(FreePressBeacon.com) – In a highly unpleasant trend that will hurt Americans’ wallets, the nation is facing skyrocketing coffee prices as Arabica beans hit $3.44 per pound, an 80% increase from earlier this year.
See the tweet below!
This price hike, driven by severe weather in key producing countries, threatens to change your morning routine significantly.
Supply concerns over coffee have pushed Arabica prices to record highs. Severe droughts in Brazil have extended to produce only 34.4 million bags, far below expectations.
With the worst drought in 70 years, Brazil’s future crops are under threat, which may prolong this crisis.
Robusta beans aren’t immune to these issues. Facing adverse weather in Vietnam, Robusta saw a 60% price increase this year.
As a result, global coffee production anticipates a deficit of 8.5 million bags in 2025-26, unable to meet soaring demand.
Climate change is exerting pressure on coffee-producing regions, with predictions of significant reduction in cultivatable land in Central America by 2050.
Coffee companies are likely to push the increased costs onto consumers, resulting in higher prices and smaller packaging sizes.
“Coffee hit a record high in New York on mounting worries over a global supply crunch that have made it one of the year’s hottest commodities,” writes Bloomberg News.
As major brands like JDE Peet and Nestlé grapple with rising raw material costs, the threat of price increases looms over consumers.
Nestlé’s head of coffee brands mentioned that adjusting prices and pack sizes is tough but necessary in current conditions.
Uganda, however, is leveraging the situation by boosting its coffee sector through initiatives like Buganda Kingdom’s Ommwanyi Terimba.
As a result, Uganda has become Africa’s largest coffee exporter, earning $1.4 billion from coffee exports in the past year.
Coffee prices are soaring as Brazil’s beans have hit a jarring 47 year-high. But why the spike?
Watch to find out how these coffee beans are brewing up some serious inflation. pic.twitter.com/80VKLiSO2T
— CGTN America (@cgtnamerica) December 10, 2024
“Demand for the commodity remains high, while inventories held by producers and roasters are reported to be at low levels,” Fernanda Okada, a coffee pricing analyst at S&P Global Commodity Insights, told The BBC.
Uganda’s progress shines a light amid the rising costs overshadowing typical coffee drinkers in the US.
With coffee being the second most traded commodity, these record-breaking prices remind us of climate change’s unresolved impact on agriculture and our daily lives.
Copyright 2024, FreePressBeacon.com
