Archive · 20 Jul 2026
Weather and Structural Issues Drive Coffee, Cocoa, Tea Price Volatility
The prices of coffee, cocoa, and tea have been going up and down a lot lately.
This is mostly because of bad weather like droughts and too much rain.
These drinks are grown in a few countries and then sent all over the world.
When the weather is bad, it affects the farmers a lot because they grow the crops.
But the people who buy these drinks don't feel the price changes as much.
The report says that we need to make the market fairer so that farmers get a better deal and prices don't change so much.
It also says that bigger money things don't really affect the prices of these drinks much.
Weather-related shocks are the main driver of recent price fluctuations in coffee, cocoa, and tea markets.
Producers, often smallholder farmers, bear the brunt of market volatility, while consumer prices remain relatively stable.
Structural vulnerabilities, including concentrated supply and long value chains, amplify the effects of global shocks.
Price changes are not transmitted evenly across the value chain, with producers more directly exposed than consumers.
The report highlights the need for stronger production systems and better market transparency to enhance stability and protect livelihoods.
- Who
- Producers (smallholder farmers) and consumers of coffee, cocoa, and tea
- What
- Price volatility in global beverage markets due to weather shocks and structural vulnerabilities
- When
- Recent years, with a report published on July 20, 2026
- Where
- Global markets, with production concentrated in low- and middle-income countries
- Why
- Weather-related shocks, structural weaknesses, and market dynamics affecting price stability
Producers' Perspective
Consumers' Perspective
Price Transmission
Producers' Perspective
Producers bear the brunt of market volatility, with price changes affecting their livelihoods significantly.
Consumers' Perspective
Consumer prices remain relatively less affected, with the impact of international price changes being more limited at the retail level.
- Main Driver of Price Spikes
- Weather-related shocks (droughts, frosts, excessive rainfall)
- Primary Production Regions
- Low- and middle-income countries
- Share of Value Chain
- Farmers receive a smaller share of the final product costs
- Impact of Global Shocks
- Producers are more directly exposed, while consumer prices are more muted
- Report Publication Date
- July 20, 2026
- Report Title
- Price Dynamics in Global Beverage Market: Trends, Drivers and Consequences
- Authoring Organization
- Food and Agriculture Organisation (FAO)
- Director of FAO’s Markets and Trade Division
- Boubaker Ben-Belhassen