Coffee prices have surged due to climate issues in Brazil and Vietnam, with wholesale arabica beans soaring past $4 per pound. Retail prices for ground coffee hit a record $7 per pound. Severe droughts and flooding have affected coffee exports from these regions, while the local chain Press Coffee indicated they will not raise prices at this time.
Recent climate disturbances in Brazil and Vietnam have driven up coffee prices significantly. The cost of wholesale arabica beans rose above $4 per pound last month, a stark increase from under $2 per pound a year earlier. As a consequence, the retail price for ground coffee reached an unprecedented $7 per pound in January, reflecting a 75% escalation from January 2020, according to U.S. government data.
The climate challenges are particularly severe; the 2024 coffee growing season has been marked by drought in Brazil, followed by frost in August, along with flooding in Vietnam post-drought. These incidents contributed to a 7.4% decrease in Brazil’s coffee exports year-over-year and a nearly 40% drop in Vietnam’s exports in December, as reported by CBS News.
In light of these market fluctuations, Arizona-based Press Coffee, a prominent coffee retailer, indicated that they currently have no plans to increase their prices despite the rising costs, citing the volatility of the market as a concern.
In summary, coffee prices are experiencing significant increases due to climate-related issues affecting major producers in Brazil and Vietnam. The sharp rise in wholesale and retail costs signals potential higher expenses for consumers in the future. The situation remains fluid, with some coffee chains opting to maintain current pricing despite market pressures.
Original Source: www.azfamily.com
