Everyday About 29 min read
The History of Coffee
How a Forbidden Drink Became a Global Commodity, and How Every Attempt to Control Its Price Fell Apart
You can find a cafe on nearly every corner. As of 2022, South Korea had over 100,000 coffee shops. Around 2015, the figure stood at about 49,600, meaning the number roughly doubled in just a few years. It is estimated that a South Korean adult drinks around 400 cups of coffee each year. While surveys vary widely, they all agree on one thing: South Korea is among the highest consumers of coffee in Asia.
What sits in that cup is one of the most volatile agricultural commodities in the world. In February 2025, the International Coffee Organization's composite indicator price reached an all-time monthly high of 354.32 cents per pound in nominal terms. By the following year, in July 2026, it jumped 15.4% in a single month. For the person drinking it, coffee is a daily habit; for the person selling it, it is a commodity tangled up in weather, warehouse stocks, and futures markets.
Yet coffee was not always treated with such welcome. In fact, quite the opposite. The earliest milestones in the history of this drink were neither sales nor exports, but bans. Mecca prohibited it, Ottoman sultans shuttered coffee shops, Sweden banned it five separate times, and the King of Prussia turned it into a state monopoly. How did a beverage everyone tried to suppress end up conquering the globe? Before we dive into that story, let's take a quick look at how to read the numbers, because misreading a single unit will throw off every figure in this piece. Once that's settled, our journey takes us back to the dimly lit nighttime prayer halls of Yemen.
Timeline at a glance
Yemen and the Ottomans
- 15th century Yemeni Sufi orders drink coffee during nighttime prayers
- 1511 Mecca issues the first recorded ban on coffee
- 1632 Ottoman Sultan Murad IV shuts down coffeehouses
Europe
- 1652 Coffeehouses open in London, dubbed 'Penny Universities'
- 1686 Marine insurance takes root at Lloyd's Coffee House
Plantations and Colonies
- 1727 The first coffee tree is planted in Pará, Brazil
- 1852 Brazil becomes the world's largest coffee producer
- 1867 Coffee rust begins to ravage Ceylon
The Era of Price Controls
- 1962 The International Coffee Agreement manages prices with export quotas
- 1989 Export quotas are suspended on July 4, ending price controls
The Present
- 2025 ICO composite indicator price hits all-time monthly high in nominal terms
- 2026 Record production forecasts coincide with surging prices
Why Did Coffee Become Something Counted in 'Bags' Instead of 'Cups'?
When you look at coffee statistics, the unit you see isn't cups—it's "bags." A single bag equals 60 kilograms of unroasted green coffee beans. That is why a statement like "global production reached 189.7 million bags" refers neither to the weight of roasted beans nor to the number of cups people drank. The USDA even sets separate conversion factors: 1.19 for roasted coffee and 2.60 for instant coffee. If you don't check the units, you end up talking about completely different things while looking at the exact same number.
The timeframes can also feel unfamiliar, as you often see notations like "2026/27." This is because harvest seasons vary by country, making it impossible to bundle production statistics into a single calendar year. For Brazil, a crop year runs from July to the following June; for Colombia, Vietnam, and Ethiopia, it spans from October to the following September. Indonesia's runs from April to the following March. On the other hand, import and export statistics are often compiled by calendar year, so placing both figures side by side leads to discrepancies.
There are also practically only two species. Arabica thrives in cool highlands at altitudes of 1,200–1,500 meters, temperatures of 15–24°C, and annual rainfall of about 1,200–1,800 mm. Robusta can grow in lowlands, resists disease well, and contains about 2.7% caffeine by green bean weight—higher than Arabica's about 1.5%. It is the workhorse of instant coffee and budget blends.
The proportion between the two varies widely depending on the source. Here is one verified figure: in green coffee exports during the first 9 months of the 2025/26 crop year, Arabica accounted for 60.4%, compared to 63.7% in the same period a year earlier. It is a number whose answer changes depending on whether it is based on production or exports, and on which year you look at.
There isn't just one price, either. One is the futures price traded on the New York (Arabica) and London (Robusta) exchanges—commonly referred to as the "C price." The other is the Composite Indicator Price calculated by the International Coffee Organization, which aggregates actual physical transaction prices. In July 2026, the monthly average for the Composite Indicator Price was 287.26 cents per pound, but looking by group in that same month, Colombian Milds stood at 383.39 cents while Robusta stood at 184.78 cents. Even though both are "coffee," the gap is more than double.
Let's make one thing clear in advance: the prices mentioned in this story are the prices at which unroasted green beans are bought and sold on the international market. They are completely different numbers from the price of a cup sold in a café. The price of a cup is driven far more by roasting, logistics, rent, and labor, which is why a surge in green bean market prices does not cause the price of a cup to rise at the same rate.
The reason coffee has such meticulous units and standards is that before it is a beverage we drink, it is a commodity priced on an exchange. But it wasn't always this way. For a very long time, this was something to be forbidden, not sold.
