LONDON: Coffee prices will keep rising until the middle of 2025 due to supply shortages at key growers, with European consumers set to pay even more for their caffeine hit as new deforestation regulations kick in.
Expectations of another production shortfall in Vietnam, the world’s top producer of robusta, is fuelling a surge in prices for the bean variety used in blends and espressos, Giuseppe Lavazza, chairman of coffee roaster Luigi Lavazza SpA, said.
This year’s poor harvest has seen roasters pay as much as US$1,000 above futures prices for Vietnam’s beans, he added.
“We’ve never seen something like that in the history of our industry,” Lavazza said.
The futures for the variety have surged by about 60% this year, touching a fresh high of US$4,667 per tonne.
Concerns about the next harvest are adding to supply fears after hot and dry weather in parts of Vietnam damaged coffee trees earlier this year. — Bloomberg
