Drought and an unseasonal frost have squeezed supply from the world's top producer.

Wholesale coffee prices have surged in recent weeks after a combination of drought and an unseasonal frost damaged crops across several of Brazil's major coffee-growing regions, the world's largest producer of the crop.

Traders say the reduced harvest has tightened global supply at a time when demand, particularly in Asia, has continued to grow, pushing futures prices to their highest level in several years.

Some smaller roasters have already raised menu prices to offset higher costs, while larger chains say they are absorbing the increase for now to avoid alienating customers.

Analysts caution that prices could remain elevated into next year unless growing conditions improve, since coffee trees typically take several years to recover fully from drought stress.