The world’s largest coffee producer, Brazil was severely affected by a prolonged episode of drought. A situation which has compromised yields, particularly for the Arabica bean.
“This variety represents around 60% of world production. It is prized for its sweet and aromatic taste, but it is also particularly vulnerable,” indicates Sylvain Charlebois, economist and full professor at Dalhousie University in Halifax, in an interview with The Voice of the East.
“Due to drought, Brazil lost 25% of its harvests in 2024,” adds Pascal Giroux, founder and owner of Julius Café in Bromont.
In the case of this roaster, the coffee beans come exclusively from Costa Rica, a country that has not been affected by harsh climatic conditions.
The founder of Julius Café, Pascal Giroux, sources his supplies directly from bean producers in Costa Rica. (Julius Café)
Data collected by Sylvain Charlebois indicates that the price of a pound of coffee on the world market reached a peak of 3.37 US dollars on December 10.
“We have observed a gradual increase in prices since May 2024. The old one dates back to March 1977,” specifies Sylvain Charlebois who comments on the news as an expert in the agri-food field in several media.
“Coffees made from beans from two to three different origins will be affected, whether purchased at the grocery store or from a specialized chain. You should know that 80% of coffees in the world are blends,” mentions Pascal Giroux.
“We buy our coffee directly from the producer to obtain a high quality product. It is those who buy their supplies from cooperatives who will be affected since the price depends on the stock market,” he continues.
Impact at a regional roaster
Brûlerie Virgin Hill located in the municipality of Lac-Brome roasts coffee beans from 17 countries, including those from Brazil.
Purchasing coffee represents an important part of the roaster’s work.
Brûlerie Virgin Hill purchases large quantities of coffee according to contracts concluded in advance. A way of proceeding that allows high quality beans to be roasted at a reasonable price for customers.
-Tom Frizzle, supply manager at Brûlerie Virgin Hill located in Lac-Brome. (Virgin Hill Brewery)
“In September 2024, we concluded contracts for our organic coffee. Since then, the price has risen 46%. Unfortunately, this forces us to increase our prices a little. We will try to postpone the increase as long as possible, but it will probably take place in February,” says Tom Frizzle, director of supply at Virgin Hill Brûlerie.
“The price increase is expected to impact all our bagged coffees, organic and non-organic, but will not affect the price of drinks, such as lattes for example,” adds Frizzle.
Nespresso will increase its prices
Owned by the Swiss multinational Nestlé, one of the main players in the sector, Nespresso recently informed its customers of an upcoming price increase.
“As you may know, the price of green coffee, the raw beans used to brew your coffee, has reached record levels. Temperature changes, including very heavy rainfall, are affecting the ability of regions to grow coffee and pose a significant threat to both coffee cultivation and the future of its farmers, putting many coffee growing areas under pressure », We can read in an automated email sent to customers.
Coffee remains an extremely popular beverage in Canada. (123RF)
Nespresso Canada declined our request for an interview on the subject.
Essential drink in the country
A study on coffee consumption in Canada carried out in 2023 by the Coffee Association of Canada indicates that 71% of Canadians drink one coffee per day. In second place, it is water in a proportion of 67%.
“Canada is one of the countries that consume the most coffee per capita. Fans will have to be careful in 2025 and perhaps settle for just one cup,” says Sylvain Charlebois.
According to Euromonitor International, Canada is the 10th largest consumer of coffee per capita in the world, with an average consumption of 6.5 kilograms per year.
