Rising coffee prices are troubling for consumers as supply chain issues and climate change impact the market. The cost of both arabica and robusta beans has dramatically increased, leading to higher prices at coffee shops and retailers.
• Arabica bean prices rose to $2.32 per pound, a 64% increase since June 2020.
• Robusta beans saw a staggering 187% jump, reaching $1.86 per pound.
• Droughts in Vietnam and Brazil are causing severe production shortages, with Vietnam facing a 13-year low in robusta output.
• New European regulations on deforestation will tighten supply further, as companies rush to export before the rules take effect in late 2024.
This situation is significant as it affects not just coffee lovers but also the entire coffee industry. Higher prices may lead to reduced consumption, impacting businesses and farmers alike. The ongoing climate issues highlight the need for sustainable practices in coffee production, emphasizing the fragility of global supply chains.
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