São Paulo, Feb 4 (EFE).- The price of coffee will continue to soar this year mainly due to climate change in Brazil, the world’s largest coffee producer and exporter.
In 2021, the price of coffee rose to its highest in a decade and according to experts, the worsening climate conditions for coffee production in Brazil are largely to blame.
Global markets heavily depend on the volume of coffee produced in Brazil, which last year dropped by 25% compared to the previous year.
The drop in production was a result of economic instability, climate change as well as the coronavirus pandemic, still wreaking havoc in international production chains.
Coffee regions across Brazil, like the southeastern state of Minas Gerais, suffered from severe droughts and winter frosts, hampering the blooming of coffee plants, while the La Niña weather pattern also contributed to the break in productivity, according to experts.
Together with problems in Vietnam and Colombia, other major players in the coffee industry, and a rising demand, the price of coffee on the New York Stock Exchange jumped by 74% in 2021, Gil Barabach, consultant at ‘SAFRAS & Mercado’, an entity specialized in Brazilian agribusiness, told Efe.
The price of coffee rose to $226.10 cents per pound (0.45 kilos), the highest level since 2011, and is expected to rise to 240, he added.
Nevertheless, Brazil has estimated it will harvest 16.8% more coffee compared to 2021 and projections show that coffee consumption will grow too.
“What will mark the international market will be the next Brazilian harvest,” says Barabach. EFE