The global coffee trade has collapsed. What do we know?
7 March 2025 17:57
Coffee sellers have reduced purchases to a minimum due to a sharp jump in prices. Suppliers are finding it difficult to convince stores to accept the product at the new prices.
This was reported by the Saudi Arabian newspaper Arab News, "Komersant Ukrainian" reports.
Participants in the US National Coffee Association convention held in Houston reported a 70 percent increase in arabica coffee futures on the ICE exchange. For the first time this year, Ecuadorian coffee producer ELCAFE C.A. sold less than 30% of its expected annual production by March.
The price of coffee has risen due to a decrease in the amount of product produced, particularly in Brazil. As a result, the supply of coffee beans has decreased significantly.
According to brokers, companies have purchased raw materials in the quantities needed now and have abandoned stocks. An Arab News source said that many of the fresh deals in Brazil were made “in a very conservative manner.”
Reuters predicted that prices for Arabica coffee could fall by 30% this year. High prices are holding back demand, and Brazil is likely to have a record harvest next year.
But until prices fall, the coffee industry could suffer significant losses. The head of one of the largest roasting companies in the United States says that his clients are not sure about the future of their business. Supermarkets and shops have resisted higher prices, which has led to a shortage of coffee on the shelves of some stores.
In response to the crisis, India, Uganda, Ethiopia, and Brazil are expanding their plantations, which could also lead to a price collapse.
