ISN Investigation: Coffee Prices Climb — But Who’s Really Profiting?
By Riad Beladi – ISN Investigation Special Report
As consumers around the globe brace for yet another price hike on their daily cup of coffee, a deeper, more troubling story is brewing beneath the surface. While supermarket shelves show rising prices and coffee chains pass costs onto customers, the reality at the other end of the supply chain tells a different story — coffee growers are still earning the same, if not less, than they did five years ago.
International Supermarket News (ISN) has launched a special investigation into the sharp rise in coffee prices, uncovering a pattern of financial speculation, unchecked middlemen, and profit-hungry corporations, all while the farmers — the backbone of this $100 billion industry — remain trapped in poverty.
Prices Surge — But Not for Growers
Arabica coffee futures have seen a sustained increase over the past two years, with global shortages cited due to weather issues in Brazil, transport costs, and rising inflation. However, our analysis shows that the wholesale farmgate prices in key producing countries like Ethiopia, Colombia, and Vietnam have remained stagnant — in many cases, farmers are earning under $1 per pound of beans, despite retail prices skyrocketing.
Where is the money going? According to ISN’s research, a significant portion of profit is absorbed by international trading houses, speculative hedge funds, and multinationals who control global coffee contracts. These players, who never step foot in a coffee field, are raking in massive profits as coffee is increasingly treated like a commodity on Wall Street rather than a lifeline for millions of rural workers.
The Role of Speculation
One source within a European trading firm confirmed to ISN under anonymity:
“Coffee prices are manipulated like oil. It’s no longer about weather or crops — it’s about futures contracts, derivatives, and who controls supply flows. Farmers don’t see a cent of the extra profits.”
The rise of coffee on the commodities market has created an artificial volatility — one that benefits speculators and penalises both consumers and growers. Market traders, not coffee experts, are influencing global prices.
Supermarkets & Coffee Chains: Silent Partners?
Major coffee retailers and supermarket brands claim rising costs across the supply chain. However, ISN has found little to no transparency on how much of each pound or kilo actually goes back to the farmer. Labelling like “fair trade” or “ethically sourced” may reassure consumers, but in many cases, the impact on grower income is minimal.
In interviews with smallholders in Latin America and Africa, one recurring sentiment emerged:
“We produce the best coffee in the world — but we can’t even afford to drink it ourselves.”
What Needs to Change?
-
Transparency in pricing from grower to shelf.
-
Direct trade models that bypass exploitative middlemen.
-
International regulation of speculative activity in food commodities.
-
Stronger grower cooperatives with negotiating power.
ISN Conclusion: The Brew That’s Burning the Grower
Coffee is not just a beverage — it’s a lifeline for over 125 million people globally. Yet the system remains rigged. The disconnect between rising shelf prices and stagnant grower income reveals a cruel imbalance driven not by necessity, but by profit-hungry speculation.
ISN will continue to investigate and expose the players profiting unfairly — because coffee should energise the world, not exploit the people who grow it.
