ALBAWABA – Arabic coffee prices have experienced significant hikes in global markets. The cost of Arabic coffee recently hit a record $3.60 per pound in an unexpected surge.
Arabic coffee prices see massive hike
Arabic coffee prices are experiencing a significant hike due to a production shortage in Brazil, one of the world’s largest coffee producers. The price of Arabic coffee is now approaching $3.60 per pound in an unexpected surge.
Notably, about 70% to 80% of Brazil’s Arabica coffee crop has already been sold, and new deals are slowing down as Brazil, which produces roughly half of the world’s Arabica coffee, faces a production shortage.
The price of Arabic coffee is now approaching $3.60 per pound in an unexpected surge. (Shutterstock)
According to CONAB, Brazil's National Supply Company, the government agency responsible for providing data on the country’s agricultural harvest, the upcoming coffee bean crop will be 4.4% less than the previous year.
As a result, ICE coffee futures, the world’s benchmark for Arabica coffee, surged to around $3.6945 per pound, marking a significant increase of about 15% compared to last year.
Robusta coffee, derived from the coffee canephora plant native to Sub-Saharan Africa, contains twice as much caffeine as Arabica coffee and is primarily used in producing instant coffee, also recorded an increase of nearly 0.9%, reaching $5,609 per metric ton.
