Coffee is currently at its most expensive in a decade.
World coffee prices are rising rapidly due to severe droughts and crop failures in Brazil, a major producer of coffee beans.
This is reported by Bloomberg.
Brazilian farmers are reporting one of the biggest declines in production nearly 20 years after months of drought hit coffee plantations.
Growing demand for coffee in China and elsewhere and programming ensure a fair farmers' fees. If coffee prices don't rise, producers may stop growing other crops for export.
Companies are forced to look for cheaper alternatives, which could reduce the quality of coffee in cafes.
New environmental requirements for coffee imports from the EU could further restrict supplies and cause prices to rise. Only some producing countries are ready to comply with these requirements, which create additional difficulties for importers.
So coffee may not only become more expensive. Low-quality products and counterfeits may increase on the market.
The most active robusta futures are on track for the biggest price rally in the first six months of the year since at least 2008. Arabica is on track for its best price start to the year since 2021.
We previously wrote that coffee can have both positive and negative effects on the body. Norwegian scientists, who have been studying the effect of coffee on the body for over 20 years and have identified the most harmful and healthy ways of preparing it, talk about how the effect of coffee on the human body depends on the way it is prepared.
