Vietnam's Coffee Crisis - Robusta Bean Prices Soar Amid Drought

Vietnam's Coffee Crisis - Robusta Bean Prices Soar Amid Drought

Vietnam, the world's largest producer of robusta coffee beans, is experiencing a significant supply crunch due to a severe drought, exacerbated by the El Niño weather phenomenon. This has resulted in the country's inability to meet its coffee bean contract deliveries, with an estimated shortfall of 150,000 to 200,000 tons from the 2023-2024 harvest. Consequently, robusta futures have surged to their highest levels in nearly two decades, impacting global prices significantly. Coffee shops worldwide may see increased costs, potentially leading to pricier lattes and other coffee-based beverages. This situation poses a challenge for Vietnam's agricultural sector and could force major coffee buyers like Nestle to rely more on alternative sources from countries like Brazil, Indonesia, and India.

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