Italian Coffee Giants Unite to Launch Mazzer x Slayer Grinder

New collaboration brings precision-focused innovation to professional coffee grinding

Milan – Qahwa World

Two leading names in Italy’s coffee equipment industry have joined forces to introduce a new grinder designed for professional use, marking a notable collaboration in the speciality coffee sector.

The partnership between Cimbali Group and Mazzer has resulted in the Mazzer x Slayer grinder, unveiled during the Grind Chronicles. The project represents the first tangible outcome of their combined efforts.

The grinder has been developed to enhance the interaction between barista and equipment, with a focus on design, usability, and precision. Drawing inspiration from the Slayer espresso machine experience, the new model aims to extend that same level of control and attention to detail to the grinding stage.

Presented as a prototype, the machine operates at low speed and incorporates a grind-by-weight system, making it suitable for medium- to high-volume coffee environments. It features an integrated load cell and 69 mm conical burrs, designed to deliver consistent and accurate dosing across different working conditions.

The design also reflects elements associated with Slayer machines, offering a cohesive workflow from grinding through to extraction. This approach is intended to support baristas in maintaining consistency while optimising daily operations.

Frédéric Thil, managing director of Cimbali Group, stated that the collaboration brings together complementary expertise to develop reliable, high-performance solutions for coffee professionals. He emphasised the importance of precision, consistency, and control in elevating both workflow and cup quality.

Giovanni Mazzer, President of Mazzer, described the partnership as a meaningful collaboration between companies that share common values and a strong connection to espresso heritage. He noted the potential to deliver advanced technological solutions alongside a high standard of service.

The final version of the Mazzer x Slayer grinder is expected to be officially introduced to the market at the London Coffee Festival 2026 in May 2026.

JDE Peet’s Grants Shares Under Employee Incentive Plans

Dubai—Qahwa World

JDE Peet’s has granted new share-based awards and transferred shares to employees as part of its ongoing incentive programs, in line with Dutch regulatory disclosure requirements.

The company confirmed that on March 23, 2026, it granted a total of 811,205 conditional share rights to 204 participants.  These awards were issued in the form of restricted stock units and performance stock units, with no financial consideration required from employees.

Read also: Keurig Dr Pepper Launches €31.85-Per-Share Offer for JDE Peet’s

In addition, the company transferred 12,955 shares to 14 participants under its incentive plans.  These shares were also allocated without payment.

Following these transactions, JDE Peet’s stated that its total issued share capital remains unchanged at 488,178,642 shares.  Of this total, 3,144,957 shares are held as treasury stock.

The disclosure comes under applicable Dutch offer rules, which require transparency around share-related transactions during an ongoing offer process.

Read also: JDE Peet’s Transfers Shares to Employees Amid Keurig Dr Pepper Takeover Offer

The company also confirmed that it does not hold shares in the entity making the offer, and it has no indication that the offeror holds shares in JDE Peet’s.

JDE Peet’s remains one of the largest dedicated coffee companies globally, operating across more than 100 markets with a portfolio that spans major international brands and regional coffee names.

Costa Rican Coffee Farmers Hit by Strong Colón and Falling Prices

Dubai – Qahwa World

Coffee growers across Costa Rica are facing mounting financial pressure as two powerful forces converge: a sharply stronger national currency and declining global coffee prices. Industry leaders warn that the combination could significantly reduce farm income in the coming harvest and deepen the economic strain on rural coffee communities.

For a sector long recognized for producing high-quality Arabica coffee, the current environment highlights how global market shifts and domestic economic trends can quickly reshape the outlook for producers.

  • Currency Strength Erodes Export Earnings

Coffee in Costa Rica is sold on international markets in United States dollar, while most production costs—such as wages, fertilizers, transportation, and farm maintenance—are paid in Costa Rican colón.

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As the colón strengthens, every dollar earned from coffee exports converts into fewer colones. This reduces the real income farmers receive even when the global coffee price remains stable.

Exchange-rate data released by the Banco Central de Costa Rica show the dollar trading near ₡470 in mid-March 2026, significantly stronger for the local currency compared with rates above ₡680 only a few years earlier.

For export sectors such as coffee, the shift has created a challenging environment. While a strong currency can help reduce the cost of imported goods for consumers, it often compresses margins for industries that rely on international sales.

  • Factors Behind the Strong Colón

Economists attribute the strength of the Costa Rican currency to several economic trends that have increased the supply of foreign currency in the country.

Read also: Global Study Maps the “Carbon Footprint” of Latin American Coffee

Strong tourism revenues, expanding exports from companies operating in special economic zones, and steady foreign investment have all contributed to increased inflows of dollars into the national economy. Lower energy import costs have also reduced the demand for foreign currency.

In response to these pressures, the Banco Central de Costa Rica has purchased large amounts of dollars in foreign-exchange markets in an effort to moderate fluctuations and build international reserves. Despite these efforts, the colón has remained relatively strong compared with historical averages.

  • Global Coffee Prices Move Lower

At the same time that currency movements are reducing local earnings, international coffee prices have begun to retreat from the highs seen in recent years.

