Coffee Prices Surge as Weather and Supply Chain Issues Bite

Coffee Prices Surge as Weather and Supply Chain Issues Bite

Coffee prices are rising due to adverse weather and supply chain challenges, particularly affecting Brazilian growers. The demand for arabica beans, favored by premium coffee brands, has skyrocketed, pushing prices up by 40% this year. As the 2024-25 coffee season wraps up, Brazil faces extreme heat and drought, which have harmed crop yields. Experts warn that the outlook for the 2025/26 arabica crop is grim, with low rainfall expected to further damage production. Meanwhile, robusta beans are also in short supply, contributing to overall price hikes. Major brands like JM Smucker Co. have already raised prices on popular products, impacting consumers. Interestingly, smaller coffee producers in countries like Cuba and Honduras may benefit from Brazil's struggles, as consumers increasingly seek higher-quality beans. Despite rising costs, coffee consumption remains strong, reflecting America's ongoing love for this beloved beverage.

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