![Brazil’s biggest coffee roasters plan big increases in coming year [World News]](https://foodcom.pl/wp-content/uploads/2023/09/Foodcom_World_News_Plant-Based-1520x760.jpg "Brazil’s biggest coffee roasters plan big increases in coming year [World News]")
- Adverse weather threatens next year’s coffee harvest in Brazil and Vietnam.
- After a year of rising prices, recent weeks have seen a further surge in the price of raw coffee beans on the world market.
- Brazilian producers are raising prices by up to 30%, and increases are also planned in Europe.
- The price increases of the end of this year and the beginning of next year will be felt by consumers at the end of March.
Why are coffee prices rising again?
Adverse weather in Brazil and Vietnam, the world’s largest coffee producers, has had a negative impact on the outlook for next year’s harvest. This entailed a sharp increase in global raw coffee prices in December. The upward trend has continued since the beginning of the year due to this year’s drought and the unstable climate situation in recent years.
Looking at the year as a whole, coffee prices have risen by around 80%, with an increase of around 30% recorded in the last five weeks. Further price increases will be felt by consumers around the end of March. Producers are talking about price increases not only for roasted and ground coffee, but also for instant and capsule coffee. Traders explain the price increases by referring to climate change, increasing demand and economic instability.
Which producers will raise prices in 2025?
JDE Peet’s, one of the world’s largest coffee companies and producer of brands such as Jacobs, L’Or, Tassimo and Douwe Egberts, has informed its customers of a planned price increase of 30% on average. The increase is expected to apply to the Brazilian market, but many market analysts believe that international coffee producers will seek to raise prices in global markets as well. The increases could occur in late December or early January, when long-term contracts with retailers expire.
Other major Brazilian producers have also announced price increases – 3 Coracoes will raise prices by 11% in January, despite a 10% hike in December, while Melitta is already acting this month – having recently increased prices by 12%, with a further 25% hike in December. European coffee roasters will also increase prices at the turn of the year – a 10% increase was planned even before the current market moves. Coffee producers are struggling to pass on prices to consumers, resulting in some customers abandoning their offerings. As a result, shares in companies such as Nestle and JDE Peet’s have fallen more than 20% this year as margins have been squeezed.
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