Coffee Prices Hit New High: Blamed on Climate Change and Pandemic
Coffee prices have reached a new high, with a 15% increase in the past year alone, causing concern among coffee producers and consumers worldwide. According to the International Coffee Organization (ICO), the average price of a 60-kilogram bag of robusta coffee beans has risen to $2,450, a staggering 46% increase since 2019.
The main culprits behind the surge in prices are climate change and the COVID-19 pandemic. Droughts, floods, and frosts have played havoc with coffee crops in many countries, reducing yields and affecting the quality of the beans. In Brazil, the world’s largest producer of coffee, farmers are struggling to adapt to changing weather patterns, resulting in a significant reduction in production.
The pandemic has also had a significant impact on the coffee industry, with many cafes and restaurants forced to close, leading to reduced demand for green coffee beans. This has resulted in a supply-and-demand imbalance, driving up prices even further.
The ICO warned that prices are likely to remain high in the short term, at least, citing ongoing issues in key coffee-producing countries and the lack of a relief package to address the crisis. Coffee producers are calling for support from governments and international organizations to help them recover from the devastating effects of climate change and the pandemic.
In the meantime, consumers can expect to pay more for their morning cup of coffee, and coffee companies are advised to negotiate flexible pricing and look for alternative sources to ensure a steady supply of high-quality beans. As the world struggles to adapt to the new reality, the coffee industry is being forced to adapt and innovate to ensure its survival in the face of these challenges.