Coffee Prices Rising Again... Coffee Bean Prices Highest in 47 Years

Poor Crop Conditions in Major Producing Countries Including Brazil

Concerns over a global shortage of coffee beans have intensified due to climate change in major coffee-producing countries such as Brazil, leading coffee bean prices to hit an all-time high on the 10th (local time).

According to The Wall Street Journal (WSJ) and Bloomberg News, the March delivery price of Arabica coffee bean futures on the New York market in the United States surged to $3.48 per pound at one point before closing at $3.34. This surpassed the previous record high of $3.38 set in April 1977.

EPA Yonhap News

Coffee prices have surged more than 80% since the beginning of this year, with an increase of over 35% since October alone.

In Brazil, the world's largest coffee bean producer, prolonged drought has raised concerns about next year's coffee harvest. Major coffee trading company Volcafe has downgraded Brazil's production outlook due to the extended drought. Brazil is expected to produce 34.4 million bags of Arabica coffee. Bloomberg analyzed this as a decrease of 11 million bags compared to the September estimate.

Volcafe forecasts that global coffee production will fall short of demand by 8.5 million bags in 2025?2026. This marks the fifth consecutive year of supply shortages.

Not only Arabica, which is used for high-priced coffee, but also Robusta beans, used in low-cost and instant coffee, are experiencing poor crop conditions. Vietnam, the largest producer, saw a decline in production due to dry weather during the growing season and heavy rains during the harvest. Consequently, Robusta bean prices also hit record highs in September.

As coffee harvests decrease in major producing countries, global coffee inventories have been declining over the past four years. Meanwhile, demand is increasing as China emerges as a new coffee consumption market. Ole Hansen, Head of Commodity Strategy at Saxo Bank, said, "Coffee production is struggling to meet demand amid rising consumption in China," adding that production is concentrated in a few countries such as Brazil and Vietnam, making it vulnerable to weather changes.

The WSJ reported, "Whether brewing coffee at home or taking it out, a cup of coffee is at risk of becoming more expensive," noting that major coffee manufacturers have already raised prices this year, and executives are exploring how much more they can increase prices without losing customers, according to investors.

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