Coffee and tea prices

Due to the current crises, the price of coffee and tea has risen, among other things. This will not be news to most people, but we think it is good to briefly address it. The price increase in the food industry is unprecedented. 

It is with a heavy heart that we have had to increase the prices of coffee and tea. There are companies that are making more profit due to the higher prices. We find that regrettable, and it certainly does not apply to us. We too are delivering in, as everyone else is currently. We want to continue to charge a reasonable price for our products.

Because we are a small company, without staff, we have low costs and can offer our coffee competitively on the market. While much Specialty Coffee at companies already fluctuates between 8-10 euros, we can still keep most coffee types between 6 and 8 euros per 250 grams. 
We also offer an attractive discount of up to 20% when purchasing 10 kilograms of coffee beans. This means a kilo of Premium Espresso costs 22.37, and that is only €5.59 per 250 grams.
Coffee beans in kilo packages have a long shelf life.

Causes

To explain the higher coffee and tea prices, we mention the most important aspects in the current market.

1. Gas prices

Coffee is roasted in roasters that are fired with gas. The increased gas price has an impact on the price of coffee beans.

2. Packaging

Packaging is becoming increasingly expensive due to higher raw material prices and production costs. The energy price also plays a role here.

3. The dollar

Green coffee beans and many types of tea are traded on the world market in dollars. The exchange rate of the euro against the dollar has fallen. Where you could buy more than 1 dollar for 1 euro in the past, 1 euro is now worth almost the same as 1 dollar. In other words: coffee and tea have to be purchased more expensively.

4. The climate

The changing climatic conditions are also causing problems with the cultivation of all kinds of crops in coffee-growing countries (countries around the equator). More rainfall, more drought, higher temperatures, more extreme weather. These are new circumstances that coffee farmers are dealing with.
So harvests are disappointing, and where scarcity arises, prices rise.

5. Changing demand

A greater demand also creates scarcity: in emerging economies, such as China, more and more coffee is being drunk. In countries where prosperity has increased in recent years, there is often also faster urbanization where people adopt a different lifestyle and also come into contact with coffee.

 

6. Aftermath of the Corona pandemic

The consequences of Covid-19 are still visible, especially in the tea market. There are still hiccups in the logistics chain, making transport more expensive. And as long as major cities in China are still completely shut down due to a few infections, this also has consequences for the entire economy. China is still the no. 1 tea producer for the specialty tea market, so we notice that in the prices.

 

Photo by Shopify Partners from Burst