The price of coffee on global markets has recently reached a new-all time high.
As per BBC, the price of Arabic beans, which represent most of the global production, exceeded $3.44 per pound (0.45kg), rising more than 80% this year.
In the meantime, the cost of Robusta beans set a new record in September.
Coffee traders expect crop production to decrease because Brazil and Vietnam, the world’s two largest coffee producers have experienced bad weather, while at the same time, the demand for coffee is growing.
Not only that, bad weather has also affected coffee plantations in Brazil, which mainly produce Arabica beans.
Vinh Nguyen, the chief executive of Tuan Loc Commodities said in a statement, noting, "Brands like JDE Peet (the owner of the Douwe Egberts brand), Nestlé and all that, have [previously] taken the hit from higher raw material prices to themselves.”
He added, “But right now they are almost at a tipping point. A lot of them are mulling a price increase in supermarkets in [the first quarter] of 2025."
Earlier in November, a high-ranking official from Nestle, during an event for investors, explained that the coffee industry is struggling and noted that the company would need to adjust its prices and package sizes.
To note, the previous highest price for coffee was reached in 1977, following an unusual snowfall that caused significant damage to coffee plantations in Brazil.
