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Experts Warn Coffee Prices May Be Rising, Supply Shortages Possible

By Ryan King Sep 24, 2024 | 3:55 PM

In Brazil, the world’s largest coffee producer, farmers are facing their worst drought conditions in over 70 years, compounded by above-average temperatures. Some farmers expected to harvest 120 sacks of coffee beans this season, some only managed 100, citing damages to flower buds that jeopardized the 2025 crops. With Brazil’s coffee harvest nearly flat compared to last year and similar drought conditions affecting Vietnam, global coffee prices are rising, driven by anticipated supply shortages. Experts warn that adverse climate conditions could lead to lower-quality beans and a smaller harvest.

Coffee prices are climbing, with the International Coffee Organization reporting an average price of $2.38 per pound in August, marking a 55% increase from the previous year. Although prices have not yet reached the record highs of the late 1970s, they are at a 13-year high when adjusted for inflation. Contributing factors include increasing
demand in Asia and severe weather impacts—drought, frost, and wildfires have damaged significant portions of Brazil’s coffee-growing areas.

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