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The global coffee trade has been shaken by rising prices. Faced with a major crisis due to drought and supply chain problems, coffee roasters and traders have been forced to minimize their purchases. Retailers are having difficulty placing orders.
At the annual congress of the US National Coffee Association (NCA) in Houston, it was announced that Arabica coffee prices on the ICE exchange, which is a worldwide reference, have boosted by seventy percent since November. Renan Chueiri, General Manager of ELCAFE CA, a coffee company in Ecuador, stated that this year, for the first time, they could not sell the entire annual production. Chueiri said, ‘Normally, we would not have run out of coffee during this period, but we have now sold less than 30 percent of production. The drastic price increase is draining customers' cash flow. They do not have enough money to buy the things they need.’
The rise in coffee prices is due to the reduction in production in other major coffee-growing regions, especially in Brazil, the largest coffee producer, and the reduced availability of coffee beans. It is reported that businesses and consumers are facing difficulties due to the increase in coffee prices in the US, stocks in warehouses near US ports have halved and several storage companies have been forced to close their facilities by canceling their lease agreements.
Kaynakça:
https://www.ekonomigazetesi.com/kuresel-ekonomi/kuresel-kahve-ticareti-durma-noktasinda-45405
https://www.forbes.com.tr/makale/kuresel-kahve-ticareti-durma-noktasina-geldi
Among the anticipated developments are that companies with more capital may increase their transaction volumes, while others may suffer from reduced financing, and coffee producers are expanding their cultivated areas in response to price increases. It is assumed that the increase in cultivation areas in countries such as India, Uganda, Ethiopia, and Brazil may lead to excess supply and a decline in prices in the coming days. All in all, it seems that a large part of the coffee industry will continue to suffer until prices come down.
