ALBAWABA - Significant weather interruptions in major coffee-producing areas have caused the price of coffee to soar to its highest levels in decades, according to AFP. A pound of Arabica coffee, the premium type used in specialty brews, cost 320.10 cents, a record high since at least 1977.
Similarly, prices for Robusta coffee, which is often used in instant drinks, hovered at $5,200 per metric ton in London after reaching a record $5,829 in mid-September.
An unprecedented drought in Brazil, the world's largest producer of coffee, is the primary driver of the spike in prices. Concerns over lower harvests for the next season have been raised by the long-term dry and hot circumstances that have negatively affected coffee trees.
This year has also seen unusually dry weather in Vietnam, the world's top producer of Robusta beans and another significant exporter of coffee. The combined effect of unfavorable circumstances in Vietnam and Brazil has increased concerns about a shortage of coffee worldwide.
The pressure placed on coffee markets is also being exacerbated by various other factors. Stricter European Union laws on deforestation, possible US tariffs, and disruptions in Red Sea shipping channels are all contributing to the logistical and legal difficulties, AFP reports.
Bloomberg reports that according to the U.S. Department of Agriculture, Brazil's coffee supplies might drop to 1.2 million bags by the conclusion of the current season in June, which would represent a 26% decrease from the year prior.
