Following a major crop failure in Brazil, Kenyan coffee farmers may see an increase in earnings.
Market analysts predict a sharp increase in global coffee prices after extreme weather conditions impacted Brazil’s coffee crop, despite projections that the South American country will produce 35.7 million bags of coffee in the year beginning July, nearly 27 percent less than its record output two years ago.
Brazil suffered from bad weather last year, as it was hit by both drought and frost. Brazil had previously produced a record 48.7 million bags of coffee in 2020.
Severe frosts in July damaged a large portion of the main Brazilian coffee belt, sending Arabica coffee prices up to 20% — the highest in nearly seven years.
Arabica coffee futures prices, for example, reached $2.15 per kilo in September, the highest for the front month since October 2014.
On the suppressed Brazilian crop, high prices are expected to prevail in the medium term, translating to higher earnings for Kenyan producers.
