Global: Coffee prices continue to conquer 47-year peak

Published 2024년 12월 2일

Tridge summary

The price of arabica coffee, a favorite for specialty coffee lines, has reached its highest level since 1977 due to severe droughts in Brazil and Vietnam, the world's largest coffee producers. The price increase, nearly 70% this year, is putting pressure on cafes, roasters, and suppliers, leading to product price increases and size reductions. The situation is worsened by transportation and logistics issues, uncertainty from EU anti-deforestation regulations, and increased sales to the US. The surge in arabica coffee prices has also impacted the market, with concerns about arabica supply exacerbated by poor harvests in other countries, resulting in panic buying and higher hedging costs.

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

Original content

According to Business & Business According to Bloomberg, the price of arabica coffee, the bean favored in specialty coffee lines, has increased by 3.9%, reaching the highest level since 1977 and is now up nearly 70% this year. Severe drought in Brazil earlier this year raised concerns about the country's output. Meanwhile, the main coffee growing region in Vietnam also faced prolonged dry conditions during the cultivation period, along with heavy rains appearing just as the harvest began. Brazil and Vietnam are the two largest coffee producers in the world, with Brazil focusing on high-end arabica beans and Vietnam dominating the cheaper robusta market. The price increase is putting more pressure on cafes and roasters, increasing costs for consumers. Suppliers in the supply chain have raised prices and cut discounts to protect profit margins. Nestlé SA, the world's largest coffee maker, said in November that it would raise product prices and reduce packaging sizes to mitigate the ...

Source: AgroInfo.vn