The main factors affecting coffee bean prices and their analysis

Coffee beans are one of the most popular beverages in the world, and fluctuations in their prices are of great significance to both consumers and producers. Coffee bean prices are mainly affected by factors such as supply and demand, climate change and currency exchange rates.

First of all, supply and demand is one of the main factors affecting the price of coffee beans. The demand for coffee is growing worldwide, while the supply is relatively limited. When there is a shortage of supply in the market, the price of coffee beans tends to rise; conversely, when the supply is sufficient, it will cause the price to fall. In addition, natural disasters or political unrest in certain specific regions may also cause a reduction in production and push up prices.

Secondly, climate change is also an important factor. Since coffee trees are grown in subtropical and tropical regions, changes in meteorological conditions such as temperature, rainfall and monsoons in these regions may directly affect the growth of coffee trees and the quality of the fruit. For example, in drought years or after severe floods, the yield of many plantations will be affected, leading to higher coffee bean prices.

Finally, currency exchange rates also have an important impact on the price of coffee beans. Since coffee is a global commodity, currency exchange is required in international trade. When the domestic currency depreciates, the cost of imported coffee will increase, which may lead to an increase in retail prices; conversely, if the domestic currency appreciates, the import cost will decrease and the retail price may decrease. Therefore, exchange rate fluctuations between different countries will also directly affect the price of coffee purchased by consumers.