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A supply crunch of robusta coffee beans in Vietnam — the world’s biggest producer of the bitter bean variety — is poised to send the cost of your already pricey latte even higher.

Futures of the robusta coffee bean — which is primarily used in espresso and instant coffee, as well as some ground blends — have been driven up some 50% in London this year, with prices hitting their highest level in nearly two decades, according to Bloomberg.

With weaker harvests in Vietnam — where one-third of the world’s robusta beans come from — farmers have had a harder time growing their crops and exporters have struggled to source supply, triggering higher costs for coffee-loving consumers.

Farmers and middlemen expect the cost of beans could to reach as much as $5.89 per kilogram, up from the current level of around $5.13, Tran Thi Lan Anh, the deputy director of Vinh Hiep Co., a major Vietnamese exporter, told Bloomberg.

One kilogram of coffee beans can yield between 120 and 140 cups of coffee using a standard single shot of joe.

Thus, the cost of a pound of beans can directly affect how much a coffee shop charges customers for their morning caffeine fix.

However, “we cant tell when prices will peak,” she added.

Since the 2023-2024 harvest took place in October, Vietnamese robusta coffee farmers have failed to deliver between 150,000 tons and 200,000 tons of contracted beans, according to estimates from seven traders compiled by Bloomberg.

The delivery was equivalent to just 10% to 13% of the harvested crop, per Bloomberg’s calculations.

The culprit: the El Nio weather phenomenon, which has increased global temperatures each time it sweeps across the globe every two to seven years.

This year, El Nio sparked warmer and drier weather conditions across Vietnam, peaking in November and December of 2023, according to local news site VnExpress, spurring a months-long drought that threatens Vietnam’s ability to keep up with coffee demands.

Though coffee beans need tropical climates to grow, optimal coffee-growing conditions see temperatures staying under 80 degrees during the day and also require consistent rainfall to keep soil rich, according to the National Oceanic and Atmospheric Administration.

For reference, El Nio caused provinces in Vietnam to reach peak temperatures last year, at a staggering 111 degrees.

At a meeting hosted by Vietnam’s coffee association in Ho Chi Minh City earlier this month, Swiss food and beverage conglomerate Nestle said the company had to source more beans from Brazil, Indonesia and India to maintain supply to its global factories, according to Bloomberg.

Intimex Group, Vietnam’s largest coffee exporter, also admitted during the meeting that the country had to import some 200,000 tons of coffee beans itself last year — a disappointing trend that’s continuing into 2024.

If the drought persists, we wont have lots of new beans to sell in the new season,” said Nguyen The Hue, who grows coffee across six hectares in the province of Gia Lai.

We dont have water for our farms, he added, noting that some of his plants have been infested with white mealybugs due to hot weather, per Bloomberg.

Because of the El Nio-induced drought, many lakes used to irrigate crops have been reduced to critically low levels.

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Business

Government ‘gaslighting’ public about state of economy, Labour to claim

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Government 'gaslighting' public about state of economy, Labour to claim

The government is “gaslighting” the public about the state of the economy, the shadow chancellor will say on Tuesday.

Rachel Reeves is set to attack the Conservatives in a speech in the City of London, as the opposition takes the fight to the government on their own turf ahead of the general election.

Running a strong economy has long been the focus of Conservative election campaigns.

What is gaslighting?

The term gaslighting refers to a process of manipulating someone by questioning their memory and purposefully saying what they believe to be true is not – it also involves challenging someone’s perception of reality.

The phrase comes from the title of the 1940s film Gaslight, in which a woman is manipulated by her husband as he attempts to get her certified as insane.

And with a raft of economic data coming out this week, Ms Reeves will be looking to get ahead of the government’s messaging – saying Chancellor Jeremy Hunt and Prime Minister Rishi Sunak claiming the economy is improving is “deluded”.

The Bank of England will on Thursday make its latest decision on interest rates, with expectations that borrowing costs will be held at 5.25%.

The government wants this rate to come down, but the Bank sets the base rate independently.

There is also quarterly GDP data from the Office for National Statistics (ONS) coming this week, which will likely show the UK coming out of the technical recession it has been in.

More on Conservatives

Taking the front foot in the wake of the drubbing the Conservatives took in the local elections, Ms Reeves will say: “By the time of the next election, we can, and should, expect interest rates to be cut, Britain to be out of recession and inflation to have returned to the Bank of England’s target.

“Indeed, these things could happen this month.

“I already know what the chancellor will say in response to one or all these events happening. He has been saying it for months now: ‘The economy is turning a corner,’ ‘our plan is working,’ ‘stick with us’.

“I want to take those arguments head on because they do not speak to the economic reality.”

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Local elections sent a ‘clear message’

She will add “During the local elections I travelled across the country. I spoke to hundreds of people. I listened to their stories.

“And when they hear government ministers telling them that they have never had it so good, that they should look out for the ‘feelgood factor,’ all they hear is a government that is deluded and completely out of touch with the realities on the ground.

“The Conservatives are gaslighting the British public.”

The shadow chancellor will say Labour will fight the election on the economy, point to previously announced policies such as a national wealth fund to deliver private and public investment, reform planning laws to build 1.5 million homes, and create 650,000 jobs in the UK’s industrial heartlands.

