Coffee prices have surged due to climate issues in Brazil and Vietnam, with wholesale arabica beans exceeding $4 per pound for the first time and retail prices hitting $7 per pound. Extreme weather events have caused significant declines in exports from both nations, contributing to the increase. Local coffee chains are monitoring market volatility before implementing any price changes.
Recent climate challenges in Brazil and Vietnam are significantly impacting coffee prices globally. The price of wholesale arabica beans, which are favored worldwide, exceeded $4 per pound last month, marking a notable increase from under $2 a pound in the previous year. Additionally, retail prices for ground coffee reached a record high of $7 per pound in January, reflecting a 75% increase from $4 in January 2020, per U.S. government data.
The current 2024 coffee growing season has been affected by extreme weather events, including a drought and subsequent frost in Brazil and severe flooding in Vietnam following a drought. Consequently, Brazil’s coffee exports in October showed a decline of 7.4% compared to the previous year, while Vietnam experienced a staggering nearly 40% drop in exports in December, as reported by CBS News.
Press Coffee, a prominent coffee chain in Arizona, was contacted regarding potential price increases. They indicated that at this time, they do not plan to raise prices due to the unpredictable nature of the current market conditions.
In conclusion, the interplay of climate issues in key coffee-producing nations has resulted in a substantial increase in coffee prices, affecting both wholesale and retail markets. The uncertainty of future weather patterns continues to put pressure on supply, prompting coffee retailers to cautiously approach price adjustments. Consumers may soon feel the impact on their favorite coffee purchases as these trends develop further.
Original Source: www.azfamily.com