Worth remembering Once you understand these units and standards, you will see how 'record-high prices' and 'record-high production forecasts' can stand side by side later in the story.
Why the Legends of Coffee's Discovery Were All Born So Late
The most widely known story is that of Kaldi the goatherd. It is the tale of how a man tried some red berries after watching his goats eat them and frolic all through the night. The setting is said to be 9th-century Ethiopia. But this story first appeared in print in 1671, in a work by Antonio Fausto Naironi. It is a record that appeared 800 years after the era it was set in, and it does not appear in any earlier literature. Today, the prevailing view is that it was a much later invention.
The starting point verified by historical records is far later and far more modest: Sufi orders in 15th-century Yemen. They drank coffee to ward off drowsiness during nighttime devotions. Lore says that Jamal al-Din al-Dhabhani, the Mufti of Aden, adopted coffee around 1454, but because this too comes from traditions recorded in Arabic texts after the 16th century, it is difficult to pin down the exact year. One thing is certain: no historical or archaeological evidence has ever confirmed that coffee was consumed as a beverage before the 15th century.
India has a similar story. It is the tradition of the Sufi saint Baba Budan, who, on his way back from a pilgrimage to Mecca, smuggled seven raw coffee beans out of Yemen's port of Mocha inside his beard and planted them in the hills of Karnataka. That mountain range is still called Baba Budan Giri today. Yet details like "seven beans" and "inside his beard" belong entirely to folk tradition. It is best read as an origin myth for Indian coffee.
The roots of the word, by contrast, are quite clear. The English word "coffee" traces back to the Dutch "koffie," before that the Italian "caffè," before that the Ottoman Turkish "kahve," and ultimately the Arabic "qahwa." A theory that it came from Ethiopia's Kaffa region is also widespread, but the linguistic evidence follows the Arabic path. The fact that the coffee plant is native to the Kaffa region is a separate matter from the word's etymology. The Korean word "keopi" belongs to this same lineage, and during the Enlightenment period, terms like "gabae" or "yangtangguk" (Western soup) were used alongside it.
So coffee first enters the historical record not through tales of discovery, but as a tool for religious devotion. The practical need of people who had to stay awake through the night came first. And before long, that very wakefulness would make this drink a target of prohibition.
Worth remembering In this subject, the more famous a story is, the later the legend was born. Other 'famous anecdotes' that follow should be weighed with the exact same standard.
Mecca Banned the Drink, and the Sultan Closed the Shops
In 1511, conservative religious leaders in Mecca banned coffee. The reason was its 'stimulating effect.' It is regarded as the earliest recorded coffee ban in history. Tales often follow this episode claiming that the governor executed coffee drinkers or burned sacks of coffee beans, but those details are generally seen as later exaggerations. What can be confirmed is simply the fact of the ban itself.
The ban did not last long. In 1524, Ottoman Sultan Suleiman I and Grand Mufti Ebussuud Efendi, the supreme religious jurist, overturned the prohibition through a religious ruling (fatwa). In effect, the very same religious authority reversed what it had once outlawed. Yet that was hardly the end of it. In 1532, a similar ban was issued in Cairo, and coffeehouses and warehouses were ransacked.
Around the same time, coffee made its way into the Ottoman capital. In the mid-1550s, two merchants—Hakem from Aleppo and Shems from Damascus—are said to have opened a coffeehouse in the Tahtakale district of Istanbul. The exact year varies depending on the source, as the account recorded by Ottoman chronicler Peçevi conflicts with claims that even earlier coffeehouses existed.
Then in 1632, Sultan Murad IV shut down coffeehouses, regarding them as 'hotbeds of sedition.' He banned tobacco and opium in the same year as well. Tales also circulate about the Sultan wandering the streets at night to execute violators, but because these stories are tangled up with anecdotes about bans on alcohol and tobacco, they cannot be definitively cited as executions for drinking coffee.
Line up these bans chronologically, and one pattern becomes clear. While Mecca initially took issue with the drink's stimulating effect, before long, the target of the bans shifted from the drink to the venue. In Cairo as in Istanbul, what authorities raided and shuttered were coffeehouses. The real problem was the fact that people were gathering in one place and talking. In an era when spaces where anyone could sit late into the night regardless of social status were exceedingly rare, the ruling power saw them as a new kind of public square.
And this anxiety was not unique to the Ottomans. Once coffee crossed into Europe, the King of England would grow just as uneasy about coffeehouses for the exact same reason.
Worth remembering The bans across the Islamic world soon shifted their target from the drink to the places where people gathered—a dynamic that would repeat itself once more in Europe.
What Grew Out of Rooms Anyone Could Join for 1 Penny
Records clash head-on over where Europe's first coffeehouse opened. Many sources point to Venice, but one document claims 1645, another cites 1647, and yet another lists a cafe opened in 1683 at the Procuratie Nuove as Venice's first. All we can say with certainty is that these establishments began appearing in Europe around the mid-17th century.
