Drought and Disruptions Drive Coffee Prices to Historic Highs

Coffee prices have surged to their highest levels since 1977, with Arabica futures climbing to $3.17 per pound. This dramatic increase is primarily due to supply disruptions in major coffee-producing countries, particularly Brazil and Vietnam. A severe drought in Brazil earlier this year has raised concerns about the country’s coffee output, while Vietnam has faced both drought during the growing season and heavy rains at the start of harvest. These supply issues are expected to impact consumers, with companies like Nestle already planning to raise prices and reduce package sizes.