They noted that “in recent months, the prices of coffee beans have risen significantly on the New York Stock Exchange for reasons ranging from poor harvests in large producing countries such as Brazil, Vietnam and Colombia, to increased demand from more than a year of health crisis,” in this regard from Invertir Online, highlighting Highlight: “This situation has only intensified in the last month, as frost has exacerbated the already existing shortages due to drought and lack of transport containers.”
Unusually cold weather hit different regions of Brazil last week, with frost that, according to preliminary estimates by the Brazilian government, will affect between 150 thousand and 200 thousand hectares. Which represents about 11% of the total area of Arabica cultivation in the neighboring country. An agricultural engineer consulted by Reuters said the worst cold snap in nearly 30 years will hit production for at least the next two harvests.
Adriano de Resende, technical coordinator of the Minasol coffee cooperative, estimated that between 20% and 30% of crops were affected by the unusually cold temperatures that hit the region on July 20, causing the worst frost since 1994.
“It was worse than I could have imagined,” Resende said after flying over the area last Thursday. Infographic “It’s hard to see a field that hasn’t been damaged.” The agronomist and local farmers said frost hit the area again on Friday, but it was less severe.
Minasol operates in southern Minas Gerais, a region that accounted for about 40% of Brazil’s Arabica coffee production in 2020. Arabica is the main bean used by major coffee companies such as Starbucks and Nestle.
Besides rising agricultural commodities, global food prices have also risen throughout most of the year. In fact, according to the report prepared by the United Nations, in June there was the first monthly contraction of the United Nations in the past 12 months. But on an annual basis, the index showed a 33.9% rise.