The Real Reason Coffee Reserves Are At A 20-Year Low

Back in September 2021, experts warned of an impending coffee shortage that had the potential to span three years, per ABC. In addition to supply chain issues hampering the import of coffee beans, climate change has adversely affected growing regions. These issues caused bean prices to spike, and as a result, specialty coffee bean growers could suffer the most. These changes may encourage roasters to start using commercial beans or other low-quality products. The impending shortage coincided with an incredibly high demand for coffee.

According to Food & Wine, this situation just got worse. As of now, 143 million pounds of arabica coffee beans currently sit in reserve, the lowest amount on record since February 2000. These numbers don't sit well with the coffee market and you can expect the cost of this product to rise. Starbucks has already jacked up the price of their drinks, and times seem dire for coffee drinkers. While supply chain issues have made coffee harder to come by, one other driving factor has created the longest-reaching issue for this item.

According to BNN Bloomberg, poor weather in Brazil has greatly impacted the growth of new coffee. Due to market conditions, Brazilian growers see more of a profit when they sell their beans in-country, rather than exporting them to the rest of the world. Brazil provided 55% of coffee beans held in reserve a year ago, but now, their beans only account for 39% of the reserve total.

Some moderately good news might encourage coffee drinkers. According to Vending Market Watch, experts also predict that arabica coffee prices should drop slightly over the course of 2022 as a result of Brazil's coffee market making a comeback. Their market helps drive up the price of robusta coffee, which should help push arabica down. For now, experts indicate that coffee may come with higher price tags as a result of these factors, and you might have to wait quite a while until you can enjoy a cheap cup of coffee again.