Why coffee prices are skyrocketing around the world

Published Sep 22, 2024

Tridge summary

A perfect storm of crop failures, market forces, and climate change is causing a significant increase in the cost of unroasted beans, leading to potential price hikes for coffee consumers. The situation is worsened by the shift of Vietnamese farmers to durian cultivation, further reducing coffee production. The main factor driving the global price spike is unfavorable weather conditions, leading to a third consecutive year of decreasing global coffee stocks. Despite these challenges, some countries have managed to excel in coffee production. The impact on retail prices remains uncertain, with some in the industry predicting significant increases, particularly in commercial quantity coffee, while others suggest that consumers may not necessarily see these higher prices reflected at the register due to other factors contributing to inflation.

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

Original content

How much is too much for a cup of coffee? Prices like £5 in London or $7 in New York for a cup of coffee may be unthinkable to some — but they could soon become a reality thanks to a “perfect storm” of economic and environmental factors in the world’s major coffee-growing regions. The cost of unroasted beans traded on global markets is now at a “historical high,” says analyst Judy Ganes. Experts blame a mix of crop failures, market forces, depleted stockpiles — and the world’s stinkiest fruit. So how did we get here, and how will it affect your morning latte? In 2021, a freak frost destroyed coffee crops in Brazil, the world’s largest producer of arabica beans — the ones commonly used by baristas. The shortage of beans has sent buyers looking to countries like Vietnam, the top producer of robusta beans, which are typically used in instant coffee blends. But farmers there have faced the region’s worst drought in nearly a decade. Climate change has affected the growth of coffee ...

Source: G1globo