Low productivity of coffee in Brazil can cause a sharp increase in coffee grains in the world, writes The Wall Street Journal.
In 2021, plantations were badly damaged by drought. Even then, prices began to beat records of the last 10 years. The cost of the pound of the Brazilian Arabica rose to $ 2.58, after which it was established in the region of $ 2.23.
This year, the situation with drought and bad weather in Brazil and neighboring Colombia continued. Farmers expected to reduce yield. This threatens problems with coffee supply around the world. The problems are added not only the drop in yields, but also the difficulties in world logistics, high prices for transportation and global prices. International Coffee Organization claims that demand will only grow, and will soon begin to overtake the rate of production.
However, not all experts make pessimistic forecasts. Fitch rating agency analysts do not expect a sharp increase in prices. According to their estimates, they will stop at an average level of $ 2.15 per pound of coffee, but will be unstable.