Coffee Variety Is Priciest Since 1970s in Blow to Instant Brews

Robusta coffee prices have reached their highest level in 45 years, according to the International Coffee Organization (ICO). The price surge is due to a supply crunch in Vietnam, the world’s largest robusta producer, which has experienced poor harvests in both the last and current seasons. The situation is expected to worsen as drought and heat damage Vietnam’s growing areas, depleting water for irrigation and affecting the prospects for the 2024 crop. Futures in London have risen in five of the past six months, potentially impacting consumer costs. However, Vietnam’s coffee belt may recover from drought this month, and hedge funds are betting on further price gains. More abundant arabica beans are also easing the run-up.

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