Nigeria is feeling the impact of the global coffee crisis as futures prices surge by over 30% due to severe supply disruptions caused by drought in Brazil, the world’s largest Arabica coffee producer.
In Nigeria, coffee prices have doubled in 2024, with popular brands like Nescafe and TopCafe experiencing significant hikes.
For instance, “Nescafe 3 in 1” spiked to N34,000 per carton in August, up from N28,000 in May, and a steep rise from N18,000 last year.
The rainfall shortage in Brazil, which began in April, has led to a sharp decline in coffee production, sparking a global rush to secure supplies.
This has driven up coffee futures, with U.S. Coffee Futures and Arabica Futures both soaring by more than 30% in 2024, impacting markets worldwide, including Nigeria.
Brazil’s supply disruptions have caused coffee prices to spike globally, with Nigeria feeling the pinch. According to a supermarket owner in Ikeja, Lagos, coffee prices have doubled this year.
“Nescafe Gold, which sold for N4,800 last year, now goes for N8,500,” she said.
A wholesaler in Ikeja also reported that “TopCafe 3 in 1,” which was priced at N16,000 per carton last year, has surged to N26,000 in 2024. Similarly, Nescafe Classic, once N1,500 per tin, now sells for N2,500.
A wholesaler from Alaba Market confirmed that coffee prices, which were already rising earlier in the year, saw further spikes between July and September.
“For instance, Nescafe 3 in 1 increased from N28,000 per carton in May to N34,000 in September, compared to N18,500 in 2023,” she explained.
Business owners attribute the price hikes in Nigeria to a combination of factors, including inflation, higher raw material costs, increased import expenses, and the pricing strategies of companies.
The sharp rise in coffee prices is largely due to extreme weather in Brazil, where drought conditions have severely impacted regions known for Arabica bean cultivation.
