The price of coffee has reached its highest level in 50 years. The causes are multiple: global warming, rising energy costs, unstable geopolitics… The repercussions are being felt among professionals in the sector and on the habits of individuals.
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Many rely on the morning cup of coffee to get them through the day. A budget that weighs more and more heavily on the wallet. “In the café I usually go to, the coffee went from 2.40 to 2.50 euros. I will try to find a cheaper one“, tells us a customer seated at a café terrace.
To drink it or not? The question arises for this other client. “I’m not rich enough to drink coffee every day. I’m thinking of going back to hot chocolates, drinking tea.“If some people are thinking of changing their consumption habits, it is because coffee has become a luxury. Its price is skyrocketing.
For Ny Aina Bernardson, the manager of Café Bretelles in Strasbourg, the rise in the price of coffee came like a hammer blow. “Before, our packets of grains cost on average 9 euros. Today, we took 2 or 3 euros more per package.“And it’s the accumulation of the last few years that is the hardest to digest.”With climate change, we suspected that there would be repercussions on the price of coffee. But the war in Ukraine, the price of energy, transport, salaries, … It has become very complicated.“
A stone’s throw from the university campus, this café’s clientele includes many students. The manager wants this audience not to be too impacted by the price increase. “Our espresso is 2 euros. We don’t want to touch it.“It will be other hot drinks which will see their price increase. From 3.40 to 3.60 euros for cappuccino, for example. No choice for this emblematic establishment in Krutenau, which would prefer to offer quality coffee at a lower price.”It is a product that must remain affordable for everyone.“
Now, we go to see distributors 2 to 3 times a year to change prices.
Nicolas Schulé, president of Cafés Sati
But this is not what the trend portends. Nicolas Schulé, president of the Alsatian roasting company, Cafés Sati, has his eyes fixed on the stock market price of coffee. He speaks of an unprecedented crisis. “We were between 150 and 160 cents per pound, today we are at 326 cents per pound. The market has more than doubled.“
He has never experienced that. Coffee is more expensive to buy every day and this increase must be passed on to the selling price to distributors. “When you work with large retailers, it’s difficult. We negotiated our contracts annually. Now, we go to see distributors 2 to 3 times a year to change prices. It’s a real revolution.“
The causes? They are multiple. In the main coffee-producing countries like Brazil or Vietnam, it is the climate that plays a role. Global warming leads to droughts and other weather phenomena, weakening harvests. A bad harvest implies a rise in prices. On top of that, a little speculation and a tense geopolitical situation add salt to the situation. And that’s not all.
“Lhe port of Santos in Brazil, the largest coffee port in the world, is experiencing a tense situation, with strikes and lost containers. The closed Suez Canal generates additional transport and energy costs. I forgot the price of the dollar which is low compared to the euro, especially since the American elections”regrets Nicolas Schulé. A whole series of explanations which complicate the global coffee market.
“What is worrying is that we do not see any endogenous factor in the market which could announce a decline, at least not in the short term.” This is already the third time this year that Cafés Sati have had to increase their prices.
