Why the cost of your daily coffee is set to skyrocket

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Why the cost of your daily coffee is set to skyrocket

^{Published on 2024-11-30 16:30:49 - Bill Williamson, WOPRAI}

Adding to pricing pressures is the severe drop in Robusta coffee produced in Vietnam due to Typhoon Yagi and its damage to crop fields. Robusta and Arabica beans tend to be supplementary, meaning a decrease in the supply of one leads to an increase in price of the other.

The cost of daily coffee is expected to rise due to several factors affecting the coffee industry. Firstly, there has been a significant increase in the price of coffee beans, with futures for robusta beans reaching a 15-year high due to supply issues in major producing countries like Vietnam and Brazil. Vietnam, the world's largest producer of robusta, has seen its coffee exports drop by 10.4% in the first four months of the year, influenced by farmers switching to more profitable crops like durian and avocados. Additionally, Brazil, the top arabica producer, is facing potential crop losses due to adverse weather conditions. These supply constraints are compounded by rising costs in other areas of coffee production, such as labor, packaging, and transportation. Furthermore, the article mentions that cafes are also dealing with increased operational costs, including rent, wages, and energy, which are likely to be passed on to consumers. This combination of factors suggests that coffee prices at cafes could increase by as much as 30% in some cases, making the daily coffee habit significantly more expensive.

Read the Full Couriermail Article at:
[ https://www.news.com.au/finance/business/retail/why-the-cost-of-your-daily-coffee-is-set-to-skyrocket/news-story/ed0ec6c731dc5ce09b7e2598a9abd357 ]

N@N

Why the cost of your daily coffee is set to skyrocket