Economy

Global coffee prices surge amid supply chain disruptions

Date: Jan 8, 2025

The global coffee market has experienced a significant surge in prices, with the cost of coffee as a raw commodity increasing by nearly 70% at the end of last year.

Experts attribute this dramatic rise to a combination of adverse weather conditions and ongoing supply chain disruptions.

Over the past two months, coffee prices have hovered around all-time highs, driven by severe weather events in key coffee-producing countries. Vietnam, one of the world's largest coffee exporters, has been hit hard by a severe drought and extensive damage from typhoons. These natural disasters have severely impacted coffee harvests, leading to a reduction in supply.

Similarly, Brazil, another major coffee producer, has faced its own set of challenges. Wildfires in one of its major coffee districts west of São Paulo have further strained the supply chain. The fires have not only destroyed vast areas of coffee plantations but have also disrupted the logistics of transporting coffee beans to international markets.

The situation is exacerbated by supply chains that are still recuperating from the COVID-19 pandemic. The pandemic caused significant disruptions in global trade, and the coffee industry has not been immune to these effects. Additionally, geopolitical issues, such as the ongoing conflict in the Middle East, have added further strain to the already stressed supply chains.

--SABC/ChannelAfrica--

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