El coffee price has skyrocketed in recent years, reaching all-time highs Who does not transform the moment of drinking coffee into a moment of relaxation and disconnection? The coffee It is present in our day to day. In fact, it's the second liquid most consumed worldwide after water. There is no doubt about the importance of its huge market and the obstacles it faces. Want to know more? Keep reading!
Situation of coffee in Brazil, the world's largest producer
Brazilthe world's largest producer of coffee, has suffered Torrential rains that have caused floods making it difficult to grow this precious drink. If to this we add the strong frost y droughts of the months of July and August of 2021 we ran into a decline in production. Despite everything, the Brazilian country calculates that its coffee production will increase by Present in several = 16,8% compared to the previous year, reaching 55,7 million bags de 60 kg.
If we take into account that in 2021 production was Present in several = 47,7% These data continue to be lower than the harvest of the 2020 which achieved record results: 63,8 million bags of 60 kg. The lower production of coffee in the South American country, both of the variety arabic (of higher quality and preferred by companies such as Starbucks) Y robusta (lower bean quality and commonly used for instant coffees) has had consequences.
As explained by the Brazilian News Agency, la National Supply Company of the country foresees "a restriction in the supply of coffee in the domestic market due to the lower production of 2021, the rebound in foreign demand and the period between harvests».
The trend is for coffee prices to remain under pressure due to an expected drawdown in global stocks for the 2021/22 cycle. This scenario of high prices drives sales abroad. conab
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The price of containers: through the roof
Brazil, exports tons of coffee to other countries through the maritime transport. The recent raw material crisis has affected multiple sectors, exponentially increasing the price of the containers that carry products from one point to another. Inevitably, this price increase affects the final amount. On some routes, the cost of a container has been multiplied by 10. In fact, the route from the Asian continent to Europe has been one of the most affected.
Colombia, the price of coffee doubles in 2022
Colombia is third world exporter of coffee. The second es Vietnam, however, its production focuses on the robust variety (less than 5% of coffee beans are Arabica). Instead, Colombia is the world's largest producer of smooth washed Arabica. The coffee growers of this Latin country enjoy great world fame and, therefore, it is an iconic benchmark in the market. In January de 2022 production fell by Present in several = 20% about January de 2021 due to weather conditions adverse.
If we look at the price we can see a considerable increase. This month 125 kg of coffee have been sold for 2307 dollars. If we look back we find a abysmal difference in relation to the highest peak in that same month, but from the previous year. The coffee price was almost half: 1218 dollars.
Now escasez of this raw material so in demand as a result of a decline in production you have to add the increased transportation costs. As consumers we will not notice it until the intermediaries and producers can no longer bear this increased cost. We must also take into account the general rise in food prices. If you want to know more about this problem you can consult this article.
