Coffee prices are surging, reaching a nearly 50-year high of 348.35 cents per pound for arabica futures, driven by severe drought and extreme weather in Brazil. Arabica beans account for 60-70% of global coffee production and are essential in espressos. Experts warn that it may take years for coffee prices to stabilize due to ongoing adverse weather conditions affecting crop yields. The USDA projects a 5.8% decline in Brazil’s coffee production for 2024/2025. Consequently, major companies like Nestlé are likely to raise consumer prices to manage rising costs, impacting coffee drinkers globally.
