Our life

Why is coffee from Brazil no longer cheap?

ceny-kavy-isli-hore

As you will have noticed, the prices of many commodities and inputs to production have skyrocketed in recent months, and although we are reluctant, we are forced to reflect and adapt to this situation.

So let’s take a look at what is happening in the economy and how it affects us.

Energy prices

Paradoxically, the shift to green energy, combined with its unstable supply or unresolved storage, has contributed to a large return to coal or gas-fired generation. This gas is then missing for production for companies or for heating for households, and all this pushes the prices of gas and electricity to dizzying heights.

Viac na: https://www.ft.com/content/f37d2a36-4609-4b3e-9795-064b6d459676

Problems with logistics

Everything is delayed, there is nothing in the warehouses, nobody knows when things will be restocked or when these problems will be solved. From chips to paper filters for coffee preparation, this situation affects the entire supply chain. And the problem is not only in production, but also in the transport capacities themselves, which have shrunk during the pandemic and are currently unable to operate flexibly and efficiently enough.

Read more: https://www.gbreports.com/article/logistics-challenges-in-2021

People’s willingness to work has fallen

Where have the people gone? Is probably the most common question of every HR manager nowadays. The pandemic seems to have changed people’s preferences and they are increasingly remaining voluntarily unemployed. This is obviously a structural change that will not just change, at the same time the shortage of people is pushing up salaries significantly.

Read more: https://www.nytimes.com/2021/09/04/opinion/labor-shortage-biden-covid.html

Freezing temperatures in Brazil and climate change

Climate change is here. Not in 5 or 10 years’ time, but right now we are in the midst of a crisis and we have seen it in full effect in Brazil, where there has been a freeze while this year’s crop has been ripening. In a country that is the world’s largest coffee producer, the harvest will be at least 30% lower. Since then, coffee prices have rocketed, and with similar problems in other countries, we can only imagine where they will stop.

Read more: https://dailycoffeenews.com/2021/07/12/frost-hits-brazilian-coffee-lands-extent-of-damage-not-yet-known/

Inflation

Not only the above factors, but also many others have shot the inflation curve upwards, to the highest numbers in 13 years. This means that we can buy fewer things and services for the same amount of money.

Read more: https://www.reuters.com/world/europe/euro-zone-inflation-jumps-13-year-high-worsening-ecb-headache-2021-10-01/

Unfortunately, all of the problems outlined above, which have increased our production costs and the purchase prices of virtually everything, have forced us to react.

That’s why, albeit reluctantly, we’re raising the price of our coffees from November 2021. This will be especially true for Brazil Caramelo and Highlander espresso blends.

We hope you understand our situation and thank you for remaining loyal to us,

Team Goriffee.