A significant increase in coffee prices … and expectations of a new rise soon

The greatest concern about the start of major companies in the world to raise the prices of selling their products to consumers, which may translate into a relative decline in the overall orders, which may reduce the values of corporate profits, but this is not yet certain.
Inflation and increased coffee prices
The consumer price index report showed that the prices paid by consumers against roasted coffee increased by 2.5% in January compared to the previous year.
Meanwhile, fast -prepared coffee prices jumped at an amazing rate of 7.1%.
Type trend to raise the values of coffee products
About this, a number of buyers and global coffee sellers, Layho Finance, said that although they all have not raised prices yet, they have no choice but to think about raising them in the medium term.
“Coffee is currently witnessing a price storm,” said Andrea Eli, Chairman of the Board of Directors of “Elie Cafe”.
The reason for the high prices of coffee and coffee
Eli referred to the climate and its impact on the major producers and exporters in the world as a major price player, including Vietnam and Brazil.
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The bad weather conditions affected the harvest of the basic commodity in the world at a time when Brazil witnessed the most heat years ever in 2024 with a record number of forest fires that affected coffee production and led to high prices.
The United States imports the second highest amount of coffee annually after the European Union, where the largest supply comes from Brazil, Colombia and Vietnam.
Future coffee price expectations
“There is no alternative,” Eli said about the high prices. He added about the high prices of coffee futures: “We do not know how long this rise will continue.”
Other companies are also studying raising prices. “If you look at 2025, we expect inflation in coffee prices to rise while we will seek to compensate for this through the highest pricing that will be put on the market in Early year. ”
Another opinion about coffee prices
But not all dealers see the occurrence of a great tremor in the market that creates a clear disorder, as it is common for senior retailers to buy large quantities at least a year ago and install prices with futures contracts.
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“Given our intuition strategy, the effect on the price of coffee on an annual basis will be small in the first quarter,” Rachel Rogereri, the financial manager of “Starbucks”, said last month in an interview about profits.
Using less quality coffee types
“In general, instant coffee is much cheaper and retailers can raise the price while staying in the category much cheaper,” said the Florida -based coffee, Paul John Caffe, said.
Fast -prepared coffee uses robostta pills, which is less quality pills compared to anbika pills that are used in the chains of coffee companies.
And the impact of drought in Vietnam last year on the production of Robosta, which led to 60% prices during the past year. The costs of shipping and increasing labor also affected the coffee market.
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