Price of COFFEE is set to rise as countries around the world stockpile beans amid fears coronavirus will hit the supply chain
- Importers in coffee drinking nations have brought orders forward by a month
- Strong demand amid expectations of tightening supply has pushed up prices
- In Brazil they are near record levels at £85 per 60kg bag of coffee beans
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The price of coffee is set to rise as countries stockpile in case supply chains are hit by coronavirus.
Importers in major coffee-drinking nations are bringing forward orders by up to a month to avoid shortages.
Prices are heading upwards because of strong demand amid expectations that supplies, which were tight before the virus struck, will tighten further.
Coffee prices are soaring as importers in major coffee-drinking nations race to stockpile the bean amid fears of a global shortage due to coronavirus (stock image)
Prices in Brazil are close to record levels – nearing £85 per 60kg bag. Supply chains are backing up because of severe restrictions on international movement.
‘We had requests from buyers in all major countries,’ said the head of one of the largest coffee exporters in Brazil, the world’s leading producer, asking not to be named.
‘Basically all the largest roasters in the world. They want to have the beans there quicker, just in case.’
Carlos de Valdenebro, Colombia director for exporter Caravela Coffee, said: ‘Everyone is trying to speed things up.’
A UK-based coffee trader said: ‘Roasters and traders are stocking up because they anticipate supply disruption.’
In Brazil prices are already approaching near record levels of £85 per 60kg bag
Brazilian coffee exporters association Cecafe said shortages might occur in the coming months even though the country could harvest its biggest coffee crop ever, around 70million bags.
Roberto Velez, of Colombia’s growers federation, said: ‘We have maybe one of the best prices in history. But with that price we’re facing logistical problems – coronavirus, fear.’
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