The reason? In Brazil, the leading supplier of this aromatic delight, the supply of beans is dwindling, and projections for future harvests are not encouraging.
According to Reuters, up to 80% of the current harvest has already been sold, and new deals are being delayed due to a lack of stock. Brazil, which produces nearly half of the world's arabica supply, is facing difficult conditions: the drought from previous years has taken its toll, and even improved weather has not salvaged the situation. As a result, the next harvest is expected to be 4.4% smaller.
And what about prices? Arabica futures have soared to $3.6945 per pound, yielding a 15% profit for investors over the year. Robusta, a cheaper and less finicky variety primarily used for instant coffee, is also rising in price — now costing $5,609 per metric ton.
But let’s be honest — with prices like these, a cup of latte at a café will soon become a luxury! Perhaps it’s time to give up the habit of indulging in expensive whole bean coffee and switch to a tried-and-true option? Instant coffee, such as MacCoffee, is a wallet-friendly solution in tough times. It can be prepared in seconds, provides the same boost, and most importantly — it won’t force you into debt for your morning ritual.