The coffee price is skyrocketing. According to Ulf Mazur at Matpriskollen, the price of coffee in stores has increased by 10 percent over the past two months, and further price hikes are expected this week. Both retailers and coffee suppliers confirm the picture of "record expensive" coffee, citing the same underlying reason: the raw material price.
Climate change has hit hard on the harvest in Brazil, the world's largest producer of coffee beans. Fewer beans result in a more expensive raw material price, which leads to higher prices throughout the entire chain. Over the past six months, the price of raw coffee has increased by 100 percent, says Anders Thorén.
The raw coffee component accounts for 70 percent of our cost, he says.
Price Hikes
This picture is confirmed by Erica Bertilsson, communications director at Arvid Nordquist:
"70-80% of the production cost for coffee is the raw coffee price", she writes in an email to TT.
Bertilsson, and other suppliers who TT has been in contact with, point out that it is the retailers who have now chosen to raise the price for the end customer.
The retailers, in turn, point to the suppliers.
"The price in the store is clearly set by each chain or store, but the fact that consumer prices are increasing now is clearly a direct consequence of the prices from suppliers having increased", writes Axfood's press chief Magnus Törnblom in an email to TT.
Long-term
All parties that TT has spoken to, both retailers and suppliers, believe that the price level is here to stay for a while. At the same time, they do not want to predict how long it will last.
Generally speaking, one can say that we have a 3-4 month lead time from when we buy coffee from producer countries, says Anders Thorén.
No party rules out that the current turbulent world market situation, not least linked to the trade war initiated by US President Donald Trump, can cause things to change quickly.
Cheap
The fact that the daily critical cup of coffee for many Swedes is now becoming more expensive should be seen in the light of it still being cheap, several suppliers point out. A cup costs roughly between 1 and 2 kronor.
It is still a low price per cup, says Anders Thorén.