The records from England are a bit more detailed. In 1650—or 1651, depending on the source—the first coffeehouse opened on Oxford's High Street. Its owner is recorded only as "Jacob the Jew." In 1654, Cirques Jobson opened a shop across the street, and the Queen's Lane Coffee House, which opened around that time, remains in business today. In 1652, Pasqua Rosée opened a shop in St. Michael's Alley in London. After that, the pace of expansion was astonishing. By 1675, there were more than 3,000 coffeehouses across England.
What made these rooms special was their low barrier to entry. Because anyone could pay 1 penny to enter, read newspapers, and join debates, they were called "penny universities." Charles II attempted to suppress them, claiming they spread "false, malicious and scandalous reports," but people kept pouring in. What the Ottoman Sultan had feared and what the King of England feared were not so different after all.
Yet these rooms gave birth to far more than mere conversation. In 1686, Edward Lloyd opened a coffeehouse on Tower Street in London. Sailors, merchants, and shipowners gathered there to exchange news about vessels and cargo, and to buy and sell marine insurance right on the spot. The shop moved to Lombard Street in 1691, and in 1734 it began publishing a newspaper called Lloyd's List. In 1774, its members relocated to the Royal Exchange and formed the Society of Lloyd's, which is today's Lloyd's of London. Meanwhile, brokers who gathered at Jonathan's Coffee-House changed their sign in 1773 to the Stock Exchange.
Vienna also has a long-believed legend. The story goes that Kulczycki opened the city's first cafe using bags of coffee abandoned by the Ottoman army after the 1683 Battle of Vienna. Today, however, it is widely accepted that the first Viennese coffeehouse was opened in 1685 by the Armenian merchant Johannes Diodato. The Kulczycki tale is largely seen as a romantic narrative polished by later generations.
Coffeehouses were places that sold drinks while giving birth to institutions. Insurance, exchanges, and newspapers all emerged from these rooms. It is hardly surprising, then, that kings found them so uncomfortable.
Worth remembering The very gathering place that had provoked bans elsewhere ended up creating insurance and stock exchanges here—institutions arose even before coffee became an ordinary commodity.
While Kings Tried to Ban Coffee, the Plantations Were Already Across the Atlantic
Bans were repeated in Europe as well. Sweden began banning coffee in 1756 and repeated it five times across three kings: 1756–61, 1766–69, 1794–96, 1799–1802, and 1817–23. After the final ban was lifted in 1823, coffee actually became central to Swedish culture.
A stranger case unfolded in Prussia. Frederick II maintained a state coffee monopoly from 1781 to 1787. Beans could be roasted only in state-licensed facilities, and he hired around 400 wounded veterans as 'coffee sniffers' to catch illegal roasting. Dressed in uniform, they patrolled the streets, searching homes and frisking people. When the king died, the monopoly was abolished, and they lost their jobs.
This took a different form from earlier bans. Instead of outlawing coffee entirely, the state monopolized it and collected the profits. Yet it is hard to say definitively why this happened. The historical records consulted for this text tell us little about why Sweden repeated the ban five times, or why Prussia chose a monopoly of all things.
Some explain it as an effort to raise tax revenue, while others argue it targeted gathering places just like earlier bans. We found no conclusive evidence here to confirm either view. Instead, another development involving Europe and coffee during the same period remains crystal clear: rather than just buying and drinking it, they began growing it themselves.
Coffee trees had actually crossed the Atlantic before these bans took place. The figure most frequently cited in this chapter is the French naval officer Gabriel de Clieu. In 1720, he took a coffee seedling from the Paris Royal Botanical Garden aboard a ship to Martinique, reportedly sharing his own ration of drinking water with the seedling during the voyage. It is a charming story, but its weight must be measured carefully. The only source for this anecdote is a single memoir de Clieu himself published in a magazine in 1774, and it lacks independent corroboration.
More importantly, that single plant was not the beginning of coffee in the Americas. Before he arrived, coffee was already growing in Saint-Domingue in 1715 and Suriname in 1718. And in 1727, Francisco de Melo Palheta brought seeds from French Guiana and planted coffee trees in Pará, Brazil. The story goes that he secretly received them from the governor's wife, but that detail is also folklore.
What stands out here is the chronology. Around the time Sweden and Prussia were cracking down on coffee beans, what they were trying to ban was already growing in fields under European flags. That the age of prohibition and the age of cultivation actually overlapped—that is as far as the historical records take us.
Worth remembering The era of bans and the era of expanding plantations actually coincided. Now the story shifts from drinking coffee to growing it.
Who Stood Behind Coffee as It Became a Global Commodity?
In 1789, in the French Caribbean colony of Saint-Domingue—present-day Haiti—half of the cultivated land was planted with coffee. In the 1780s, about 60% of the coffee consumed in Europe came from here. That figure is based on European consumption, not global production.
That same year, there were 400,000 to 460,000 enslaved people on the island. The place where coffee first became a 'global commodity' was in fields built on slave labor. While coffeehouses in European cities were giving rise to newspapers and insurance, filling those cups across the Atlantic was carried out in this manner. With the Haitian Revolution that began in 1791, this system collapsed.
