Arabica Coffee Bean Prices Up 50% in One Year... Impact of Climate Anomalies

[Asia Economy Reporter Yujin Cho] Bloomberg reported on the 9th (local time) that the price of Arabica coffee beans has risen by 50% over the past year due to abnormal weather in Brazil, the world's largest coffee bean producing region.

The drought and severe frost that hit Brazil's major coffee bean producing areas significantly reduced the harvest, and the increase in sea freight rates caused by the worsening COVID-19 supply chain also contributed to the rise in coffee bean prices, the news agency explained.

Demand is increasing amid the supply shortage. According to Rabobank International, the expected global coffee consumption this year is 168.8 million 60kg bags of coffee beans, an increase compared to last year (164.8 million bags).

Guilherme Moria, an analyst at Rabobank International, said, "Coffee bean demand temporarily slowed down last year due to the COVID-19 pandemic," adding, "The recent rise in coffee bean prices does not seem to suppress the rebounding demand."

Fitch Solutions, a subsidiary of the international credit rating agency Fitch, sees rapid growth in caf? culture centered on emerging Asian countries such as China, India, and Indonesia, driving global demand. According to Fitch Solutions, global coffee bean consumption is expected to grow at an average annual rate of 9% over the next three years.

This content was produced with the assistance of AI translation services.