The price of premium %ArabicaCoffee beans is now at its highest level in 13 years.
Ongoing supply disruptions have pushed the price of Arabica coffee beans up to $2.68 U.S. per pound in New York trading, the highest level since 2011.
The price of the premium coffee bean is now up 40% this year as shortages of the cheaper Robusta bean leads to a surge in demand for Arabica beans.
The main problem is poor weather in Brazil, the world’s top producer of both Arabica and Robusta coffee beans.
Crops in Brazil have been devastated by excessive heat and dryness caused by climate change. This has led to a global supply crunch that has pushed up prices.
Government officials are warning of worsening drought conditions in Brazil that could further damage coffee bean crops this year and into the next planting and growing season.
Consequently, Robusta coffee bean prices have rallied more than 3% over the past week, while the price of Arabica beans has jumped 3.3%.
Rising prices for coffee beans are being passed onto consumers. %JMSmuckerCo (NYSE: $SJM), which makes the Folgers brand of coffee, raised its prices throughout the summer months.
Analysts say additional price increases for coffee can be expected in coming months as the situation with global supplies worsens.
