![Coffee prices continue to rise, reaching record highs [World News]](https://foodcom.pl/wp-content/uploads/2023/09/Foodcom_World_News_Global_Stock-1520x760.jpg "Coffee prices continue to rise, reaching record highs [World News]")
- Coffee has reached its highest price since 2011.
- A steady increase in coffee prices has been observed since the end of 2023.
- The reason is mainly climate change, especially the weather situation in Brazil and Vietnam.
- Global demand for coffee is increasing.
What does the coffee market look like at the beginning of October?
Coffee prices have been rising steadily since the end of last year – it is predicted that they could rise by up to 20-30% by the end of the year. The current price of arabica coffee on 26 September reached its highest value since 2011 – $2.75 per pound. A year ago, arabica was at $1.45. Robusta prices have also risen significantly – more than doubling in a year.
Many coffee roasters are also seeing price increases, but there is no reduction in demand from end customers. On the contrary, demand is growing, consumers are increasingly visiting coffee shops and the coffee market is growing by 10-20% per year. However, the current price increase is not yet strongly felt by the end customer.
Why are coffee prices rising?
Fluctuations in the coffee market have always been apparent, but there has been a clear upward trend for coffee for some time. The reason for higher coffee prices is due to various factors – labour problems, diseases and pests of the coffee plant and climate change.
The reason for the price increase we are currently seeing is largely due to the drought in Brazil, which is a key supplier of the world’s arabica. It is estimated that in some areas it is the driest weather since 1981, which is due not only to climate change, but also to deforestation in Brazilian areas . Robusta prices, on the other hand, are heavily influenced by the weather situation in Vietnam, where typhoons are prevalent and there is also a lack of rain.
It is predicted that next year, if weather conditions in the coffee-producing countries improve, coffee prices could fall or remain stable. Although such extreme conditions are not expected next season, the Coffee Belt regions are the most vulnerable to climate change, suffering from high temperatures, erratic rainfall and prolonged droughts. It can be assumed that there will be fewer beans and their quality will be lower. By 2050, we could lose up to 50% of land suitable for coffee cultivation. In the long term, given the increase in demand for coffee, this could contribute to further increases in coffee prices.
