worldwide coffee prices rise: Troisdorfer Röster sees challenges

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Rhein-Sieg: Price explosion-Can customers still afford a cup of coffee?

The dramatic development of coffee prices has been concerned with consumers and providers in the Rhein-Sieg district for some time. The price of coffee has experienced a steep climb in the past few years and a half of what has had different causes, including weather conditions in the main growing countries and general market developments.

in particular Brazil, as a leading coffee producer, suffered from unfavorable climatic conditions. Dryness during the flowering phase and subsequent heavy rainfall have affected the harvest, which leads to a shortage of the available beans. The producers put pressure on these difficulties so that prices on the stock exchanges rise. The Arabica raw coffee showed massive price movements, which rose from § 160 cents per pound a year and a half to over 400 cents in January 2023. Even if there was a slight price reduction, the market situation remains tense, which unsettles consumption.

In addition to the price problem, a new European Dewalization Act, which is due to come into force from January 2025, influences the coffee trade. This law could further restrict the availability of coffee, since only products may be imported whose acreage was cleared more than 20 years ago. Many export countries could have difficulty providing the necessary evidence, which brings additional uncertainties into the market.

The changed buying behavior of consumers already has an impact: In Germany, many customers have started to prefer cheaper alternatives. People who previously bought higher quality brands increasingly use products from discounter shelves. Despite the prices, the industry has not yet recorded a drastic decline in demand, but that could change quickly if the prices continue to rise.

The retailers in the Rhein-Sieg district face the challenge of passing on these price increases to customers, which in some cases leads to price increases of only one or two euros for popular drinks. Smaller cafes and roasters try to keep their prices stable to support their customers even in difficult times. Nevertheless, it remains to be seen how long this will be possible in view of the continuing cost pressure. The growing challenges of climate change and poor harvesting the future of the coffee market in principle.