Brazil stepped in to fill that void. Trees planted in 1727 accounted for 30% of global production by the 1830s and 40% in the 1840s, and in 1852 Brazil became the world's largest coffee producer. It has never relinquished that position. Even in forecasts for the 2026/27 harvest year, Brazil is projected to supply about 40% of global production.
Brazil's coffee economy was also built on slave labor for its first century. After the importation of enslaved people was banned in 1850, plantations were transitioning to European immigrant labor, and Brazil abolished slavery in 1888. However, the fact that the form of labor changed did not necessarily mean conditions improved. The materials reviewed for this text do not reveal what the actual conditions of immigrant labor were like.
Today, an estimated 125 million people worldwide make their living from coffee. While widely cited, it is an estimate with no publicly disclosed calculation method, so it is better viewed as a gauge of scale rather than an exact figure. Looking strictly at coffee farmers with Fairtrade certification, the number is 775,000.
This was how coffee became a global commodity. Rather than a mere spread of taste, land and labor were rearranged. And once arranged like this, whenever prices fluctuate, it is already decided who is shaken first: not those who planted the trees, but those who work beneath them.
Worth remembering The journey of coffee becoming a commodity was not the spread of taste, but the rearrangement of land and labor. This structure is the root of the price issues that follow.
Around 20 Years for Ceylon's Coffee Fields to Become Tea Fields
In 1867, an orange powder began coating the undersides of leaves in the coffee-growing regions of Ceylon (now Sri Lanka). In November 1869, this fungus received the name Hemileia vastatrix, and growers called it "Emily the Destroyer." It was a disease that stripped the leaves and withered trees to death.
The results were devastating. Around 1890, Ceylon's coffee cultivation area dropped by about 80%, shrinking from 68,787 hectares to 14,170 hectares. The industry had essentially collapsed. Plantations switched to a crop that rust could not touch, and that crop was black tea. There is an interpretation that this fungus helped turn Britain into a "nation of tea drinkers." However, this remains an interpretation by historians, not a proven fact.
The fungus did not stop there. It spread to India in 1870, Sumatra in 1876, and Java in 1878, then crossed into Africa in the 20th century. In 1970, it crossed the Atlantic and landed in Brazil, reaching every major growing region by 1975. In 2012, a major epidemic hit 10 countries across Central America and the Caribbean. USAID estimated the damage from 2012 to 2014 at $1 billion, with more than 2 million people affected, while production in Central America dropped by 16%.
The sources consulted for this article cannot fully explain why rust spread so far and wide. Nor can it be blamed solely on growing conditions, since it spread regardless of altitude.
What we can explain, however, is why coffee-growing regions are so vulnerable to shocks. The conditions where Arabica thrives are narrow: an altitude of 1,200–1,500 m, temperatures between 15–24°C, and annual rainfall of 1,200–1,800 mm. Trees planted to fit a narrow window are shaken whenever that window shifts even slightly. Whether it is frost, drought, or rising temperatures, entire growing regions cluster under the same conditions, so they take the blow together. This is a different kind of vulnerability from susceptibility to disease. Robusta keeps entering the conversation because two traits overlap: it grows in lowlands, and, entirely apart from that, the species itself is resistant to disease.
There is one thing to add. In 2020, wild Arabica was assessed as "Endangered" on the IUCN Red List. Projections also suggest its population could decrease by 50–80% by 2088. However, this assessment applies to wild populations growing in places like the Ethiopian highlands. It does not mean the coffee cultivated on farms is on the brink of extinction.
Fungus and frost cannot be negotiated with. Even so, people would soon try to hold down these prices with their own hands. And they would attempt it twice.
Worth remembering The greatest forces swaying coffee prices lie outside the market. Here we see why the two attempts in the next chapter were such uphill battles.
Over 80 Years of Propping Up Prices, and the Summer It Collapsed
In 1906, Brazil signed the Taubaté Agreement. The plan was to prop up international prices by having the government buy up surplus harvests and pull them off the market. It was called "valorization." This was an early case of a single country directly attempting to manipulate the global price of a commodity. In the 1920s, Brazil supplied about 80% of the world's coffee, but when the Great Depression arrived, this structure collapsed.
A new product even emerged while searching for ways to deal with leftover stockpiles. Commissioned by the Brazilian government, Nestlé had Swiss chemist Max Morgenthaler develop what was launched in 1938 as "Nescafé." It spread around the world after being included in US military rations during World War II. For the record, there is no established consensus on the very "first" instant coffee. Several candidates are cited side by side, including David Strang of Invercargill, New Zealand, in 1890, and Satori Kato, who worked in Chicago, in 1901.
Attempts to manage prices then shifted to the international stage. In 1962, the International Coffee Agreement was signed. The mechanism assigned export quotas to producing countries, cutting quotas whenever prices fell below a target and increasing them when they rose. In this way, global coffee prices were managed for 27 years.