You can also read: AI and Gas Chromatography Identify Coffee Origins

Prices for Arabica coffee traded on the Intercontinental Exchange in New York surged during 2025 amid global supply concerns. However, market sentiment has shifted as forecasts point to increased production in several major coffee-growing countries.

A major factor influencing the outlook is the expected harvest in Brazil, the world’s largest coffee producer. Production forecasts indicate the possibility of a larger crop in the 2026–2027 season, which could add significant supply to global markets and place additional downward pressure on prices.

For Costa Rican producers, the combination of falling prices and currency shifts means revenues could decline even further in the coming harvest cycle.

  • Rural Communities at Stake

Coffee remains a central pillar of rural economic life in Costa Rica. The industry provides employment for tens of thousands of workers throughout the year, along with additional seasonal jobs during harvest.

Production is concentrated in well-known coffee-growing regions such as Tarrazú, Pérez Zeledón, and Coto Brus, where generations of families have cultivated coffee as their primary source of income.

Small farms dominate the sector. A large majority of producers operate relatively small holdings, and many rely on modest harvest volumes each year. These producers are often the most vulnerable to price volatility and economic shocks.

Read also: ICO February 2026 Report: Has the Inflationary Wave Receded?

Over the past decade, the number of registered coffee growers in the country has declined as some farmers left the sector due to rising costs and uncertain profitability.

  • Growing Concern Among Industry Leaders

The Costa Rican Coffee Institute has described the current situation as a serious challenge for the industry and has called for continued dialogue with policymakers about possible support measures.

Proposals being discussed include improved credit access for farmers, targeted programs to support rural communities, and long-term initiatives focused on innovation, sustainability, and productivity.

Industry representatives emphasize that strengthening the resilience of coffee farms will be essential if Costa Rica is to maintain its reputation as a producer of high-quality coffee in a rapidly changing global market.

  • A Defining Moment for Costa Rica’s Coffee Sector

Costa Rica’s coffee industry has long been regarded as a symbol of national agricultural identity and quality. Yet the sector now finds itself navigating a complex mix of economic pressures beyond farmers’ control.

If global prices continue to soften while the national currency remains strong, growers may face increasingly difficult decisions about the future of their farms.

For thousands of coffee-growing families, the coming seasons could determine whether coffee cultivation remains a sustainable livelihood—or whether the country’s historic coffee landscape begins to change in fundamental ways.

Coffee Farmers in Central America Struggle to Survive Falling Prices

Dubai – Qahwa World

The Guardian published a lengthy report titled “‘Everyone feels like they are being scammed’: can Central America’s small coffee growers survive as global prices fall?”, which discussed the growing pressures facing coffee farmers in parts of Central America, particularly in El Salvador and Honduras. The report explores how climate instability, rising production costs, labour shortages and volatile global markets are reshaping coffee farming across the region.

According to the report, many small producers who have depended on coffee cultivation for generations are now confronting increasingly unpredictable conditions. Weather patterns that once followed a familiar seasonal rhythm have become less reliable, making it difficult for farmers to plan their harvest cycles and manage their farms effectively.

The report begins on a hillside in western El Salvador, where coffee farmer Oscar Leiva observes rainfall arriving in December, a month that traditionally marked the beginning of the dry season. During the latest harvest cycle, flowering occurred early and then stalled, followed by a period of intense heat. As a result, the remaining crop is uneven in quality and more expensive to produce than previous harvests.

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For Leiva’s family, coffee is not simply a crop but a long-standing way of life. His mother, Esperanza Marinero, remembers when the rainy season arrived on time and harvests could be planned months ahead. Today, that certainty has disappeared. Farmers must make decisions about pruning, fertilising and hiring workers without reliable seasonal patterns, increasing the financial risks they face.

Coffee has historically played a major role in El Salvador’s economy. In the mid-1970s the country ranked among the world’s leading coffee producers, with harvests exceeding five million quintales, a unit equal to about 46 kilograms. Today, national production struggles to reach one million quintales.

The report notes that this decline reflects more than market cycles. Decades of land restructuring, climate shocks and rural migration have weakened the coffee sector and altered the agricultural landscape. Increasing climate volatility has disrupted flowering cycles, reduced yields and affected the quality of coffee, particularly for small farmers who lack financial reserves to absorb repeated losses.

Read also: Shock in the Coffee Market: Colombia’s Production Drops 36%

Cecibel Romero, a researcher focusing on coffee production, explained that the sector is experiencing overlapping challenges that extend beyond climate change alone. Rising temperatures, irregular rainfall and plant diseases such as coffee rust have exposed long-standing vulnerabilities in traditional production systems.

Romero noted that past production models often focused on maximising yields and implementing short-term solutions rather than building long-term resilience. After severe rust outbreaks in the early 2010s, many producers replanted their farms with varieties believed to be resistant. However, some of these varieties produced lower-quality beans or did not maintain their resistance over time.

As coffee’s economic importance declined in El Salvador, public support systems for the sector were also reduced. Agricultural services weakened, renovation programmes became fragmented and access to affordable credit narrowed. As a result, many producers have been left to cope with climate risks, disease outbreaks and market volatility largely on their own.

