The world is experiencing a shortage of coffee: A sharp rise in prices is expected
In Brazil, the world’s largest coffee supplier, seed stocks could reach historic lows by spring this year due to drought.
About it National Silas Brazileiro, head of the Coffee Council, said.
According to him, coffee reserves in the country may decrease to seven million bags weighing 60 kg by March.
Nelson Carvalais, a member of the board of directors of the Cecafe export group, noted that, “Inventories are so low that even if there is a good harvest next year, Brazil will probably struggle to meet demand. We just need rain.”
Coffee consumption increased by 1.5% this year and by 2% compared to last year. However, global demand continues to grow. As demand increases prices also increases. The value of Arabica coffee futures in New York has increased by 11% year-on-year, and analysts believe that this process will continue.
Coffee consumption increased by 1.5% this year and by 2% compared to last year. However, global demand continues to grow. As demand increases prices also increases. The value of Arabica coffee futures in New York has increased by 11% year-on-year, and analysts believe that this process will continue.
It is noted that the situation is unlikely to change in the near future. In the coming months, drought will increase in Brazil, and Colombia, the second largest supplier of coffee, will, on the other hand, experience excessive rain. Inconvenient weather conditions also threaten coffee plantations in Guatemala, Honduras and Nicaragua.