On July 4, 1989, export quotas were suspended. Consuming countries wanted better coffee, and Brazil refused to accept a cut to its quota. The result was immediate. Prices that had averaged $1.34 per pound in the 5 years before the agreement plummeted to an average of $0.77 in the 5 years after. Valorization and export quotas took different approaches, but the core idea was identical: prop up prices by restricting supply. And both collapsed.
In 2001, prices crashed. Following the lifting of the US embargo, Vietnam entered the market in earnest starting in 1994, which coincided with increased production from Brazil, creating a massive oversupply. Smallholder farmers across Central America and East Africa took a direct hit, in what is often called the "coffee crisis." While many writings cite specific figures for the lowest price during this period, some of those numbers cannot be verified in primary sources, so here we will simply note that it was at its lowest level in 30 years.
Around that time, a different approach began to grow. In 1988, the Max Havelaar certification was launched in the Netherlands, and in 1997, four labeling initiatives merged to form Fairtrade International. In 2024, Fairtrade-certified coffee reached 525,000 tons, the premium paid to farmers was 58 million euros, and 552 producer organizations participated. However, between 2020 and 2024, the Fairtrade Minimum Price was higher than the New York "C" market price only 33% of the time. When prices are rising, the minimum price has nothing to do.
Worth remembering Both attempts to prop up prices by restricting supply collapsed. Today's price swings play out across the void left in their wake.
From Joseon's Coffee to Instant Packets: The Path Korea Has Walked
For a long time, conventional wisdom held that King Gojong was the first person in Korea to drink coffee. This was often attributed to Antoinette Sontag, who oversaw Western cuisine at the royal court following the King's 1896 refuge at the Russian legation. Sontag opened the Sontag Hotel in 1902, featuring a space on the 1st floor that served coffee.
Yet there are multiple earlier records. In 1861, French Catholic bishop Siméon-François Berneux, who was stationed in Joseon, sent a letter to the Paris Foreign Missions Society requesting '40 livres of coffee and 100 livres of brown sugar.' This confirms that coffee had already arrived on Joseon soil. There is also a distinct record of a Korean person drinking it. On July 27, 1884, Min Geon-ho, a clerk at the Busan Customs office, noted in his diary that he was served gabicha (coffee) by Tang Shaoyi of the Qing Dynasty. In January of that same year, American astronomer Percival Lowell recalled drinking coffee by the Han River as 'the latest Joseon fashion after a meal,' and in early 1895, Isabella Bird Bishop wrote that coffee was served at a royal banquet.
Even so, we still cannot definitively nail down who was first. New records continue to come to light, and various local municipalities each claim their own 'first.' The safest conclusion we can draw is simply this: there are several documented records that predate King Gojong.
Coffee has also found itself at the center of high-stakes historical drama. On the evening of September 11, 1898, opium was slipped into coffee served to King Gojong and the Crown Prince. King Gojong took only a few sips because of its strange taste, but the Crown Prince drank nearly all of his and collapsed unconscious. The plot was revealed to have been orchestrated by Kim Hong-ryuk, a former Russian interpreter harboring a grudge over his exile; on October 10, three people involved were sentenced to death. This incident remains recorded in The Independent, the Annals of King Gojong, and the Diaries of the Royal Secretariat.
Korean-style coffee culture took root much later. In 1927, a dabang (traditional tearoom) opened in Myeongdong, and around the time of the Korean War, instant coffee spread widely through the US military. Then, in 1976, Dongsuh Foods introduced 'coffee mix,' packaging coffee, sugar, and creamer together in a single packet. It is widely known as the world's first instant coffee mix, though we phrase it with care since internationally verified primary sources have yet to be confirmed. Some also view Gabaedang—a late-Joseon novelty where coffee powder was packed inside sugar cubes—as its spiritual predecessor.
In 1999, Korea's first Starbucks store opened its doors in front of Ewha Womans University. Originally, Starbucks had started on March 30, 1971, in Seattle as a retailer selling coffee beans and brewing equipment, not prepared beverages. After Howard Schultz acquired it in 1987 and converted it into espresso bars, it had 140 locations when it went public in June 1992. Since then, the number of coffee shops in Korea surged from about 49,600 in 2015 to surpass 100,000 in 2022.
Worth remembering Korea's coffee history did not begin with the palate of a single monarch; it traveled through open ports, missionaries, and wartime rations before being sealed into an instant packet.
Why Prices Jumped in the Very Year Record Production Was Forecast
In February 2025, the International Coffee Organization's composite indicator price reached an all-time monthly average high of 354.32 cents per pound. It surpassed the previous record of 305.13 cents set in March 1977 for the first time in 48 years. Keep in mind, however, that this is in nominal terms. When adjusted for inflation into real prices, coffee in 1977 was still considerably more expensive. Omitting this qualifier makes the statement factually incorrect.
