This surge is driven by a “perfect storm” of economic and environmental factors affecting key coffee-producing regions, as reported by the BBC. Unfavourable weather conditions, such as the 2021 frost that devastated Brazil’s coffee plantations, have severely impacted supply chains.
Farmers in countries like Vietnam, a leading producer of the “robusta” variety used in instant blends, are now grappling with the worst drought in a decade. Many are switching to other crops, further tightening coffee supplies. Although countries like Colombia, Ethiopia, Peru, and Uganda have increased their coffee production, they are not yet able to fully offset the shortages in the market.
As a result, both “arabica” and “robusta” coffee prices have hit record highs, leading to potential price hikes for consumers. UK coffee trader Paul Armstrong warns that cafés may soon need to pass on these costs, leaving coffee lovers to pay significantly more for their daily brew.
