It’s been 13 years since the Colombia green coffee Ex – dock reached that high price in the New York C exchange. There are some explanations and direct causes that have influenced the prices to jump to this record in a decade. Some variables are easier to understand — bad weather conditions, low fertilization, and bi-annual production cycle in producing areas, among others. Some additional variables are more difficult to explain, such as speculation of funds as well as the weak US dollar, which has pushed the price up.
Moreover, prices of Colombian green coffee have reached USD 2,40 – a value not seen since April 1997. There are other possible causes such as low availability of wash mild Arabica compared to previous years. This scarcity has challenged some roasters to find different mild coffee origins. In the past, some coffee origins such as Central America have helped to cover low Arabica production in Colombia. Central American coffee has been used to substitute the Colombian origin in blends because of the similarity of its cup profile. However, when production is low in both regions, the pressure to find available quality product is fierce.
Additional variables that have influenced the market include:
• The stock coffee of Arabica and Robusta is low compared with previous years
• The world coffee stock is concentrated in few hands
• The Robusta low availability helped to push the Arabica prices.
Finally, the high price of green coffee in producer countries could not have a positive impact in the growers if the US dollar keeps losing value against local currencies. In addition, if the production volume and quality do not meet a minimum threshold, many farmers would not get any benefits of these high prices.
