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Coffee beans on a plantation in Brazil
Photo: Igor Do Vale / imago images / ZUMA Wire
At the beginning of the year there was a drought in Brazil, most recently plantation owners had to struggle with frost - meanwhile the extreme weather conditions are making themselves felt in the price of coffee beans.
Because Brazil is the world's largest coffee producer.
The price planned for later trade for Arabica coffee, one of the South American country's most important raw material exports, was just under 3.50 euros per kilo on Friday - the highest level since 2014. Consumers will therefore have to expect higher prices in the future to calm down.
Since January, the price of Arabica coffee has soared by 60 percent.
And the price of Robusta coffee - which is used for instant granules and is mainly grown in Asia - has also seen a price increase of almost 40 percent in the year to date.
"There are several reasons for the astronomical rise in the price of coffee," said Rabobank analyst Carlos Mera.
The main reason is the devastating weather conditions in Brazil, but rising transport costs and political unrest in the third largest production country, Colombia, also play their part.
Brazil suffered an historic drought earlier this year.
Last week, frost followed on key plantations in Minas Gerais - an inland southeastern state that is where 70 percent of the country's arabica beans come from.
Arabica is also so badly affected because the plant has a two-year cycle, in which low-yield production in one year is usually followed by a bumper harvest in the next.
This cycle could get out of rhythm due to the weather phenomena.
Coffee price was very low recently
Consumers are not aware of any of this at the moment, but that can change: The rising prices would only be passed on to consumers slowly, said analyst Mera.
"The roasters use the price planned for later trading to protect themselves against short-term increases," says the expert.
Therefore, it usually takes three to nine months for the effects to be felt in retail.
In addition, the cost of coffee has been particularly low in recent years, said commodity economist Philippe Chalmin.
For comparison: In May 2011 a kilo of Arabica cost more than five euros - significantly more than the current price of 3.50 euros per kilo.
mmq / AFP