Understanding Coffee Prices and Volatility: Why Roasters Must Act Now

Key Challenges Impacting Coffee Prices

  1. Climate Change:
    Extreme weather events, including frosts and droughts in major coffee-producing regions like Brazil and Vietnam, are significantly reducing yields. This supply disruption has caused coffee prices to reach levels not seen in over a decade.
  2. Market Volatility:
    The C-market (Coffee Futures Market) has amplified price fluctuations. Speculative trading creates unpredictability, making it harder for buyers and producers to plan effectively.
  3. New Regulations:
    Compliance with deforestation-free and sustainability standards, particularly in the European Union, adds pressure to the supply chain, increasing production costs.

What This Means for Roasters

With global stocks dwindling, proactive measures are crucial. Roasters who delay risk facing limited options and higher prices. Locking in contracts ensures a steady supply of quality coffee amidst these challenges.

Southland Merchants: Your Partner in Brazilian Coffee

At Southland Merchants, we specialize in sourcing specialty Brazilian coffees from sustainable and reliable farms. We are here to collaborate with you, ensuring your business remains resilient despite market shifts. Let’s discuss how we can secure your coffee needs.

We strongly recommend you to secure your coffee contracts now.

Contact us today to explore our offerings and guarantee availability.