Increasing wholesale coffee bean prices and its effects on coffee suppliers
Wholesale coffee bean prices are impacted by a variety of factors because it is a price-sensitive commodity. This article will provide the most recent wholesale coffee bean pricing as well as an explanation of the elements that influence them.
Important information on wholesale coffee bean prices
Coffee traders in the world’s active and profitable coffee business are continuously concerned about increasing wholesale coffee bean prices.
See more: Wholesale Arabica coffee beans: Ways to trade Arabica coffee beans effectively
Current wholesale coffee bean prices
Colombian wholesale coffee bean prices are now the highest in MY 2020/21, at 4226.5USD/MT. Colombian coffee output is third in the world, after Brazil and Vietnam, but the highest coffee prices suggest that Colombian coffee is of high quality.
The wholesale prices of Brazilian and other Arabica coffee beans are lower in MY 2020/21, at 2982.9 and 3973.1 USD/MT, respectively. Brazilian wholesale coffee bean prices are the lowest of all Arabicas due to the world’s greatest output.
Compare wholesale coffee bean prices in 3 last market years
Overall, the wholesale coffee bean prices in MY 2020/21 are higher than the price of the 2 previous MYs.
Due to supply shortage, wholesale coffee bean prices increased for the tenth month in the previous three market years. Weather changes in key coffee-producing regions, such as frost in Brazil, raised transportation costs, while social distancing in Asia owing to the Covid-19 outbreak affected trade flows. The strong rise in wholesale coffee bean prices is expected to continue in MY 2021/22.
Wholesale coffee bean prices from the world’s largest coffee suppliers
Brazil, Vietnam, and Colombia are the leading wholesale coffee beans suppliers in the world. Brazil and Colombia are the leading exporters of Arabica coffee, whereas Vietnam is the leading exporter of Robusta coffee.
Wholesale coffee bean prices of Brazil
Because Brazil is the world’s top supplier of Arabica coffee, its output has a significant impact on the price of Arabica coffee across the world. In comparison to MY 2018/19 and 2019/20, the exporting price of Brazilian Arabica coffee climbed steadily and significantly in MY 2020/21.
Wholesale coffee bean prices of Vietnam
Because coffee is one of the best agricultural products in Vietnam, Vietnam ranks second in the overall amount of coffee exported. As the top Robusta exporter, Vietnam produces 40% of the world’s Robusta coffee.
In the last three years, the price of Vietnamese Robusta Coffee beans has declined compared to prior years, and is showing no signs of growing again. This is especially advantageous for importers wishing to purchase Robusta coffee in bulk.
Wholesale coffee bean prices of Colombia
Colombia is the world’s third largest coffee exporter, although it ranks second in Arabica coffee exports (after Brazil). Colombian coffee prices have consistently climbed over the last three years, following the global trend, and will continue to do so in the future.
Factors affecting the wholesale coffee bean prices
Wholesale coffee bean prices are affected by environmental, economic, or weather factors.
The impact of supply on the wholesale coffee bean prices
The world’s first coffee exporting country, Brazil, has seen a considerable reduction in coffee supply as a result of climate change. Furthermore, due to transportation restrictions during the Covid-19 pandemic, coffee has taken longer to get from the source to the consumer, causing wholesale coffee bean prices to rise for several months in a row.
The impact of demand on the wholesale coffee bean prices
Despite the fact that the Covid-19 outbreak is still complicated, home use has not reduced coffee demand in many nations. Furthermore, the Christmas and New Year vacations, as well as the reopening of the European economy following the Covid-19 immunization campaign, all contributed to an increase in coffee consumption in these nations. The supply of coffee beans is diminishing as demand rises, resulting in a large increase in wholesale coffee bean prices.
The impact of logistics on the wholesale coffee bean prices
Every country’s customs clearance and export process has been slowed by the Covid-19 outbreak. When Covid-19 instances were discovered, several of the world’s largest seaports were forced to decrease their workforces or close, causing delays in the shipping of products. Furthermore, compared to typical, the cost of shipping has climbed 3-7 times, resulting in a dramatic increase in wholesale coffee bean costs. To maintain their clients, many wholesale coffee sellers must cancel orders or take a loss.
The impact of weather on the wholesale coffee bean prices
Coffee plants require the right temperature and weather conditions to mature and produce high-quality fruits for each coffee type. Only a few weather variations, such as natural catastrophes, can have an impact on coffee supply throughout many coffee years, particularly in major and significant markets like Brazil, Vietnam, and Colombia.
The frost in Brazil in July killed a big number of coffee trees, raising the global price of coffee for the next 2-3 crop years.