Record Coffee Price Surge Shows No Signs of Slowing Down
The contracts for Arabica coffee (delivery March 2025) reached a new record last week, at 348.35 cents per pound, the highest level in 50 years. Although the contract has since reduced some of its gains, it remains up 70% since the beginning of the year.
The last time Arabica coffee beans, the world's most popular variety, reached such a high level was in 1977, when snow destroyed vast areas of Brazilian plantations. Known for their sweet taste and sugary flavor, Arabica beans represent between 60% and 70% of the global coffee market.
The extraordinary surge in coffee prices, which is considered the second most traded commodity in terms of volume after crude oil, is set against a backdrop of concern over the 2025 harvest in Brazil, the world's largest producer. The country experienced its worst drought in 70 years in August and September, followed by heavy rainfall in October, which raises fears of a flowering failure.
These poor growing conditions mean that coffee prices could take a long time to recover. Historically, coffee prices will only ease when supply improves and stocks are replenished. This is a process that can take years, not months.
As a result, all manufacturers will have to increase their prices, as it is impossible to absorb the rising costs. You have been warned.
