Cafe owners in Malaysia are facing a tough challenge as coffee bean prices hit record highs.
Bad weather in Brazil and Vietnam has been a factor in the price hike as the two countries are the largest coffee producers, in addition to high global demand.
Brazil, the main producer of Arabica coffee, has experienced drought, ice formation on coffee trees and extreme heat, leading to poor harvests.
Meanwhile, Vietnam, the largest supplier of Robusta beans, has also been hit by erratic weather, making it difficult to produce enough coffee.
In December 2024, Arabica coffee beans jumped to US$3.50 (RM15.75) per pound, the highest since 1977.
Robusta beans saw a similar increase, reaching US$5,885 per ton.
Due to this increase, there is a possibility that some cafes will raise prices or find other ways to save costs.
With the significant increase in coffee bean prices and relatively high demand, it is the right time for Malaysia to also strive to become its own coffee producer and reduce its dependence on imports.