World coffee prices rise amid drought in Brazil

by time news

Coffee bean prices are rising and could drive up the price of the beverage around the world as Brazil, the world’s largest coffee producer, is facing a drought – one of the worst in the last century, writes The Wall Street Journal.

Thus, the cost of arabica coffee – the main type produced in Brazil – over the past month has grown to its maximum value since 2016. Arabica coffee futures prices have increased by 18% during trading in New York over the past three months to $ 1.51 per pound (0.45 kg).

Brazilian farmers expect the worst crop cut in 20 years due to drought. After a bountiful harvest in 2021, the 2021 figures were expected to be weaker, but the situation was exacerbated by harmful weather for agricultural activities.

“I have been growing coffee for over 50 years and have never seen such a drought … It usually takes me three months to harvest coffee, this year it took a month,” said coffee grower Christina Valle.

According to the USDA forecast, Brazil’s coffee harvest this year will fall by 15 million 132-foot bags compared to 2020, the largest annual decline since 2003.

At the same time, the Dutch Rabobank expects a reduction in the coffee harvest in Brazil by 17 million bags, while the ED&F Man company, which controls one of the largest coffee traders in the world Volcafe, expects a reduction in the harvest by 23 million bags.

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