Global: Prices for Arabica coffee have broken an absolute record

Published 2024년 12월 15일

Tridge summary

Record high prices for arabica coffee beans, with March futures reaching $3.34 per pound, a 80% increase in a year, due to a combination of extreme weather conditions in coffee-producing countries like Brazil and Vietnam, and increasing global demand. These factors have led to significant price hikes in the coffee industry, with companies like Lavazza, Nestlé, and JDE Peet's announcing plans to pass the costs onto consumers in early 2025. The situation marks the highest Arabica price since 1977, when Brazil faced severe frost damage. The article also highlights the challenges of coffee cultivation due to climate change and the need to find new suitable growing regions, including Uruguay, Argentina, Chile, the USA, India, China, and New Zealand.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

On the stock exchanges, prices for the world's most popular coffee variety - arabica - have reached a historic high. Coffee lovers will see a price increase as early as early next year. According to the BBC, the price of March futures for arabica has set an absolute record in the history of trading - $ 3.34 per pound (about 0.45 kg) of beans. Arabica has risen in price by 80% in just a year. As the head of Tuan Loc Commodities Vinh Nguyen told the publication, the companies tried not to increase the price for the end consumer, but now they will still do it in early 2025. A representative of the Italian Lavazza told the publication that the company "was forced to adjust prices." In November, Nestlé also announced plans to change prices and the size of coffee packs. Reuters reported that JDE Peet's, which owns the Jacobs, L'Or, Tassimo and Douwe Egberts brands, will raise prices for coffee from Brazilian raw materials by 30%, citing anonymous sources. The previous record for the ...

Source: Unian