A couple of factors are playing a role in the rising cost of coffee.

One is the White House tariff's and the other is weather conditions in countries that export coffee beans.

Brazil supplies more than a third of America's coffee beans. But production is falling due to the drought conditions in the South American country, and the ripple effects are being felt in the Rio Grande Valley.

In the heart of the Valley, Moonbeans Coffee has been a local staple for over two decades, but this year, the business is brewing under pressure.

"Supply and demand. Brazil is the largest producer of coffee," Moonbeans Coffee Founder and CEO Luis Beltran said.

A drought in Brazil - the world's top coffee supplier - has cut production by millions of pounds. That, combined with global tariffs, is causing prices to spike for roasters and consumers.

"When you look at the 2025 harvest, you have to look at two years ago, because in 2023 the branches begin to grow and about a year later flowers begin to grow and fruits begin to set. So in 2024, what happened? There was a huge, huge drought and obviously that affected production, and so there's less coffee output and obviously that is affecting the price," Texas A&M University Director of the Center for Coffee Research and Education Eric Brenner said.

For small roasters like Moonbeans, these two factors are having a big impact on business.

"Those conditions are going to drive our prices. We've been trying to hold the line," Beltran said. "On top of that, we have the 50 percent tax that's been implemented. So that makes Brazilian coffee unattainable. We can't buy Brazilian coffee at the moment."

The Beltran's have been forced to shift sources — turning to smaller producers in Guatemala and Mexico — but those beans come at a price. 

"Those are a lot smaller producers. So when the demand increases with those producers, those prices are going to go up as well, so it makes it very, very difficult to hold the line on prices," Beltran said.

Still, raising prices was a last resort for Moonbeans.

"We're trying to diversify different ways of absorbing some of those costs, but ultimately the coffee prices are going to go only one direction — and that's up," Beltran said.

Moonbeans Coffee is set to move to a new location in Edinburg this October, just blocks from the University of Texas Rio Grande Valley and the Hidalgo County Courthouse. A move they hope will make their coffee more accessible.

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