Tariffs also shook the market. In July 2025, the United States imposed an additional 40 percentage point tariff on Brazilian coffee, pushing the total duty to 50% and bringing purchases by American buyers to a virtual standstill. In the meantime, China newly approved 183 Brazilian export facilities. Then, on November 21, the US eliminated the coffee tariffs on Brazilian goods, retroactively applying the waiver to November 13. Even so, controversies lingered through January 2026 over whether the 50% tariff still applied to instant coffee. It would be wrong to claim that 'all coffee tariffs vanished.'
That brings us to 2026. The USDA projected global coffee production for the 2026/27 harvest year at an all-time high of 189.7 million bags, measured in standard 60kg bags of green coffee. It anticipated records across the board: a record 71.9 million bags for Brazil, global green coffee exports of 131.4 million bags, and global consumption reaching 179.7 million bags. It helps to remember that these are not finalized results, but preliminary forecasts scheduled for revision in December 2026.
Yet in July of that same year, the International Coffee Organization's indicator price jumped 15.4% in a single month to 287.26 cents per pound due to weather worries in Brazil. A forecast for record-high production and soaring prices stood side by side in the very same period. That is because prices are moved not by global aggregate volumes alone, but by immediate weather in Brazil, remaining stockpiles, and sentiment in the futures markets. World ending stocks—the leftover inventory at the close of the season—had dropped by 15.5 million bags between 2020/21 and 2024/25, before recovering for two straight years to a projected 26.3 million bags in 2026/27.
Let's also put the overall market size in perspective. In 2025, global coffee exports totaled $71.8 billion. This figure is based on the international Harmonized System code for coffee (HS 0901) and includes re-exports. The leaders were Brazil at $14.9 billion, Vietnam at $6 billion, and Colombia at $5.96 billion. Countries like Germany, Switzerland, and Italy rank near the top not because they grow coffee, but because they are re-exporters that import, roast, and resell it abroad. Confusing export rankings with coffee production rankings gives you a completely skewed picture.
While we are here, let's clear up a long-standing myth. It is widely claimed that coffee is the 'second most traded commodity after oil.' That is simply not true. In 2024, global crude oil exports reached $1.259 trillion—an entirely different order of magnitude. The original statement was that coffee was 'the second most valuable commodity exported by developing countries,' and even that was framed in the past tense, describing the period around 1970–2000.
Worth remembering Headlines touting 'all-time record prices' and 'record-high production forecasts' do not contradict each other; you just need to check which benchmark the numbers represent.
What Should We Watch Going Forward?
There is no need to try to predict the future. Instead, guided by the rules this story has revealed, let us summarize what to watch so you can be the first to notice when the board begins to shift.
First is Brazil's weather and biennial bearing. An Arabica tree yields less the year after a bumper crop. After pouring its energy into bearing fruit one year, it channels its energy into growing branches the next. Because Brazil has uniform terrain and relies on mechanical pruning and harvesting, this cycle is widely explained as occurring across the entire country simultaneously. With Brazil accounting for about 40% of global production, many explain that Brazil's 'on-years' and 'off-years' play a major role in the annual fluctuations of global Arabica supply. There was even a black frost on July 18, 1975, that caused prices to double the following year.
Second is inventories. Prices react more sensitively to what is left over than to that year's total production. Looking at whether ending stock forecasts are trending upward or downward makes the exact same production figure read completely differently.
Third is which price is being cited. The Coffee C futures price on the exchange and the International Coffee Organization's Composite Indicator Price are completely different numbers. Looking at the group indicator prices for July 2026 alone, Colombian Milds stood at 383.39 cents and Robusta at 184.78 cents—a gap of more than double. When a headline simply mentions 'coffee prices,' it is best to first check which category and which point in time that number comes from.
Fourth is trade flows. The 2025 U.S. tariff measures were imposed and then lifted within a span of months, and during that time, the destinations of Brazilian coffee actually shifted. Because tariffs and certification regulations change on such short cycles, it is wise to always look at the dates.
Fifth is the land. Arabica's growing window is narrow, and coffee leaf rust has never disappeared. How high Robusta's share rises, how widely resistant varieties spread, and whether growing altitudes climb higher will redraw the map ahead. This is a story that unfolds over decades, not just a few years.
Finally, just one more thing. In this history, neither those who tried to stop coffee nor those who tried to pin down its price ever got their way. Mecca, the Ottomans, Sweden, and Prussia could not stop it, and Brazil's valorization and the International Coffee Agreement both collapsed in the end. What remains today is a price that no one sets targets for, and an estimated 125 million people whose livelihoods depend on that price. The next time you read an article about coffee prices, it is worth remembering that those people stand behind the fluctuating numbers.
Worth remembering This is not about forecasting, but how to watch the game: Brazil's weather, inventories, which price is cited, tariffs, and the land—those five are all you need to watch.
🤔 Common misconceptions
Coffee is the second most traded commodity in the world after crude oil.
