Bad News For Coffee Consumers In South Africa – CoffeeTalk
South African coffee prices are expected to remain high or even rise in 2025 due to poor crop production by global producers, according to Wandile Sihlobo, Chief Economist of the Agricultural Business Chamber of South Africa. South Africa has imported nearly 24,000 tonnes of beans per annum in the past five years, mainly from Brazil and Vietnam, which account for 54% of imported beans. Both countries have experienced serious weather challenges, including drought and heavy rains in Vietnam, which have affected production. The coffee bean production forecasts for 2025 are also not looking good, with production challenges likely to persist in Brazil and Vietnam, keeping coffee prices elevated for some time.
South Africa has few options to circumvent the problem, as sourcing beans from other countries would incur additional costs and push prices in a similar direction. Supply is a major issue, with Brazil, Vietnam, and Colombia accounting for two-thirds of the world’s coffee production. Demand for coffee in China has surged over 150% in the last decade, causing prices to face only one direction – up.
Globally, coffee prices surged by over 70% in 2024, with robusta coffee beans reaching a 47-year high in August. Nestlé warns that coffee prices could climb by another 30% to 40% in 2025. Local pricing in 2024 reflects this, with a 12% to 19% increase in coffee prices year-on-year and a 10% to 16% increase since January 2024.
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Source: Coffee Talk