Is coffee running out?
Disruption caused by Vietnamese Covid restrictions is causing concern for the global supply
![Raul Arboleda/AFP via Getty Images](https://cdn.mos.cms.futurecdn.net/bhq9dXTreD7fFSiuwFtj9g-415-80.jpg)
Could your daily flat white soon become a thing of the past – or at least a more expensive rare treat?
The disruption of supply chains in Vietnam – the world’s second-largest coffee exporter – due to Covid-19 lockdown restrictions is leading to uncertainty about global coffee distribution.
The south-east Asian country has “struggled to control the more contagious Delta variant”, The Guardian reported, leading to the tightening of lockdown measures in the port of Ho Chi Minh City, from where most of Vietnam’s coffee is exported. Covid-related restrictions have also been introduced in some coffee-growing areas of the Central Highlands, further disrupting the supply chain.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
![https://cdn.mos.cms.futurecdn.net/flexiimages/jacafc5zvs1692883516.jpg](https://cdn.mos.cms.futurecdn.net/flexiimages/jacafc5zvs1692883516-320-80.jpg)
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
According to traders and suppliers, “exporters are struggling to transport beans to the ports for shipment”, said Bloomberg. This is adding to “a raft of other logistical problems”, including a “dire shortage of containers and soaring freight rates”.
The Vietnam Coffee-Cocoa Association is one of several trade groups petitioning the government to ease the restrictions, claiming that they “cause delays, raise costs and put shippers at risk of having to compensate buyers for late delivery”, added Bloomberg.
In response, Vietnam’s transport minister ordered authorities “to do everything possible to facilitate the transport of farm products, such as coffee and rice” as well as avoid “all unnecessary requirements and burdensome paperwork”.
Vietnam is not the only country currently experiencing supply-chain disruption. Unseasonably cold weather that damaged crops in Brazil – the world’s biggest coffee producer – has led to a rise in the cost of beans, said The Guardian.
On August 6, Reuters reported that a combination of the “most devastating frost” Brazil had seen since 1994 with “record freight costs sparked by Covid-19 causing massive shipping log-jams” are expected to “push retail prices to multi-year highs” over the next few weeks.
Local reports claimed that the frost damage was so severe that some Brazilian coffee farmers may need to replant trees, meaning it could take them “up to three years to resume production”, said the BBC.
Already, the price of green coffee beans has reached “the highest level in almost seven years”, said Reuters, with the price of arabica and the bitter-tasting robusta coffee rising to multi-year highs.
But, added The Guardian, consumers are unlikely to have noticed “any immediate increase” in the cost of their cappuccinos, as most suppliers “have contracts that are locked in for six months”. The picture will be clearer in early 2022, when the full result of Brazil’s harvest is known and there is more clarity surrounding Vietnam’s Covid situation.
A rise in coffee prices will increase food bills at a time when many consumers are struggling financially as a result of the pandemic: by the end of 2020, 700,000 people in the UK had been plunged into hardship, reported The Big Issue. Since then, the situation has worsened. The UN food agency’s index of world food prices for July 2021 “showed a year-on-year rise of 31%”, said Reuters.
Create an account with the same email registered to your subscription to unlock access.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Kate Samuelson is the newsletter editor, global. She is also a regular guest on award-winning podcast The Week Unwrapped, where she often brings stories with a women’s rights angle. Kate’s career as a journalist began on the MailOnline graduate training scheme, which involved stints as a reporter at the South West News Service’s office in Cambridge and the Liverpool Echo. She moved from MailOnline to Time magazine’s satellite office in London, where she covered current affairs and culture for both the print mag and website. Before joining The Week, Kate worked as the senior stories and content gathering specialist at the global women’s charity ActionAid UK, where she led the planning and delivery of all content gathering trips, from Bangladesh to Brazil. She is passionate about women’s rights and using her skills as a journalist to highlight underrepresented communities.
Alongside her staff roles, Kate has written for various magazines and newspapers including Stylist, Metro.co.uk, The Guardian and the i news site. She is also the founder and editor of Cheapskate London, an award-winning weekly newsletter that curates the best free events with the aim of making the capital more accessible.
-
Paloma recipe: the cocktail of the summer
The Week Recommends This refreshing drink balances the fresh and fizzy taste of grapefruit soda with a subtle flavour of smooth tequila
By Rebekah Evans, The Week UK Published
-
Mushroom edibles are tripping up users
the explainer The psychedelics can sometimes have questionable components
By Devika Rao, The Week US Published
-
Prisons are simply not prepared for extreme heat
Under the radar Inmates are at severe risk of heat-related illness
By Devika Rao, The Week US Published
-
It's not your imagination — restaurant reservations are becoming harder to get
In the Spotlight Bots, scalpers and even credit card companies are making reservations a rare commodity
By Justin Klawans, The Week US Published
-
The big deal: Why are fast-food chains suddenly offering discounts?
Today's Big Question After inflation and price hikes, a need to bring customers back
By Joel Mathis, The Week US Published
-
Retail media is seeing a surge this year
The Explainer Amazon now makes more money from advertising than Coca-Cola's global revenue
By Justin Klawans, The Week US Published
-
A massive copper shortage is on the horizon
Under the Radar It is estimated that mines will only meet 80% of copper needs by 2030
By Justin Klawans, The Week US Published
-
Elon Musk's future at Tesla may hang in the (very expensive) balance
Talking Points The iconic electric vehicle's board must convince shareholders it's worth awarding their tech titan CEO a $50 billion pay compensation package — or he might walk
By Rafi Schwartz, The Week US Published
-
How did Starbucks 'fall from grace'?
The Explainer The coffee giant faces lower quarterly sales. Is it the economy, or have the drinks grown stale?
By Joel Mathis, The Week US Published
-
How Wall Street and Endless Shrimp may have killed Red Lobster
Under the Radar The company's shrimp deal may have worked a little too well
By Justin Klawans, The Week US Published
-
Downtown St. Louis is in a real estate 'doom loop'
Under the Radar The city is rife with abandoned buildings and vacant lots, with its real estate market in dire straits
By Justin Klawans, The Week US Published