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The purchase price of coffee raw materials in Yunnan increased by 86% in 2014.

Published: 2024-11-03 Author: World Gafei
Last Updated: 2024/11/03, As Brazil, the world's largest coffee producer, has experienced its worst drought in decades and record high temperatures, global coffee bean prices have soared and the industry is expected to spread to the domestic downstream market within two or three months.

According to the China Industry Insight Network, coffee prices have soared more than 80% this year since the beginning of March, affected by lower expectations for the Brazilian coffee harvest. Changes in prices in the international market have affected the domestic market. Starbucks, its Chinese partner, said it uses Yunnan coffee, but has clearly felt the sharp rise in the price of coffee raw materials over the past three months. At the end of last year, the purchase price of coffee raw materials in Yunnan was only about 14 yuan / kg, but now the purchase price has risen to nearly 26 yuan / kg, an increase of 86%.

A relevant official of Aiyi Coffee said that the price of coffee raw materials in Yunnan precisely follows the international coffee bean futures prices, which shows that the rise in global coffee raw material prices has had a direct impact on domestic coffee manufacturers.

In fact, with the rise in the price of Brazilian beans, which account for 40 per cent of global coffee production, it will have an impact on the downstream market, and coffee prices have already risen in Australia. According to some merchants, prices can be expected to rise by 5% and 15%. "

Local industry insiders said that since Brazil is one of the largest producers of coffee raw materials in the world, and the significant reduction in coffee bean production in Brazil due to drought will also have a year-round impact, it will not be able to change the current situation that the supply of coffee raw materials falls short of demand in the short term, so it is expected that the price of coffee raw materials will only rise in the next few months, and it is more likely to rise to 35 yuan / kg. At that time, many coffee shops at the terminal will be affected by this and will have to raise their prices.

Tang Jinqing, vice president of the Guangzhou Coffee Industry Association, said, "this price increase will soon be reflected downstream, about two or three months, and Brazilian coffee beans belong to a more popular variety, not boutique coffee, so it will affect a certain range."

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