NEW YORK : 50-year high, driven by extreme weather events and surging global demand, from droughts in Brazil to rising coffee consumption in China, the world’s favorite morning beverage is becoming a luxury.

Thaleon Tremain, CEO of California-based Pachamama Coffee, has always marketed coffee as a premium product, ensuring fair prices for farmers in Peru, Nicaragua, and Ethiopia. But now, even Tremain is worried about the sustainability of the industry. Climate change is wreaking havoc on coffee crops, leading to volatile prices and threatening livelihoods.

Brazil, the world’s largest exporter of arabica beans, suffered a severe drought this year, devastating its May-to-September harvest and jeopardizing next year’s crop. Similarly, Vietnam, the top robusta producer, faced drought followed by heavy rains, crippling its reserves.

The impact? Futures prices for arabica beans soared to $3.30 per pound in December, a record-breaking 47-year high, while the wholesale price of beans has surged over 30% since November.

Demand isn’t helping either. Coffee consumption in China has jumped over 60% in five years, according to the U.S. Department of Agriculture. As global demand outpaces supply, experts predict a grim future for coffee production. Rising temperatures and deforestation threaten to shrink viable coffee-growing regions, making price volatility the new normal.

While coffee aficionados might pay more for their lattes, Tremain warns that farmers at the source are bearing the brunt of this crisis. As climate change tightens its grip, the question remains: Will coffee remain a daily ritual or become a luxury only few can afford?

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