Extreme Droughts Lead to Record-High Coffee Prices [Video]

Extreme weather, including intense droughts, in top coffee-growing countries such as Brazil and Vietnam has led to some of the highest coffee prices in decades.

As Reuters reported, prices for coffee futures reached a 47-year high of $3.3545 per pound for Arabica coffee on the Intercontinental Exchange, Inc. (ICE) and prices for this commodity rose by around 71% in 2024.

“In the case of Arabica coffee, it is concern about a poor crop in Brazil, the most important producer country, next year due to drought,” said a spokesperson for Germany-based Commerzbank, as reported by Reuters.

Although Arabica coffee is more popular among consumers, Robusta coffee is also seeing record prices, with the cost reaching $5,694 per metric ton in late November. According to the U.S. International Trade Commission, Arabica makes up about 60% to 70% of coffee produced, while Robusta makes up about 30% to 40%.

In September 2024, scientists reported that wildfires and deforestation in the Amazon rainforest were driving the worst drought …