Arabica coffee prices have reached nearly a 50-year high.
Arabica prices have risen to a record level in the last 43 years
According to Bloomberg, the prices of arabica - elite coffee beans - rose by 3.1%, reaching the highest level since 1977. In New York, the price of arabica increased by 2.3%, to 3.158 dollars per pound. Overall, this year its price has risen almost 70%.
Futures for robusta coffee in London also increased by approximately 85%.
The rise in coffee prices worldwide is a result of poor harvests in the two largest producers - Brazil and Vietnam. The affected coffee belt experienced drought during the coffee growth period, and at the beginning of the harvest, it faced heavy rains. This led to increased prices and the cancellation of discounts across the coffee supply chain to maintain sellers' margins.
The world's largest coffee producer - Nestle SA - also stated that it is raising prices and reducing packaging to mitigate the impact of rising bean costs.
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