Brazil, the world’s largest coffee-producing country, faces the worst drought of almost a century, which could raise global coffee prices and push up costs at breakfast tables.
The price of Arabica coffee beans, the main variety produced in Brazil, reached its highest level since 2016 last month. Arabica futures trading in New York have risen more than 18% in the last three months to $ 1.51 per pound. Robusta (a strong-tasting variety preferred for instant coffee) traded in London has risen by more than 30% in the past three months to a two-year high of $ 1,749 per ton.
Brazilian farmers want one of the biggest drops in production almost 20 years after the plants have died due to months of drought. Brazil’s arabica harvest circulates between a strong year and a weak year that follows. Following a record harvest in 2020, 2021 was set as a weak year, but the decline is more severe than expected.
“I’ve been growing coffee for over 50 years and haven’t seen as bad a drought as last year and this year,” said Christina Valle, Brazil’s largest coffee producer in Minas Gerais. Stated. Growing state. “I usually take three months to harvest coffee. This year it took a month,” she said.
According to the USDA, total coffee yields in Brazil this year are expected to decline the largest year-on-year since 2003. The yield of the Arabica species is projected to be about 15 million, 132 pounds, from 2020.
Coffee prices soar after poor harvest and insatiable demand
Source link Coffee prices soar after poor harvest and insatiable demand