Global coffee prices have surged to a 50-year high due to adverse weather conditions in key coffee-producing countries like Brazil and Vietnam. These unfavorable weather patterns have been impacting coffee production for the past three years, resulting in a reduced supply and rising prices.
As a consequence, major coffee roasters such as Nestlé have been forced to raise their prices, while consumers are looking for more affordable coffee options. The shortage of coffee beans has caused a significant spike in prices, with the benchmark ICE exchange price reaching $3.36 per pound. This marks the highest level seen since 1977, when snowstorms devastated Brazil’s coffee plantations.
Brazil, which supplies about half of the world’s arabica beans, has been particularly affected by a severe drought, further exacerbating the supply crisis. Coffee traders and suppliers like Atlantica and Cafebras are now seeking debt restructuring to manage the impact of rising prices, hedging losses, and handling delivery delays. This situation may present a profitable season for coffee farmers, though it continues to put pressure on traders and consumers alike.
