Drought in Brazil affects coffee prices around the world [World News]

Further Arabica price records

Already in the second half of the year, arabica prices surpassed the 2022 record highs, but the price increase has not stopped and continues to progress. After a big jump in prices in November and a temporary stabilisation in late December and early January, arabica prices have risen again in recent days. Arabica is currently on the market at $3.45 per pound, a record price for the product, the highest in almost 50 years.

on 21 January, the Brazilian coffee harvest for 2024 was estimated at 54.2 million 60-kg bags, down 1.6% from the previous year. Arabica production, on the other hand, increased gently, but limited supply in the global robusta market and continued strong demand for coffee are putting further upward pressure on arabica prices. Production shortages in Brazil are having a knock-on effect on the global market, with price increases being felt around the world.

Reasons for further price increases – climate change is not going away

Further price increases are due to several factors, mainly related to the situation in Brazil, a leading coffee producer. Concerns about the country’s coffee supply are due to the ongoing drought – rainfall in key growing regions is still below normal while high temperatures are occurring. Such climatic changes have been observed for several years, making it difficult to grow coffee.

Regardless of the weather, Brazilian coffee supply is expected to be lower this year due to the irregular two-year crop cycle. Harvests up to the 2025/2026 season may also be affected by last year’s adverse weather. To sustain the global coffee industry, more sustainable solutions adapted to the changing climate will be required.
We recommend this article, which discusses interesting issues: The most popular types of coffee and their properties: discovering the world of coffee