Instant Coffee Affinity Takes Robusta Beans From Stepchild To Favorite – CoffeeTalk

A surge in robusta demand typically leads roasters to seek cheaper alternatives within the arabica market, as not all beans are made equal. In the physical market, smaller and more imperfect beans can cost less than futures prices, which is what roasters usually tap into to replace robusta. However, the industry has begun to shift back toward poorer grades of arabica, as the premium the bean carries over robusta is near the lowest in data going back to 2019. Volcafe Ltd., one of the world’s biggest coffee traders, forecasted a fourth year of shortages in the season starting October.

Coffee makers risk getting squeezed between high input costs and retailers’ reluctance to raise prices for fear of hurting sales. J.M. Smucker Co. raised prices across part of its coffee portfolio earlier this year, while Nestle SA faces pressure on input costs for both coffee and cocoa that will weigh on margins in the second half of the year.

In some instances, higher-quality robusta has even surpassed arabica prices. Nguyen Coffee Supply in New York City sources robusta from Vietnam, which has a higher quality and price tag than the robusta beans backing futures contracts. Some companies are working to improve the quality and flavor of robusta through cultivation and harvesting practices, such as handpicking coffee cherries only at peak ripeness. This could make the variety not just a cost-effective component in coffee blends but a “really amazing” alternative to the highest quality arabica beans.

Read More @ Yahoo