There are promising coffee harvest prospects in Brazil, but how does that affect the price of coffee bought by Finns?
The price of coffee is influenced by many other factors than just the coffee yield. Inka Soveri
The prospects for the coffee harvest are good for the harvest season that starts in Brazil. Brazil is the biggest coffee producing country, so it has a big impact. The world market price of raw coffee has recently shown signs of a slight decrease.
Is this reflected in the price of coffee sold in Finland?
Meira’s director of production and logistics Antti Koski says that weather conditions continue to bring uncertainty to Brazil’s harvest.
– In terms of weather, the situation is not exactly optimal at the moment. The weather has a key effect on the final ripening of the coffee berries, Koski tells Iltalehte.
A possible turnaround in the summer
According to him, the final situation regarding the world market price of raw coffee will strengthen as the harvest progresses during the summer.
Koski reminds that the price of the final products sold in the store is affected by many things, for example the effect of the geopolitical situation on fuel and logistics costs.
– The effect of raw coffee stock exchange prices can be seen in our purchase prices with a delay, when the journey of raw coffee to Finland takes about two months, Koski states.
Responsible for purchasing Paulig’s raw coffee Anna Vänskä says that the development of the price of coffee looks positive after a long-lasting high and fluctuating price level.
– Historically, however, world market prices are still at a high level. Although a decrease has been seen in the short term, in the longer term the price level has remained high.
According to Vänskä, the price fluctuations of raw coffee have been considerable in recent years due to the delicate balance of supply and demand.
He reminds that even though the raw coffee market is seeing a slight leveling of prices, there is still uncertainty associated with crop forecasts.
– The development of world market prices in the coming months is very dependent on the weather, especially in Brazil. The outlook is promising, but the global deficit of several years will not be corrected quickly. At the same time, eyes are already focused on the next harvest season and the factors affecting it, such as weather conditions and possible risks, such as the frost risk season starting in May in Brazil.
Vänskä does not give a direct answer to the price of coffee. Instead, he reminds that the consumer prices of coffee are affected by many things, and the world market price of raw coffee is not directly comparable to it.