Global Coffee Prices Surge, Brewing Higher Costs for Consumers
Global Coffee Prices Surge, Brewing Higher Costs for Consumers.
The price of arabica beans has hit over $3.44 per pound, and the cost of robusta beans has nearly doubled this year.
Your morning coffee fix might get a lot more expensive next year, as coffee bean prices on the global market have skyrocketed to an all-time high.
On Tuesday, arabica beans, which are the most popular type, hit $3.44 (£2.70) per pound, marking an increase of over 80% this year. At the same time, the price of robusta beans, commonly found in instant coffee, has nearly doubled, reaching $5,694 per metric tonne by late November.
This price hike is largely due to forecasts of smaller harvests this year, as major producers like Brazil and Vietnam faced tough weather conditions. This comes at a time when more and more people are craving their daily coffee fix.
Last month, Nestlé, the company behind popular brands like Nescafé and Nespresso, announced plans to keep raising prices and reducing pack sizes to deal with the rising cost of coffee beans. In UK supermarkets, the price of Nescafé Original instant coffee has jumped 15% compared to last year, as reported by the Grocer's key value items price tracker.
“Like every manufacturer, we have seen significant increases in the cost of coffee, making it much more expensive to manufacture our products,” Nestlé said at the time. “We continue to be more efficient and absorb increasing costs where possible.”
This past summer, Lavazza, the Italian coffee brand, cautioned that coffee prices would stay “very high” and probably wouldn’t decrease until around mid-2025 due to significant supply chain challenges.
“We have never seen such a spike in price as the trend right now,” said Giuseppe Lavazza, who chairs the company. “The coffee supply chain is dramatically under pressure.”
Coffee prices hit a record high back in 1977 when snowstorms wreaked havoc on Brazilian plantations. Fast forward to now, and Brazil, the top producer of arabica coffee, just went through its worst drought in 70 years during August and September, only to be followed by heavy rains in October. This has raised worries that the upcoming crop might not thrive.
But it’s not just Brazil feeling the heat from the weather. Vietnam, the biggest producer of robusta coffee, is also facing a supply drop due to a mix of drought and heavy rains affecting its plantations.
On the other hand, Will Corby, a director at Pact Coffee, stated that coffee beans had been “sold for far too cheap from its countries of origin to the west for far too long. Huge coffee companies might say that these market highs are bad news, but, in reality, farmers are finally being paid enough to live on,”
The sharp rise in coffee prices signals a troubling trend for consumers and the industry alike. While global weather conditions and supply chain issues are partially to blame, the relentless price hikes reflect deeper systemic problems, including the exploitation of coffee farmers. The doubling of robusta bean prices and soaring arabica costs highlight the growing divide between what consumers pay and what producers earn.
Major companies like Nestlé and Lavazza continue to pass the burden onto customers, all while farmers struggle to secure fair wages. If these trends continue, coffee may become a luxury item, leaving many unable to afford their daily brew.
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