Category: News

Reuters has confirmed that the global coffee industry is experiencing a sharp slowdown, as traders and roasters reduce their purchases to the lowest levels due to a significant surge in prices. The agency reported that Arabica coffee futures on the exchange have jumped by 70% since November, making it difficult for suppliers to convince retailers to accept these increases.

The agency quoted Renan Chueiri, General Manager of ELCAFE in Ecuador, as saying that 2025 is the first year in which the instant coffee producer has been unable to sell its entire annual production by March.

“Usually, by this time, we would have sold all our production, but so far, we have only sold 30%,” Chueiri said. “The significant price increase affects clients’ cash flow, as they do not have enough liquidity to buy what they need.”

In the United States, a senior coffee roaster, who requested anonymity, said that some of his clients are unsure whether they will be able to stay in business.

“Some will not be able to survive,” the CEO said. “Retailers are delaying negotiations, and some stores are already facing coffee shortages on their shelves.”

According to Reuters, fears over continued high prices have led traders to adopt a more cautious approach to purchasing.

“No one wants to take risks, and no one is buying for future delivery—everyone is purchasing only the necessary quantities,” said a coffee broker who requested anonymity.

In Brazil, the world’s largest coffee producer, purchasing has become more cautious than ever before.

“Deals are being completed with seven-day payment terms. Buyers go to farms or warehouses, check the quality, and if it meets their standards, they pay immediately and take the coffee with them,” the broker explained.

Reuters confirmed that the impact of reduced trade volumes has started to appear in U.S. warehouses near major ports, where inventory levels have dropped to half their usual levels.

A senior official from one of the largest storage companies revealed that some firms have begun returning silos to their owners and terminating lease contracts early due to decreased demand.

Despite the crisis, Reuters’ latest poll predicts that Arabica coffee prices could drop by up to 30% by the end of the year, as high prices lead to lower demand, while projections indicate a strong harvest in Brazil next year, which could help ease market pressures.

During the Houston conference, Louis Dreyfus presented data showing that coffee cultivation areas are expanding in response to higher prices, particularly in India, Uganda, Ethiopia, and Brazil. If Brazil manages to produce a large crop, it could lead to a sharp decline in prices.

With continued uncertainty, the global coffee industry faces major challenges. With buyers hesitant, retailers resisting price hikes, and financial pressures mounting on all parties, the coming months are expected to be difficult for traders, roasters, and consumers alike.

Despite record-breaking increases in global coffee prices, data from the General Authority for Statistics in Saudi Arabia indicates relative stability in the local market, supported by steady supply availability and continued imports from major producing countries.

According to official data reported by the Saudi economic magazine “Maal”, the average price of whole bean/hari coffee in Saudi Arabia during January 2025 stood at SAR 45.6 per kilogram, compared to SAR 44.9 at the end of 2023, reflecting a slight increase of only 1.6% over the year. Meanwhile, whole bean/laqmati coffee was priced at SAR 31.9 per kilogram in January 2025, down from SAR 32.3 at the end of 2023, a 1.2% decrease. This local price stability persists despite sharp global price hikes over the past 18 months.

Saudi Arabia imported 188,000 tons of coffee beans in 2024, with Ethiopia as the leading supplier, accounting for 58% of total imports, followed by Brazil at 15% and India at 3%. The diversification of import sources helps ensure a stable coffee supply in the local market.

According to “Maal” magazine, Saudi Arabia’s balanced trade policies and diverse import channels have played a key role in maintaining market stability despite global disruptions. With ongoing government initiatives to support coffee farming in the Kingdom, increased local production is expected to enhance food security and mitigate future price volatility.

On the production front, the Saudi Reef Program – affiliated with the Ministry of Environment, Water, and Agriculture – reported that Saudi Arabia’s coffee production reached 1,485 tons in 2023, marking a 37% increase compared to the previous year. The Kingdom aims to boost production to 7,000 tons by 2026 through support and development programs, with total financial aid to the sector reaching SAR 61 million, benefiting 3,718 farmers to date.

Meanwhile, global coffee prices continue to skyrocket, rising 21% in January and February 2025, bringing the total increase since October 2023 to 168%, according to a report by “Maal” magazine.

Arabica coffee prices – which account for 75% of global production – have surged significantly, with the price per ton increasing from $3,287 in October 2023 to $8,818 in February 2025, a rise of $5,531 or 168%. Robusta coffee prices also climbed from $2,481 per ton to $5,817 per ton during the same period, marking an increase of $3,336 or 134%, setting a new all-time high.

