At the United States National Coffee Association annual convention in Houston this week, attendees said they have been in shock at a 70% increase since November for Arabica coffee futures on the ICE exchange , the benchmark for coffee deals around the world.

Renan Chueiri, Director General at ELCAFE C.A. in Ecuador, said this year is the first time the instant coffee maker hasn't sold all of its expected annual production by March.

"We would usually be sold out by now, but so far we sold less than 30% of production," he said. "The big price increase eats clients' cash flow, they don't have all the money to buy what they need."

The coffee price hikes have stemmed from lower production in important coffee-growing regions, particularly in top grower Brazil, reducing the availability of beans.

--Reuters--