The price of retail coffee rose 40% last month, prompting an immediate reaction from consumers, said Celírio Inácio, the group’s chief executive.
Sales in Brazil fell 14% in November compared to the previous month due to higher prices, according to industrial group Abic. The price of retail coffee rose 40% last month, prompting an immediate reaction from consumers, said Celírio Inácio, the group’s chief executive.
The drop in coffee consumption is just another sign of the pressures facing consumers in Brazil, as rising prices suppress demand for all kinds of staples and force buyers to modify their shopping lists.
Coffee prices nearly doubled over the past year in New York as inclement weather damaged crops in Brazil and a tight transportation market delayed deliveries around the world.
Brazil’s consumer prices posted the biggest rise in 18 years last month. Coffee may continue to contribute to national inflation as prices are expected to rise as much as 30% in March, according to Abic.
In Brazil, prices for Arabica coffee, the highest quality beans, rose almost 140% this year, while those for the lowest quality robusta coffee almost doubled. As the industry reeling from higher production costs, some roasters in South America and elsewhere are switching to robusta.
However, there is a limit to the magnitude of the change, Inácio said. The national coffee blend is typically 30% Robusta and 70% Arabica. While the robusta portion has increased, the flavor profile will change markedly if the robusta content is too high, he noted.
Brazilians drink more coffee than anyone else in the world outside of the United States, and domestic roasters have never seen consumption decline, according to Abic.
“We hope that Brazilians adapt to this new price reality, reducing waste,” said Inácio.
.
Ricardo is a renowned author and journalist, known for his exceptional writing on top-news stories. He currently works as a writer at the 247 News Agency, where he is known for his ability to deliver breaking news and insightful analysis on the most pressing issues of the day.
