Coffee prices skyrocket as extreme weather impacts crops, demand increases

Business News

MARGATE, FL – MARCH 10: Coffee beans are seen in the roaster during the process of making the Miami Beach blend of coffee at the Kana Coffee Roasters on March 10, 2015 in Margate, Florida. A panel of government-appointed scientists at the Dietary Guidelines Advisory Committee charged with proposing changes to U.S. dietary guidelines announced recently that three to five cups of coffee daily do not have long-term health risks, and help reduce the risk for heart disease and type 2 diabetes. (Photo by Joe Raedle/Getty Images)

(WPRI) — Adding extra cream and sugar won’t make this news less bitter — coffee prices are soaring.

The caffeine catastrophe is all due to the extreme drought and colder temperatures devastating Brazil, which is the world’s largest producer of arabica coffee beans.

It’s the worst drought in roughly a century, killing as much as 70% of the coffee crops in some areas and causing farmers to struggle to harvest enough beans to meet the global demand.

According to the Wall Street Journal, prices for arabica coffee beans have hit their highest level since 2016.

Besides a lack of rainfall, a vicious cold snap is also proving to be catastrophic.

July 20’s frosts were the strongest since 1994 and have already damaged up to 495,000 acres of coffee fields, according to Reuters.

The weather has taken such a toll on many of the plants that experts say there’s no hope in saving them.

Experts predict the overall coffee harvest in Brazil will be the lowest since 2003.

There is also an increased demand for coffee. According to the U.S. Department of Agriculture, coffee consumption globally is expected to outpace production.

The department says 164.8 million bags of coffee are expected to be produced this year, while consumption is expected to reach 165 million bags this year.

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