Coffee prices are experiencing significant increases due to climate-related challenges in Brazil and Vietnam. Wholesale arabica prices have surpassed $4 per pound, and retail prices for ground coffee hit $7 per pound in January. This rise follows adverse weather events impacting coffee exports significantly in both countries.
Coffee prices have surged primarily due to climate issues affecting Brazil and Vietnam, the world’s top coffee producers. The wholesale price of arabica beans has exceeded $4 per pound for the first time, a stark increase from less than $2 per pound the previous year. Retail prices for ground coffee have also reached unprecedented levels, climbing to $7 per pound in January, representing a 75% increase from January 2020, according to data from the U.S. government.
The 2024 coffee growing season has been challenging, marred by a severe drought followed by a frost in Brazil and extensive flooding in Vietnam, which occurred after a drought. Brazil reported a 7.4% decline in coffee exports year-over-year in October, while Vietnam saw nearly a 40% drop in exports in December, according to CBS News.
In light of these developments, Arizona’s Family consulted with Press Coffee, a prominent coffee chain in Arizona, regarding the likelihood of price increases being passed to consumers. Representatives from Press Coffee indicated that, at present, there are no plans to raise prices amid the current market volatility.
In summary, the drastic rise in coffee prices is largely influenced by significant climate-related challenges in Brazil and Vietnam. With wholesale and retail prices reaching historic highs, the future of coffee affordability is uncertain. Stakeholders, including coffee chains like Press Coffee, are currently navigating market volatility without immediate price adjustments for consumers.
Original Source: www.azfamily.com
