Increase the price by 30%! Several international bakers announce price increases

According to media reports, as bad weather conditions have led to a rise in coffee bean prices, affecting the global coffee market, including Brazil's domestic consumer market, Brazil's major coffee roasters, including JDE Peet's, one of the world's largest coffee companies, are expected to raise prices in the domestic market from the beginning of next year.

It is reported that global coffee prices have risen seriously recently, reaching an all-time high earlier and rising more than 80% this year, mainly because both Brazil and Vietnam have experienced severe dry weather this year, affecting the growth and harvest prospects of coffee crops. This situation has also led to a rise in coffee futures in recent days, but it has fallen 2.65% in recent days.

It is understood that the decline in coffee futures is mainly due to the Fed's announcement of an interest rate cut, which ranges from 25 basis points to 4.35% to 4.50%, and is expected to narrow to 50 basis points in 2025, the third time that the Fed has cut interest rates since September this year.

The price of coffee futures fell as speculators acted on changes in monetary policy, coupled with recent reports of strong exports, increased supply and rising stocks of Arabica and Robusta coffee monitored by ICE.

Although futures prices fell, they remained high, which pushed up the price of coffee consumption in Brazil. JDE Peet's, the maker of several domestic coffee brands, will raise prices by an average of 30 per cent in Brazil next year, according to traders, mainly raising prices for roasted ground coffee, raw beans, instant coffee, capsules and cappuccinos. The German company Melitta also said that the rising cost of fabric coffee has risen by 12% in recent days, and the price has risen another 25% this month.

In addition, according to the report, some European coffee traders said that some large European roasters had planned for 10% by the end of December or early January. By the end of March next year, consumers will clearly feel the price rise and may eventually cope with it by reducing consumption.

Brazil is the second largest consumer of coffee in the world after the United States. As a result, some experts say that due to the rising price of coffee in Brazil, coffee companies may choose to import from other coffee-producing countries to supply the Brazilian market, but at the same time push up prices in other markets.

At present, the market still believes that Brazil's future coffee production is uncertain, all because of the recent bad weather in Brazil. It is reported that although rainfall has resumed in Minas Gerais, Brazil's main coffee producing region, the rainfall last week was 35.2mm, only 65% of the historical level, and the temperature was on the high side. The average temperature dropped more than 30 ℃ in December and the highest temperature dropped to 36 ℃. This situation is not conducive to coffee results. If the result is not good, coffee production will decline again in the new season.

And, for the future climate is also very unsatisfactory, all because earlier, the World Meteorological Organization said that the next three months La Nina phenomenon is more than 50% likely. Causing market concern, at present, both the Brazilian domestic market and the international market are generally not optimistic about Brazil's coffee production in the new season next year. Earlier, a number of well-known coffee trading companies released forecasts for Brazilian coffee, forecasting a decline in production. It is also believed that the global coffee demand will continue to increase, and the global coffee market in 2025x26 will have a supply gap for the fifth year in a row, with an estimated supply shortage of 8.5 million bags.

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