A low of 20 years in coffee reserves around the world has led to spike in prices in recent weeks. According to Bloomberg, "stockpiles of high-end arabica beans, a favorite of artisan coffee shops and chains like Starbucks Corp., totaled 1.078 million bags or about 143 million pounds ... the lowest level for inventories monitored by the New York exchange since February 2000."
An indication of just how much of an impact this has had on the coffee world is Starbuck's decision to raise prices three times in the span of a year. Israeli consumers have also felt the pinch.
One reason for the drop in coffee reserves is the ongoing coronavirus pandemic and the disruptions it has caused the supply chains around the world. On top of that, Brazil – which is accounts to 39% of the global supply – has experienced weather unfavorable to coffee growers, adversely affecting their output. Many growers in the Southern American country have opted to sell the bean domestically than ship abroad, resulting in higher prices outside the country.
