As in the case of cocoa, the climate is ravaging the crops of the largest producer and exporter of coffee, Brazil.
After cocoa, which reached record prices this year, it is coffee's turn to reach new heights. The price of Arabica (70% of world production) soared to 230.10 cents per pound (0.454 kg) on Wednesday in New York. Raw materials have never been so expensive since 1977! As with the chocolate ingredient, the climate is ravaging the crops of the leading coffee producer and exporter, Brazil.
Extraordinary fires, most of them of criminal origin, authorities believe, raged for several weeks this summer, from the Amazon to the south of the country, favored by a historic drought. Despite the recent rains, « Previous dry weather has caused lasting damage, with low rainfall since April affecting coffee plants during the crucial flowering phase and reducing harvest prospects for 2025-2026 »explains Mirabaud analyst John Plassard.
Also read
Once upon a time there was a brand: the story of Legal coffee
Usda, the American Department of Agriculture, estimates Brazil's coffee stocks at 1.2 million bags at the end of the 2024-2025 campaign, a drop of 26% compared to the previous one. In addition, heavy rains in Costa Rica have destroyed nearly 15% of the annual coffee harvest and strong fears over supply in Vietnam are pushing prices up. Other factors supporting commodity prices in general include disruptions in the Red Sea, Trump's promised tariff hikes and the upcoming EU regulation on deforestation. Consumers are expected to see the price of coffee increase from the start of next year.
Related News :