,There is a saying in the coffee world that Brazil sets the standard in price and production on coffee and export/import operation. Lately, many people have asked us, "What is going on with coffee prices and supply?" So here goes, in a brief synopsis to keep you informed.
Recently, a drought in Brazil coupled with an increase in demand for coffee as the world re-adjusts after the coronavirus pandemic has led to an increase in coffees prices from mills, co-ops, auction, and estates. The Wall Street Journal has reported that the price of 100% Arabica coffee beans, Brazil’s main coffee variety, hit its highest level since 2016 last month, as the country’s coffee harvest is expected to drop dramatically this year because of the drought.
Additionally, temperatures in several of Brazil's top coffee growing regions fell below 0 degrees Celsius (32 Fahrenheit), resulting in severe frost crop damage with the southern part of one of the top coffee-growing regions, Minas Gerais, being the coldest there since 1994; 9 other regions were also affected. Essentially, critical weather concerns in Brazil with drought compounded by severe cold may significantly reduce the upcoming 2022-2023 arabica crop cycle.
Rounding out the coffee picture, global shipping is becoming a priority issue for all trading companies as bookings are canceled or delayed. Maersk and Sealand are no longer taking bookings out of Central America, adding pressure to those lines who are still operating. In general, washed arabica coffee availability continues to be tight, and differentials across the board remaining very strong. Crops in Colombia and Peru are ramping up. Small amounts of coffee in Central America are still available.
RhoadsRoast Coffees is involved in the supply chain process every step of the way from the coffee bean export through ethical sourcing to the final roasting. Our supply chain is not impacted and we have planned for coffee inventory for the next 14 months. We are ready and prepared for delivering to our customers and future coffee aficionados!
Thanks for reading and stay tuned for more updates on coffee and offerings.