Coffee Service

Arabica coffee prices dip, but future remains cloudy

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December 6, 2022

Coffee prices have declined since August, but the future remains cloudy due to a number of factors, according to a report from The Food Institute.

Arabica coffee prices have fallen about 35% since August to $1.59 per pound, according to CNN. Yet, factors like labor and distribution costs continue to make coffee expensive to produce.

Economic disruptions have also made it more difficult to export quality harvests.

Vietnam, the second largest coffee producing region, has produced lower exports in 2022, according to Bloomberg.

While demand for coffee remains level, the manner in which consumers are getting it has changed rapidly. A majority of consumers are prioritizing higher quality coffee over big packages even if it costs more, according to Reuters.

The value of the U.S. dollar is working in favor of lower prices since farmers abroad look to sell to the U.S., according to CNN Business.

Staying abreast of demand and maintaining customer loyalty will be key for the industry to remain profitable.