Due to a combination of the Red Sea crisis and unusually hot weather affecting major coffee and tea producing countries, there is an impending spike in the prices of these beloved beverages. Coffee prices have already seen a significant increase, with wholesale rates climbing over 20% since January, primarily due to crop damage from extreme heat in Vietnam and Brazil. Vietnam, a major producer of robusta beans, has experienced two successive lower harvests, leading to a sharp rise in prices. Tea prices have also surged by 34% in the past month, influenced by rising industry costs and shipping delays in the Red Sea, affecting supplies from major producers like China, India, Kenya, and Sri Lanka. These disruptions are causing considerable strain on global supply chains, leading to increased prices and availability issues for consumers and businesses alike.
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