There is no respite for coffee: delays and disorganization in Brazilian ports are weighing on exports and global prices. There have been 2.155 million bags of coffee ready to be exported for months. Logistics problems which, which began in January, have not been resolved and the economic consequences risk being serious.
According to the latest report from the Brazilian Council of Coffee Exporters (Cecafé) the country has so far lost the equivalent of 536.74 million euros in lost revenue from the export of the raw material which is fundamental for the internal economy. Furthermore, companies in the sector had to incur additional costs of 5.938 billion reais (around 960 million euros) due to delays and constant changes of port of call of the ships. These problems are not episodic, but chronic: in September alone, 69% of coffee export vessels, 190 out of 277, experienced changes in port of call or delays, with the port of Santos, the main hub for Brazilian coffee exports, recording a rate of 84% delay for container ships.
This logistical crisis aggravates an already difficult situation for the international coffee market. Global prices have been steadily increasing for months. In one year, the price of Robusta coffee rose by 80%, reaching 4,820 dollars per ton, while Arabica recorded a +66%, with prices around 5,700 dollars per ton. Increases dictated mainly by drought, which affected the main global producers, including Brazil and Vietnam. Climate change has drastically reduced supply, while the strengthening of the dollar against the euro and the Red Sea crisis of recent months have further inflated transport and raw material costs.
The result is a true “perfect storm” for the coffee market. Prices have hit their highest levels in more than a decade, with coffee now trading at $5.86 per kilogram, marking a 20% increase since the start of the year and 40% in the last twelve months. In niche markets, where the most valuable qualities are traded, the increases are even more pronounced: Bloomberg reports increases of up to 40%.
And ultimately, not even end consumers are spared. In Italy, for example, the specter of an increase in prices of up to 2 euros per cup for coffee over the counter is no longer just a remote possibility, but a reality that could materialize in the coming months.
