C-grade Coffee Prices Plummet to Record Lows
C-grade coffee prices on the global market are plunging to historic lows, severely impacting the livelihoods of millions of coffee farmers, especially in major producing countries such as Colombia and Brazil. In response to this situation, leading coffee-producing nations have organized urgent meetings seeking coordinated solutions to stabilize the market and support farmers amid deepening price declines and volatile market conditions.
Challenges Faced by Coffee Farmers and Government Response
C-grade coffee prices continue to sharply decline, exerting serious pressure on the livelihoods of millions of farmers, particularly in Colombia and Brazil. On February 25, more than 20 coffee-growing provinces in Colombia launched an indefinite nationwide strike, demanding increased government support amid the significant price drop. Farmers currently receive approximately 305 USD per 125 kg bag of coffee, significantly below the minimum price of 472 USD needed to sustain profitability. The strike, led by Oscar Gutiérrez, Coordinator of Colombia’s National Coffee Growers Federation, involves halting harvests to pressure the government.
Facing intense market pressure, the Colombian government has deployed an 80 million USD subsidy package and established a crisis committee to support farmers during this difficult period. Although these are positive steps, efforts so far have fallen short of farmers’ expectations. Many experts argue that long-term solutions must focus on restructuring the market and ensuring coffee prices do not fall below production costs, thereby helping farmers escape economic precariousness.
Market Volatility and Global Coffee Sector Challenges
International coffee markets for Robusta and Arabica continue to exhibit strong fluctuations driven by abundant supply and speculative forces. In Brazil, a bumper harvest along with disruptions in global demand contribute to forecasts of an additional 28 to 30 percent price decrease by the end of 2025.
Recognizing the severity of the crisis, representatives from the coffee sectors of Brazil and Colombia convened an emergency meeting in June 2025 to coordinate responses ahead of the World Coffee Producers Forum. Industry organizations such as the Brazil Specialty Coffee Association and the Colombian Coffee Federation have called for enhanced transparency in coffee trading, reduction of speculative activities, and emphasized the crucial role of government intervention to regulate markets through major exchanges like the Intercontinental Exchange (ICE).
The current coffee price crisis places the global coffee industry on the brink of serious disruption. Experts warn that without timely coordinated action from governments and industry bodies, the coffee supply chain could face significant interruptions, profoundly affecting farmers and international markets in the coming months.
