Coffee lovers in for a pricey jolt
BREWING IMPACT: The looming price increase may benefit coffee farmers if they can produce good quality beans, according to the head of the Philippine Coffee Board. Photo taken in April 2019 at a plantation in Cavite. —黑料社 file photo
MANILA, Philippines — drinkers may need to adjust their budgets for their daily cup of joe as local retail prices are tipped to increase due to tight global supply and higher costs.
Pacita Juan, president and co-chair of the Philippine Coffee Board Inc. (PCB), said retail coffee prices may increase by about 20 percent on average.
“All these rising prices will mean even higher prices locally. And farmers will benefit if they also produce good quality beans,” Juan told the Inquirer in a Viber message.
“But consumers must be ready to adjust their caffeine budgets,” she added.
Nestlé Philippines, the local unit of the Swiss-based global food giant known for its Nescafé coffee brand, said it is assessing the on their retail pricing.
Article continues after this advertisement“At this point, we have to identify the specific impacts of global price movements on our manufacturing,” Nestlé Philippines senior vice president and head of corporate affairs Jose Uy III told the Inquirer in a Viber message.
Article continues after this advertisement“At the same time, we always make every effort to avoid price increases by maximizing efficiencies in our operations while upholding quality,” Uy said.
The Department of Trade and Industry updated earlier this month its suggested retail price (SRP) bulletin for basic commodities.
The SRP for a 25-gram coffee refill of Blend 45 increased to P20.25 from P18.50.
The 25-gram Great Taste premium coffee and 50-gram Great Taste premium coffee stood at P21.60 and P42.20, respectively.
Meanwhile, the new SRP for a 26-gram Nescafe Original was at P7.75.
Benefit for farmers
The PCB said local farmers, provided they cultivate high-quality coffee, stand to benefit from the increase in global coffee prices and could seize better opportunities from these recent developments.
Juan noted that the farm-gate price of robusta, the most produced type of coffee, has doubled to P350 per kilogram from P180 per kg while commercial-grade coffee stood at P320 per kg.
“Local farmers will fare well as long as they grade their beans or pick only the ripest fruits,” Juan said. “Ultimately, the consumer also looks for specialty grade coffee and not just commercial grade.”
According to a recent report by Reuters, coffee prices in the world market eased after reaching a record high last week. Arabica coffee prices dropped by 1.6 percent to $4.1840 per pound on Friday, down from a record $4.2995 on Feb. 11.
“Dealers said the market was underpinned by tight supplies and the prospect of a smaller arabica crop in top grower Brazil this year,” the Reuters report said.
