Coffee beans on global markets are the most expensive in nearly half a century, which analysts say will hit consumers. The reasons for the increases include climate change, droughts and fires in Brazil, and lower harvests in Vietnam. An additional risk for the market are the tariffs announced by Donald Trump.
The prices of contracts for coffee beans from the valued Arabica species have increased this year on the New York Stock Exchange by almost 70 percent and on Wednesday reached $3.18 per pound, the highest since 1977 – notes the Financial Times. This year, the prices of grain from the cheaper Robusta variety, which is used, among others, are also the highest since the 1970s. for the production of blends and instant coffee.
Disruptions to producers
According to many experts, increases coffee prices result from disruptions in the countries where most of it is grown.
IN Brazilwhich is the largest grain producer, forest and crop fires have raged this year on an unprecedented scaleand most of the country's territory was facing the most severe drought in years, which is partly related to climate change.
Concerns about the size of the harvest also persist Vietnamwhere most Robusta beans are produced. The country has also faced severe drought and prolonged heatwaves this year.
Other factors driving up coffee prices include disruptions to transport across the Red Sea and plans to implement EU rules against deforestation.
In the near future, the president-elect's announcements may provide an additional stimulus for the increase in coffee bean prices USA Donald Trump on the imposition of tariffs on goods imported into the United States.
“Significant impact on customers”
“It's clear and obvious that this will have a significant impact on customers,” Mirabaud bank analyst John Plassard told AFP.
In his opinion, large companies operating on the coffee market “will pass on higher costs to consumers.”
Bloomberg reported last week that Nestle – the world's largest coffee producer – intends to raise prices and reduce packaging to offset increases in bean markets.
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