This sharp increase in global coffee prices is largely attributed to climate-related crises affecting Brazil, where Minas Gerais State – responsible for 30% of Brazil’s arabica production – is facing its worst drought since 1981 due to declining rainfall throughout 2024. This situation raises concerns about Brazil’s coffee output, as the country remains the world’s leading supplier of sweet arabica beans, accounting for more than a third of global coffee supply.

At the same time, China’s coffee consumption continues to surge, growing by 150% over the past decade, reaching 6.3 million tons in 2024, while its domestic production remains at just 2 million tons. This supply gap has led to a significant increase in Chinese coffee imports, adding further pressure to global coffee prices in recent months.

Qahwa World, a dedicated platform for coffee enthusiasts, is proud to announce its inclusion in Feedspot’s “100 Best Coffee Blogs and Websites in 2025,” securing the 28th position. ​bloggers.feedspot.com

This recognition is particularly significant for Qahwa World, given its relatively recent entry into the coffee blogging scene. Established to explore the rich tapestry of coffee’s history, culture, and industry insights, the platform has rapidly gained traction among readers worldwide.​

Feedspot’s annual list evaluates blogs based on relevancy, authority, social media followers, and content freshness. Qahwa World’s commitment to delivering in-depth news, historical perspectives, and engaging content has resonated with a global audience, reflecting its dedication to quality and authenticity.​bloggers.feedspot.com

The journey of coffee, from its origins with a Yemeni hermit in 1450 to its status as a global cultural icon, mirrors Qahwa World’s mission to connect and inform the coffee community. This accolade not only acknowledges the platform’s efforts but also inspires continued exploration and celebration of the coffee world.​

For more insights and stories about the multifaceted world of coffee, visit Qahwa World.

The National Coffee Association (NCA) has announced the recipients of its prestigious annual awards, set to be presented during its upcoming convention in Houston on March 7, 2025. These awards honor individuals and organizations making significant contributions to the coffee industry.

Allan Colley, a key figure in the coffee warehousing and logistics sector, will receive the 2025 NCA Distinguished Leadership Award. With a career spanning over five decades, Colley played a crucial role in shaping modern coffee storage solutions. Under his leadership, Dupuy Group introduced the first U.S. green coffee silo in 1992, among other innovations that advanced warehousing and logistics in the coffee industry. His dedication to the sector, including past leadership roles with the Southern Coffee Association and the Green Coffee Association, has left a lasting impact.

Kyle Bawot, senior director at Ofi, has been named Volunteer of the Year. His contributions to the NCA’s Next Gen Council, where he has served since 2019 and chaired for the past two years, have helped strengthen initiatives aimed at supporting the next generation of coffee professionals. Bawot also played a key role in launching the NCA Mentorship Program, fostering leadership development within the coffee sector.

Additionally, Root Capital, an organization dedicated to financing and supporting agricultural enterprises, has been honored as the NCA Origin Charity of the Year. Root Capital has provided over $2 billion in loans to more than 800 agricultural businesses, many of which are tied to coffee farming. Their work focuses on empowering farming communities through financial services that promote gender equity, climate resilience, and economic opportunities.

NCA President and CEO Bill Murray emphasized the importance of these contributions, stating, “These awards celebrate leaders and organizations that are making a real difference in the coffee industry, whether through innovation, mentorship, or sustainable development. Their work continues to shape a better future for coffee professionals and producers worldwide.”

The NCA’s annual convention will bring together key players from across the coffee supply chain to discuss trends, challenges, and the future of the industry, making it an ideal setting to recognize these outstanding contributions.

As agricultural innovation accelerates globally, data from the International Union for the Protection of New Varieties of Plants (UPOV) reveals a significant gap in coffee variety development compared to other crops. While the number of registered apple varieties stands at 5,342, coffee lags far behind with only 121 registered varieties, reflecting a 48-fold delay in coffee breeding progress.

The coffee sector faces increasing challenges, including climate change, pests, and agricultural diseases, all of which threaten global production sustainability. Unlike crops such as apples, which have benefited from continuous breeding programs, coffee production still relies on a limited number of traditional varieties, making it more vulnerable to environmental and economic risks.

