Brazil and Vietnam, two of the biggest suppliers of arabica and robusta coffee beans, have been encountering bad growing weather|Pix4free
Your next cup of coffee could get pricier. Coffee futures rose to their highest in 47 years recently. Arabica beans (used in specialty brew) rose about 71% this year, reaching $3.18 per pound on Wednesday.
These rising costs are expected to impact consumers, with Nestle saying it would increase prices and make smaller packs to manage expenses.
Severe drought and dryness affecting crops in Brazil and Vietnam, two of the biggest global growers of coffee, have contributed to the supply tightness and subsequent price increase.
Brazil and Vietnam, two of the biggest suppliers of arabica and robusta beans, have been encountering bad growing weather. Brazilian farmers are delaying coffee deliveries, hoping for higher prices, causing short-term supply problems and financial losses for traders. The price of Robusta bean, used in instant coffee, also reached a 47-year high after it rose 7.7%
The situation mirrors the cocoa market, where prices have doubled in 2024 due to poor harvests in key producers Ivory Coast and Ghana.