Read also:Coffee Markets Rise Amid Middle East Shipping Disruptions

Similar pressures are being felt in Honduras, the largest coffee producer in Central America. Although overall production remains higher than in El Salvador, farmers there are also dealing with rising costs and climate-related challenges.

Juan Luis Hernández, a forest engineer who has worked on environmental projects connected to the Honduran Coffee Institute, said adapting to changing conditions requires investment, time and labour. Measures such as managing shade trees, restoring soil health, protecting water sources and monitoring plant diseases all require resources that are not equally available to all farmers.

In the Honduran region of Copán, farmer Gerardo Vásquez manages an eight-hectare family farm while also advising other growers. Trained through the Honduran Coffee Institute, he works on soil analysis, selecting coffee varieties and developing agroforestry systems.

Even with this technical background, Vásquez says the economic reality of coffee farming remains difficult. Establishing one manzana of coffee — roughly 0.7 hectares — now costs about 200,000 lempiras over a period of three years.

Read also: Bridging the Gap: An Exclusive Dialogue with Vanusia Nogueira on the Global Coffee Crisis and the Path to 2026

Production costs have risen significantly in recent years. Fertiliser prices increased sharply after the pandemic, while labour shortages have pushed wages for harvest workers higher. When harvesting, processing and transport are included, farmers may spend more than 3,000 lempiras to produce a single quintal of parchment coffee.

Weather conditions can further complicate the process. Continuous rainfall makes drying coffee difficult, forcing some farmers to sell freshly picked cherries directly from the field at lower prices. Others depend on intermediaries who provide advance payments, which can limit farmers’ ability to negotiate prices later.

Climate change is also affecting where coffee can be grown successfully. Farms located below 1,000 metres above sea level are becoming more vulnerable to heat stress, pests and diseases. As a result, coffee cultivation has gradually moved to higher elevations over time.

However, relocating production to higher ground is not feasible for many smallholders, who may not have access to suitable land or the financial means to make such changes.

At Café San Rafael in Honduras, co-owner Carlos Guerra explained that the flowering cycle of coffee plants has become increasingly irregular. What once occurred within a predictable timeframe now happens in stages, extending the harvest period and raising labour costs.

Labour itself has become one of the most pressing challenges for producers. Coffee harvesting requires careful selection of ripe cherries, a process that cannot easily be mechanised. Younger workers are increasingly leaving rural areas, making it harder for farms to recruit enough labour during harvest season.

Farmers are experimenting with various adaptation strategies, including planting additional shade trees and improving soil management practices. While these measures can help protect coffee plants from heat stress, they may also reduce yields, creating a difficult balance between environmental resilience and economic viability.

Some farms attempt to offset these challenges by focusing on higher-value markets. At Café San Rafael, careful management of fermentation and drying processes helps maintain coffee quality even when harvest conditions are uneven. Operating a roastery also allows the business to manage fluctuations in supply.

However, many small farmers do not have access to such opportunities. Entering specialty coffee markets often requires certification, processing infrastructure and export connections that remain beyond the reach of numerous producers.

Emeric Seguin, director of sourcing and sustainability at a specialty coffee company working with producers in Central America, told the newspaper that mistrust is widespread within the supply chain. Farmers often feel undervalued, while buyers worry about inconsistent supply, leaving cooperatives caught between both sides.

Several initiatives are attempting to promote more resilient farming practices. In El Salvador, a coffee production school known as Renacer encourages ecological approaches that focus on soil health, shade restoration and long-term stability rather than maximising short-term yields.

Agronomist Sigfredo Corado explained that the goal is to reduce extreme fluctuations in harvests. While farms may not achieve exceptionally high yields in strong years, they are also less likely to experience severe drops in production.

Despite these efforts, the report notes that global market conditions could add further pressure. Rabobank has predicted that increasing coffee surpluses in the coming seasons could push international prices lower, potentially making coffee production less viable for smallholders.

As profitability declines, some land previously used for shaded coffee is being converted to other crops or sold for development, gradually altering landscapes that have long been associated with coffee cultivation.

For farmers such as Oscar Leiva, planning for the next season remains unavoidable despite the uncertainty. Each harvest now requires decisions to be made without the reliable patterns that once guided coffee farming.

Across Central America, producers continue searching for ways to adapt to changing environmental and economic realities, while the long-term sustainability of smallholder coffee farming remains an open question.

Shock in the Coffee Market: Colombia’s Production Drops 36%

Dubai – Qahwa World

Coffee production in Colombia, the world’s largest producer of washed Arabica coffee, recorded a sharp drop in February 2026. Production reached 869,000 bags, with each bag weighing 60 kilograms, marking a decline of 36% compared with the same month last year. This decrease reflects a continuing negative trend that is putting pressure on the global coffee supply.

  • Noticeable Drop in Annual Production

When looking at the total production over the last 12 months, from March 2025 to February 2026, the total reached 12.72 million bags. This represents a decline of 14% compared with the previous cycle.

German Bahamon Jaramillo, the general manager of the National Coffee Federation (FNC), said that the current situation requires urgent action to protect the stability of the sector and maintain farm productivity, according to the Argentine newspaper Infobae.

