The worst drought to hit Brazil in decades has sparked fears that the crop in the world's top coffee producer could shrink for the second consecutive year for the first time since 1970.
Leandro Gomes Ribeiro Costa, head of coffee at farmer group Coopamig, said some regions of Brazil have had only a tenth of their average rainfall so far this year during a crucial stage in the beans' development.
Coopamig, which is made up of 5,800 farmers from the country's main coffee producing region Minas Gerais, expects to harvest up to 30 percent less coffee this year than in 2013.
The International Coffee Organization (ICO) now forecasts a global production deficit of at least 2 million 60 kilogram bags of coffee in 2014-15.
FO Licht analyst Stefan Uhlenbrock said"Now everybody is concerned about the supply outlook for Brazil, with a real threat of a deficit in the coffee market, which has not been the case in the past four years,"
"It is fairly unprecedented this kind of drought at this particular period of time in terms of cherry growth," said Kona Haque, who leads Macquarie's agricultural commodities research.
Griffiths Coffee, Australia's oldest coffee roaster which supplies to the retail sector, is already forecasting a rise in consumer prices.
But some analysts are more optimistic about Brazil's ability to bounce back.
"At some point, it will rain again in Brazil," said Judith Ganes-Chase, president of J. Ganes Consulting.
"Brazil is going to be back having bigger crops, this market will return back to surplus and we'll be right back to where we were before this new development."