Coffee prices at 47-year high - Extreme weather has pushed costs up sharply as demand continues to rise
Coffee prices have reached a 47-year high. This comes as a result of Arabica coffee futures recently hitting $3.35 per ounce (453 grams). That's 70% more than at the start of the year and at levels not seen since 1977.
Prices have risen due to fears of the consequences of extreme weather and intense droughts in major coffee-producing countries such as Brazil and Vietnam. The latter has experienced a long drought, followed by torrential rains that have delayed the harvest.
"A challenging growing season in Vietnam, the main producer of Robusta beans, has now shifted to Brazil, where unfavorable weather has raised serious concerns for the 2025 Arabica crop," the experts explain.
Brazil, the main producer of the Arabica variety, was facing its worst drought in decades before the rains finally arrived in October. However, soil moisture remained low, adding to concerns that the crop will not meet expectations and thus pushing up benchmark prices on the Intercontinental Exchange (ICE).
Of the two types of coffee traded on the commodity market, the price of Arabica has increased by almost 70% on an annual basis, while Robusta by more than 60%.
Coffee is one of the most traded products in the world and demand has been growing, driven by high consumption in China. However, only a small number of producing countries meet this requirement. Major producers include Brazil, Vietnam, Colombia, Indonesia and Ethiopia, all tropical countries highly affected by climate change.
The US Department of Agriculture (USDA) recently reduced its 2024/25 coffee production forecast from 69.9 million units (60 kg) to 66.4 million units, which is still 0.2% higher than last season. "This small increase comes as a result of a long period of unfavorable weather conditions in the main producing regions, which led to a decrease in the initial estimates for the season," the report said.
Poll
Total investments in Albania increase by 3.8% - BSH: However, their ratio to GDP has suffered a small decrease
Investments in our country, whether made by the state or the private sector, have increased significantly throughout this year. Despite this, the ratio of......
Energy efficiency in multi-family buildings - The Agency opens two tenders in Elbasan and Shkodër
The Agency for Energy Efficiency has opened two tenders for renovation with high energy efficiency in multi-family buildings respectively in the city of......
"Energy plants inside pastures" - The new law comes into force, allowing the development of these projects
Within the pasture fund, the construction of solar and wind power plants will be allowed. The new law has been published in the Official Gazette, paving the......
US restricts chip exports to China - The decision aims to hinder Beijing's advance in the military sector
The United States imposed new restrictions on exports of chips and semiconductor equipment to China, marking the latest blow by the Biden administration to......
"11 million tourists in 11 months" - Kumbaro: Income has increased by 34% in 2 years
About 11 million foreign citizens visited Albania from the beginning of the year to the end of November. The sector, which is seen more and more as the one......
"Lower prices for citizens, more access to the market" - The competition law changes. Aligns with EU legislation
Small and medium-sized businesses will benefit from a fairer and more competitive business environment, and will have more opportunities to enter the market.......
Jaka-entrepreneurs: Let's do good parenting, for a brighter future! Stop the escape of workers!
In the 128th anniversary of the Chamber of Commerce and Industry, Tirana, Chairman Nikolin Jaka delivered several important messages. He stopped at a......
OpenAI partners with defense industry - Partnership will use AI to identify airborne threats
The spread of artificial intelligence in the defense industry is getting a boost from OpenAI's new partnership with Anduril Industries. The defense......
