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Prices of coffee are rising and there is no end. What is really influencingtheincreases?

Ceny kawy rosną i nie widać końca. Co tak naprawdę wpływa na podwyżki?

The threat of Trump’s goals has caught nervousness in the cola market, but it is not the main cause of rising prices. For years the expensive coffee has been the effect of bad weather conditions in Brazil and Colombia, and the situation is not improving. Despite this consumers can may may mix raises with politics, which facilitates further increases in prices. Producers are taking advantage of this.

  • Prices of coffee have reached a new record after threatening 25% of customs for coffee from Colombia, though finally have not come into existence.
  • Since 2011 year the prices of cocoa have stayed at high levels because of bad weather conditions in Brazil and Colombia, a upcoming harvest does not promise improvement.
  • Independently on customs, coffee in stores will probably continue to become more expensive, because wholesale prices are rising.

27 January prices of coffee have reached a new record, the day after that, as President Donald Trump threatened to impose 25% duty on coffee from Colombia, and then withdrew from this

. Although the customer finally did not enter the life, the same threat was enough

to induce nervousness in the cow market, reports CNN.

Coffee increasingly more expensive.  Will become a luxury product?

Read more

Coffee and more expensive. Is becoming a luxury product?

Notes of contracts for arabique have increased from 3.48 dollar per pound on Friday to 3,49 dollar on Monday (+0.5%), and on Tuesday in the morning reached 3.53 dollar (+1.7% in comparison to Friday).

The words of Donald Trump led to record prices for coffee

 – When President Trump threatens words, even if these are only words, it introduces uncertainty into the global trading system. And there, where there appears uncertainty, markets react rapidly – explains Dan Gardner, president Trade Facilitators, a company dealing with logistics and trade international.

Trump is not the only cause of rising prices, however. In December the arabi prices rose by 13%, and on a year size by 60% – reports the World Bank.

Since 2011 year the prices of cow have stayed at high levels because of bad weather conditions in Brazil.and Colombia. The upcoming harvest also doesn’t promise improvements.

 – The market still does not have moments of satisfaction. Supplies are growing, but still are not tracking demand. More and more we are realizing that the situation is worse, than we thought previously – says Ryan Delany, head analyst of Coffee Trading Academy.

The US love Colombian coffee

The US practically does not produce coffee a most import from abroad. Americans particularly appreciate Colombian coffee.

In 2024 year (until November) Colombia was the second biggest exporter of coffee to the US. Major customers of Columbian coffee, Starbucks, Nestlé and Keurig, are signing long-term contracts, which is why the increase in price is not perceptible from an instant.

Donald Trump may repeat  “play” their words. Sam their announcement will force exporters and importers to take protective actions.

 – Firms know, that the average consumer doesn’t understand mechanisms of the market, which is why they will start raising prices gradually. In this way they are creating a financial reserve for the introduction of objectives – Translates Gardner.

Coffee in stores will still become more expensive

Notwithstanding the goals, coffee prices are high and are likelytocontinuetoincrease.

 -coffeeisoneofthoseproducts,whosewholesalepricesaregrowing rapidly,sowewill soonseeincreasesalsoinstores- warnsTylerSchipper,aneconomistfromUniversitySt.ThomasinMinnesota.

Accordingtohimconsumerswillhavethedifficultyofdifferentiating,whethertheincreasesaretheeffectofTrump’spolicy,orthegeneralsituationinthemarketofcoffee.

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