What is happening to the global price of coffee for Australia?
Due to various supply issues, global coffee coffee growing conditions and what I suspect is a certain amount of speculative restriction of supply for the intention of achieving higher prices in the future, the Global Coffee price has increased 400% in the last 3 years alone. To add to these pressures, the US government’s decision to apply a tariff of up to 46%, the trickle-down effect for Australia is real.
It’s my belief that the tariffs, although they only apply to US Coffee market will impact Australia by way of forcing our prices up for certain regions that will be increasing demand because their tariffs are lower for example Mexico, Colombia, Brazil, Peru etc
With Bay Beans coffee focusing on the premium end of coffee farm supply, we are particularly exposed and unwilling to compromise on quality for the sake of price alone
US Govt Tariff Rate for each country of origin
Nicaragua 18%
Vietnam 46%
Indonesia32%
Colombia, Honduras, Guatemala, Peru, Ethiopia, Kenya, Brazil, 10%
Mexico 0%
Due to various supply issues, global coffee coffee growing conditions and what I suspect is a certain amount of speculative restriction of supply for the intention of achieving higher prices in the future, the Global Coffee price has increased 400% in the last 3 years alone. To add to these pressures, the US government’s decision to apply a tariff of up to 46%, the trickle-down effect for Australia is real.
It’s my belief that the tariffs, although they only apply to US Coffee market will impact Australia by way of forcing our prices up for certain regions that will be increasing demand because their tariffs are lower for example Mexico, Colombia, Brazil, Peru etc
With Bay Beans coffee focusing on the premium end of coffee farm supply, we are particularly exposed and unwilling to compromise on quality for the sake of price alone
US Govt Tariff Rate for each country of origin
Nicaragua 18%
Vietnam 46%
Indonesia32%
Colombia, Honduras, Guatemala, Peru, Ethiopia, Kenya, Brazil, 10%
Mexico 0%
