Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Coffee bean shortage starts to bite

Coffee bean shortage starts to bite

As arabica prices soar, quality could suffer as more roasters consider using cheaper robusta
Coffee snobs have a lot to worry about right now. A global shortage of beans is already threatening to push up prices at cafes and supermarkets. Now, your morning cappuccino or latte might start leaving a bitter taste for other reasons too.

The world is facing a desperate shortfall of arabica coffee, the variety that gives the smoothest flavour and makes up about 60% of world production. Supplies were decimated after extreme weather destroyed crops, and with a La Nina pattern forecast through early 2022 expected to further hurt yields, it could take years for the market to recover.

Arabica prices are surging to reflect the mounting crisis, while global shipping congestion is making it even harder to get beans where they are needed.

“This is not just a short-term issue,” said Kona Haque, head of research at the global commodity trader ED&F Man in London. “It’s actually something that we’re going to be factoring in for the next couple of years.”

Coffee roasters and retailers must now decide whether to increase their own prices. But they’ve got another option too: arabica’s harsher cousin, robusta. Some are already using more of the cheaper variety, which is typically drunk in instant coffees and contains more caffeine that gives it a bitter flavour.

The crisis has its roots in Brazil, the world’s main supplier of arabica, where once-in-a-generation frosts followed droughts to wreak havoc on the crops. Crucially, it’s not just the current harvest that farmers have to worry about, some have been “stumping” or removing badly damaged trees; newly planted ones will take several years to mature. On top of that, they’re also grappling with surging costs for fertilisers and labour shortages.

Arabica bean prices have spiked by about 80% this year. While researchers and analysts are still busy surveying the remnants of Brazil’s damaged coffee harvest, the reports so far are not encouraging.

In the meanwhile, just about everyone in the supply chain is scrambling for beans.

“We have a lot of customers who don’t usually buy from us buying bigger quantities and different origins than what is normal,” says Joanne Berry, head of sourcing and procurement at Tropiq, a Norwegian company that buys high-grade, specialty coffee for roasters around Europe. “We have disproportionate demand, I think, because of the general lack of supply.”

While robusta prices have also risen this year, they have lagged the gains by arabica and are less than half the price. That makes it increasingly tempting for roasters to use more in their products.

Some cafes and brands focus exclusively on one or the other variety, but many use a blend of both to create a specific taste. Arabica is sweeter and typically used in drinks like cappuccinos and lattes, robusta has traditionally been popular in Italy for espresso or freeze-dried for use in instant coffee.

Both varieties have been caught up in the logistics snarl-ups that are gripping the world at the moment. Coffee is shipped in containers, and a global shortage has restricted exports of millions of bags to demand epicentres such as the United States, Japan and Europe.

Vietnam, the biggest exporter of robusta, is expecting a second bumper crop this year, but freight holdups mean exporters are struggling to ship the beans out. Still, unlike arabica, traders know that it’s just a matter of time and the robusta will hit the market eventually.

Of course, many brands and cafes will be reluctant to risk alienating customers by changing blends and flavour profiles. In a small and rough poll of premium coffee stores in the City of London this week, all the staff that Bloomberg spoke to were adamant that there were no plans to add robusta to their mix.

Any switching that does happen globally is likely to be slow, though some roasters in Brazil are already making the change.

Either way, it’s looking increasingly likely that coffee retail prices are set to rise.

Roasters from Nestle to Israel-based Strauss Group Ltd have already flagged that the increased price will eventually be transferred to end-consumers, another example of inflation in the post-pandemic economy. It’s not just coffee bean costs that have risen, said Haque of ED&F Man.

