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Global Coffee Prices Surge Nearly 40% In 2024 Amid Adverse Weather And Rising Shipping Costs

by THEFUTURE.TEAM

March 17, 2025

World coffee prices soared by 38.8% in 2024 compared to the previous year, reaching multi-year highs driven by extreme weather conditions and escalating shipping costs, according to a report by the United Nations Food and Agriculture Organization (FAO) released on March 14. With significant supply disruptions in key producing regions, analysts warn that prices could climb even higher in 2025.

Market Disruptions And Price Surge

Arabica, the premium coffee variety favored for roasted and ground coffee, saw a staggering 58% year-on-year price increase by December 2024. Meanwhile, Robusta, widely used for instant coffee and blending, surged by 70% in real terms. This narrowing of the price gap between the two varieties marks a first since the mid-1990s, reflecting a tightening global supply chain.

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The FAO report highlights that major coffee-producing nations, including Brazil, Vietnam, Indonesia, Ethiopia, and Kenya, faced significant challenges due to climate anomalies, impacting yields and export volumes.

Climate Challenges In Key Coffee Regions

Brazil and Vietnam, which together account for nearly 50% of global coffee production, were particularly hard hit.

Vietnam experienced prolonged dry weather, leading to a 20% drop in production for the 2023/24 season. Coffee exports also fell by 10% for the second consecutive year.
Indonesia saw a 16.5% decline in production due to excessive rains in April-May 2023, causing coffee cherries to rot. The country’s coffee exports plummeted by 23%.
Brazil, the world’s largest coffee producer, suffered from extreme heat and drought, forcing repeated downward revisions of its 2023/24 crop estimates. Initial projections of a 5.5% annual increase were slashed to a 1.6% decline.

Other key producers also recorded significant price hikes at the farm level: Ethiopia (17.8%), Indonesia (15.9%), Brazil (13.6%), Kenya (12.3%), Colombia (11.7%), and Vietnam (5.8%).

Rising Costs Extend To Consumers

Beyond climate challenges, soaring shipping costs have exacerbated price pressures. The report notes that by December 2024, higher global coffee prices had translated into a 6.6% increase in consumer coffee prices in the U.S. and a 3.75% rise in the European Union compared to the previous year.

A Push For Sustainability And Innovation

FAO’s Markets and Trade Division Director, Boubaker Ben-Belhassen, emphasized that high prices should incentivize greater investment in technology, research, and climate resilience in the coffee sector, which heavily relies on smallholder farmers. The FAO is actively supporting coffee-producing nations in adopting climate-smart agricultural practices to mitigate future risks.

With the global coffee trade valued at over $25 billion annually and the industry generating more than $200 billion in revenue, stakeholders across the supply chain are being urged to collaborate on sustainable solutions to protect both production and livelihoods.

As the industry braces for further volatility in 2025, the key question remains: can coffee producers adapt quickly enough to counteract climate-driven disruptions and stabilize supply?

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Central Bank Of Cyprus Balance Sheet Reflects Strong Eurosystem Position

by THEFUTURE.TEAM

February 17, 2026

Overview Of Financial Stability

The Central Bank of Cyprus (CBC) has released its latest balance sheet, reaffirming its steadfast role within the Eurosystem. The balance sheet, featuring total assets and liabilities of €29.545 billion, underscores the institution’s stable financial posture at the close of January 2026.

Asset Allocation And Strategic Holdings

Governor Christodoulos Patsalides issued the balance sheet, which details the CBC’s asset composition under the Eurosystem framework. Notably, the bank’s gold and gold receivables amounted to €1.635 billion, providing a significant hedge and stability to its balance sheet. Additional asset categories include claims on non-euro area residents denominated in foreign currency at €1.099 billion, while claims on euro area residents in both foreign and domestic currency add further depth to its portfolio.

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The most substantial asset category, intra-Eurosystem claims, reached €19.438 billion, an indication of the CBC’s deep integration with its European counterparts. Furthermore, euro-denominated securities held by euro area residents contributed €6.587 billion. Despite a marked emphasis on these areas, lending to euro area credit institutions in monetary policy operations recorded no activity during the period.

Liability Structure And Monetary Policy Implications

On the liabilities side, banknotes in circulation contributed €3.218 billion. Liabilities to euro area credit institutions associated with monetary policy operations were notably the largest single category, totaling €17.636 billion. Supplementary liabilities included those to other euro area residents, which aggregated to €4.989 billion, with government liabilities playing a predominant role at €4.754 billion.

Other liability items, such as claims related to special drawing rights allocated by the International Monetary Fund at €494.193 million, and provisions of €596.571 million, further articulate the CBC’s exposure. Revaluation accounts stood at €1.643 billion, and overall capital and reserves were confirmed at €333.822 million, completing the picture of a well-capitalized institution.

Conclusive Insights And Strategic Alignment

The detailed breakdown illustrates the CBC’s sizeable intra-Eurosystem exposures, reinforcing its central role within Europe’s monetary landscape. With an asset-liability balance maintained at €29.545 billion, the CBC’s financial position remains robust, indicating a commitment to structural stability and strategic risk management.

This fiscal disclosure not only provides transparency into the CBC’s operations but also serves as a benchmark for comparative analysis among other central banks within the Eurosystem, highlighting the intricate balance between asset liquidity, regulatory oversight, and monetary policy imperatives.