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The main recommendations include improving fertilization to restore plant strength and renewing coffee farms to ensure sustainable production in the medium term. There are also calls for direct support measures for farmers to help them deal with lower profits caused by reduced production.

  • Exports Also Decline

The drop in production has also affected exports. Coffee exports in February fell by 32%, reaching 807,000 bags.

During the beginning of the agricultural season, from October to February, total exports reached 5.06 million bags. This is a decline of 14% compared with the same period in the previous cycle.

  • Production Under Pressure

Experts say this decline shows how vulnerable coffee production is to climate changes and farm management problems. It also puts pressure on global prices and may increase the cost of coffee for consumers. At the same time, it makes it more difficult for small farmers to maintain sustainable businesses.

  • Main Reasons for the Decline

Several factors are behind the drop in production.

Climate changes:
Continuous heavy rain and thick cloud cover affected flowering and plant growth. This also led to the spread of diseases such as coffee leaf rust, although detection rates remain low thanks to resistant coffee varieties.

Read Also: Historic Colombian Coffee Harvests Face Labour Shortages

Farm management challenges:
Coffee plants are showing signs of exhaustion after several years of strong production. The 2024/2025 season recorded the highest production level in 30 years. In addition, higher costs for inputs such as fertilizers and labor have increased pressure on farmers.

Weak start to 2026:
The decline follows a 34% drop in January 2026, when production reached 893,000 bags, making the start of the year one of the weakest in recent years.

  • Suggested Actions

Experts suggest several steps to address the situation.

Short term:
Improve fertilization to strengthen plants and provide direct financial support for small farmers, who produce about 70% of the country’s coffee, to help offset income losses.

Medium term:
Renew coffee farms to ensure long-term sustainability and adopt varieties that are more resistant to climate conditions. Price-stabilization mechanisms are also recommended to reduce market volatility.

Long term:
Address climate change through global strategies. A report from the International Coffee Organization (ICO) and other groups expects that global coffee production could be affected by up to 50% by 2050 if adaptation measures are not taken.

  • Impact on Global Supply

Colombia represents about 10% to 12% of global Arabica production. Because of this, any decline in its output puts pressure on the global supply, especially when production also drops in countries like Vietnam or Indonesia during some periods.

However, some of this pressure may be eased by expectations of a record Brazilian crop in the 2026/2027 season, estimated at 66.2 million bags, an increase of 17.2%. This could push global production to around 180 million bags.

Still, climate volatility keeps supply fragile. As a result, major international buyers, including the United States and Europe, may look for temporary alternatives.

  • Price Movements

Arabica prices recently fell from record levels above $4 per pound in November 2025 to about $2.80 to $3.00 per pound today, mainly because of strong crop expectations in Brazil.

However, the decline in Colombian production has helped push prices up by about 2% to 5% in recent weeks. This increase is linked to concerns about global supply and geopolitical tensions, including shipping disruptions in the Strait of Hormuz.

The World Bank expects Arabica prices to fall by 13% to 15% during 2026 overall. But this outlook could change if production in Colombia continues to decline.

For consumers, coffee prices in the market may rise by about 5% to 10% in the short term, especially in Europe and the United States.

Kim Thompson: Coffee on the Edge of Disruption

Dubai – Ali Alzakary

The global coffee industry has spent the past few years navigating one disruption after another—from pandemic shutdowns and climate volatility in producing countries to freight crises that reshaped global shipping routes. As the global coffee market grapples with volatility—production reaching around 175 million bags in 2025 while costs continue to rise due to climate pressures and freight disruptions—the ongoing conflict in the Middle East is adding a new layer of uncertainty to an already fragile supply chain.

Coffee moves through one of the most complex trade networks in the food and beverage sector. Green beans travel from farms across Latin America, Africa and Asia through international ports and maritime corridors before reaching roasters, cafés and consumers. Any disruption to shipping routes, insurance costs or regional logistics can quickly ripple across the industry. For specialty coffee—where freshness, tight margins and long-term sourcing relationships define the business—the impact can be felt even faster.

To understand how the sector is reacting, we spoke with Kim Thompson, Co-Founder  at RAW Coffee Company in Dubai. From monitoring shipments already at sea to preparing technical support systems for cafés, Thompson explains how roasters are navigating rising costs, uncertain logistics and a rapidly shifting geopolitical landscape.

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In this conversation, she offers a clear view of what café operators are worrying about right now, how long menu prices can realistically hold, and why the coffee industry’s resilience often comes down to relationships built across the supply chain.

  • Has the “fear factor” kicked in yet? Are you seeing cafés or hotels panic-buying and stockpiling coffee to guard against a potential shortage?

Not really. The reality of the café industry is that most operators are managing week-to-week cash flow, not building strategic stockpiles. Right now the conversations we’re having are far more about cost control than hoarding inventory.

The other factor is freshness. Speciality coffee isn’t a commodity that sits in a warehouse for months. We roast weekly and deliver fresh, so stockpiling doesn’t really fit how quality coffee businesses operate.

Our expectation is that the real response, if there is one, will likely come after Eid al-Fitr, once operators have had time to assess the geopolitical situation and think through their own coping strategies. At the moment, people are watching closely rather than panicking.

