Coffee industry and its current situation: What’s Happening and How We Can Navigate It Together

Hello all! It’s time to further discuss the current coffee situation and explore some alternatives to tackle the challenges this industry is facing nowadays. While the market situation looks tough, there are strategies we can use to manage? the scenario effectively.

Given the current situation in the market, one key approach is to plan your coffee purchases in advance. By doing this, you can secure the necessary supplies without having to scramble when prices spike. Having an expert’s guidance in the market can make a big difference in navigating these price increases, ensuring that you have enough coffee for the short and medium term. Plus, with a solid long-term plan, you can avoid costly transactions and minimize unnecessary expenses. Meaning, through a solid plan it can rump up your financial sustainability for consequence.

Why not consider working with a well-proven platform that allows direct transaction with a strong added value of transparency, digital tools and a powerful logistic solution for delivering the already coffee to the multiple geographies. This approach ensures that in times of stock shortages, your agreements remain intact and offers a wider range of options to meet your needs. Despite the reduced supply, there are still offers available in the market.

As we know, the market is facing significant challenges. Currently, prices have surged due to a lack of coffee from Brazil and Vietnam, leading to an imbalance between supply and demand. Just recently, on December 10th, coffee prices hit an all-time high of 344 points on the New York Stock Exchange. This reflects the strain on the market as it struggles to meet consumer demand amidst production shortfalls.

Vietnam has announced that a large portion of its coffee output won't be returning, and the farms that do get back to business will need at least two years to reach optimal production levels. This supply reduction is likely to constrain coffee availability in the market. While Brazil is still breaking all the export records in this current year. Yep, a roller coaster industry! But with innovative solutions and solid plans in your hands, a good path is always able to be built.

Solidifying this industry′s ups and downs, while the flowering stages in Brazil looked promising, reports indicate that many flowers have failed to set fruit, pointing towards a smaller harvest next year. This uncertainty will likely influence future price fluctuations. Even if the upcoming harvest surprises us positively, prices might not drop significantly due to rising labor costs.

So, looking ahead to 2025, securing sufficient coffee supplies will be essential. Establishing a well structured purchasing cadence with a buying strategy, centered around core coffee types and supported by a team of experts, could prove to be a strategic approach.

And remember, FARMly′s team is here to provide the support you need during this challenging time. We're here 24x7 to navigate the coffee market together!

Latest Articles from FARMly:

• Between Harvests and Ports
• The Value of Coffee: The Climate Crisis and Challenges in the Global Market