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Page 6 www.beveragestandardsassociation.co.uk
JANUARY / FEBRUARY . 2022 | VOL.23
What’s happening to our coffee prices?
The green coffee market has been causing
major headaches these past few months for
coffee roasters, and the current market rise
shows no signs of abating. The reasons are
varied and many, but I thought it might be
interesting for readers to get the Roaster’s
perspective:
Global demand continues to increase as
coffee becomes ever more popular
throughout the developed, and developing
world. Notably, there has been a marked Mainstream media is already commenting
increase in demand from the home markets on the soaring cost of coffee- which is
of coffee producing nations. hardly surprising really, given our national
Supply side constraints due to bad harvests obsession with the Café Culture.
( Brazil notably). Global warming is having
an impact across most coffee growing The Financial Times wrote in December
areas. that Arabica prices had hit a 10 year high,
with green coffee now commanding $2.50
Shipping bottlenecks which are affecting all a pound ( or around £5.50 a kilo), almost
products worldwide. Coffee is no exception double the level of Jan 2021. We anticipate
given that the majority of it is shipped that most roasters will be increasing
across the world’s oceans. prices in the coming months, with smaller,
local roasters being particularly affected.
Finally, with the inflationary impact, we are
all experiencing on energy, packaging and
labour it is not unreasonable to suggest In the three decades that I have been in
that this situation is likely to be here for the this industry, I have never seen such a
medium term with a strong likelihood of cocktail of events and circumstances that
further increases. Call it a perfect, and very have created this steep increase in coffee
unwelcome, storm for business and pricing. At Edgcumbes we have averted
consumers alike. the need for imminent increases by
contracting our green bean supply ahead
for the coming year, although other
factors such as inflationary price rises on
packaging, fuel and labour will still impact
us.
