Coffee, one of the most sought-after commodities around the world, has become more expensive in recent years. But now your cup of joe may be even more expensive. Persistent supply chain disruptions and harsh weather conditions in Brazil, the world’s largest coffee producer, have pushed coffee bean prices to a 13-year high.
U.S. coffee bean futures rose nearly 5 percent to $2.718 a pound, the highest price since 2011. A shortage of cheaper Robusta beans has boosted demand for the Arabica variety.
Extreme heat and drought have damaged many fields in Brazil, and the country will end the 2024-25 harvest with a significant deficit. “It’s all about the weather,” Kona Haque, head of research at ED&F Man, told Bloomberg. Haque cited difficult weather conditions in producing regions and drought expected in the coming weeks.
Severe weather conditions and supply chain issues have caused coffee prices to skyrocket.
Concerns are mounting as South America faces a severe drought that could impact next year’s harvest. “Rainfall in Arabica-growing regions has been consistently below normal since the start of the dry season in April,” Carlos Mera, an analyst at Rabobank, said in an interview with Bloomberg. “The problem adds to a situation where the coffee industry is weakened. We are already facing port congestion in several countries, global container shortages, disruptions in the Red Sea region and poor harvests in Vietnam.”
Supply chain disruptions have already led to higher prices. In the United States, Europe and Israel, coffee prices have risen. Rising coffee prices are also contributing to inflation, adding to a wave of higher prices for various consumer goods.
Previously, Cursor wrote how an extra cup of coffee will help you avoid gaining weight.
