Fairtrade Österreich warns of economic risks in coffee production

Fairtrade Österreich has highlighted significant economic risks facing the global coffee industry ahead of International Coffee Day. Projections from the World Meteorological Organization suggest that the El Niño weather phenomenon could persist until early 2027, potentially disrupting harvest conditions in major producing regions across Latin America, Africa, and Asia.

Market volatility has characterized the industry throughout 2025 and 2026. According to International Coffee Organization data, Arabica coffee prices experienced significant fluctuations, with the average price for ‘Other Milds’ reaching approximately 3.61 USD per pound in August 2026. To mitigate these fluctuations, Fairtrade will increase its minimum price for washed Arabica from 1.80 to 2.00 USD per pound starting in December 2026.

Despite these price protections, experts note that small-scale producers face ongoing challenges, including rising input costs, logistical bottlenecks, and the expenses associated with transitioning cultivation methods. Small cooperatives remain heavily dependent on consumer demand in European and North American markets.