turn down buyers and adapt to a new reality.

Arabica coffee accounts for 75% of the world’s production and 40% of that comes from Brazil. With demand for coffee surging in China, Brazil’s drought has seen some farmers in the Alta Mogiana region lose nearly all of their harvest. The lucky ones have only lost a third. The crop has become so scarce farmers now have to contend with not only changing weather patterns but theft as well. In January, criminals stole more than 500 bags of coffee, valued at close to $230,000, from a farm in Minas Gerais, Brazil.

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