Inclement Weather Leads To Record Prices For Coffee
Inclement weather is understood to have impacted coffee bean crops this year, resulting in the price of coffee on international commodity markets hitting its highest level on record this week.
The world’s two largest producers of coffee beans, Brazil and Vietnam, have both suffered bad seasonal weather, meanwhile the popularity of the drink continues to grow.
Arabica beans, which account for 60% of global production, reached a record $3.44 per pound this week, after jumping over 80% this year. Meanwhile, Robusta beans, which make up another 30%, reached an all time high in September.
In recent years, major coffee roasters have absorbed any price hikes to maintain their share of an ever increasing market. However, that could be about to change, with some major coffee brands reportedly considering price increases.
Latin America grows around 55% of the world’s coffee beans. With 39% of the global market, Brazil is far and away the largest global producer and it’s the country’s current Arabia bean crops that have been the main driver for the surge in prices.
Brazil experienced its worst drought in 70 years during August and September, which was then followed by heavy rains in October. The bad weather has raised fears that flowering crops could fail, leading to traders expecting yields to shrink.
It remains to be seen whether the price surge will impact consumers and whether coffee drinkers will see a rise in the cost of their morning treat.
