World Coffee prices continue to rise!
$ 7.50 for a cappuccino predicted.
The bad news is; World Coffee prices have continued to rise over the past 18 months. The reasons are many varied. There is a shortage of high quality coffee in the market place. Freight unreliability and costs , the lack of people on the ground to do the coffee Estate farm work and even a lack of wharf staff in the ports of origin to load the ships, are some of the factors contributing to the escalating costs.
The consensus is that the price of raw coffee in the future will continue to increase, resulting media outlets predicting a cup of coffee could reach as much as $7.50 in cafes. We think that price is a bit overboard and from our information we can't see the general price for a cup of coffee reaching anything like that in the near future.
We are absorbing the continuous rising costs of Raw Coffee beans and all the associated production cost for the time being. How long we can continue to do this, will be dictated by market forces. One example of our rising costs is the approx. 20% increase in bulk freight prices plus now the added fuel levy. Our Freight costs have risen well over 30% in the past six months.
It is not all bad news though. The good news in all the chaos of the industry and the scarcity of quality coffee beans has made us work much harder and to look in places we would normally not look to source our raw coffee beans supply. This has allowed us to find/stumble on some remarkable new Coffees to add to our cache of coffees. Most notable new coffees are a Ethiopian Mountain water decaf coffee. A beautiful High Grown SHB Guatemalan coffee and a PNG High Grade hand Picked and sorted 'WOW' factor coffee. These are just a few, so it is not all bad.
The consensus is that the price of raw coffee in the future will continue to increase, resulting media outlets predicting a cup of coffee could reach as much as $7.50 in cafes. We think that price is a bit overboard and from our information we can't see the general price for a cup of coffee reaching anything like that in the near future.
We are absorbing the continuous rising costs of Raw Coffee beans and all the associated production cost for the time being. How long we can continue to do this, will be dictated by market forces. One example of our rising costs is the approx. 20% increase in bulk freight prices plus now the added fuel levy. Our Freight costs have risen well over 30% in the past six months.
It is not all bad news though. The good news in all the chaos of the industry and the scarcity of quality coffee beans has made us work much harder and to look in places we would normally not look to source our raw coffee beans supply. This has allowed us to find/stumble on some remarkable new Coffees to add to our cache of coffees. Most notable new coffees are a Ethiopian Mountain water decaf coffee. A beautiful High Grown SHB Guatemalan coffee and a PNG High Grade hand Picked and sorted 'WOW' factor coffee. These are just a few, so it is not all bad.
Current Raw Coffee prices update ( Jan 2023)
.Coffee, sugar and Cocoa prices continue to rise. Last week Coffee futures dropped by approx.10%; only to increase by the end of the week for a net gain in price overall. Some coffees setting new record high prices.
For us the sad reality is a number of long-standing Coffee related businesses we deal with are starting to feel the pain of escalating costs of production and freighting costs etc., Some businesses have been able to survive through the COVID 19 fiasco only to be hit by massive increases in energy costs and now ever climbing interest rates. Plus, the added burden of the inability to find appropriate staff. As a result of these pressures, we have lost our Ceramic cup supplier, our ESE Pod Manufacturer and coffee machine and parts suppliers,
We have been able to continue to obtain a continuous Raw Coffee Bean supply, which is not without problems. We are having to work well into the future to procure high quality coffees of an appropriate volume. Because we are smaller family owned and operated business, we have been able to keep our retail pricing stable. Our customers both wholesale and On-line retail, continued support has allowed us to buy future coffee contracts to add some stability to our production costs.
For us the sad reality is a number of long-standing Coffee related businesses we deal with are starting to feel the pain of escalating costs of production and freighting costs etc., Some businesses have been able to survive through the COVID 19 fiasco only to be hit by massive increases in energy costs and now ever climbing interest rates. Plus, the added burden of the inability to find appropriate staff. As a result of these pressures, we have lost our Ceramic cup supplier, our ESE Pod Manufacturer and coffee machine and parts suppliers,
We have been able to continue to obtain a continuous Raw Coffee Bean supply, which is not without problems. We are having to work well into the future to procure high quality coffees of an appropriate volume. Because we are smaller family owned and operated business, we have been able to keep our retail pricing stable. Our customers both wholesale and On-line retail, continued support has allowed us to buy future coffee contracts to add some stability to our production costs.
Antilles Coffee Tamworth. NSW 2340
Ph +61 0427622272 ABN 83 669 264 043 |
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