The Big Story Java jolt: the real reasons coffee prices have skyrocketed this year
Jul 16, 2025
In this engaging discussion, Robert Carter, President of the Canadian Coffee Association, unpacks the significant 19% rise in coffee prices in Canada. He explores the pivotal roles of climate change and supply chain challenges, shedding light on how these factors create higher costs for consumers. Carter also delves into the impact of tariffs and trade disputes. Additionally, he discusses the innovative solution of lab-grown coffee as a sustainable option and highlights emerging trends in coffee culture, especially among younger consumers.
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Rising Coffee Prices Explained
- Coffee prices are primarily driven up by high commodity prices and supply issues driven by climate change impacts.
- Production problems in South America and Brazil, including droughts, have depleted stockpiles and increased costs.
Tariffs Impact Coffee Prices
- Tariffs on coffee imports and exports between Canada and the U.S. affect prices but are not the main cause of recent increases.
- Coffee was caught in the crossfire of tariff wars despite not being grown locally in Canada or most U.S. states.
Demand and Costs Keep Coffee Expensive
- Coffee demand is growing globally, causing supply shortages that keep prices high.
- Rising costs for farmers, such as fertilizer and labor, add to speculative price pressures in the market.