Coffee prices have surged to a 50-year high, according to a recent report from The New York Times. As of late December 2024, the price of coffee beans had risen by 30% since early November. Futures for arabica beans, the most widely consumed variety, hit over $3.30 per pound in mid-December, marking the highest price in 47 years.
This sharp increase in coffee prices is driven by growing demand and supply disruptions caused by extreme weather conditions. Brazil, the world’s largest producer of arabica beans, has been hit hard by a severe drought that devastated last summer’s harvest. This could continue to affect the upcoming year’s crop as well, the report notes.
Additionally, robusta beans, commonly used in instant coffee, have also seen a decline in production due to a combination of drought and heavy rains, further tightening supply and pushing prices higher.
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