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Key commodities in focus

16 December 2024

The FMCG sector continues to grapple with significant challenges in key commodities, driven by extreme weather events, shifting production patterns, and supply chain disruptions. Here’s a snapshot of the current landscape. 

Coffee 

Global coffee prices have surged to their highest levels in nearly 50 years, largely due to severe weather in top-producing regions. Brazil’s record-breaking drought and Vietnam’s unseasonable rains have strained supplies, with demand outpacing production for three consecutive years. These challenges are pressuring traders and impacting costs for downstream supply chains. 

Cocoa 

Cocoa prices are climbing amid shrinking global stockpiles and adverse weather conditions in West Africa, the world’s largest cocoa-producing region. Heavy rains and strong winds have hurt crop quality and output, contributing to the largest cocoa deficit in over 60 years. 

Palm Oil 

Palm oil prices have risen nearly 30% this year, making it more expensive than soybean oil—a rare occurrence in the vegetable oil market. Supply concerns from Indonesia, the top producer, and increased demand for biofuel additives have tightened exportable supplies, pushing prices higher. 

Stay informed with the Economic Bulletin 

These ongoing challenges highlight the critical need for businesses to stay informed about market conditions. The AFGC’s Economic Bulletin provides a quarterly update on key input costs, including commodities, along with other economic indicators relevant to the FMCG sector. 

Stay ahead of disruptions and make informed decisions with the latest insights and trends from our Economic Bulletin. Subscribe in the Member Centre today to have it delivered straight to your inbox!