The price of coffee is still climbing, the consumer score should remain limited
Manual coffee harvesting in the municipality of Santuario, Colombia, in May 2019 (illustrative image).
Raul ARBOLEDA AFP / Archivos
Text by: RFI Follow
2 min
Already rising sharply since the start of the year, coffee prices experienced a spike in fever last week.
This had not happened since October 2014.
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Robusta has appreciated 7% since Monday.
The Arabica pound, up 60% since January, temporarily exceeded $ 2 on Friday.
Several factors explain the
surge this year
after a long period of price crisis.
Among them, the increase in transport costs and political unrest in Colombia.
Added to this are the bad weather conditions in Brazil.
After a dry spell earlier in the year, a wave of frost hit plantations this week in Minas Gerais, the state that produces 70% of Brazil's arabica.
And this bad weather comes during an already less promising season.
Indeed, arabica is naturally subjected to a “two-year” cycle, in other words the plant alternates good productivity and lower yield as for the coming season.
On the other hand, demand has picked up as bars and restaurants reopen.
The International Coffee Organization (OIC) even warned that the total supply for the 2021-2022 season should be lower than world consumption.
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It is on the end consumer that the increase of this week should be passed on.
But "
little and not immediately
".
It usually takes "
three to nine months to see the effects on retail sales
."
Above all, it will be of lesser magnitude than for the wholesale price.
The raw material is only one component of the final price.
►
To listen and read also: Coffee always seeks a virtuous production
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