Coffee Bean and Cocoa Prices 'Soar'... Climate Crisis Hits Small Business Owners Hard

Global Abnormal Climate 'Cause'
Cocoa Prices Double in 7 Months

Recently, due to abnormal global climate conditions, the prices of raw materials such as coffee and cocoa have surged, delivering a direct blow to self-employed business owners.

The owner of a private cafe in the university area of Seongbuk-gu, Seoul, is brewing coffee.
[Photo by Seongah Sim]

Nam Ji-eun (33), whom we met at a private cafe in Yangcheon-gu, Seoul, on the afternoon of the 28th, said, “At the beginning of this year, chocolate was about 50,000 won for 2.5kg, but now it has exceeded 70,000 won. The trend of Dubai chocolate seems to have further driven up the price.” She added, “I want to avoid any decline in quality, but since it’s a neighborhood commercial area, I can’t raise product prices, so I feel helpless. I have never been this struggling before.”

The situation is similar at other stores. Kim (40), who runs a cafe in Gwanak-gu, Seoul, lamented, “The price of coffee beans fluctuates frequently, so my heart races every time I purchase. I am enduring by calculating costs and sales according to price changes as much as possible.” Another cafe owner, Han (35), said, “There are so many famous cafes nearby that it’s honestly awkward to raise prices,” but added, “Next year, I will inevitably have to raise the price of one dessert by about 300 to 500 won.”

According to the actual international commodity exchange, the price indices for coffee and cocoa have been steadily rising. Arabica coffee rose from $4,273 in January this year to $5,627 this month, and cocoa increased from $4,672 to $7,825. Coffee prices surged due to droughts in major producing countries Vietnam and Indonesia, while cocoa prices rose because of heavy rains and heatwaves in West Africa, which reduced production.

Professor Choi Cheol of the Department of Consumer Economics at Sookmyung Women’s University stated, “Currently, abnormal climate conditions are affecting primary industries worldwide, and supply contraction is acting as a factor driving price increases,” adding, “As droughts and heatwaves continue, negative impacts on supply will repeatedly occur.”