Coffee prices have reached an all-time high in recent days. Arabica coffee beans, considered the most popular in the world, now cost $3.44 for 450 grams (1 pound).
This represents an increase of over 80% in the price of Arabica coffee beans since the beginning of the year.
Robusta coffee beans, mainly used for instant coffee, have also seen an almost 100% increase, with prices currently standing at $5,694 per ton.
The dramatic rise in coffee bean prices in recent months is due to poor weather conditions in the two major coffee-producing countries, Brazil and Vietnam. Both countries experienced unusually low yields due to severe drought in August and September, and heavy rains in October that damaged some of the plantations.
Coffee prices have reached an all-time high in recent days. Arabica coffee beans, considered the most popular in the world, have reached $3.44 for 450 grams. This represents an increase of over 80% since the beginning of the year. Robusta coffee beans, mainly used for instant coffee, have also seen a nearly 100% increase, with prices currently standing at $5694.
The dramatic rise in coffee bean prices in recent months is a result of poor weather conditions in the two major coffee-producing countries, Brazil and Vietnam. Both countries experienced unusually low yields due to severe drought in August and September and heavy rains in October that damaged part of the plantations.
Many coffee manufacturers have already announced that they intend to raise prices at the start of the new civil year.
David Rennie, Executive Vice President and Head of Nestlé Coffee Brands, stated at an investors event in November that the company will need to adjust coffee prices to the new costs of popular coffee beans. "The coffee industry is facing challenging times. We are not immune to coffee bean prices, far from it," said Rennie.
Giuseppe Lavazza, CEO of coffee manufacturer Lavazza, also said that he anticipates price increases in the near future. "We have never seen such a price increase in coffee like the current trend. The coffee supply chain is under dramatic pressure," Lavazza said.