At this time of year the coffee plants in the mountains of Brazil are usually in bloom, but last month a drought hit Brazil worse than has been seen for decades, seriously damaging the yields of Arabica coffee beans. This weather has hit the record books and has caused desperate measures across the country, even to the point of water rationing extreme enough (according to some newspapers) for some areas to only receive water once every three days. As a result of all of this, Arabica coffee could inflate in price by as much as 50% on the market
Luckily, at the moment the retail prices are stable: as most coffee roasters have enough of a supply of coffee to cover their production for a few months, however the inevitable backlash from the extremes of weather means that most people will notice a creeping increase in the price of their Arabica coffee this year, reaching their highest price in 14 months.
Before any of this started, there had been concerns for the coffee market already, with there being an shortage as it stood before the drought, causing a global coffee deficit, with roughly millions of bags less being produced than previous years, the apparent reasoning for this was that there was somewhat of a glut in Arabica coffee at the end of last year, there was enough of it to mean that the Arabica coffee futures fell by up to a quarter
The rise in the price of coffee is completely unavoidable, as the developing world has begun to have a market for it including Brazil itself, India and China. Inevitably with more people drinking coffee, demand rises and supply may struggle to meet or adjust to the new levels of demand.
The drought is also causing issues for those who take sugar in their drink too, as it has meant that sugar cane cannot be harvested as efficiently either.