Business Desk 
Dec 05, 2024
Owing to unfavourable weather conditions in Brazil and Vietnam, coffee prices around the world have reportedly risen to 50-year high, leading roasters like Nestle to raise prices and consumers to seek affordable brews.
The News reported that the all-time high prices due to shorter supply could pave the way for a lucrative season for coffee farmers, while compelling traders to remain patient to obtain their preordered beans.
Why coffee prices are rising globally
The hampered cultivation of coffee because of bad weather in Brazil and Vietnam has been reducing coffee supply for the past three years, leading to rising costs.
Given that, KC-TOT-TOT stocks depleted with benchmark ICE exchange prices skyrocketing at $3.36 per lb. The previous account of such a gloomy season for coffee supply dates back to 1977 when snow wreaked havoc on swathes of Brazil’s coffee plantations.
Unfortunately, experts are pointing to a repeating history of coffee growth. Being the sole caterer of around half the world’s arabica — high-end beans used in roast and ground blends — Brazil witnessed one of the most devastating droughts it was ever inflicted by.
Brazil's indigenous traders Atlantica and Cafebras are on the lookout for legally fair debt restructuring in view of the coffee price elevation, hedging losses, and delivery delays.
