World Coffee Prices
The reasons for the rising coffee prices are varied:
Poor harvests in Brazil, the largest producer country, are the main cause. Droughts and subsequent heavy frosts have been causing yield losses since last year. Only 48 million bags of coffee were harvested in Brazil last year. At 60 kg of coffee per bag, that is almost 2.9 million tonnes of coffee. This was far behind the record harvest of 2020, when 63 million bags were harvested. Other countries like Colombia are also directly affected.
In addition, the global demand for coffee is continuously increasing.
The above-mentioned factors (scarcity combined with rising demand) lead to soaring prices on the coffee exchange: prices on the coffee exchange have doubled in the space of one year and there is unfortunately no end in sight to this trend. (See also the graph below)
In addition to these price increases for green coffee, other factors, like transport and packaging material costs and, last but not least, worldwide, pandemic-related restrictions, contribute to considerable increases in costs.