Brazil and Vietnam, the world’s top two producers, have experienced major drought problems in recent months, which explains a reduction in supply compared to demand. Beyond that, global warming also weighs on the entire world production. To explain it, it should be remembered that coffee must be cultivated in regions close to the equator, at a very specific altitude, to avoid hot weather. But it is necessary to climb higher and higher to find ideal conditions for production. And who says above, says less production surface, and therefore an offer that decreases.
Global consumption has exploded in four years
At the geopolitical level, the Parisian also notes “disruptions in the Red Sea which lengthen the transport of Asia in Europe, the delays in certain ports“, As Carlos Mera, analyst at Rabobank explains. Conversely, consumers are increasing around the world. For example, the Chinese market has been quadrupled in just four years.
There is therefore no positive signal to wait in the coming weeks, and these increases are felt everywhere. Among roasters and supermarkets, of course, but also in restaurants and cafes. Today, you shouldn’t go to Paris to have to pay a cup of coffee 4 or 5 €. “It becomes a habit, yesgives us a restaurateur. It is a product on which we made beautiful margins, before. But we can no longer take the same margin, otherwise the price would be exorbitant …“
Chocolate, coffee, cookie, …: here are the new price increases in large distribution
