Coffee prices hit a 50-year high, but consumers may not know the real reason why: 'This is a sign of what is to come'

Coffee prices have been climbing, hitting a 50-year high due to a combination of increased demand and significant environmental issues. 

What's happening?

According to a report from The New York Times, coffee prices have soared in recent months and hit a 50-year high in 2024. 

As of late December, the price of beans had jumped 30% since the beginning of November. Futures prices on arabica beans, the world's most popular variety, reached more than $3.30 per pound in mid-December, a 47-year high.

The skyrocketing prices are due to an increase in demand and a supply that has been severely impacted by extreme weather. For example, Brazil is the largest supplier of Arabica beans, but a severe drought last summer decimated the harvest and could impact next year's crop as well, The New York Times reported.

Meanwhile, production of the robusta bean, commonly used in instant coffees, took a hit due to drought conditions followed by heavy rains. 

Why is the price of coffee important?

As our planet warms, its climate regions shift and weather patterns become less and less predictable. Severe weather becomes more common, which impacts agricultural output. 

Coffee is a unique crop in that there is massive demand, but because it is a sensitive crop, it can be grown only in very specific regions under very specific circumstances. According to Kevon Rhiney, an associate professor at Rutgers University who researches coffee production, it's getting harder to find those circumstances as a result of the changing climate. 

"In some ways, this is a sign of what is to come," Rhiney told The New York Times. "The areas that are suitable for making coffee will shrink over time."

As a result, the overheating of our planet is ultimately causing food prices to rise, and coffee is a prime example of that effect. 

What's being done about coffee prices and climate-impacted agriculture?

In the short term, there doesn't appear to be much that can be done about coffee prices until supply improves. 

"Over time, we're going to see much higher prices," Thaleon Tremain, chief executive and co-founder of Pachamama Coffee in California, told The New York Times. "Supply is not meeting demand."

However, in the long term, researchers are trying to make crops more resilient against severe weather and our changing climate. Scientists have developed shorter corn to make it more resilient against inclement weather, while research into growing tactics for potatoes has shown promise as well. Researchers have also uncovered a kind of agave that grows well in salinated soil, which could help grow crops in less ideal soil conditions. 

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