  • The coffee you’re roasting today was bought at pre-war prices — how long can you hold your current menu prices before new logistics costs force your hand?

The uncomfortable truth is that price pressure in coffee started well before this conflict. The industry has already been absorbing significant increases at origin, higher processing costs, and rising freight prices for the past two years.

We have already had to adjust pricing once, simply because the economics of producing high-quality coffee have changed globally.

If shipping routes tighten or logistics costs spike again because of regional instability, there’s only so much the supply chain can absorb. Roasters can cushion the impact for a period of time, but eventually the math catches up with everyone.

Coffee has historically been underpriced for the amount of work and risk involved in producing it. What we are seeing now is the global market slowly correcting that reality.

  • Are there specific “origins” or specialty grades that are now effectively “cut off” due to their transit routes through the conflict zone?

At the moment nothing is completely cut off, but logistics has become far more complicated overnight.

We currently have multiple containers on the water and are actively tracking them while exploring alternative routing options that avoid the Strait of Hormuz.

In many ways it feels like a return to the early COVID-19 playbook—scenario planning, contingency routing, and leaning heavily on relationships across the supply chain to keep things moving.

The specialty coffee industry is surprisingly resilient because it’s built on long-term relationships with producers, exporters and logistics partners. When things get unpredictable, those relationships become incredibly valuable.

  • What’s the plan for equipment and spare parts? Is there a risk that a broken espresso machine could stay down because of shipping delays?

Equipment supply is definitely something we’re watching closely, but fortunately we forecasted and planned ahead. We have several containers on the water carrying both commercial and domestic machines, so supply may get tight but we’re not walking into this empty-handed.

More importantly, we have invested heavily in our technical infrastructure. We run a full in-house service department with extensive spare parts inventory, qualified technicians, and swap-out machines available for our commercial partners.

In practical terms, if a café’s machine goes down, we’re structured to keep them operating. The bigger challenge in this industry is rarely the machine itself—it’s the global logistics that sit behind everything.

Oil Surge Could Brew Higher Coffee Prices

Dubai – Qahwa World

Rising oil prices linked to escalating tensions in the Middle East are raising fresh concerns across the coffee sector, with vendors warning that higher fuel costs could eventually translate into more expensive coffee for businesses and consumers.

Crude oil climbed above 90 dollars per barrel on Friday, a level that industry participants say may increase the cost of transporting coffee beans across global supply chains. Because coffee is largely traded internationally and shipped over long distances, higher energy prices can quickly affect freight and logistics costs.

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The concern comes only months after the United States removed most tariffs on coffee and several agricultural products last November, a move that had provided temporary relief to importers, roasters and coffee retailers.

  • Shipping Costs Back in Focus

Coffee businesses say transportation costs remain one of the most sensitive factors affecting the price of beans. Any sustained increase in oil prices could raise the cost of shipping green coffee from producing countries to roasting and consuming markets.

Industry observers note that global coffee prices have already been under pressure due to supply challenges in recent years.

According to the World Bank, coffee prices have remained relatively high after adverse weather conditions in several coffee-producing regions reduced harvests and tightened global supply. Earlier expectations suggested that prices might gradually ease this year as production recovered.

However, the recent geopolitical tensions and the accompanying surge in oil prices could introduce new cost pressures, particularly through higher freight rates and supply chain expenses.

  • Uncertain Outlook for Coffee Markets

For coffee retailers and roasters, the coming months may depend largely on how energy markets evolve. Higher fuel costs can affect nearly every stage of the coffee supply chain, from farm transportation and export logistics to international shipping.

While the full impact remains uncertain, market participants say sustained increases in oil prices could add another layer of volatility to an already sensitive global coffee market.

 

Vietnam’s Coffee Crisis Could Disrupt Global Supply Chains

Dubai – Qahwa World

A report published by BeverageDaily warns that challenges facing coffee production in Vietnam could trigger new volatility in global coffee markets, potentially affecting supply chains and prices in the coming years.

Although global coffee prices have recently shown signs of easing, the difficulties confronting Vietnamese coffee farmers may reverse that trend if production declines continue.

  • Vietnam’s Key Role in the Global Coffee Market

Vietnam is the world’s second-largest coffee producer after Brazil and the leading global producer of Robusta coffee. This variety accounts for more than forty percent of global production and plays a central role in commercial coffee blends widely used by major manufacturers such as Nestlé.

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According to figures cited in the report, Vietnam exports more than 1.5 million metric tons of coffee annually. In 2025, the country’s coffee exports reached approximately 8.92 billion dollars, representing a 58.8 percent increase compared with 2024, largely driven by high Robusta prices.

  • Climate Pressures and Rising Land Costs

Coffee production in Vietnam’s Central Highlands has been increasingly affected by extreme weather conditions. Severe floods and prolonged rainfall last year reduced yields and created concerns among traders, given Vietnam’s central role in global Robusta supply.

At the same time, rising land prices in coffee-growing regions are adding further pressure. Infrastructure development and expanding investment in agriculture have pushed land values higher, encouraging some farmers to sell their farms rather than continue production under tightening profit margins.

Industry observers say coffee farmers today must simultaneously manage climate risks, financial pressures and rising production costs, making the sustainability of farming operations more difficult.

