Coffee producers and traders cut back on purchases as coffee prices rise

Global coffee producers and traders say they have reduced their coffee purchases as prices soar and consumers are not spending as much on coffee as before.

Soaring coffee prices have made producers reluctant to buy more coffee to sell, for fear of not having buyers - Photo: REUTERS

At the recent National Coffee Association (NCA) annual conference in Houston, Texas, coffee producers and conference attendees said they were shocked by the news that Arabica coffee futures prices on the Intercontinental Exchange (ICE) had increased by 70% since November 2024.

Mr. Renan Chueiri, general director of Ecuador's coffee producer ELCAFE CA, said that this is the first time that the instant coffee maker has not sold all of its planned production in March of each year.

“We usually sell out of all our products at this time, but so far we have only sold less than 30% of our expected output. The skyrocketing coffee prices have put off customers, who don’t have enough money to buy what they need,” said Mr. Chueiri.

According to Reuters, coffee prices increased due to a decrease in production in key coffee growing regions, especially in Brazil - the world's leading coffee growing country. This has reduced coffee supply, pushing prices much higher than before.

A recent Reuters poll predicts that Arabica coffee prices could fall 30% by the end of 2025, as high coffee prices curb consumer demand.

At the same time, coffee producers are also seeing early signs that Brazil will have a bumper coffee crop in 2026.

However, between now and when coffee prices “cool down significantly”, the coffee industry may face many difficulties.

The CEO of a major coffee roasting company in the US - the world's largest coffee consumer market - said some of their partners and customers who buy their coffee are unsure whether they can continue to sell coffee.

Because coffee prices are so high, consumers do not want to spend such a large amount of money just to buy coffee.

This person also revealed that supermarkets and retail stores are protesting against the current coffee prices offered by producers. Coffee producers and supermarket and retail store owners also take more time to negotiate a reasonable coffee price for both sides.

This has caused some retail stores and supermarkets to start running short of coffee.

Currently, coffee output at warehouses receiving whole bean coffee from Central and South America at seaports in the US has also decreased, only half of what it was before.

According to Reuters, as locals grapple with the worst drought on record, coffee growers in Brazil have been trying to sell off their whole beans collected months ago, before the new crop begins.

In addition, another reason why coffee farmers are trying to sell all the coffee in their warehouses is because they fear that the new crop will not sell coffee anymore, because global coffee prices have nearly doubled compared to before, reaching an all-time high.

The price of Arabica coffee recorded on February 11 increased to an all-time high of 4.3 USD/0.45 kg.

Source: https://tuoitre.vn/cac-nha-san-xuat-va-buon-ca-phe-giam-mua-vi-gia-ca-phe-tang-cao-20250307164412488.htm