Could Relief Be Coming For Coffee Prices? – CoffeeTalk

Around one-third of the world starts their day with a cup of coffee, with three out of four Americans enjoying a cup daily and 36% drinking between three to five cups daily. The global coffee trade is reaching a crisis point due to significant surge in prices, with retailers refusing to purchase coffee at its current rates. Retailers expressed shock at current pricing and growers shared their astonishment at not being able to sell their coffee products.

One roaster in the U.S., who wished to remain anonymous, told Reuters that conditions have become so dire that his clients are uncertain about remaining in business. This situation extends to grocery stores in the U.S., which have begun to resist the rising costs. European supermarkets Jumbo and Picnic faced a dispute with JDE Peet’s, the owner of Douwe Egberts coffee and Pickwick tea, over its new pricing recommendations, which included price increases of up to 30%.

JDE Peet’s is increasing its profitability at the expense of consumers and retailers, with both supermarket chains now paying “significantly” more for the brands. While retailers will have to take a hit on some of the cost to keep prices down for consumers, customers will still have to pay more for their coffee.

However, these high prices might not remain for long. If Brazil successfully achieves a large harvest, Arabica coffee futures could drop by as much as 30% by the end of 2025, bringing it down to $2.95 per pound, which would return it to November 2024 pricing. The same applies to Vietnam, the largest producer of Robusta coffee, as one participant in a Reuters poll observed that production could recover given the investments made by farmers in recent years.

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