Coffee prices in the global market hit a 50-year high, consumers will have to spend more

Published 2024년 12월 15일

Tridge summary

Record high global coffee prices, due to disrupted production in Brazil and Vietnam caused by severe weather conditions. The price of raw Arabica coffee has surged to a 50-year high of US$ 3.44 per pound, exceeding the 1977 record of US$ 3.35/pound. The increase, over 83% throughout 2024, has led to concerns about the next year's harvest, with coffee trading company Volcafe reducing its production projection for the 2025-2026 season by 25%. The rising prices are affecting consumers, with large producers such as Nestlé and Lavazza considering price increases. The trend of increasing prices is expected to continue for several years until supplies stabilize.

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Original content

Source: ABC News, BBC | Editor: Syamsul Azhar KONTAN.CO.ID - JAKARTA- World coffee prices have hit a record high in nearly five decades due to a difficult planting season in several major producing regions. In Brazil, as the world's largest coffee producer that supplies around 39% of global demand, severe drought followed by high rainfall has disrupted production. The price of raw Arabica coffee has soared to US$ 3.44 per pound this week. This price has surpassed the previous record of US$ 3.35/pound recorded in 1977. As an illustration, 1 pound is equal to 0.45 kg so that at a price of US$ 3.44 per pound it is equivalent to US$ 7.58/kilogram. With the rupiah exchange rate per US dollar of Rp. 16,000, this means that the price of coffee on the world market is currently Rp. 121,280/kilogram. The increase in global coffee prices of more than 83% throughout 2024 has raised concerns about next year's harvest. Coffee trading company Volcafe even cut its production projection for the ...

Source: Kontan