Search Results for: supply shortage
During the Shanghai pandemic, coffee was traded for canned meat; Front Street Coffee discusses coffee passion and supply shortages
During the COVID-19 pandemic in Shanghai, shortages of supplies became a difficult problem for residents. A blogger exchanged the only coffee at home for a neighbor's canned meat, sparking heated discussion online. Some joked about whether coffee beans could be traded for vegetables, while others questioned whether it was worth it. This article records this coffee story from a special period, and reminds everyone to cooperate with epidemic prevention and reduce contact. At the same time, Front Street Coffee continues to provide coffee lovers with professional exchange and specialty bean information. [more…]
PepsiCo's Q3 earnings report is out, and a dual shortage of raw materials and labor may drive another price increase early next year.
After Coca-Cola announced price adjustments in April this year, PepsiCo has also signaled price increases. Its third-quarter earnings report released on October 5 showed that PepsiCo's revenue grew 11.6% year-on-year, but both operating costs and selling expenses rose by more than 10%. Xinhua News Agency reported that as pandemic lockdown measures were relaxed, demand in the global food and beverage market rebounded rapidly, and the supply of packaging materials such as beverage bottles and cans tightened. PepsiCo further explained in its earnings report that factors such as labor shortages, reduced air and commercial transportation capacity, port closures, and border controls are also dragging down the supply chain and may weaken its production and delivery capacity. Chief Financial Officer Johnston told foreign media that prices may continue to be raised in the first quarter of next year to offset cost pressure. Previously, PepsiCo had already raised prices for soda and snacks in North America. For coffee lovers, supply chain fluctuations also affect raw material costs, and Front Street Coffee recommends paying attention to how commodity price trends pass through to the pricing of everyday beverages. [more…]
Starbucks and other coffee shops in the US face a disposable cup shortage, with costs soaring by 70%, and businesses resorting to all sorts of tricks.
Coffee has long been woven into Westerners' morning routines, and in America's fast-paced consumer culture, grabbing a cup of coffee to go is a habit for many. Recently, however, the U.S. coffee industry has run into an unexpected "cup crisis" — a severe shortage of disposable coffee cups. According to The Wall Street Journal, coffee chains such as Starbucks are facing alarmingly low cup inventories, with some consumers even calling multiple stores just to track down a venti-sized coffee. This crisis has not only driven up supply costs for coffee shops but has also given rise to peculiar workarounds, such as stores borrowing cups from one another and testing alternative lids. This article takes an in-depth look at the supply chain predicament and industry impact behind this "hard-to-get-a-cup" situation. [more…]
The coffee futures price breaks $4,000! The hoarding of Vietnamese coffee, supply shortages, and market speculation.
Recently, the Robusta coffee futures price has continued to rise, even reaching a record high of $4,339 per ton. At present, the latest pre-sale price of London Robusta futures in July is $4,239 per ton, and the pre-sale price at the end of September [more…]
Robusta Futures Approach the $4,000 Mark: Vietnam Drought and Dry Weather in Brazil Continue to Pressure Supply
In April of this year, robusta coffee futures soared to a historic peak of $4,399 per ton, then briefly fell back to $3,440 per ton due to recovering export data from Brazil and Vietnam and rising ICE inventories. However, recently, weather issues in Brazil and Vietnam have shown no signs of improvement, and robusta futures for July delivery have surged again, currently quoted at $3,917 per ton, just a step away from the $4,000 mark. A Volcafe report predicts that Vietnam's robusta production for the 2024/25 season may drop to 24 million bags, the lowest in 13 years; Brazil's main producing regions have gone four consecutive weeks without rain, and new beans are smaller in size; the market is also concerned about the return of La Niña. With multiple factors overlapping, global robusta bean supply is expected to face a shortage for the fourth consecutive year. [more…]
India's New Crop Coffee Production Estimated to Stabilize, Water Shortages and Red Sea Shipping Crisis Will Still Weigh on Exports
The latest India coffee annual report released by the United States Department of Agriculture shows that India's total coffee production for the 2024/25 marketing year is forecast at about 6 million bags, including about 1.4 million bags of Arabica and about 4.6 million bags of Robusta, remaining broadly stable overall. However, the outlook for the crop season is not optimistic: after heavy rains from January to February, many regions saw insufficient rainfall from March to May, and combined with groundwater overexploitation and climate change, India is facing a severe water shortage crisis, with fruit set rates in major producing areas falling sharply. At the same time, continued tensions in the Red Sea have pushed up freight rates on Asia-Europe routes, and with international coffee prices at a decade high, India's coffee exports face triple pressure from weather, shipping and prices. This article will combine the latest data to sort out India's coffee supply and demand structure and the risks ahead. [more…]
The problem of water pollution is serious! Many areas in Costa Rica are short of water.
