Coffee Supplies Rise While Costs Weather Threaten Gains

Improved coffee output could strengthen the U.S. supply, but input costs and weather risks keep the outlook uncertain.

Mix of coffee beans and coffee tree blossom for background_Photo by nimon_t via AdobeStock_253446717.jpg

The process of coffee production from blossoms to beans.

Photo by nimon_t via Adobe Stock

NASHVILLE, TENN. (RFD NEWS) — U.S. coffee buyers may see improved supply from Colombia and Costa Rica next season, but USDA forecasts show weather and input costs still threaten recovery. The United States remains the leading export market for both countries.

USDA’s Foreign Agricultural Service projects Colombia’s 2026/27 production at 13.4 million 60-kilogram bags, up 7.2 percent after excessive rain cut the current crop. Exports are also forecast at 13.4 million bags.

Costa Rica’s production is forecast to rise 3.5 percent to 1.2 million bags, while exports reach 1.06 million bags. The United States accounts for more than 40 percent of Colombian exports and nearly 40 percent of Costa Rican shipments.

Growers still face pressure. Colombia reports falling coffee prices alongside rising fertilizer and labor costs. Costa Rica faces higher fertilizer and fuel costs, a strong local currency that reduces growers’ returns, and possible El Niño-related dryness.

Despite larger crops, ending stocks are forecast to be lower in both countries, leaving limited protection against harvest disruptions.

Farm-Level Takeaway: Improved coffee output could strengthen the U.S. supply, but input costs and weather risks keep the outlook uncertain.
Tony St. James, RFD News Markets Specialist
Related Stories
Arkansas Farm Trail Passport brings visitors to operations across the state, like Horton’s Produce & More, where strawberry harvest focuses on quality over quantity.
The analysis models how trade disruptions in the Strait of Hormuz may continue to drive up the cost of fertilizer.
National Land Realty’s Jeramy Stephens explains how rising input costs and economic uncertainty are impacting the farmland market and what landowners should watch moving forward.
Higher fuel costs are raising grain shipping expenses. RealAg Radio’s Shaun Haney discusses how energy market disruptions are impacting farmers in new ways as the War in Iran continues.

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

LATEST STORIES BY THIS AUTHOR:

Higher machinery costs are raising per-acre production expenses.
As farmers and ranchers navigate rising input costs, lawmakers are considering a roughly $15 billion aid package to help, which would be tied to the spending bill for the war with Iran.
Lower costs improve competitiveness, but demand remains uncertain.
Policy clarity will determine the trajectory of soybean crush demand, but producers in Kansas have shown that expanding local crush capacity strengthens basis and marketing options.
Corn and soybean shipments continue to move at a steady pace as spring trade flows develop.
Growing milk supply may pressure prices ahead.