The price of coffee is expected to continue rising as disruptions to the supply chain and increased labor costs keep impacting the industry, recent business reports state.
Arabica beans, the “high-end” crop that Starbucks uses, jumped to $2.32 per pound in June, according to the New York Post.
This makes for a 64 percent increase since 2020 when the beans were just $1.41 per pound.
Robusta beans, commonly used for instant coffee, jumped by a whopping 187 percent in the same period — from just $0.65 to $1.86 per pound.
Vietnam is one of the biggest suppliers of robusta beans, but the country is on track to produce the lowest amount in 13 years due to droughts.
Volcafe Ltd., one of the world’s top coffee traders, said there has been an “unprecedented” fourth year of deficits for robusta beans as the weather in Vietnam continues to cause “irreversible damage” to coffee blossoms, Bloomberg reported.
Brazil is a huge arabica coffee grower that has also faced hard times due to “less-than-anticipated rainfall” in the region of Minas Gerais, according to the New York Post.
“Coffee farmers in the South American country are reportedly hoarding beans in anticipation of higher prices,” the outlet noted.
These weather issues have created a challenge for the entire coffee supply chain, including growers, production plants, importers, and stores.
“As the U.S., a major coffee importer, braces for impact, the ripple effects of the supply fluctuations could affect everything from the cost of a morning brew to the financial markets,” Newsweek published in an April report.
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