Price Increases at Coffee-Direct
Throughout 2021 and continuing into 2022, coffee production costs around the world have been rapidly rising, leading to an inevitable and sharp increase in the cost of green beans. This cost increase is affecting roasters across the globe and, unfortunately, we at Coffee-Direct now find ourselves needing to implement price increases across our product range in order to manage this unprecedented situation, while continuing to meet the unchanged demand for fresh coffee.
We are proud to say that, aside from a few specialist coffees in our range, we have not increased the prices of our coffees in over three years. That we are doing so now is due only to the current factors that are affecting coffee production globally and have been for most of the previous year. Furthermore, we have experienced increases in domestic courier prices that have become significant over the last few years.
Therefore, from Wednesday 2nd February 2022 we will be applying a small increase to our prices across most of our range.
We have managed to absorb what we can in order to lessen the impact across our product line and are continuing to buy in a strategic way to minimise our product costs, while still offering our customers the same high-quality, freshly roasted, delicious coffee.
What Has Caused the Increase in Coffee Prices?
The causes of these price increases are various, but the main factors are climate change and the impact on growing conditions, including recent severe droughts and unusual frost conditions in Brazilian production areas, and the long-term effects upon shipping costs and logistics as the industry adapts to reduced production levels.
The price of arabica beans increased by 50% in 2021, reaching a seven-year high in July 2021. This high was largely the result of the recurring droughts that have hit Brazil in recent years, along with unprecedented freezing temperatures that struck the country in July, leading to snowfall in the hills and across coffee trees growing in the important Cerrado Mineiro region.
Additionally, disruptions to the transportation of coffee across the globe have been caused by port congestion and container shortages. The Coffee Exporters Council of Brazil has advised that traders in 2021 were struggling to obtain container and vessel bookings, with container freight rates increasing, remaining at this rate and impacting the costs of green coffee beans.
Looking to the Future
It might not be too clear how the global coffee industry will adapt to these factors throughout 2022, but there are certainly some positive proposals being provided by experts. For example, it is believed that the current high prices may eventually boost production in coffee-producing regions other than Brazil, such as Colombia, Africa and Central America, which will lead to a more balanced supply.
Whatever developments occur in 2022, we will continue to do all we can to keep our prices consistent, by buying strategically and absorbing costs into our production in any effective ways possible. Above all, we will continue to offer delicious, freshly roasted, quality coffee to our customers.