In 2024, extreme weather conditions severely impacted the production of coffee, cocoa, and citrus crops, particularly in Brazil and West Africa. Droughts, hurricanes, and disease contributed to record-high commodity prices. Coffee faced major production cuts due to drought and freeze impacts, cocoa prices soared to unprecedented levels due to adverse weather, and U.S. orange production suffered further losses from hurricanes. These challenges suggest increasing volatility and cost implications for 2025.
In 2024, extreme weather conditions substantially impacted the cultivation of key soft commodities globally, namely coffee, cocoa, and citrus crops. The unprecedented droughts and heat in Brazil, the world’s leading coffee producer, led to significant declines in coffee production. Concurrently, cocoa futures skyrocketed due to adverse weather across West Africa, which harbors over 70% of global cocoa supply. Furthermore, U.S. orange juice production faced setbacks primarily due to hurricanes, compounded by ongoing agricultural diseases affecting the citrus industry. Collectively, these factors resulted in soaring prices for these essential commodities, suggesting escalating challenges for both producers and consumers moving forward into 2025.
The article discusses the severe effects of extreme weather events on the production of major soft commodities in 2024. Coffee, cocoa, and citrus crops are highlighted due to the undeniable impact that weather perturbations have on their supply and prices. The rising instability of tropical weather patterns, combined with other socio-political factors, is expected to contribute to significant fluctuations and increased costs in the markets for these commodities, affecting consumers globally.
The extreme weather experienced in 2024 has revealed the vulnerabilities of crucial soft commodities, leading to significant production declines and increased market prices. As coffee, cocoa, and orange juice continue to grapple with environmental challenges, the implications for future supply are concerning. With predictions of further cost increases and volatility in 2025, stakeholders in agriculture, trade, and consumers should prepare for heightened uncertainty and potentially sharper prices at retail outlets.
Original Source: www.dtnpf.com
