Coffee prices have been rising at a record pace and show no signs of slowing down, foreign media reported.In early December the price of coffee of variety arabica reached the highest level in almost 50 years. S S those prices have slightly slowed, but, according to CNBC, in 2024 the price of this brand of coffee will increase by 70 percent. The last time the price was at this level was in 1977 when snow destroyed huge areas of Brazilian plantations. This increase in prices is caused by drought and heat,
and the fact that most of the world receives raw materials from only a>few regions. “In August and September Brazil had the strongest drought
in the last 70 years, and the October was driven by prolific rain. that caused fears, that it could cause crop failure, ” says Saxo Bank Ole Hansen, head of commodities strategy Saxo Saxo Bank Ole Hansen. The share of arabica beans accounts for about 60-70%
of the global coffee market. The second most popular brand, robusta,
reached a price record in late November. “History shows that price of
coffee will fall only when the supply improves and stocks increase.” – says Chief economist of Climate and Commodities Capital Economics David Oxley. “It should be noted that this process could
take years, not months, ” Oxley said.
