If you have been listening to the news you will have heard about the collapse of the pound against the euro and the dollar. Bad news if your going on holiday, good news if you relying on export.
Unfortunately every coffee transaction we do is done in US dollars (or the transactions of our importers) and this is impacting on the prices we will be paying for coffee in the coming months.
Were paying 25% more for everything without giving the farmer a penny more. We hope it balances out, as the pound was way to strong for way to long, but it couldn’t have come at a worse time with everyone watching the pennies, and the doom and gloom over the economy.
So why do I tell you this? Well I think were going to see some rises in the price of coffee. Certainly with Brazil we have already seen this, and if things don’t balance out soon the centrals will certainly be hit with this.
I also think specialty will be hit more than anything else simply the more you pay the more your effected. But as always we will try to keep this under control and react when we need to. But as always we will keep you posted.