Vietnam, the world’s largest supplier of robusta coffee beans and the second largest coffee grower, is also expected to see a decline in production in 2022-2023.
Dwindling stocks and a weak harvest outlook coincide with a recovery in global coffee consumption from a pandemic-induced slump. Indicative prices of robusta coffee beans jumped by 17 percent. since hitting a 10-month low in mid-July amid supply concerns in a string of countries from Brazil to Africa.
Robusta beans, used by instant coffee makers including Nestle CA or as an espresso blend, are making a comeback. As consumers look for alternatives to cushion the effects of rising inflation, this type of coffee, normally cheaper than Arabica beans, is now in high demand.
In coffee-snobbish Australia, supermarket Coles Group Ltd. said its A$1 (69 cents) coffee had “never been more popular”. In a country that prides itself on its cafe culture and where people often fork out five Australian dollars for a flat white, this is a marked change.
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