The coffee price flies

Coffee is currently selling for around $2 a pound* on the international markets, a 44.9% increase over 12 months, according to the International Coffee Organization. This increase can be explained by various factors. First, political unrest in Colombia, the world’s third largest coffee producer, has caused delivery delays and increased the cost of sea freight, which was already strained due to the pandemic. Second, devastating weather conditions in Brazil: drought and then an unexpected frost hit the world’s leading Arabica producer in 2021, causing defoliation of the trees and killing the youngest plants. Some estimate that 150,000 to 200,000 hectares, nearly 11% of the country’s Arabica crop, have been affected. The 2022 harvest, for the affected farmers, has been reduced to nothing. And the following one already seems to be largely compromised.

Soaring commodity prices

The current rise in coffee prices is part of the wider inflation in the prices of raw materials, both agricultural and industrial: copper and tin have recently broken all-time records, as have wheat, corn and sugar. Fuel and paper, essential for the coffee supply chain process, are no exception. All this will inevitably have an impact on the lives of roasters, distributors and their customers.

Respecting the producer and the consumer

“As roasters, we are going through an extremely difficult and tense period,” said CEO Michel Liégeois. “We have to continue buying quality beans at a price that does not hurt our producers, who are the first victims of climate change, or our customers, who are coming out of the Covid crisis, or our customers’ customers. We traditionally re-evaluate our prices twice a year. This time, the nervousness of the market is such that keeping the balance is an even more delicate exercise for a family company that stands by the values of accessibility, generosity and respect for all.”

Remaining a generous coffee brand

Whether it is sipped on the terrace or enjoyed as the first drink of the day, coffee, iced, latte or espresso, remains a basic necessity for many people. “At Charles Liégeois, we do everything we can to ensure that it continues to offer everyone the pleasure of discovery and tasting great,” Michel concluded.

* 1 pound = 453.59 grams