Coffee bean prices are skyrocketing! Why are they so expensive?

The surge in coffee bean prices is the result of a combination of factors. First, climate change has had an impact on coffee production. Coffee trees require specific climatic conditions to grow, including suitable temperatures, rainfall, and sunshine hours. However, global warming has caused some traditional growing areas to suffer from droughts, floods, and other extreme weather events, which has had an adverse impact on coffee production.

Secondly, supply and demand is also one of the important reasons for the rise in coffee bean prices. With the rise of global tea drinking culture and the increasing demand for high-quality coffee, the market demand for high-quality coffee beans continues to rise. However, with limited arable land and natural resources, increasing production cannot meet the rapidly growing consumer demand.

In addition, low political stability or economic difficulties in some major producing countries can also lead to supply chain disruptions or reductions. For example, when political unrest or economic recession occurs in major producing countries such as Brazil, farmers may not have access to sufficient funds and resources to grow coffee trees, resulting in a decrease in production.

Finally, the rise in coffee bean prices is also affected by currency exchange rate fluctuations. Since coffee is one of the most traded commodities in the world, its price is usually denominated in US dollars. When the currencies of major producing countries depreciate, exporters in these countries may increase their selling prices to compensate for exchange rate losses.

In summary, multiple factors, including climate change, supply and demand, political and economic factors, and currency fluctuations, have jointly driven the surge in coffee bean prices. With the increasing demand for high-quality coffee and the challenges of climate change, coffee bean prices are expected to remain high in the future.