Price of Coffee Set to Rise

Source: Gustav Paulig Ltd.

Paulig: Price of coffee set to rise

The rising price of raw coffee will be manifested in consumer prices in the early autumn, estimates Finland’s leading coffee company Gustav Paulig Ltd. According to the company, the market price of raw coffee has risen sharply and is now at a 12-year high.

According to Katariina Aho, purchasing director at Paulig Group, the price rise of raw coffee beans stems from several factors. There have been problems with the availability of coffee, which has caused the general price level to rise.In cases of certain coffee varieties the price hike has been quite substantial.

“There have also been shortcomings with access to coffee from Brazil, the largest coffee producer in the world. Coffee varieties from the new harvest are becoming available on the market only now in August”, Aho explains.

Furthermore, the price of raw coffee has been raised by the increased demand by investors, the company reckons.
     
Paulig believes that the price level may stay elevated for quite some time, should coffee remain of interest to international investors. Still, the forthcoming coffee yield from Brazil may steady the price development to some degree.  The price of the so-called Arabica coffee varieties, which the Finnish coffee roasting companies primarily use, is determined by the New York Stock Exchange.

Speak Your Mind

*