Caffeine crisis: Why your morning coffee will cost more

Updated Dec. 10, 2024, 6:25 a.m. | By East Coast Breakfast

Coffee lovers, brace yourselves – your morning cup of life is about to get pricier. Coffee prices are soaring in South Africa due to global weather disruptions and supply chain issues.

Coffee Crisis — Farknot_Architect / iStock

Nothing says good morning like a piping hot cup of coffee to start your day. It’s not just a routine; it’s a lifestyle. However, this lifestyle is becoming more expensive as coffee prices are on the rise.

Rising coffee prices are shaking the South African market due to global production challenges primarily originating in Brazil and Vietnam.

These two countries account for the majority of the world’s coffee supply and have faced severe weather disruptions, including drought and excess rain. As a result, crop yields have suffered, causing Robusta coffee prices to soar to a 47-year high and significantly increasing Arabica prices.

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FNB agricultural economist Paul Makube spoke with BusinessTech about this issue, highlighting that Brazil and Vietnam account for 70% of the world’s global coffee production. The challenges faced by both countries have drastically affected the supply of coffee worldwide.

In South Africa, coffee prices have risen by 20% year-on-year, with instant coffee seeing a 17.3% jump in 2024. Adding to this situation are supply chain disruptions and shipping delays, leading many experts to predict that elevated prices will continue well into 2025.

Carl Khoury, Nestlé’s regional business executive officer, warned that coffee prices could increase by 30% to 40% next year. He attributed these increases to the ongoing issues within the coffee industry, primarily the reduced crop yields, droughts and insufficient rainfall.

To illustrate, consider one of Mzansi’s most beloved brands. A 200g jar of Jacobs Instant Coffee cost R139.99 in 2022 but skyrocketed to R184.99 by October 2024 – a staggering 32% increase. Given this trend, we should anticipate further coffee price increases in 2025.

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As coffee prices continue to climb, the cherished ritual of enjoying a cup of coffee may soon feel like a luxury for many. While the challenges impacting global coffee production are largely beyond our control, being mindful of our coffee consumption and exploring cost-effective options could help ease the burden.

Whether it’s switching to local brands, brewing at home, or reducing consumption, adapting to these changes may help coffee lovers weather the storm.

One thing is clear: our morning cup now comes with more than just caffeine.