Coffee Prices Hit Record Highs as Weather Wreaks Havoc on Global Supply
Global coffee prices surged to a multi year high in 2024 rising 38.8% compared to the previous year the Food and Agriculture Organization (FAO) reported. The steep increase was driven by extreme weather in key coffee-producing countries causing supply shortages and pushing prices to unprecedented levels.
In December 2024 Arabica coffee known for its rich flavor was selling at 58% higher than the previous year while Robusta used in instant coffee saw a staggering 70% price surge. For the first time since the mid-1990s, the price gap between the two varieties narrowed significantly.
FAO warned that coffee prices could rise further in 2025 if adverse weather continues to impact major growing regions. Viet Nam the world’s second-largest coffee producer, suffered a 20% drop in production ...