From January 2024 we have seen coffee prices increase 77% since this period began.
We are all aware of the possible price increase that was inevitably coming, thanks to the media & our green coffee suppliers. For example, I have been sent for January 2025 the estimation for price increase, which will equate to $4.00 per kilo.
Unfortunately, we are at that time now I can no longer sustain or absorb the cost increases, very sad but a reality.
So, this goes without saying my coffee prices will now increase effective from Friday, January 10th 2025.
The key drivers of my price increasing:
Supply concerns in Brazil & Vietnam due to drought & floods. Brazil alone are down 11 million sacks from a September estimate & this pushes speculative traders to move hedges to cover short positions – pushing coffee prices higher, resulting in the highest level in 47 years (last seen 1977).
New Zealand dollar trading lower against the USD.
Regards
Stuart