Coffee bean prices to stay high as global supply disruptions lead to rising costs

Published 2024년 9월 16일

Tridge summary

Coffee prices are reaching a 13-year high due to supply disruptions, with premium arabica beans seeing a 40% increase this year. This is largely due to the demand for arabica over the cheaper robusta beans, and weather conditions damaging coffee crops in Brazil and Vietnam. These weather conditions, along with disruptions in the Suez Canal and a stronger dollar, have increased costs for roasters such as Lavazza. The European Union Deforestation Regulation is also influencing buying decisions. While stronger shipments from top producers may help reduce supply and price concerns, retailers may pass on high prices to consumers, contributing to inflation in the beverage industry.

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

Original content

A cup of coffee is set to get even pricier as persistent supply disruptions push costs for premium arabica beans to the highest in 13 years. Futures, i.e. contracts bought at agreed prices but delivered and paid for later, surged as much as 2 per cent to $2.6475 per pound, the highest since 2011. The futures for the variety have surged 40 per cent this year as shortages of the cheaper robusta beans stoke demand for the arabica variety favored by specialty chains. Coffee rally’s has been gathering pace from ongoing concerns about harsh weather in top two producers Brazil and Vietnam. The nation is wrapping up its 2024-25 harvest and production prospects weakened after heat and dryness hurt fields. Attention is now shifting to next season’s potential, and Brazil has been gripped by its worst drought in decades, threatening further crop damage. Across the supply chain, the impact of this year’s rally is already evident. JM Smucker Co., whose brands like Folgers and CafA(c) Bustelo ...

Source: Gulfnews