Record increase in the price of coffee

THE Brazilthe world’s leading producer of Arabica coffee, which produces nearly half of the world’s Arabica, has suffered severe frosts and intense droughts since 2021. The year 2024 was the hottest year on record in Brazil; the number of forest fires had never been so high in 14 years. The supply of coffee therefore remains limited in Brazil; forecasts for the next harvest have been revised downwards.

The offer is also limited for robusta coffee, mostly used for the preparation of instant coffee and ground coffee blends.

Brazilian farmers, like those in Vietnam, the world’s leading robusta producer, which last year (in 2024) experienced a drought followed by heavy rains, are holding back sales in anticipation of a further price increase, creating tensions on supply faced with a demand for coffee that has never been so strong.

In front of theboom of emerging marketsparticularly in AsiaCoffee consumption continues to increase around the world. There coffee consumption – and more specifically special coffee – exploded in Chinasurpassing France and Italy, the main coffee consuming countries.

Coffee consumption here is experiencing double-digit annual growth, driven by urbanisation, the growing influence of international coffee chains, local coffee shops and the rise of the middle class. Especially the young generations, in search of new trends coming from the West, are adopting coffee because it represents a symbol of modernity and professional dynamism.

This strong demand increases pressure on supply and drives up prices.

THE shipping costs they experienced an explosion after the Covid-19 pandemic crisis, which continued even after the crisis. Coffee has become more expensive to exportleading some importers, interested in a new, more advantageous paradigm, to develop the transport of coffee by ship (BELCO – TOWT).

This approach – which at first glance might seem imaginative – is actually based on a studied and measured economic model (ensuring the security of supplies), which goes beyond the objective of decarbonisation.

After keeping prices artificially low for decades, investors they are now betting on the price of coffee rising, leading to aa artificial increase in prices on stock markets.

➡️ Comments on the adapter?

Coffee lovers are seeing the price of their cup increase, both at home and in outdoor drinking places.

So how can you not give up coffee?

Faced with this change, which we must see, in our opinion, more as an opportunity than an inevitability, it is an advantage to change our consumption habits to continue to benefit from our sacrosanct «little black» in a more aware, enlightened and awakened world.

More than a shot of caffeine, perhaps an aromatic coffee.

👉 Enjoy a good coffee rather than swallowing it because it’s not good ;).

How? 👉 focusing on quality:

✅ The price gap between low-end coffee and quality coffee – of which specialty coffees are the emblematic representatives – top of the range tends to reduceoffering to opportunity to go to a bar qualitative.

✅ Focusing on quality is also the guarantee of keep the coffee sector alive hit hard by intense climatic events that are becoming more pronounced. Paying producers more fairly encourages them to continue their workto convince their descendants to take up the baton and benefit from the money needed to make the essential investments to adapt to climate change and to continue offering quality coffee. By 2050, in fact, some studies estimate that almost 50% of the land suitable for growing coffee could become unsuitable.

♻️ Buy your coffee on of roasters and platforms involved In the consume better (like that of Mirabilis), allows you to support shorter circuitsand also helps to ensure better remuneration for producers.

Importers, such as roasters, are also working towards greater transparency on the prices charged to understand the real value of their coffees.

👉 Our partner roasters had to increase the prices of their coffees, but they did not save on sourcing, quality and support for producers.