Coffee price high likely to last through 2022, new report says

International

(NBC) – A coffee price high is likely to last through next year, according to a new report from Fitch Solutions.

Experts say constrained supply from major coffee producers like Vietnam, Brazil, and Colombia could keep costs up through 2022.

Vietnam is currently battling the worst COVID outbreak since the start of the pandemic and a lockdown in its exporting hub Ho Chi Minh City has affected overseas shipments of coffee and other goods.

In Brazil, meanwhile, waves of frost and drought have damaged crops.

Bad weather also affected Colombia’s harvest and the emergence of the mu coronavirus variant in the country could lead to prolonged restrictions and labor shortages that worsen production.

The good news? COVID restrictions could soon be lifted, so disruptions to Vietnam’s coffee exports are likely short-lived.

Brazil’s coffee production should also bounce back as long as adverse weather doesn’t return.

Copyright 2021 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Trending Stories

get the app

News App

Weather App

Don't Miss

More Don't Miss