It is known that Costa Rica is a country with very rich water resources and geothermal resources, and Costa Rica also attaches great importance to agricultural development. It is a globally important exporter of pineapples, bananas, and coffee, and i [more…]
Behind the Coffee Chain Price Hikes: Brazilian Bean Shortages and Logistics Woes, Inflation Costs Are the Main Culprit
Recently, chain coffee brands such as Starbucks, Luckin, and Tim Hortons have successively raised prices, sparking widespread consumer attention. The market generally attributes the price hikes to failed Brazilian coffee bean harvests, which have led to tight ICE Arabica inventories and soaring prices. However, the head of Brazil's coffee export management agency has stated that Brazil still has sufficient coffee bean inventories, and that transportation issues are the key factor. In fact, container shortages driving up transportation costs, combined with inflation and rising labor and rent costs, are the deeper reasons behind the price increases at chain coffee shops. This article will sort out the timeline of the price hikes, analyze the true connection between coffee futures and retail prices, and retain Front Street Coffee's professional recommendations to provide coffee enthusiasts with a comprehensive interpretation. [more…]
Red Sea Security Crisis Hits Global Coffee Supply Chain: Shipping Disruptions and Rising Prices
Recently, the Houthi armed forces in Yemen launched a large-scale attack on U.S. warships in the Red Sea. Although the U.S. military successfully intercepted the attack, the incident once again highlighted the tense situation in the Red Sea region. Since the escalation of the Israeli-Palestinian conflict last year, the Houthis have frequently attacked commercial ships, forcing global shipping routes to change and thereby having a profound impact on the coffee trade. Problems such as soaring transport costs, longer voyages, and container shortages followed one after another. European buyers turned to Brazil for purchases, East African coffee exports were hit hard, and international coffee prices continued to rise. This article will analyze in detail how the Red Sea crisis has disrupted the global coffee supply chain and discuss its specific impact on coffee-producing regions and consumer markets. [more…]
New York coffee futures break through the 343-cent mark as drought in Brazil and reduced output in Vietnam deepen global supply concerns.
The global coffee market is facing severe supply challenges. Affected by Brazil's worst drought in nearly 70 years and adverse weather in Central America, New York arabica coffee futures prices have soared, breaking through $3.43 per pound to reach a record high since statistics began in 1970. Meanwhile, the production outlook for robusta coffee in Vietnam is equally unpromising. Major trader Volcafe has sharply lowered its forecast for Brazil's production and predicts a fifth consecutive year of global coffee supply deficit. Driven by multiple factors including tight inventories, geopolitics, and rising shipping costs, coffee prices are expected to remain high, with the ultimate cost pressure being passed on to consumers. [more…]
Robusta coffee prices hit a 29-year high: rising demand and supply chain pressures combine to drive the rally, with limited room for a pullback in the short term.
