As a coffee lover, you will probably not have missed it. In recent months it has regularly been in the news: Coffee prices are going to rise. And in most cases they have already risen...
In this blog I would like to go into more detail about the most important 3 reasons to make it understandable for you.
Frost in Brazil
Brazil is the world's largest coffee producer of Arabica coffee beans. It is therefore not surprising that a problem in this country will cause the prices of many coffees to rise.
The bottom line is that Brazil has had to deal with (unexpected) frost, which has destroyed large plantations. The coffee plants literally died because of this frost...
Let alone what this means for the long term, but for now this practically means that coffee farmers from Brazil have had a production loss of at least 40%, which has caused prices to rise.
A typical case of climate change problems...
If you find it interesting to read more about that frost in Brazil, the world's largest coffee producer in the world, read on here .
Too much question
From quality coffee, good Arabica beans , there was always just enough to cover demand. Since the corona pandemic started in March 2020 , the demand for quality coffee has increased enormously .
En masse we have switched from the (usually not so good) machine coffee at work to good coffee at home. Satisfactorily, but that also means that there is too much demand.
In combination with the production loss mentioned earlier, this cannot mean much good. If there is too much demand, scarcity arises, which causes prices to rise.
Transport costs are skyrocketing
I think just about everyone has experienced this at some point.
The bottom line is that transport by sea has risen bizarrely high and quickly in price. Sometimes up to 500% of the original price .
I don't know the exact figures today, but I do notice this when buying new coffees that all come by sea container.