(news nation) — Consumers can expect higher coffee prices as the global coffee market breaks a 47-year record.
Arabica coffee, a type of coffee bean grown primarily in Central and South America, sold for $3.44 a pound earlier this week, breaking the previous high of $3.35 set in 1977.
Brazil is a major producer of Arabica, the world's most popular variety, but extreme drought has reduced yields and raised global prices.
Prices for another coffee variety, Robusta, have risen 80% since the start of the year due to climate change in Vietnam, a top producer.
As demand for coffee increases, supply decreases, and companies may pass the cost on to consumers.
Italian coffee brand Lavazza has been absorbing higher coffee prices for some time, but said it will now have to make changes.
“Quality is of paramount importance to us and has always been the basis of our trust contracts with consumers,” the company told BBC News. “For us, this means continuing to grapple with very high costs, which has forced us to adjust prices.”
Nestlé, which owns Nescafe and Nespresso, has already raised prices.
