Why is the price of coffee rising?

How much is too much for a dose of caffeine? Why is the price of coffee rising?

Coffee prices, such as US$7 per cup in New York, may soon become common due to economic and environmental factors in key producing regions. According to analyst Judy Ganes, the cost of unroasted beans has reached historically high levels, attributed to crop issues, market forces, and depleted stocks.

In 2021, an unusual frost devastated coffee crops in Brazil, the largest producer of Arabica beans, while Vietnam, facing droughts, began cultivating durian, a profitable fruit. Vietnam's Robusta coffee exports fell by 50% in June, leaving stocks nearly depleted.

Bean prices continue to rise, and some experts warn that the cost of coffee could exceed US$6.50 in the UK. While commercial-grade coffee will be the most affected, the impact on retail prices isn't always direct, as overall inflationary costs also play a significant role.

In the long term, climate change poses serious challenges for the coffee industry. A study suggests that even with drastic measures, the suitable area for coffee cultivation could decrease by 50% by 2050. With hopes for an upcoming harvest in Brazil, the industry's future will depend on early rainfalls and sustainable farming practices.

Source: BBC.