23 Nov 2022
Econ Digest
Coffee prices in the global market have been rising since the end of 2021. Brazil and Vietnam – the world’s major coffee suppliers – have faced severe climate change, which has caused a reduction in their coffee bean production. Particularly, the coffee output of Brazil - the world’s largest Arabica producer – is expected to drop approximately 11% YoY this year, and its coffee stocks may drop to the lowest level in 23 years, while Vietnam – the world’s largest Robusta producer – was also hit by severe flooding from tropical storms, causing the coffee output and stocks to decrease by more than half. This supply shock has caused global coffee prices to soar during the first 9 months of 2022, the average price of Arabica rose by 42.3% YoY while the average price of Robusta rose 27.3% YoY, marking the highest level in 11 years.... Read more
FileSize KB