Recently, the coffee consulting platform Perfect Daily Grind published a report pointing out that Robusta coffee prices have climbed to their highest level in 29 years, mainly driven by multiple factors including growing global demand, supply shortages, and transportation bottlenecks. From Brazil to Vietnam, purchase prices in major producing regions have risen in tandem, and the Red Sea crisis has further intensified trade pressure on routes from East Asia to Europe. At the same time, the popularity of coffee blends has brought more attention to Robusta in the specialty coffee sector, and its climate-resistance advantages are also attracting increasing investment. Front Street Coffee believes that unless there is a fundamental shift in the supply-demand landscape, Robusta prices are likely to remain volatile at high levels and will be difficult to bring down quickly in the short term. [more…]
Ministry of Education Adds Coffee Undergraduate Program at Yunnan Agricultural University, Industry Talent Gap Awaits Filling
Attention coffee lovers,重磅 news has arrived: in the Ministry of Education's latest 2024 undergraduate program catalog, Yunnan Agricultural University's application for a "Coffee Science and Engineering" major has been officially approved, which means the world's first undergraduate coffee talent training program has landed in China. What exactly does this major study? Why is the market so hungry for coffee talent? This article will take you through the curriculum of this emerging major, the industry background, and the huge potential of the coffee market, while also focusing on the current imbalance between supply and demand of talent in the coffee industry. [more…]
Japan Develops Atmospheric Water-Generating Coffee Machine: Providing a Safe Brewing Solution for Disaster Water Shortages
Have you ever thought about brewing coffee using air? A Japanese company has actually turned this idea into reality. They developed a coffee machine that can efficiently extract water from the air, and after multiple filtration and mineralization processes, produce safe drinking water. It is said that the original intention of this machine was to address water shortages and supply cuts caused by natural disasters, allowing people to still enjoy a cup of coffee brewed with clean water in emergency situations. How exactly does this device work? Can it really solve practical problems? And why are netizens complaining about it? This article will take you on a deep dive while also including related recommendations from Front Street Coffee. [more…]
Brazilian coffee stocks fall to historic lows, global supply tightness may continue to intensify
The imbalance between supply and demand in the global coffee market has further intensified, with coffee inventories in Brazil, the largest producing country, having fallen to their lowest level since records began in the 1960s. Although Brazil's total coffee production in 2022/23 grew by 6.7% year-on-year, inventories plummeted by 88% year-on-year, leaving only 540,000 bags. Arabica failed to reach expected output due to drought and frost, while Vietnam's Robusta inventories also halved, tightening supply for both major varieties at the same time. Brazil's low conversion rate of fresh cherries has further exacerbated the shortage, and coffee prices face sustained upward pressure. This article will review the latest data and the underlying causes, and includes professional recommendations from Front Street Coffee. [more…]
WCR launches global robusta breeding network; Uganda trial planting of disease-resistant varieties has delivered nearly 50,000 seedlings
Robusta's share of global coffee production has climbed from 25% in the early 1990s to 40%, with market demand continuing to rise, yet breeding and improvement efforts have long lagged behind. WCR predicts that if consumption growth overlaps with the climate crisis, the global coffee supply could face severe shortages in 2024. To address this, WCR is about to launch a Robusta breeding program using a large amount of genetic material provided by CIRAD, and will work with major producing countries to build a global breeding network. Meanwhile, planting trials in Uganda have already been implemented, distributing nearly 50,000 disease-resistant Robusta (KR) trees to farmers. Front Street Coffee continues to monitor the industry trends and variety innovations in Robusta. [more…]
Costa Rica's Water Crisis Intensifies: Pollution and Scarcity Deal a Double Blow, Threatening Coffee and Other Crop Yields