  • Tax Policy Changes

The report also highlights regulatory challenges faced by the Vietnamese coffee sector during 2025 after the introduction of a five-percent value-added tax on certain semi-processed agricultural products, including coffee beans.

Exporters argued that the measure complicated trade procedures and tied up cash flow because exported green coffee is typically zero-rated. Vietnamese authorities later amended the legislation, and the previous tax treatment was restored starting in early 2026.

  • Smaller Roasters May Feel the Impact First

According to the report, disruptions in Vietnam’s coffee sector may initially affect smaller and medium-sized roasters, particularly in Europe, Asia and Australia, which rely heavily on stable supplies of affordable green coffee.

Yoc also read: How Vietnam Turned Coffee Into a Way of Life?

Large multinational companies generally have greater flexibility through diversified sourcing and long-term contracts. Nevertheless, price increases may eventually reach consumers, often with a delay ranging from twelve to twenty-four months.

  • A Possible Shift Toward Higher Value Production

With climate and land constraints limiting expansion in production volume, Vietnam’s coffee industry may increasingly focus on quality improvement and value-added activities.

Some producers may expand into roasting and semi-processed coffee products rather than exporting raw beans alone, a development that could diversify global supply chains over time.

Read also: Brazil Rain and Vietnam Surplus Sink Coffee Futures

The report also notes growing international interest in high-quality Robusta coffees, sometimes referred to as fine Robusta, as climate pressures make Arabica production more vulnerable in certain regions.

  • Investments to Strengthen the Supply Chain

Major coffee companies, including Nestlé, continue to invest in Vietnam’s coffee sector in an effort to strengthen supply chains and promote sustainable farming practices.

Programs supporting drought-resistant coffee seedlings, farm renovation and regenerative agriculture aim to improve productivity and resilience among thousands of farmers in Vietnam’s Central Highlands.

Despite these initiatives, the report suggests that the global coffee industry may still face recurring supply pressures if climate challenges and production costs continue to rise in key producing countries.

Coffee Prices Rise on Supply Concerns

Dubai – Qahwa World

Global coffee prices moved higher on Thursday as renewed concerns about supply disruptions supported the market. Arabica futures climbed to their highest level in about two weeks, while robusta contracts also posted modest gains.

Market sentiment was influenced by fresh export data from Brazil. The country’s Ministry of Trade reported that Brazilian coffee exports in February declined by 17.4 percent compared with the same month a year earlier, totaling about 142,000 metric tons. The drop raised questions about near-term supply availability from the world’s largest coffee producer.

Shipping conditions in global trade routes also contributed to the cautious mood in the market. Disruptions affecting shipping lanes through the Strait of Hormuz have increased transportation costs, including higher freight rates, insurance premiums and fuel expenses. These factors are expected to add pressure to import costs for coffee traders and roasters.

Despite the upward move in prices, a stronger U.S. dollar limited the extent of the gains. A firmer dollar generally makes dollar-denominated commodities such as coffee more expensive for buyers using other currencies.

Weather developments in Brazil continue to play an important role in shaping market expectations. Recent rainfall has improved soil moisture conditions in Minas Gerais, the country’s main arabica-producing region. According to meteorological data, the area received significantly above-average precipitation during the week ending February 20, helping improve crop prospects.

Coffee prices have experienced notable volatility in recent weeks. Earlier in the month, both arabica and robusta futures fell sharply amid expectations of a large Brazilian harvest. Brazil’s national crop supply agency projected that the country’s coffee output in 2026 could reach a record 66.2 million bags, driven by stronger arabica production and a moderate increase in robusta volumes.

Global supply forecasts have also pointed to expanding production. Banking sector estimates suggest worldwide coffee output may reach around 180 million bags in the 2026/27 season, an increase of roughly eight million bags compared with the previous year.

Meanwhile, Vietnam continues to expand its presence in the robusta market. Official data show the country recorded strong export growth at the start of the year, with shipments rising sharply compared with the same period last year. Vietnam remains the world’s largest producer of robusta coffee, and its production is expected to grow further in the current crop cycle.

Coffee inventories monitored by the Intercontinental Exchange have also shown signs of recovery after reaching multi-month lows late last year. Higher stock levels can weigh on prices because they signal improved supply availability in the market.

At the same time, production trends in other origins remain mixed. Colombia, the world’s second-largest arabica producer, recently reported a significant decline in January coffee output compared with the previous year, a factor that provided some support to global prices.

Overall, the coffee market continues to balance opposing forces: concerns over logistics and regional production setbacks on one side, and expectations of larger global harvests on the other. Traders are closely watching weather conditions, export flows and shipping developments for further direction in the weeks ahead.

Historic Colombian Coffee Harvests Face Labour Shortages

Líbano, Colombia – Qahwa World

The Guardian has reported on a striking paradox in Colombia’s coffee industry: even amid record-breaking global coffee prices, farmers are struggling to find enough pickers to harvest their crops.

In Líbano, Tolima, Mary Luz Pérez Arrubla and her brother Rodrigo, fourth-generation coffee growers, experienced one of the best harvests in recent memory in 2025. Prices soared as U.S. tariffs on Brazil and Vietnam, coupled with poor harvests in those countries, boosted Colombia’s high-altitude regions. Yet labour shortages meant that up to 10% of the crop was left on the ground.

