{"id":817700,"date":"2025-03-19T15:32:35","date_gmt":"2025-03-19T13:32:35","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=817700"},"modified":"2025-03-19T15:32:41","modified_gmt":"2025-03-19T13:32:41","slug":"more-pain-for-coffee-lovers-in-south-africa","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/lifestyle\/817700\/more-pain-for-coffee-lovers-in-south-africa\/","title":{"rendered":"More pain for coffee lovers in South Africa"},"content":{"rendered":"\n

The latest inflation data for South Africa shows that coffee lovers who are chasing a caffeine high continue to suffer, even as headline inflation remains stable.<\/p>\n\n\n\n

Stats SA’s latest basket analysis shows that CPI stayed firm at 3.2% in February, with increases in certain categories like food tempered by cooling inflation in sectors like health, restaurants and other services.<\/p>\n\n\n\n

Inflation climbed in sport and culture, food and non-alcoholic beverages (NAB), alcoholic beverages and tobacco, and communication.<\/p>\n\n\n\n

The stats body said inflation cooled for products such as personal care and miscellaneous services, health, restaurants and accommodation, furnishings, household equipment and routine maintenance, and transport.<\/p>\n\n\n\n

Unfortunately for caffeine lovers, coffee prices continued to lead the beverages category with inflation hitting 19.0%.<\/strong><\/p>\n\n\n\n

Frank Blackmore, lead economist at KPMG South Africa, said that global coffee prices continue to add pressure to imports.<\/p>\n\n\n\n

A new report from the Food and Agriculture Organization (FAO) shows that world coffee prices reached a multi-year high in 2024, increasing 38.8% on the previous year\u2019s average.<\/p>\n\n\n\n

This surge in pricing has been driven by inclement weather affecting key producing countries.<\/p>\n\n\n\n

In December 2024, Arabica\u2014the higher-quality coffee favoured in the roast and ground coffee market\u2014was selling 58% higher year over year.<\/p>\n\n\n\n

The FAO said Robusta, used mainly for instant coffee and blending, saw a 70% real-term price surge.<\/p>\n\n\n\n

The worrying news for coffee drinkers is that the pricing trend is unlikely to temper any time soon.<\/p>\n\n\n\n

Coffee prices likely to continue climbing in 2025<\/h2>\n\n\n\n
\"\"<\/a>
Arabica coffee berries<\/figcaption><\/figure>\n\n\n\n

The FAO warned that export prices may rise further in 2025 if major growing regions experience further significant supply reductions.<\/p>\n\n\n\n

“Key factors behind the recent price increase include limited export quantities from Vietnam, reduced output in Indonesia, and adverse weather impacting coffee production in Brazil,” the FAO said.<\/p>\n\n\n\n

Brazil and Vietnam together account for nearly 50% of world coffee production, it said.<\/p>\n\n\n\n

In Vietnam, prolonged dry weather caused a 20% drop in coffee production in 2023\/24, with exports falling by 10% for the second consecutive year. <\/p>\n\n\n\n

In Indonesia, coffee production in 2023\/24 declined by 16.5% year-on-year because of excessive rains in April-May 2023 that damaged coffee cherries. Exports dropped by 23%.<\/p>\n\n\n\n

In Brazil, dry and hot weather conditions prompted successive downward revisions to the 2023\/24 production forecast, with official estimates shifting from an anticipated 5.5% year-on-year increase to a 1.6% decline.<\/p>\n\n\n\n

The FAO added that global shipping costs are also a major factor pushing up global coffee prices.<\/p>\n\n\n\n

This could be exacerbated in 2025 as the US government’s trade and tariff war rocks markets\u2014though this is yet to be a key target in the Trump administration.<\/p>\n\n\n\n

According to commodity analysis from Barchart, coffee prices in the early months of 2025 remain elevated due to adverse weather conditions.<\/p>\n\n\n\n

The group noted that prices for both Arabica and Robusta are trading higher due to lower-than-expected rainfall in Brazil, while the damage caused by dry El Nino weathering in 2024 continues to play out in yields.<\/p>\n\n\n\n

While some groups are anticipating higher exports in the 2025\/26 period, this will be coming off a lower base from the cuts experienced over the past years.<\/p>\n","protected":false},"excerpt":{"rendered":"

Coffee prices in South Africa continue to surge, with consumers warned to expect the trend to continue.<\/p>\n","protected":false},"author":10,"featured_media":791589,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9876],"tags":[22089,22090,1809],"class_list":["post-817700","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-lifestyle","tag-coffee-prices","tag-fao","tag-stats-sa"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/817700","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=817700"}],"version-history":[{"count":1,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/817700\/revisions"}],"predecessor-version":[{"id":817710,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/817700\/revisions\/817710"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/791589"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=817700"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=817700"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=817700"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}