Drought affects coffee production in the global market

The article highlights the impact of the climate crisis and rising costs on coffee production in the Americas, with particular focus on Colombia, Costa Rica, Honduras, Brazil, Mexico, and Guatemala. While Colombia has seen an increase in production, other countries like Costa Rica and Honduras are facing challenges due to extreme climates, high costs, and volatile markets. Despite historical highs in coffee prices in 2024, small producers are finding it difficult to benefit fairly. The price increase is largely due to droughts in Vietnam and Indonesia, and frosts in Brazil. Brazil, the world's largest coffee producer, is experiencing an uncertain outlook due to a potential significant reduction in the next harvest from a five-month drought. Meanwhile, Mexico and Guatemala are also grappling with droughts that are severely affecting producers. Although Guatemala saw a 4% increase in coffee production in 2024, a 5% decrease in revenues was reported due to a decrease in international prices.