“Every week, for two-and-a-half months, we worked from dawn to dusk. I had to collect coffee from the floor—it seemed there was more there than on the branches,” Mary said. Wilder Gomez, the farm manager, echoed her frustration: “Even offering higher wages doesn’t solve the problem. People move from farm to farm chasing the best daily harvest.”

The challenges reflect a decades-long rural exodus. Violence, economic inequality, and urban job opportunities have pulled workers away from Colombia’s coffee-growing regions, leaving an ageing workforce. The National Coffee Growers Federation reports that the proportion of workers over 60 has more than doubled, while the overall workforce has shrunk by a quarter.

Unlike Brazil, where flat plantations allow mechanised harvesting, Colombia’s steep Andean slopes prevent widespread machine use. “Every slope is different,” said agronomist Yinson Javier Díaz. Mechanisation is further limited by the uneven ripening of cherries, a common trait in Colombian coffee regions.

Emerging technologies could help. Eco-friendly mills reduce labour needs, AI-powered sorting machines separate ripe beans from spoiled ones, and drones can apply pesticides precisely. Yet fewer than 5% of farmers can afford these innovations, with costs starting at 22 million pesos (£4,150).

Climate change compounds the difficulties. Average mountain temperatures have risen 1.2°C since the 1980s, sunlight hours have dropped by nearly 20%, and pests and diseases are increasingly frequent. Experts predict that by 2041–2060, low-altitude yields may fall while high-altitude production could rise, prompting shifts in cultivation practices.

Despite Colombia’s central role in global coffee production, most of the profits bypass small farmers. Half a million coffee-growing families cultivate an average of just 1.4 hectares each, while industrial estates in Brazil often span hundreds or thousands of hectares. Only around 10% of coffee profits reach these small producers, even as global consumption continues to grow, with an estimated three billion cups consumed daily.

The Guardian’s report underscores a stark reality: record harvests and soaring prices cannot compensate for labour shortages, climate instability, and economic inequality, leaving Colombia’s coffee sector at a critical juncture.

Caffè Nero Acquires Compass Coffee Assets in Bankruptcy Auction

DUBAI – QAHWA WORLD

U.K.-based coffee company Caffè Nero has secured the winning bid to acquire the majority of assets belonging to Washington, D.C.-based Compass Coffee, which filed for Chapter 11 bankruptcy protection last month.

The final bid reached $4.75 million following a competitive, three-day auction involving five prospective buyers. Caffè Nero had initially set the baseline offer at $2.9 million through a “stalking-horse” bid. The transaction remains subject to approval by the bankruptcy court.

Operations to Continue Under Compass Name

For now, the 17 Compass cafés operating across the D.C. area are expected to remain open under their current brand. Whether the Compass name will be retained long term has not yet been determined.

Compass co-founder and CEO Michael Haft stated in an interview with The Washington Post that representatives from Nero will begin meeting with Compass staff as part of the transition process. While Nero has indicated interest in keeping the existing leadership team, formal employment offers have not yet been finalised.

A court hearing is scheduled for February 26, the earliest date on which Nero could formally assume control of the company.

Background on Both Companies

Founded in 1997 by Gerry Ford, Caffè Nero has grown into an international brand with more than 1,000 locations across 11 countries. In the United States, however, its presence remains concentrated primarily in the Boston area, with no current locations in Washington, D.C.

Compass Coffee was established in 2014 by former Marine Corps officers Michael Haft and Harrison Suarez. The company expanded rapidly in its early years, focusing heavily on high-traffic downtown locations. It also invested substantially in a large roasting and production facility in Ivy City, aiming to scale its operations.

Financial Struggles and Bankruptcy

Despite its early growth, Compass struggled to achieve sustained profitability. The pandemic forced temporary closures of several downtown cafés and prompted the company to diversify revenue streams, including selling packaged coffee through grocery stores and direct-to-consumer channels, as well as producing hand sanitiser during the height of demand.

In recent years, additional pressures compounded the company’s financial strain. These included rising coffee costs, wage increases, reduced downtown foot traffic, a shrinking federal workforce, legal disputes with landlords and suppliers, and internal conflict between the founders. Suarez departed the company in 2021, and litigation between the co-founders followed.

By early January, Compass filed for Chapter 11 protection.

The $4.75 million sale will not cover all outstanding obligations. Total debts exceed $12 million, with secured creditors expected to recover approximately $2 million. Unsecured creditors remain owed several million dollars, and investors—including the founders—are not expected to recoup their contributions.

Looking Ahead

In a message to employees, Haft expressed optimism about the transition, suggesting that new ownership could provide stability in a market environment that has shifted significantly since 2020. He noted that downtown business patterns and consumer habits have changed, requiring a different operational approach than in the company’s early years.

If approved, the acquisition will mark the end of Compass Coffee’s 12-year period as an independent, founder-led company and signal Caffè Nero’s entry into the Washington, D.C., market.

