Drought and high temperatures, alongside a global reliance on supplies from relatively few regions, are regarded as the key drivers for the dramatic price rise.
A record-breaking rally for coffee prices shows no sign of slowing down, analysts say, with some warning it could take years for one of the world's most traded commodities to recover.
The last time the price for arabica beans, the world's most popular variety, traded that high was in 1977 when snow destroyed large areas of Brazilian plantations.Drought and high temperatures, alongside a global reliance on supplies from relatively few regions, are regarded as the primary drivers for the recent price rise.
"The country experienced its worst drought in 70 years during August and September, followed by heavy rains in October, raising fears that the flowering crop could fail," Ole Hansen, head of commodity strategy at Denmark's Saxo Bank, said in a research note published Tuesday. A staple beverage for billions of people across the world, demand for coffee has been boosted in recent years by"Like cocoa, coffee is grown in a relatively narrow tropical band, with key producers including Brazil, Vietnam, Colombia, and Ethiopia," Saxo Bank's Hansen said.
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