In Brazil, the end consumer price rose about 40% in 2024, jumping from $ 29.62 in January to $ 42.65 in December; This Wednesday (29), Café Arabica was negotiated at US $ 3,6655 per pound
The price of reached a historical level, the highest since 1977, and should remain high until the end of the first half of 2025. This situation is the result of adverse weather conditions and reduced inventories. Last Wednesday (29), Café Arabica was negotiated at US $ 3,6655 per pound, a value that more than doubled compared to the same period last year. In Brazil, the end consumer price rose almost 40% in 2024, jumping from $ 29.62 in January to $ 42.65 in December. Like the largest coffee producer in the world, Brazil faced significant challenges, including severe frost in 2021 and other climate events that impacted production. Global coffee consumption continues to grow, especially in Asian countries such as China, while worldwide stocks are declining.
In 2024, Brazil exported 50.443 million bags, representing an increase of 28.5% over the previous year. Predictions indicate that coffee prices will remain high, with the industry by transferring additional costs to consumers. For 2024, coffee production in Brazil is estimated at 54.2 million bags, which represents a 2% drop in relation to the previous crop. For 2025, the expectation is an even smaller production, with 51.8 million bags projected. The recovery of the situation can only occur at the end of 2025, as long as there are no new climate adversities. Even though harvests improve, prices should not return to 2023 levels, when the bag was marketed for about $ 800.00, a value that made farmers’ subsistence difficult.
*Report produced with the aid of AI
Published by Matheus Oliveira
