Coffee Prices Surge to Nearly 50-Year High Due to Extreme Weather

Droughts and heavy rains in Brazil, the world's largest coffee producer, are driving record-high prices for arabica and robusta beans, with analysts warning the trend may last for years.

• Arabica coffee prices have risen 83% this year, reaching $3.44 per pound, the highest since 1977, while robusta prices have also hit record highs.
• Brazil, which produces nearly 40% of the world's coffee, has faced its worst drought in 70 years followed by heavy rains, disrupting crop yields for the fifth consecutive year.
• Vietnam, the second-largest coffee producer, has also suffered from drought, further tightening global supply as demand continues to grow, particularly in China.
• Analysts predict it could take years for coffee prices to stabilize, as global stocks remain low and extreme weather continues to impact production in key regions.
• Major coffee companies, including Nestlé and Lavazza, have begun raising prices and reducing package sizes, signaling higher costs for consumers worldwide.

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