Coffee pricing reached an all time high in October this year (trading around $2.46 per pound) due to weather and supply chain issues.
The uncertainty created by weather-related shocks and potential disruptions in trade flows from stricter pandemic-related measures around the world has become a serious threat to the regularity of green coffee supply.
Increasing transaction and production costs, including fertilizers and labour costs, along with substantial increases in transport costs “are expected to reduce growers’ current gains from increased prices and slow down investments in production. Hmm.
Where the big coffee companies have a price-lock on coffee with several months of inventory in their warehouses there may not be a risk on coffee just yet?
I have noticed that coffee retailers seem to be slow to increase the cost to consumer. I guess for fear of loss of market share.
The larger companies may be better positioned to weather the current supply cost challenge for the smaller companies the impact my well be very different where the consumer will be asked to pay more to cover those costs?
It’s predicted that UK inflation could top 5% in early 2022 which leads me to believe the impact will affect the price the consumer pays for a coffee on the high street very soon.
