Limited supply from major producers Brazil, Vietnam, Colombia is to blame
NEW YORK, N.Y. (KYMA, KECY/NBC) - According to a report from Fitch Solutions, a limited supply of cocoa beans from major producers Brazil, Vietnam and Colombia may inflate coffee prices all the way through 2022.
Fitch experts say Vietnam is in the midst of the nation's worst COVID-19 outbreak since the pandemic began.
Vietnamese officials declared a lockdown in Ho Chi Minh City, the nation's largest and most financially prosperous city, which directly affected overseas shipments of coffee and other goods.
Brazil faces a different set of issues affecting its coffee output: drought and waves of frost. Brazilian farmers report both have damaged crops recently.
Columbian officials confirm harvests have also been affected by poor weather. Plus, they blame the "Mu" coronavirus variant for impacting harvests by causing prolonged restrictions and labor shortages.
Fitch experts expect these shortages to be short lived. As long as adverse weather doesn't continue, and COVID-19 restrictions are lifted soon, inflated coffee prices should be short lived.