This is not true. It is a misconception that arose from distortion in translation. In his 2004 book, John M. Talbot stated plainly that coffee is not the second most valuable primary commodity in world trade, clarifying that the accurate phrasing is 'the second most valuable commodity exported by developing countries.' Mark Pendergrast made the same point in 2009. In terms of trade value, global coffee exports in 2025 totaled $71.8 billion, whereas global crude oil exports in 2024 stood at $1.259 trillion. As of 2005, coffee ranked 7th among world agricultural exports; while it ranks near the top among farm products, it is nowhere near the top among commodities overall.
Kaldi, a 9th-century Ethiopian goatherd, discovered coffee.
This story first appeared in print in 1671 in a work by Antoine Faustus Nairon. That is more than 800 years after the era in which the story is set, and it appears in no prior written record. Today, historians widely consider it a later invention. In fact, there is no verified historical or archaeological evidence that coffee was consumed as a beverage prior to the 15th century. Legends about Omar or the Sufi saint al-Shadhili are similar later traditions.
Coffee in the Americas began because Gabriel de Clieu shared his drinking water with a plant on his voyage.
This tale falls apart on two points. First, the only source for the water-sharing anecdote is a memoir published by de Clieu himself in a magazine in 1774, lacking any independent corroboration. Second, before his arrival in Martinique in 1720, coffee was already being cultivated in Saint-Domingue in 1715 and in Suriname in 1718. The narrative that all coffee in the Americas originated from a single seedling simply does not hold up.
King Gojong was the first person to drink coffee in Korea.
While King Gojong certainly enjoyed coffee, several earlier records exist. In 1861, the French Catholic bishop Siméon-François Berneux ordered 40 livres of coffee in a letter sent to the Paris Foreign Missions Society. On July 27, 1884, Min Geon-ho, a clerk at the Busan Customs Office, recorded in his diary that he was served 'gabi-cha' (coffee tea) by a Qing Chinese official. In January of that same year, Percival Lowell recalled drinking coffee after a meal along the Han River, and in early 1895, Isabella Bird Bishop recorded that coffee was served at a royal palace dinner. The Agwan Pacheon (the king's refuge at the Russian legation), which popularized Gojong's association with coffee, took place in 1896. Even so, no single individual can be definitively crowned as the 'first,' as new historical records continue to surface.
Coffee first entered the historical record during 15th-century nighttime prayers in Yemen, but it was banned soon after in Mecca and the Ottoman Empire. The target of prohibition quickly moved from the drink itself to the coffeehouses where people gathered to talk—yet those very rooms fostered the rise of marine insurance and stock exchanges. European monarchs tried late in the game to suppress the beverage, but coffee plantations had already migrated to colonial territories, transforming coffee into a global commodity built on the labor of Saint-Domingue and Brazilian estates. Later, valorization programs and the International Coffee Agreement attempted to control prices, but both eventually collapsed. Today, projections of all-time record production and soaring prices stand side by side.
Sources
Every date and figure below is drawn from these sources. Tell us if something looks wrong.
- Coffee: World Markets and Trade (July 2026) · USDA Foreign Agricultural Service — 2026/27 global production, consumption, and export forecasts; figures for Brazil and major producing nations; crop years and conversion factors by country
- Coffee Market Report (July 2026) · International Coffee Organization (ICO) — July 2026 composite indicator price of 287.26 cents and +15.4% month-over-month increase, indicator prices by group, Arabica export share of 60.4%
- Coffee Market Report (February 2025) — New Record Monthly Average · International Coffee Organization (ICO) — February 2025 price of 354.32 cents and previous record of 305.13 cents in March 1977 (nominal price)
- History of coffee · Wikipedia (English) — 15th-century Yemen, 1511 Mecca ban, 1524 fatwa, 1532 Cairo, Istanbul coffeehouses, 1671 first appearance of the Kaldi legend
- Economics of coffee · Wikipedia (English) — Original texts by Talbot and Pendergrast debunking the 'second only to oil' myth, world's 7th largest agricultural export in 2005, Vietnam's entry into the market in 1994
- Coffeehouse · Wikipedia (English) — Conflicting dates for Venice, Oxford, and London coffeehouses; 3,000 coffeehouses in 1675; Charles II's suppression attempt; the Kulczycki legend vs. accepted Deodato history in Vienna; Jonathan's Coffee-House in 1773
- Hemileia vastatrix (coffee leaf rust) · Wikipedia (English) — 1867 Ceylon outbreak and 1869 naming; cultivated area drop from 68,787 to 14,170 ha by 1890; spread across Asia, Africa, and Brazil; damage from the 2012–2014 Latin American epidemic
