What are coffee prices based on?

coffee beans are traded on future and commodities. The two most important coffee beans are New York and London. As with most other items, coffee prices tend to fluctuate based on the supply and demand principles. When there are more retailers than buyers, coffee prices are falling. When there are more buyers than sellers, coffee prices increase.

Two types of coffee beans are traded: Arabica and Robusta. In general, Robusta beans are sold for 70% of Arabica beans; make them more cost -effective for the main coffee companies. Although there was a big mismatch between the Arabica and Robust Beans, this is no longer the case.

Since the largest coffee buyers in the world recently started buying mostly robust beans, the demand for Arabica beans was reduced. Therefore, the price difference between two types of beans was also reduced. Although this price reduction can be useful for people who Purchase Coffee Beans, the recent demand for Robust Beans has not been for many farmersPositive.

When Arabica beans were in higher demand than robust beans, farmers cultivated large crops of these beans. Now that most coffee buyers want to buy robust beans, coffee breeders are trying to change the type of beans that grow. The transition from Robusta's growing beans to Arabica Beans is a timely and expensive effort with which most farmers in developing countries cannot keep up. While almost all companies that buy coffee beans would have from lower coffee prices, farmers who grow coffee beans would benefit from higher prices.

In addition to the above principle of supply and demand, there are a number of other factors that affect coffee prices. The weather is one natural force that significantly affects this price of coffee beans. If the coffee beans are rotten due to bad weather, then coffee prices will rise. If one of the largest coffee -producing countries has one year HRThe weather will be increased, the total cost of coffee beans will be increased.

companies that buy the most coffee include Kraft, Nestle, Proctor & Gamble and Sara Lee. Among the top five countries that produce the most coffee beans are Brazil, Vietnam, Colombia, Indonesia and Ethiopia. The five most important countries that consume the most coffee per capita are Finland, Aruba, Iceland, Norway and Denmark. Countries that import most coffee around the world include the United States, Germany and Italy.