Robusta hits 45-year high, instant coffee costs may soar in Vietnam

Published 2024년 5월 7일

Tridge summary

Robusta coffee prices have reached a 45-year peak, as reported by the International Coffee Organization, with a significant 17% increase in April, marking the highest prices since 1979. This surge is primarily due to a supply shortage following poor harvests in Vietnam, the top producer of robusta beans. The situation is aggravated by drought and heat in Vietnam's coffee regions, posing risks to the 2024 crop. However, there's hope for recovery from the drought this month, and an influx of arabica beans in the market could help in stabilizing the robusta coffee prices.

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

Original content

Robusta coffee prices have climbed to the highest in 45 years, according to the International Coffee Organization, as a supply crunch intensifies for the variety used in espresso blends and instant drinks. The ICO’s gauge of wholesale prices rose 17% during April to the strongest since 1979, the London-based group said in a monthly report posted Friday. Vietnam — the world’s largest robusta producer — “continues to face supply difficulties” after poor harvests in both the last and current seasons, it said. Those issues risk worsening as drought and heat bake Vietnam’s growing areas, depleting water for irrigation and curbing prospects for the looming 2024 crop. Futures in London have climbed in five of the past six months, which could eventually feed through into consumer costs. Gauge of wholesale prices climbed 17% during April

Source: UkrAgroConsult