Global coffee prices are rising due to reduced supply, especially of the robusta variety, which has risen by around 40% in the first six months of 2024.
About this informs Bloomberg.
The main reason for the shortage is adverse weather conditions. Drought in Vietnam, the world’s largest exporter of robusta, has caused significant damage to the crop. This is the fourth year in a row that the country has faced problems in coffee production.
The situation is worsened by a smaller-than-expected Arabica crop in Brazil, the world’s largest coffee producer. Although the US government predicts that total coffee production will still exceed demand by 5.6 million bags, experts warn of a strained global balance that could lead to further price increases.
The increase in coffee prices is already being felt by consumers around the world. In Germany, for example, instant coffee has risen in price by 20% over the past year.
The coffee shortage is also affecting other markets. Thus, cocoa prices, after some decline, have started to rise again amid renewed concerns about a supply shortage.
It is noted that the situation on the global coffee market remains unstable, and experts predict a further rise in prices in the near future.
