Prices for Arabica, the world's most popular coffee variety, have reached an all-time high. On the exchanges, March futures were fixed at a record mark of $3.34 per pound of grain, which is equal to about 0.45 kg. This is the highest value in the history of trading, surpassing even the crisis level of 1977. The price has increased by 80% in the last year, and this is only the beginning of the changes for the end consumer.
the BBC writes , companies engaged in the processing of coffee beans have already announced the inevitable increase in retail prices. Representatives of such giants as Lavazza, Nestlé and JDE Peet's are forced to adjust the cost of their products. In particular, brands Jacobs, L'Or and Douwe Egberts announced a 30% increase.
What caused the record price increase?
- Climate disasters in Brazil
Brazil, the largest supplier of Arabica, has been hit hard by extreme weather conditions. A severe drought in August-September 2024 destroyed part of the crop, and rains in October destroyed seedlings for the coming season. - Problems in Vietnam
Vietnam, a key producer of another popular variety of coffee, robusta, has also faced droughts and prolonged downpours. This further reduced the supply in the market. - Growing demand for coffee
The global popularity of coffee is growing rapidly, even in countries with a traditional love of tea. In China, coffee consumption has doubled in the past decade, and Britons are increasingly preferring coffee to tea.
Impact of climate change on coffee plantations
Coffee trees require very specific conditions to grow: the temperature should be between 15-24 °C, and the plantations should be located at an altitude of 1,200 to 2,200 meters. Too high temperatures or frosts change the taste of grains or destroy trees altogether.
Due to global warming, areas where Arabica is traditionally grown have already experienced climate change, forcing farmers to look for new land. Uruguay, Argentina, the USA, China and even New Zealand are among the promising regions for growing coffee. However, this process will take decades, and global demand is growing every year.
What can consumers expect?
Experts predict that coffee prices in stores will start to rise already from the beginning of 2025. Companies can also reduce the size of coffee packs to avoid a significant increase in the retail cost. For coffee lovers, this may mean switching to less expensive varieties or changing consumption habits.
