In 2024, severe weather drastically affected coffee, cocoa, and citrus crop yields worldwide, leading to record-high prices. Brazil’s coffee production suffered from drought and frost, cocoa prices reached the highest in decades due to weather in West Africa, and U.S. orange juice production was severely impacted by hurricanes. These issues exemplify the growing volatility in agricultural markets linked to climate change and other stresses.
In 2024, extreme weather events significantly impacted the production of essential soft commodities, including coffee, cocoa, and citrus crops, leading to substantial price surges in these markets. Brazil, a major coffee producer, faced severe drought and damaging frost, resulting in diminished harvests. Meanwhile, cocoa prices soared due to adverse weather in West Africa, while Florida’s orange juice production was further compromised by hurricanes and ongoing disease. These developments indicate a troubled future for these commodities, driven by increasingly erratic weather patterns and other multifaceted challenges.
The production levels of soft commodities such as coffee, cocoa, and citrus fruits are sensitive to environmental conditions. Weather factors play a critical role in crop yields, with persistent issues such as droughts, storms, and temperature fluctuations significantly influencing output. The effects of climate change are becoming more pronounced, resulting in unpredictable weather phenomena that present substantial risks to agricultural stability, which consequently affects market pricing and consumer costs.
The year 2024 exemplified the vulnerabilities of the global soft commodity markets to extreme weather variations. The compounding effects of drought, hurricanes, and adverse environmental conditions not only led to reduced yield projections but also resulted in marked increases in prices for consumers. Given the trajectory of climate realities and other disruptive factors such as disease and geopolitical issues, the outlook for these staple crops remains precarious as we advance into 2025.
Original Source: www.dtnpf.com