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Conservative Party chairman Richard Holden said: “The personnel may change but the Labour Party hasn’t. Rachel Reeves still hero-worships Gordon Brown, who sold off our gold reserves and whose hubris took Britain to the brink of financial collapse.

“Labour have no plan and would take us back to square one with higher taxes, higher unemployment, an illegal amnesty on immigration and a plot to betray pensioners, just like Gordon Brown did.”

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Sports

Buehler strikes out 4 in 1st MLB start in 2 years

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Buehler strikes out 4 in 1st MLB start in 2 years

LOS ANGELES — Walker Buehler went four innings and struck out four Monday night for the Los Angeles Dodgers against Miami, his first major league start in nearly two years.

The right-hander allowed three runs and six hits. He threw 77 pitches, including 49 strikes. Dodgers manager Dave Roberts said before the game that Buehler’s pitch count would be anywhere from 80 to 85.

Buehler did not factor in the decision, but did depart with the Dodgers holding a 6-3 lead on the strength of four home runs, including Shohei Ohtani‘s fourth in three games.

It was Buehler’s first start since since June 10, 2022, at San Francisco The 29-year-old two-time All-Star had his second Tommy John surgery on Aug. 23 that year. The first reconstructive surgery on his right elbow was in 2015 shortly after he was drafted in the first round by the Dodgers.

Buehler was 0-2 with a 4.15 ERA in six minor league starts this season, mostly with Triple-A Oklahoma City. He had 21 strikeouts and nine walks in 21⅔ innings.

“For Walker to still stay focused on getting ready and seeing the light on the end of the tunnel, I’m proud that he could navigate that. It’s hard, especially the second time around,” Roberts said of Buehler’s comeback. “The compete is still in there. I know it has been caged up for quite a while.”

Buehler allowed four hits his first time through the order, including RBI singles by Bryan De La Cruz and Jesus Sanchez in the first and Nick Gordon‘s solo homer in the second, but only one his second time around.

Buehler threw 13 pitches of 96 mph or more, including a 97.6 mph fastball that leadoff hitter Jazz Chisholm Jr. fouled off in the first inning.

Roberts tried to ramp down expectations about Buehler’s velocity before the game, instead turning the focus to his fastball command.

“I do expect command at some point. That will allow him to do different things,” Roberts said. “If he doesn’t command it, then you are sort of trying to mix and match and trick guys. I still think he’s going to be a very good pitcher. He has weapons to get right and left-handers out and he has to use them.”

Buehler appeared anxious during his warmup pitches before facing Chisholm.

The nerves didn’t subside when the Marlins’ center fielder fouled off four straight pitches and got aboard with an infield single inside the third-base line on the ninth pitch of the at-bat with the infield shifted to the right.

Chisholm stole second and scored on De La Cruz’s base hit to right-center. Buehler retired the next two batters, but De La Cruz scored on Jesús Sánchez’s single to right. Buehler got out of the inning when Tim Anderson was called out on batter interference when Sánchez tried to steal second.

After the Dodgers scored three in the bottom of the first, Gordon tied it with a solo shot just over the right-field wall on a full-count cutter from Buehler that was slightly elevated.

Buehler settled down after that and allowed only two more hits. He put two more Marlins aboard after a throwing error and a hit batter, but prevented any damage.

Buehler threw 25 pitches, with 17 being strikes, in the first. He was at 48 pitches after two innings.

Roberts and the Dodgers are hoping Buehler can return to a semblance of his past form. They’re not focused on his potential role in the playoffs right now.

“It’s about him being good in the regular season. Once we get to October, we’ll figure that out,” Roberts said.

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Environment

Report: Apple mulling potential partnership with Rivian – 9to5Mac

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Report: Apple mulling potential partnership with Rivian - 9to5Mac

Earlier this year, Apple canceled its decade-long Project Titan electric car initiative, but a new report from DigiTimes says that Apple’s electric vehicle ambitions might not be over. According to the story, Apple is “assessing the possibility of teaming up with a certain US EV startup, and Rivian is a very likely candidate.”

The report says that there is “speculation among supply chains” that Apple is investigating teaming up with an EV startup. DigiTimes suggests that Apple could take its 10 years of EV and autonomous driving research and team up with another company instead of making its own car.

While it’s “uncertain what form such a collaboration could take,” this report suggests that Rivian is the leading candidate, based on supply chain sources.

There are no other details provided in the DigiTimes report. It’s unclear what a partnership between Apple and Rivian would look like – or whether Rivian would even be interested in such an arrangement. Still, at least based on DigiTimes supply chain sources, it’s something Apple is “studying.”

9to5Mac’s Take

As much as I’d love to see a partnership between Apple and Rivian, I’m choosing not to get my hopes up about this one. The report is scarce on details, and sounds as if it’s based purely on speculation among Apple’s suppliers. I’d wait for something more concrete before getting too excited.

Perhaps most importantly, Apple could provide Rivian with some crucial cash as the company enters the challenging process of ramping up production of its new R2, R3, and R3X cars.

Do you think Apple should team up with Rivian? What kind of collaboration could Apple have in mind? Let us know down in the comments.

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