"A Cup of Coffee, Hard to Enjoy Peacefully"…Prices Rose 35% Again This Year

Coffee Prices in the International Market Hit Record Highs Day After Day
Concerns Over Supply Shortages Fuel "Panic Buying"
Arabica Prices Set New Highs for 13 Consecutive Sessions
Brazil's Poor Harvest and Low Inventories Drive Up Costs
Government Urges Food Industry to Restrain Price Hikes

Amid growing concerns over supply shortages, coffee prices in the international commodity market have been hitting record highs day after day. The market fears that 'panic buying'?a phenomenon where buyers rush to purchase goods due to fear of rapidly rising prices?could further drive coffee prices up.

According to Yonhap News Agency citing major foreign media on the 11th, the price of coffee futures at the New York ICE exchange, considered a benchmark for coffee, rose 6.2% that day to close at $4.211 per pound. During the session, it even reached an all-time high of $4.2410 per pound.

Coffee. Yonhap News

March delivery coffee spot prices also surpassed $4.30 per pound, reaching record highs. Arabica coffee prices have hit new highs for 13 consecutive trading days.

Bob Fish, co-founder of the coffee franchise Big B Coffee, said, “Panic buying is occurring in the market, and coffee prices are expected to continue rising.” Big B Coffee operates 350 stores in the United States.

He added, “To prevent coffee prices from rising, either the coffee harvests in major producing countries like Brazil and Vietnam need to be good, or demand in major consuming countries must drastically decrease due to price hikes, which is unlikely. U.S. coffee shops will have to either raise prices or sacrifice profit margins,” he explained.

Coffee prices surged 70% last year and have risen about 35% so far this year. The industry attributes this to dry and hot weather conditions in Brazil, a major coffee-producing country, which have reduced supply. Brazil produces nearly half of the world’s Arabica coffee.

Iced Americano. (This photo is not directly related to the article.) Pixabay

Brazilian farmers have currently sold about 85% of their harvest. Foreign media reported, “Brazil is not trying to sell more in anticipation of further coffee price increases. Inventories are also low.”

Robusta coffee, mainly used for instant coffee, reached an all-time high of $5,840 per ton on the 31st of last month but has slightly dropped to $5,697 per ton currently.

Meanwhile, the government has put a brake on price increases for food items such as bread, snacks, and coffee. It is urging the food industry to take the lead in curbing soaring prices. The food industry, which had argued that price hikes were inevitable due to a slowdown in domestic consumption and rising costs of raw materials and processing, has reluctantly agreed to cooperate under government pressure for mutual growth.