Global coffee prices have reached unprecedented levels due to severe weather affecting crops, resulting in higher costs for consumers and changes in roaster practices. The surge in prices for both robusta and arabica beans has been alarming, with robusta futures hitting $4,971 per tonne and arabica nearing $2.49 per pound. This increase is partly due to a cold snap in Brazil, a key coffee producer, and ongoing drought in Vietnam. Shipping costs have also risen due to geopolitical tensions, further straining the market.
• Coffee roasters are now blending lower-cost beans to maintain profit margins.
• Consumers are feeling the impact, with espresso prices in Italy rising by 15% since 2021.
• The coffee market is currently stable compared to the volatile cocoa market earlier this year.
• Speculators are betting that prices will continue to rise, leading to potential market conflicts.
This situation is significant as it not only affects coffee lovers but also highlights the fragility of global supply chains and the impact of climate change on agriculture. The rising costs may force consumers to adjust their coffee habits, while roasters may need to rethink their sourcing strategies.
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