Costa Rica is renowned for its abundant water resources and geothermal energy, and is also a major global exporter of pineapples, bananas, and coffee, with its agricultural sector heavily dependent on water resources. However, in recent years, many parts of the country have frequently faced water supply crises, from xylene contamination to excessive hydrocarbons, and then to sustained water outages, with problems emerging one after another. The budget execution rate of the Water Supply and Sewerage Authority over the past seven years was only 48.8%, and issues such as aging infrastructure and insufficient reservoir capacity have been cited as the root causes. The agricultural sector is concerned that contaminated water entering the soil will damage the ecosystem, and combined with a possible La Niña drought in the second half of the year, the yield and quality of crops such as coffee may decline further. Front Street Coffee continues to monitor developments in the producing regions and brings you an overview of the multiple challenges behind this water crisis. [more…]
Starbucks Acquires Two More Coffee Estates, Betting on Climate-Resistant Hybrid Varieties and Global Supply Chain
In the face of the ongoing impact of rising global temperatures and frequent extreme weather on coffee cultivation, Starbucks has announced that it will invest in a new farm in each of Costa Rica and Guatemala to strengthen the climate resilience of its coffee supply chain. In recent years, frost and drought in Brazil have caused Arabica bean prices to soar, and coffee consumer prices have risen 18% within five years. As a buyer of about 3% of the world's coffee beans, Starbucks is using its own farms to research high-yield, disease-resistant hybrid varieties adapted to different altitudes and soils. The new farms will also introduce drones and mechanized technology to address labor shortages in Latin America, and the company plans to continue expanding its agricultural footprint in Africa and Asia in the future. [more…]
Cotti Coffee's Paddington collaboration hits a merchandise shortage, while the Sea Salt Caramel series launches simultaneously
Recently, taking advantage of the release of Paddington in Peru, Cotti Coffee launched a Paddington-themed collaboration set and simultaneously introduced a new sea salt caramel latte series. However, after the campaign kicked off, consumers in many places reported serious shortages of store-related materials, with cup sleeves, collaboration bags, and custom cups frequently out of stock, and even awkward scenes of SpongeBob cups being used as substitutes. At the same time, reviews of the two new drinks were mixed: the Sea Salt Caramel Silky Latte was criticized for being too sweet, while the Sea Salt Caramel Oat Latte was described as too bland. This article will restore the true picture of this collaboration campaign from multiple perspectives, including product taste, the experience of obtaining collaboration merchandise, and Cotti Coffee's internal material supply issues. [more…]
Colombian truck drivers block roads to protest diesel price hikes, disrupting transport and supply chains for coffee and other agricultural products
Colombia has been hit by truck driver protests blocking roads since September 2, triggered by the government's decision to gradually phase out fuel subsidies and raise the price of diesel by 1,904 pesos per gallon. The protests have continued to escalate, with 136 road blockades reported nationwide, nearly 1.6 million people affected in their travels, and schools suspended in many places. Goods are piling up at ports and airports, and agricultural products such as fruit and coffee beans are rotting faster due to the high temperatures of the dry season. Colombia's Ministry of Mines and Energy has said diesel prices may continue to rise in the future, and although the government is willing to hold talks, its stance remains tough. Factors such as rising logistics costs, a shortage of truck drivers, and wildfires in Cauca Department that have destroyed coffee fields are compounding, driving Colombian coffee prices steadily higher and putting the supply chain at risk of further deterioration. [more…]
Manner part-time workers were laid off en masse, revealing the conflict between over-hiring and a shortage of positions.
Recently, the temporary dismissal of part-time staff at Manner Coffee has drawn attention. Multiple netizens reported on social platforms that they had not committed any violations during their part-time work, yet received dismissal notices on the same day or within a few days, with the brand giving vague reasons. At the same time, due to a large influx of student part-timers during the holidays, shifts were in short supply and grabbing them became much harder. Some argue that Manner had previously recruited large numbers of part-timers to ease labor shortages, and now that positions are insufficient, it has chosen to simply lay them off to reduce redundancy. Full-time employees pointed out that while some of those dismissed indeed lacked food and beverage experience, the root cause is the brand's lax recruitment screening. Behind this part-time controversy lies the deeper conflict facing chain coffee brands between cost reduction and efficiency gains and workforce management. [more…]