Coffee prices are soaring, with Arabica futures hitting record highs for 13 consecutive days. Several factors are driving the increase, including climate change, reduced coffee output, low supply, and the looming threat of tariffs. According to Sprudge, the situation is compounded by Brazilian producers, who are holding onto unsold coffee as prices continue to climb. Although 85% of Brazil’s coffee has already been sold, the remaining 15% is being withheld for now. Brazil, which produces about half of the world’s Arabica coffee, plays a key role in this trend.
While rising prices are concerning for coffee drinkers, some industry experts believe the trend may soon reverse.While it may not surpass last year’s yield, the forecast offers hope for a slightly brighter outlook.
Coffee isn’t the only product seeing a sharp price increase. Cocoa prices have also surged, resulting in higher chocolate prices globally. While cocoa prices have dipped since their peak during the holiday season, they remain high, currently sitting at about $10,000 per ton—far above the $2,000 per ton seen in 2022.
With the rising costs of both coffee and cocoa, indulging in a cup of coffee or a chocolate treat may soon become a more expensive luxury.
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