Climate Change and Extreme Weather: Major coffee-growing regions, such as Brazil and Vietnam, are facing extreme droughts and unpredictable weather conditions. These events lead to lower yields and deteriorated crop quality, significantly impacting coffee production.
Increased Global Demand: Growing interest in coffee in countries like China has driven up worldwide demand. This trend places pressure on supply chains and contributes to higher prices.
Logistical Issues: Reduced water levels in the Panama Canal and other logistical challenges are complicating the transportation of coffee from producers to distributors, resulting in further cost increases.