%Coffee prices continue to rise and are now at their highest level in more than 40 years as global supply worries remain elevated.
The price of Arabica coffee beans, which is the more expensive variety used for specialty brews, rose 3.1% in the last 24 hours, reaching their highest level since 1977.
Arabica coffee beans are currently trading for $3.1715 U.S. a pound in New York, having increased for six consecutive days. The price has now increased 70% this year.
The last time Arabica coffee beans were this expensive, Jimmy Carter was the U.S. president, Disco music was burning up the airwaves, and the first Star Wars film ruled the box office.
The price of Robusta coffee beans, which are the more affordable type used in instant drinks, has also risen sharply and is up 85% this year.
Reasons for the sharp rise in prices include a severe drought in Brazil, the world’s largest producer of coffee beans.
There are also supply concerns in Vietnam, another key producer that was hit with dryness during this year’s growing season.
The rising prices are being passed onto cafes, roasters, and ultimately consumers. Sellers have raised prices and canceled discounts in recent months to protect their margins.
Commodities analysts expect prices for coffee beans to continue rising in the near-term as concerns turn to Brazil’s crop output for the 2025-26 growing season.
