Recently, coffee prices have reached historic highs. In February this year, the price of arabica hit $4.41 per pound, the highest in nearly 50 years. Just a year ago, it was less than half that cost, but prices have doubled in 12 months. The key reasons are natural disasters in Brazil and Vietnam, the leading coffee-producing countries.
Brazil, which produces 40% of the world's coffee, is experiencing the most severe drought in 70 years, leading to crop losses. Lack of rainfall and an increase in fires severely affected coffee plantations. In Vietnam, the second largest coffee supplier, production fell due to drought and the subsequent Typhoon Yagi, which caused flooding and delayed the harvest.
Another factor influencing prices is trade barriers and tariffs imposed by the US on major coffee exporters, including Colombia, Vietnam and Brazil. All this has led to a reduction in global coffee reserves, further supporting the surge in prices.
Despite these factors, global coffee consumption continues to grow, particularly among younger generations and in new markets such as China. Experts, however, warn that climate change is the biggest threat to the industry, with unpredictable weather potentially reducing arabica harvests and threatening farmers' incomes.
Coffee prices today result from the complex interaction of natural, economic and social processes: from extreme weather to global trade and shifts in consumption. For market stabilization, new coffee farming strategies, investment in sustainable agriculture, and adaptation to climate change are required.
