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flag Coffee and chocolate prices remain high despite falling futures, hurting small businesses.

flag Coffee prices have stabilized after a 2025 drought in Brazil sent Arabica futures down from $4.20 to $3.70 per pound, with further declines expected by late 2026. flag However, cafe prices are unlikely to drop soon due to persistently high costs for beans, rent, wages, and packaging. flag Profit margins have fallen to under 2.5%, contributing to rising closures—about one in nine cafes and restaurants entered liquidation in the past year. flag A similar situation affects chocolate makers, as cocoa prices, though down from $12,000 per tonne, remain two to three times the long-term average, straining small chocolatiers with high restocking costs.

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