Thursday, December 9

– A New Normal – E24


Supply does not keep pace with demand, says the import manager. Prices in Norwegian stores may also increase.

Coffee beans are not yet worth their weight in gold, but the price has skyrocketed in the last year.

Published: Published:

This summer, E24 wrote that the price of coffee doubled in one year. In recent months, the price has increased even more.

Today, a kilo of raw coffee costs around 37 crowns.

To find a higher price for coffee, you have to go back to the price peak of ten years ago. A year and a half ago, raw coffee cost SEK 18 per kilo, close to the lowest level in 15 years.

The price increase comes despite the fact that the krona has strengthened significantly against the US dollar in recent months.

Since all coffee is traded in dollars, it would be cheaper to import the coffee into Norway in isolation.

A higher price can be more sustainable

The price of raw coffee is set on the New York International Commodity Exchange. That price further affects the price of coffee in other markets.

– I think we see a new normal when it comes to the price of raw coffee in the industrial market, says Ola Brattås, import and distillery manager for the Kaffebrenneriet coffee chain.

He hopes the high price will ensure that more people produce coffee.

– It is a more sustainable price in terms of access to coffee in the long term. If part of this increase benefits farmers, there may be a greater chance that the next generation will also want to work with coffee and not move to the city and try their luck there, says Brattås.

Import and Distillery Manager Ola Brattås at the Kaffebrenneriet coffee chain.

Climate change dried up this year’s crop

Brattås receives support from the International Coffee Organization.

– The increase in coffee prices since the turn of the year seems to confirm the recovery of the price of coffee after three years in a row with a low price level, he writes The International Coffee Organization in its September market report.

The price of coffee has skyrocketed, among other things, due to extreme drought in Brazil, the world’s largest coffee producer.

Illegal logging in the Amazon rainforest and climate change led to the worst drought in 90 years earlier in the season, he writes. New York Times.

– The coffee market is still affected by weather conditions in Brazil and corona-related disruptions in trade in Asia, he writes The International Coffee Organization in its September market report.

The price may go up on store shelves.

The US Department of Agriculture. in his latest report on coffee wrote that this year’s coffee production will be less than consumption.

– Traditionally, the industrial market price has risen and fallen, but I believe that now it will stabilize at a higher level. Supply just doesn’t keep up with demand, says Brattås.

It can also hit store shelves here in Norway.

– This may give a slightly higher price for the coffee in the store, but nothing that will ruin the family finances, says Brattås.

also read

The global energy crisis simply explained

– Too low too long

That it sounds a bit more like a coin for coffee growers is still not a great shame for the coffee importer.

– The market price of raw coffee has been too low for too long. For our part, this has no short-term consequences, but in the long term we have to pay much more than the exchange of raw materials provides to convince coffee farmers that it is worth the extra effort that it takes to produce high quality coffee. says the coffee roaster.

On average, Kaffebrenneriet pays around three times more than the price on the commodity exchange, according to Brattås..

– Traditionally, the industrial market price has risen and fallen, but I believe that now it will stabilize at a higher level. Supply just doesn’t keep up with demand, says Brattås.

Read on E24 +

Can Borregaard shock again?


www.aftenposten.no

Leave a Reply

Your email address will not be published. Required fields are marked *