Higher Production Costs Raise The Price of Coffee for Consumers

More expensive coffee: higher production costs raise the price for consumers
Value is a reflection of the climatic problems faced by farmers, the increase in the dollar and the price of fertilizers.
Drinking coffee is more expensive. In one year, the price for the consumer rose 56%, according to data from the Brazilian Institute of Geography and Statistics. In January alone, the price of roasted and ground coffee increased by 4.7%.
The rise in supermarkets is a consequence of rising prices in the countryside.
The bag of Arabica coffee, for example, the most used in the roasting industry, rose from R$485 in 2020 to R$1,510 today, according to the Minas Gerais Coffee Trade Center. The state is the largest producer in the country and for two years has registered a drop in production.
Despite the price increase, coffee growers in Espírito Santo say that this does not represent a greater profit. This is because, with the stronger dollar and inflation, production costs also rose.
“Today, 70% of the value of a bag of coffee stays in the fields that we invest again, between fertilizer, limestone. So for us it’s even worse, because the bag has gone up in price, but the price of the fertilizer has gone up a lot, right”, says farmer Edno Polla.
For the next few months, the trend is still bullish in price. The justification is that even if this year’s crop is better, the results will only reflect for the consumer from the second half of the year.
This year, Brazil is expected to harvest more than 55 million bags of coffee, almost 17% more than in 2021, points out the National Supply Company .
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