Coffee companies issue urgent warning as global shifts threaten to skyrocket prices for customers: 'There's no playbook for this'

Coffee prices have already seen all-time highs over the past year, but the changing climate, coupled with new tariffs targeting coffee-producing nations, may lead to even higher costs for your morning caffeine fix.

What's happening? 

Brazil is the world's leading coffee producer, accounting for 37.4% of the world's production, followed by Vietnam, which provides 17.6% of the supply. 

Global production has increased by 60% over the past 30 years, and the industry represents an estimated worth of about $31 billion annually. 

Over the past year, however, coffee prices have surged to a 47-year high, as growers in both Brazil and Vietnam have tried to recover from extreme weather and extended droughts fueled by regional weather patterns and the changing climate. 

This has made business more complicated for Debbie Wei Mullin and her company, Copper Cow, which has focused on bringing Vietnam's robusta coffee products into the mainstream, according to a profile by Grist. 

To add insult to injury, the Trump administration announced a 46% tariff on goods from Vietnam, which eventually got lowered to 20%, and an astonishing 50% tariff on Brazilian goods has already gone into effect, putting a stranglehold on the world's top coffee-producing countries. 

As Mullin told Grist, "it's like, let's have an earthquake hit a place that is in the middle of a hurricane."

Why is this situation so important?

Copper Cow had been investing in farming cooperatives in Vietnam and helping farmers convert their operations to organic, Grist explained. Now it's had to place these efforts on hold in order to reduce costs. 

"We have not seen tariffs of this magnitude before," David Ortega, a professor of food and economics policy at Michigan State University, told Grist. "There's no playbook for this." 

These economic burdens have exacerbated an already difficult situation, which is continuing to unfold. Rising temperatures are pushing traditionally ideal regions, such as Brazil and its arabica bean crops, out of the sweet spot.

How concerned are you about your energy bills increasing this summer? Very 😰 Somewhat 😏 Not much 🤷 Not at all 🧘 Click your choice to see results and speak your mind.

The robusta beans grown in Vietnam require less water than arabica and are generally more resistant to climate change, but yields are still in decline. 

What's being done to improve the situation? 

As Grist reported, Mullin has already been experimenting with a lesser-known variety of coffee beans called liberica, which require even less water than robusta. 

It's a labor-intensive crop due to the tall growth of the plants, but Mullin believes the investment is worth it in the face of continued rising temperatures.

More sustainable coffee farming practices have already seen some success in Ethiopia, where climate-smart techniques are reducing deforestation, and even the waste is being turned into innovative new products.

While consumers can do little about the tariffs outside of the voting booth, a bit of smarter shopping can always help save money at the grocery store.

Join our free newsletter for easy tips to save more and waste less, and don't miss this cool list of easy ways to help yourself while helping the planet.