Global: Coffee prices may rise 25 percent in 2025 due to bad harvests in Brazil and Vietnam

Published Dec 1, 2024

Tridge summary

Coffee prices are expected to increase by 20-25 percent in 2025 due to adverse weather conditions impacting coffee harvests in Brazil and Vietnam, the world's leading producers of Arabica and Robusta coffee varieties respectively. This situation is further exacerbated by the complete reliance of the Russian coffee market on imports and the fluctuation of the US dollar exchange rate. The high prices of Robusta and Arabica futures contracts on the bourse continue to reach record highs, indicating the severity of the upcoming price increase for consumers.

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

Original content

MOSCOW: Coffee prices may rise by 25 percent in 2025, due to unfavorable weather conditions that will affect harvests in Brazil and Vietnam, the main producers of Arabica and Robusta coffee, said Anton Trenin, an expert at the Rating Agency's corporate rating group. Credit Analytical Russia (ACRA), to RIA Novosti on Sunday. "Coffee is not produced in Russia and this product is completely dependent on imports... if we talk about average prices, this situation will probably not improve in 2025, and it may increase 20 to 25 percent higher," he said. The total coffee production in the world is divided into 70 percent Arabica and 30 percent Robusta, said Trenin. "Brazil is the world's largest producer of coffee and meets about a third of the global demand for Arabica coffee. Drought problems in Brazil continue to put pressure on the market... at the same time, typhoons and rare rains in Vietnam, a producer of Robusta the largest in the world, is also expected to reduce the coffee ...

Source: Astroawani