Trouble is brewing for the world coffee market as prices hit record high

Your morning cup of coffee is set to cost more, experts predict, as prices hit a seven-year high Friday.

Arabica futures for March delivery rose as much as 4.8 per cent to $2.235 USD a pound in New York, the highest for a most-active contract since October 2014, according to Bloomberg. 

They are now up more than 90 per cent in the past year and the cost outlook is expected to be impacted by further supply woes.

Brazil, the top grower, has faced plunging production after drought and frost-damaged trees. Vietnam, the second largest producer next to Brazil, is also facing major supply challenges. Colombia, famous for its high-quality coffee, is struggling with excess rain.

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On top of that, soaring fertilizer prices, elevated freight costs, and a lack of container ships are all factors hindering efforts to export beans.

The weather is also expected to further hamper efforts for an affordable cup of joe, as the predicted atmospheric phenomenon La Niña will likely increase in strength over the next three months before fading some time next year.

The weather pattern is characterized by unusually low temperatures and is linked to floods, which will impact all crops.

The spike in coffee prices comes with food inflation already a concern for many. Statistics Canada reports food prices rose 3.9 per cent year over year in September, following a 2.7 per cent increase in August.

According to the Coffee Association of Canada, coffee consumption remained steady despite the pandemic influencing other behaviours.

More than 70 per cent of Canadians drink coffee on the average day and it is the most commonly consumed beverage, even more than tap water and tea.