Price Development

Over the past 12 months we’ve seen the market price grow over 20% for specialty coffee.

Alexander Hansen
November 16, 2021
Sourcing

The Intercontinental Exchange (ICE) is a major commodities exchange based in NYC. The trading price for Arabica on the ICE affects coffee's final cost, and all types are linked together regardless of origin or other factors - even specialty coffees have been found to be affected by this common base rate!

Over the past 12 months we’ve seen the market price grow over 100% for commercial grade coffees and 20-30% for specialty. Reasons are:

  1. Frost in Brazil, leading to lower yields.
  2. Global shortage of containers.
  3. Port congestion.
  4. World coffee production forecasted down 11 million bags.
  5. Increased consumption and 20 year low greens stocks.

The effect of an increase in C Market price are numerous:

  1. Farmers demand a higher price for their cherries (often the increase is government regulated).
  2. Increased costs for the exporter.
  3. Higher price for green coffee.
  4. Increase price for the end consumer.

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Alex's past roles have covered many responsibilities including supply chain, quality, sales, buying and management.