Italy Coffee Market Outlook 2026–2031

Tradition Anchors Growth as Pods, Specialty and RTD Gain Ground

DUBAI – QAHWA WORLD

Italy’s coffee sector is projected to expand steadily through 2031, supported by strong domestic consumption, product innovation and premiumisation trends, even as competition from alternative beverages intensifies.

According to a recent industry analysis published by Research and Markets, the Italian coffee market is estimated at USD 5.92 billion in 2026, up from USD 5.61 billion in 2025. The market is forecast to reach USD 7.71 billion by 2031, representing a compound annual growth rate (CAGR) of 5.44% between 2026 and 2031.

A Market Rooted in Culture

Coffee consumption remains deeply embedded in Italy’s daily life and social fabric. Espresso culture, regional roasting traditions and the central role of cafés continue to sustain stable demand across retail and foodservice channels.

Data from the European Coffee Federation shows European coffee sales rising from EUR 2.45 billion in 2022 to EUR 2.57 billion in 2023, reflecting consistent consumption patterns in mature markets such as Italy. The country continues to shape broader European coffee dynamics through its heritage brands and café culture.

Ground coffee remains the backbone of the market, reflecting traditional brewing habits in both households and professional settings.

Segment Performance: Leaders and Fastest Growers

Ground Coffee: Market Leader

Ground coffee accounted for 34.10% of market share in 2025, maintaining its leadership due to Italy’s strong preference for authentic espresso preparation. Its versatility across brewing methods and wide range of blends and roast profiles reinforce its dominance.

Pods and Capsules: Fastest Growth

Coffee pods and capsules represent the fastest-growing segment, with a projected CAGR of 6.31% through 2031. Growth is driven by convenience, single-serve machine adoption and demand for consistent quality in homes and offices. Innovation in cross-compatible systems and flavor diversification continues to support expansion.

Plain Coffee: Cultural Mainstay

Plain coffee holds a commanding 78.20% market share in 2025, underscoring consumer preference for traditional, unflavored coffee that highlights bean quality and roasting craftsmanship.

Flavored Coffee: Emerging Momentum

Flavored coffee is projected to grow at a 7.02% CAGR through 2031, reflecting changing tastes among younger consumers and urban markets seeking diversified flavor experiences.

Innovation and Premiumisation

Italian consumers remain loyal to tradition but increasingly embrace innovation that blends heritage with modern preferences. Product development is expanding into:

  • Specialty and single-origin offerings

  • Ready-to-drink (RTD) coffee

  • Sustainable and ethically sourced products

  • Smart brewing systems

  • E-commerce and digital sales channels

International brands are also adapting to the Italian market. In February 2023, Starbucks Corporation introduced its Oleato olive oil coffee range in Italy, combining espresso with olive oil in beverages designed to align with local culinary identity while offering a differentiated experience.

Sustainability and ethical sourcing are increasingly important purchase drivers, while climate volatility remains a structural risk factor affecting global green coffee supply.

Competitive Pressures from Alternative Beverages

The broader beverage landscape in Italy is evolving. Functional teas, energy drinks, matcha, kombucha and plant-based beverages are gaining visibility, particularly among younger consumers. Specialty tea shops and bubble tea outlets are expanding in major cities, competing with traditional coffee bars as social spaces.

In response, coffee companies are diversifying portfolios to include tea, functional drinks and wellness-oriented beverages, leveraging established distribution networks and brand recognition.

Corporate Spotlight: Illycaffè Expands U.S. Production

Premium Italian roaster Illycaffè plans to begin production in the United States in 2026 as part of its international growth strategy.

Chief Executive Officer Cristina Scocchia stated that between 15% and 20% of the company’s U.S. sales volume will be produced locally starting early next year. The move aims to improve supply chain flexibility and enhance proximity to consumers.

Illycaffè expects overall turnover to rise approximately 10% year-on-year to around €690 million, with reported growth of 11% in Italy and 19% in the United States at constant exchange rates. However, the company faces continued cost pressure from elevated green coffee prices, which rose significantly in 2025 due to weather-related supply disruptions and global market volatility.

Founded in 1933 in Trieste, Illycaffè operates in more than 140 countries and remains a key player in the premium espresso segment.

Market Structure and Key Players

The Italian coffee market is segmented by:

  • Product Type: Whole bean, ground coffee, instant coffee and others

  • Flavor: Plain and flavored

  • Category: Conventional and specialty

  • Bean Type: Arabica, Robusta and others

  • Distribution Channel: On-trade and off-trade

Major companies operating in the market include:

  • Luigi Lavazza S.p.A.

  • Nestlé S.A.

  • Kimbo S.p.A.

  • Starbucks Corporation

  • Gruppo Illy S.p.A.

  • Tchibo GmbH

  • JDE Peet’s N.V.

  • Segafredo Zanetti S.p.A.

  • Massimo Zanetti Beverage Group

Outlook

Italy’s coffee market remains mature but dynamic. Traditional espresso culture continues to anchor demand, while growth is increasingly concentrated in pods, capsules, specialty formats and ready-to-drink beverages.

As sustainability priorities, technological integration and premium positioning reshape the competitive landscape, Italy is expected to maintain its dual role as both a heritage-driven coffee market and a hub for innovation within Europe’s broader coffee industry.