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The global coffee market is experiencing an unprecedented price jump. Exchange quotations for Arabica rose to a level not seen since 1977, which is caused by serious climate problems in key producing countries, snob.ru reports with reference to Bloomberg.
A futures contract for coffee beans on November 27 rose by 3.93%, reaching $3.21 per pound (equivalent to $7.05 per kilogram). Over the current year, the cost of Arabica has increased by almost 70%.
The main reason for the sharp rise in price is extreme weather conditions in leading coffee-producing countries. In Brazil, an abnormal drought in early 2024 created a serious threat to production volumes. A similar situation is observed in Vietnam, where a dry period negatively affected the growth of coffee trees, and the subsequent heavy rains complicated the harvest.
Brazil has traditionally specialized in Arabica exports, while Vietnam is the world’s largest supplier of Robusta. The current situation could significantly affect the global coffee market and prices for end consumers.