“Coffee roasting companies are also facing higher labour costs and energy bills,” she said. “And because inflation is already being flagged, I think consumers can be almost certain of what’s going to happen.”
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Brilliant move: Péter Magyar Moves to Nominate Chess Grandmaster Judit Polgár as Hungary’s President
Spain Defeats Argentina in Extra Time to Win Second World Cup
Current AI Seeks to Build an Open Global AI Infrastructure Outside Big Tech Control
Germany’s Economic Malaise Reopens the Sunday Shopping Debate
Proposed U.S.-Saudi Nuclear Pact Could Permit Limited Uranium Enrichment Under International Safeguards
Netherlands Declares Water Shortage Emergency After Drought Pushes Rivers to Historic Lows
Why Kentucky Fried Chicken Became KFC—and Why the False Explanations Persist
Ukrainian Drones Strike Wildberries Warehouses Deep Inside Russia
Reported CIA Mission Helped Clear the UAE’s Path to Advanced US AI Chips
Artificial Intelligence Capital Fuels Markets While Governments and Regulators Face Mounting Strategic Tests
China’s Moonshot’s Kimi K3 Narrows the Gap With Anthropic Through Scale, Openness and Lower Cost
The Ledger Will Not Trust on Faith
Trump Administration Pressures Banks to Restrict Financial Access for Undocumented Immigrants
Passenger Bound for Germany Refused to Sit Beside a Woman on a Plane — Then Slapped a Flight Attendant
Ukraine’s Leadership Rift Spills Into the Streets as Protesters Target Army Chief
Ukrainian Drone Barrage Kills Eight and Strikes Russian Logistics Network
The Ten World Cup Finals That Defined Football History
Smartphones Are Getting More Expensive, Sales Are Collapsing, and Even Apple Admits: "Prices Will Rise"
The Monaco Bombing Has Become a Test of Ukraine’s Intelligence Accountability
Leadership Change and Strategic Rivalry Redraw the Political Map
The AI Race Enters Its Infrastructure Era
Britain Nationalises British Steel to Protect Scunthorpe Production and Strategic Supply
French National Assembly Overrides Senate to Pass Historic Assisted-Dying Legislation
Spanish Prime Minister's Wife Ordered to Stand Trial as Corruption Probes Encircle Governing Party
Zelensky Faces Kyiv Protests Over Ousting of Dynamic Ukrainian Defense Minister
Thomas Tuchel Faces Fierce Backlash After Tactical Retreat Costs England World Cup Final Berth
A Quiet Bastille Day: France Grapples with World Cup Heartbreak and Leftover Fireworks
Spain in Ecstasy: "We Feel Unbeatable, We Taught the Whole World a Lesson"
Spain and UK Dismantle Gibraltar Border Following Landmark Schengen Integration Treaty
Hungary's "Puppet" President to Be Ousted, Orbán Fumes: "Democracy Is Dead"
Forget Tinder: The Surprising Platform Where People Find Love
Harvard Astrophysicist to Lead U.S. Scientific Advisory on Unidentified Aerial Phenomena
Emergency Sirens Activated Across Bahrain as Interior Ministry Issues Shelter Directives
World Cup Visitors Turn American Big-Box Stores Into Souvenir Stops
Netflix Weighs Always-On Channels, Bundles and Short-Form Video
Passenger Is Pulled Partly Outside Ryanair Jet After Window Fails Mid-Flight
The AI Invoice Shock: Layoffs Didn't Save Managers Money — They Cost Them More
Concern: Sexually Transmitted Bacterium Among Men Develops Antibiotic Resistance
Passenger Partially Pulled Out of Ryanair Jet After Cabin Window Fails Mid-Flight
Severe Heatwave Drives Dangerous Ground-Level Ozone Pollution Across Two Thirds of European Union
The Physical and Electronic Barriers Disrupting Domestic Wireless Networks
France and Morocco Open World Cup Quarter-Finals as Collina Defends Refereeing
Tech Pulse: The Future of AI and Screen Culture
Global News Briefing: Escalating Geopolitical Tensions and Corporate Shakeups
Global News Brief: Escalating Conflicts, Public Health Crises, and World Cup Drama
French Court Allows Le Pen to Run for Presidency, but with an Electronic Tag: "I Will Appeal, and I Will Run"
$1.4 Trillion: The Lawsuit That Could Crush Meta
Europe's Growing Struggle with Extreme Heat and Air Conditioning
Anthropic Reengineers Agentic Architecture to Shift Autonomous Workplace Automation to the Cloud
Logic Flaw in Windows 11 Permission Architecture Silently Consumes Hundreds of Gigabytes of Local Storage
×