OP 30 November, 2024 - 03:03 AM
Summary:
- Record Prices
Coffee prices have surged to their highest in 47 years, driven by extreme weather in Brazil and Vietnam, the top producers of arabica and robusta beans.
- Climate Impact
Brazil faced its worst drought in 70 years, followed by heavy rains, while Vietnam endured three years of low output, tightening global supplies.
- Supply Concerns
Arabica prices reached $3.18 per pound, prompting major companies like Nestlé to raise consumer prices due to reduced supply.
- Tariff Pressures
Future tariffs are adding pressure, with roasters accelerating imports to avoid higher costs later, according to trade analysts.
- Market Outlook
Continued weather instability and trade uncertainties suggest that coffee prices may remain elevated, impacting both producers and consumers worldwide.