Raw materials

Coffee price will rise

The presentation of coffee at the Starbucks Reserve Roastery in Shanghai leaves no doubt that coffee is valued here as a high commodity.
IMAGO / VCG
The presentation of coffee at the Starbucks Reserve Roastery in Shanghai leaves no doubt that coffee is valued here as a high commodity.

The high listing suggests that the cost around coffee may be starting to get out of hand.

Prices for agricultural raw materials have risen by an average of 40 percent this year. This is particularly noticeable in the case of cereals, sugar, seeds - and coffee. This is also true of food prices, which have risen by around 2.5 percent in Germany.

Highest coffee price in ten years

High freight prices and dry weather in South America are causing the price increase for many agricultural commodities to continue. The price of Arabica coffee recently traded at just under $2.50 a pound on the exchange. "This is the highest level in ten years," reports the Handelsblatt, among others. Within twelve months, Arabica coffee has risen in price by more than 100 percent.

Logistics also a price driver

Traders told the news agency Reuters that the logistics chaos was one of the main price drivers. It is currently difficult to ship coffee from South America to Europe or the USA, where most coffee is consumed.

At the moment, price increases are only on the horizon. The rising prices are gradually reaching roasters and traders and are only hesitantly being passed on to consumers. But since there is no real easing of the situation on the world market in sight, retailers, restaurants, operators of bakery cafés, customers and guests will have to reckon with noticeably higher costs for coffee in the coming year.



This text first appeared on www.abzonline.de.

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