In response to this stagnation, World Coffee Research (WCR) has announced a strategic plan to double the number of coffee varieties over the next decade by adopting modern breeding techniques to develop more resilient and efficient varieties. These efforts aim to produce new coffee varieties with enhanced traits, including greater climate resilience, higher yields, improved resistance to diseases and pests, and superior cup quality.

As part of this initiative, pre-commercial field trials for first-generation hybrid (F1) coffee varieties will be launched in 2024 in Costa Rica, Guatemala, and Peru, in collaboration with specialized partners to evaluate their real-world performance.

To further accelerate innovation in the coffee sector, World Coffee Research has partnered with Cornell University, backed by $5 million in funding from the United States Agency for International Development (USAID). This collaboration, under the “Coffee Improvement Program,” aims to speed up the development of new climate-resilient coffee varieties, ensuring the sustainability of coffee production and helping farmers adapt to increasing challenges.

With growing environmental and economic pressures on the coffee industry, developing new, more adaptable coffee varieties has become an urgent necessity. Through the efforts led by World Coffee Research, the industry may witness a transformative shift in coffee farming that enhances productivity, improves quality, and secures the future of coffee as one of the world’s most significant agricultural commodities.

Brazil’s coffee reserves have hit historic lows as farmers sell off nearly all of their 2024 crop amid soaring global prices and prolonged drought. The depletion of stockpiles is raising concerns for roasters, who are struggling to secure supply while coffee prices continue to surge.

The coffee warehouses of Brazil, once packed with millions of bags of beans, are now largely empty. In what experts describe as an unprecedented situation, farmers have already sold most of their 2024 crop, months before the next harvest, as coffee prices skyrocket to all-time highs.

A severe drought and high international demand have driven prices to historic levels, nearly doubling over the past 14 months. Arabica coffee, the dominant variety used in ground-roasted blends, surged by 70% in 2024 and another 20% in early 2025, reaching $4.30 per pound in mid-February. Robusta, often used in instant coffee, climbed 72% last year and peaked at $5,847 per metric ton in February.

With global coffee consumption expected to exceed production for the fourth time in six years, the market remains under pressure.

Supply Crisis Looms as Stockpiles Run Dry

In Brazil, the world’s largest coffee producer, the impact of tight supplies is being felt across the industry. Many of the country’s top cooperatives report record-low stock levels.

“We have never seen inventories this low at this time of the year,” said Willian Cesar Freiria, sales manager at Cocapec, one of Brazil’s largest coffee cooperatives. The organization, based in Franca, São Paulo state, received only 1.1 million bags from associated farmers in 2024, down from 1.5 million bags in 2023. “Until the next harvest begins, there won’t be much coffee left to sell—and it’s the same situation everywhere,” Freiria added.

Even at Cooxupe, Brazil’s largest coffee cooperative, where warehouses still appear full, nearly all the stored coffee has already been sold. “Most of the beans in storage are awaiting shipment,” said Andre Silva Pinto, Cooxupe’s storage coordinator.

According to Cooxupe sales superintendent Luiz Fernando dos Reis, coffee farmers have already sold 90% of their 2024 crop, leaving the lowest inventory levels on record. Industry data supports this claim, with consultancy Safras & Mercado estimating that 88% of the crop has been sold, while brokerage firm Pine Agronegocios reports only 8% remains.

Market Uncertainty as New Harvest Approaches

With exports reducing stockpiles, warehouses are expected to be nearly empty by May, while the next harvest is not expected to begin until late May or June. The first shipments of new-crop coffee will likely not be available until July, further straining the supply chain.

Some farmers, however, have chosen to hold onto part of their 2024 harvest as a precaution. Paulo Armelin, a grower in the Cerrado Mineiro region, kept 40% of his crop as a reserve. “I anticipate a smaller yield this year, so I decided to hold on to some of last year’s beans,” he said.

Meanwhile, negotiations between farmers and international buyers reflect the impact of rising prices. Armelin is currently in talks with a San Francisco-based roaster, seeking $4.50 per pound for his beans—significantly higher than the $3.05 he charged last year.

However, some industry leaders caution that maintaining such high prices may prove challenging. Luis Norberto Pascoal, owner of Daterra Coffees, a prominent arabica producer, believes many roasters will struggle to afford current rates. “Many will be forced to cut costs, which could ultimately impact quality,” he said.

With global demand remaining strong and supply constraints intensifying, the coffee market faces a period of continued volatility.