These Are the Causes
Climate Change
Climate change is having an increasing impact on coffee cultivation. Rising temperatures and shifting rainfall patterns are disrupting harvests in key coffee-producing regions. Extreme drought, unexpected frost, or heavy rainfall can reduce yields or even wipe out entire crops. This leads to scarcity, and scarcity drives prices up. This is not a temporary trend but a new reality that the industry must take into account.
Geopolitical Developments
The global trade landscape is constantly shifting, bringing uncertainty and instability. Political tensions, trade restrictions, and economic measures—such as the so-called ‘Trump effect’—are influencing the coffee market and impacting prices. Coffee is the second most traded commodity in the world after oil, meaning that any disruption in the supply chain has a direct effect on costs and availability.
Increasing Coffee Consumption
Worldwide coffee consumption is on the rise. Emerging economies are developing a strong coffee culture, while demand in traditional coffee-drinking countries remains high. This puts additional pressure on the market, intensifying competition for coffee beans. Higher demand combined with limited production leads to rising prices—a trend that is expected to continue.
How We Tackle These Challenges
Strong Partnerships Across the Supply Chain
At CAPPAC, we believe in collaboration across the entire supply chain. We maintain direct contact with traders, plantations, and leading international coffee roasters. This allows us to stay informed about market challenges and work together with our partners to find solutions. By keeping a firm grip on the situation, we help ensure that our customers experience as little disruption as possible.
Flexibility as a Strength
Our network makes us strong, but also highly flexible. Because every link in the chain thinks and moves with us, we can respond quickly to market changes. Through continuous planning and an agile approach, we can act swiftly together and adapt to evolving conditions.
Always One Step Ahead
In the coffee trade, you can’t afford to wait and see. That’s why at CAPPAC, we are always proactive: we closely monitor market developments, plan for different scenarios, and anticipate changes before they happen. This enables us to provide our customers with timely, strategic advice, helping them stay well-prepared.
How CAPPAC Supports You in This Challenging Market
Smart Pricing Strategies
Price increases are inevitable, but how you handle them makes all the difference. We advise our customers to adjust their pricing strategies in a timely manner to avoid unexpected surprises. By planning ahead and making strategic choices, you can better manage the impact.
Collaborative Problem-Solving
We believe in strong partnerships, especially during times of change. That’s why we actively work with our customers to find solutions together. This could involve exploring alternative recipes or analyzing supply chain risks. Whatever the challenge, we are here to help find the best approach.
Preparing for Price Increases
The reality is that new contracts and coffee price indexations will result in higher costs. By factoring this in now, you can prevent unexpected consequences. We ensure our customers stay well-informed, allowing them to make the right decisions at the right time.
We’re Here for You
Have a question? Want to brainstorm with our account managers or develop a strategy with our team? Get in touch.