- International Coffee Agreement · Wikipedia (English) — 1962 agreement and export quota mechanism; July 4, 1989 quota suspension; 5-year average prices of $1.34 before vs. $0.77 after
- Coffee production in Brazil · Wikipedia (English) — Palheta's 1727 introduction of coffee; market share in the 1830s–1840s; 1850 ban on slave imports and 1888 abolition of slavery; world #1 in 1852; 1906 Taubaté Agreement; 1975 black frost
- Gabriel de Clieu · Wikipedia (English) — 1720 transport to Martinique; the fact that the sole source of the water-sharing story is his own 1774 memoir; prior cultivation in Saint-Domingue in 1715 and Suriname in 1718
- Baba Budan · Wikipedia (English) — Legend of the seven green beans and Baba Budangiri; noting the article's own citation flag for lack of sources
- Gustav III of Sweden's coffee experiment · Wikipedia (English) — Sweden's five coffee ban periods (1756–1823) and coffee's establishment after repeal
- Kaffeeriecher (coffee sniffer) · Wikipedia (German) — Frederick II's 1781–1787 state coffee monopoly, employment of about 400 disabled veterans, licensed roasting facilities, and home searches
- Coffea arabica · Wikipedia (English) — Growing conditions (altitude 1,200–1,500 m, 15–24°C, annual rainfall 1,200–1,800 mm), 2020 IUCN 'Endangered' assessment, and 2088 projections
- Coffea canephora (Robusta) · Wikipedia (English) — Caffeine content of about 2.7% vs. about 1.5% for Arabica, lowland cultivation, and disease resistance
- Saint-Domingue · Wikipedia (English) — Supplied about 60% of Europe's coffee consumption in the 1780s; half of cultivated land devoted to coffee in 1789; enslaved population of 400,000–460,000
- History of Starbucks · Wikipedia (English) — March 30, 1971 Seattle opening; 1987 Howard Schultz acquisition; 140 stores at June 1992 IPO
- Instant coffee · Wikipedia (English) — Competing claims for 'first' inventor, including David Strang's 1890 patent, Satori Kato in 1901, and Nescafé in 1938
- Nestlé company history · Nestlé official website — 1938 Nescafé launch, Brazilian government's request to manage surplus coffee, Max Morgenthaler's development, and spread during World War II
- Lloyd's Coffee House · Wikipedia (English) — 1686 opening on Tower Street, 1691 move to Lombard Street, 1734 'Lloyd's List', 1774 formation of the Society of Lloyd's
- coffee (etymology) · Wiktionary (English) — Etymological path: Dutch koffie ← Italian caffè ← Ottoman Turkish kahve ← Arabic qahwah
- Coffee in South Korea · Wikipedia (English) — Popular belief of King Gojong as first drinker and Antoinette Sontag, 1902 Sontag Hotel, 1927 Myeongdong dabang, 1999 first Starbucks store, coffee shop counts in 2015 and 2022, annual per capita consumption
- [Lee Ki-hwan's Traces of History] In 1898, Poison Was Put in King Gojong's Coffee · Kyunghyang Shinmun (September 25, 2024) — September 11, 1898 opium poisoning incident and October 10 death sentence; Bishop Berneux's 1861 order letter; Min Geon-ho's 1884 'gabi-cha' diary; accounts by Lowell and Bishop
- Coffee Exports by Country · World's Top Exports (private compilation based on UN Comtrade) — Global coffee exports of $71.8 billion in 2025; Brazil $14.9 billion, Vietnam $6.0 billion, Colombia $5.96 billion; re-exporting nations like Germany and Switzerland ranking near the top
- Crude Oil Exports by Country · World's Top Exports — Global crude oil exports of $1.259 trillion in 2024
- Coffee — Fairtrade International · Fairtrade International — Estimated 125 million people dependent on coffee for livelihoods and 775,000 certified farmers; 525,000 metric tons of certified coffee and €58 million in premiums in 2024; minimum price exceeding market price 33% of the time
- Fair trade coffee · Wikipedia (English) — Launch of Max Havelaar certification in 1988 and founding of Fairtrade International in 1997, Fairtrade Minimum Price structure
- Trump Order Eliminates All Tariffs on Brazilian Coffee · Daily Coffee News by Roast Magazine (November 21, 2025) — July 2025 additional 40 percentage-point tariff bringing coffee tariffs to 50%, repeal on November 21 retroactive to November 13, China's approval of 183 Brazilian exporters, January 2026 instant coffee tariff controversy
- Murad IV · Wikipedia (English) — 1632 ban on tobacco and opium and closure of coffeehouses; noting that anecdotes of coffee-related executions are often conflated with other prohibitions
- Rules on Statistics — Indicator Prices (ICC 105-17) · International Coffee Organization (ICO) official regulations — The I-CIP is calculated by weighting prompt shipment prices in the New York, Bremen/Hamburg, and Le Havre/Marseille markets by global trade shares, divided into four groups: Colombian Milds, Other Milds, Brazilian Naturals, and Robustas. Weights are reviewed every two years. This differs from exchange-traded Coffee C futures (New York Arabica, 37,500 pounds per contract)
- Brazil: Coffee Annual (GAIN Report BR2026-0025) · U.S. Department of Agriculture Foreign Agricultural Service (USDA FAS), June 2026 — Biennial bearing — alternating between heavy flowering (on-biennial) and lighter flowering (off-biennial) years, allowing trees to recover. Brazil supplies 40–50% of the world's Arabica according to this biennial cycle