One of the recurring topics in the coffee community over the past few years has been the rising cost and increasing scarcity of Arabica specialty coffee. This issue has sparked many discussions among our teams at Fábrica Coffee Roasters, prompting thoughtful reflection.
We’ve decided to write this article to share what we believe are the most significant causes behind this phenomenon, what to expect in the future, and how roasters, producers, and consumers can adopt strategies to better navigate this growing challenge.
Three Reasons Behind the Rising Cost of Specialty Coffee
As mentioned in our previous article, coffee-producing countries are situated in tropical regions, making them particularly vulnerable to climate change. We believe climate change, the monopoly on coffee trade, and growing global demand are three of the most significant factors contributing to scarcity and the rising cost of specialty coffee, since these challenges directly affect supply, production costs, and market dynamics. Let’s dive into each of these issues:
Climate Change and Coffee Cultivation
Climate change is arguably the most critical factor impacting Arabica coffee production. This delicate crop requires specific conditions—cool temperatures, high altitudes, and consistent rainfall. Unfortunately, global warming, unpredictable weather, droughts, and floods are shrinking the viable land for cultivation. Additionally, pests like the coffee borer beetle and diseases such as leaf rust are becoming more widespread due to changing climates, further threatening yields.
For instance, in Brazil—a country responsible for approximately 40% of the world’s coffee production—prolonged droughts have severely impacted regions where Arabica coffee is grown.
According to an article published by Euronews this year, Minas Gerais, the largest coffee-producing state, has experienced significant yield reductions due to below-average rainfall. Experts predict that by 2050, up to 50% of the current coffee-growing areas may become unsuitable for cultivation.
The Monopoly on Coffee Trade
A small number of large trading companies dominate the global coffee market, creating a significant imbalance in profit distribution. These corporations control much of the supply chain, from purchasing green coffee to setting market prices, leaving smallholder farmers with little bargaining power.
As climate-related challenges increase production costs, farmers producing high-quality Arabica often struggle to cover their expenses. This economic pressure forces many to switch to less labor-intensive crops or abandon coffee farming entirely, further reducing the global supply of Arabica specialty coffee.
The lack of fair compensation undermines the long-term sustainability of Arabica production, contributing to its scarcity and rising costs.
Growing Global Demand
The global appreciation for specialty coffee is at an all-time high. Consumers are increasingly drawn to Arabica beans for their distinct flavors, ethical sourcing, and artisanal production. This growing demand reflects the rise of coffee culture and a shift toward valuing quality over quantity.
However, specialty coffee production is inherently limited due to the careful attention required to maintain its high standards. This imbalance between supply and demand further drives up prices.
How to Mitigate the Trend
The Role of Roasters
Roasters play a vital role in promoting sustainability. By sourcing coffee from ethical and environmentally responsible producers, they can contribute to the long-term viability of specialty coffee. Sharing stories from farm to cup educates consumers. It helps them value the hard work behind each cup of coffee.
The Role of Producers
Producers lead the way in sustainability by using shade-grown coffee, conserving water, and adopting agroforestry to protect the environment. Diversifying coffee varieties to include climate-resilient strains is another critical strategy to safeguard Arabica production.
Collaborations with organizations that provide resources and training empower producers to navigate challenges while preserving the quality of their beans. For instance, Belco Coffee’s initiative “Voil” is committed to sustainable coffee production, featuring 90% carbon-free transport and promoting their “Fresh Coffee Clean Ocean” line to support eco-friendly practices.
The Role of Consumers
Consumers have the power to shape the coffee industry through their choices. Here’s how:
Choose Direct-Trade and Ethically Sourced Coffee: Opt for coffee purchased directly from farmers through fair partnerships. This ensures farmers receive fair compensation and supports sustainable practices.
Support Local Coffee Shops and Roasters: Patronize businesses that prioritize transparency and ethical sourcing. Your choices directly contribute to fostering a more equitable coffee supply chain.
Educate Yourself About Coffee Production: Learn about the challenges facing coffee farming, including climate change and economic pressures. Understand certifications like Fair Trade and Organic to make informed purchases.
Make Small but Meaningful Changes: Spending a bit more on ethically sourced coffee supports the farmers and ecosystems involved, helping ensure the industry’s sustainability.
Spread Awareness: Share information about the challenges facing the coffee industry with others. Educating friends and family encourages more people to make informed decisions, amplifying the positive impact.
Conclusion
Arabica specialty coffee is becoming scarcer and more expensive due to environmental, economic, and social challenges. However, by understanding these challenges and taking action—whether as roasters, producers, or consumers—we can collectively support sustainable coffee production. Together, we can help preserve the future of coffee while ensuring a fair and equitable industry for an increasing number of people.
Let us know your thoughts and how you’re contributing to the future of specialty coffee!