Why, why, why – if you don’t ask, you stay in the dark!
The price is hot!
Sounds sexy, but it’s not. Since mid to late 2020, we have been observing how a multitude of factors have been driving up the worldwide production costs of coffee:
This has caused green coffee prices to double within this period.
Also coffeekult is affected and so we have to adjust our prices.
+ 12 %
A number that is actually hot, because it just does not leave COLD! “Plus 12 percent” increases coffeekult with 1 August 2022 its prices for frrrisch and locally roasted coffee from Tyrol.
WHY, WHY, WHY?
Feel free to ask us that, we don’t want to owe anyone an answer.
And, a little tip – why not also question the pricing of other companies/products/producers? Are you getting answers?
coffeekult thinks: everyone has the right to it. However, it should not be used as an excuse, but as a REASON. Only those who understand the connections can also learn something. You know: why, why, why – those who don’t ask, remain stupid!
1. LOGISTICS
Yes, coffeekult is also a participant in the global market. Our green coffee, among other things, comes directly from small traders and cooperatives, ensuring that local communities benefit more from their earnings at the end of the month. This philosophy of coffeekult is widely recognized.
Yes, coffeekult is also a participant in the global market. Our green coffee, among other things, comes directly from small traders and cooperatives, ensuring that local communities benefit more from their earnings at the end of the month. This philosophy of coffeekult is widely recognized.
Corona briefly brought world trade to a standstill in the spring of 2020, however. But then, apparently, we all became shopping maniacs: during the pandemic, people in America and Europe unexpectedly bought and consumed particularly heavily. The lockout and work from home has awakened in many the need to beautify his home – diligently was shopped and this HIGH demand has met with TOO LITTLE ships.
When a commodity becomes scarce, prices tend to rise. This is unfortunately how the global market reacts.
The Russia/Ukraine crisis has “exacerbated” the problem of containers. Closed ports have stranded containers somewhere because the main trade routes were interrupted. And each cargo container must also return after being emptied, so the 40 million containers are not always full, but also often empty on the road. There was and is often a traffic jam, like on a highway: at some ports containers have to be unloaded first, but the port workers do not have infinite capacity and space AND at other ports there was a traffic jam because empty containers were standing around, so the new goods could not be unloaded due to lack of space.
TheStatistics plattform Statista did the math in February: booking a 40-foot container came to $9,806 (8,614 euros), which is 548 percent more than in 2020. Two years ago, only 1,514 US dollars (1,329 euros) had to be spent.
You want a proof photo? (SOURCE: Statista)
2. CLIMATE CRISIS
Yes, it’s clear that nowadays climate change is blamed for everything. But when it comes to COFFEE, it plays a central role, and for every coffee enthusiast, there’s only one thing to remember: Please – NO PANIC!
Panic after all?
For those with weak nerves, take a short reading break here because the statements from the World Coffee Research Institute are shocking: “If nothing is done, more than half of the coffee cultivation areas will no longer be suitable due to climate change.” Climate warming could destroy the world’s most important coffee-growing regions, warns the scientist.
The coffee plant is a sensitive little plant: it loves tropical climate. However, it should be as stable as possible. Rising temperatures and an increase in precipitation have a negative impact on yield and aroma.
The WINNER IS: Avocados and cashew nuts! What does that have to do with coffee? A LOT! One person’s joy, another’s sorrow: Coffee loses the climate crisis game, avocados and cashews win! “Coffee is becoming scarce,” as recently titled by National Geographic.
All just future music? NO! In 2021, Brazil experienced its worst drought in 90 years, followed by the strongest frost in decades, leading to the cutting down of coffee trees. This has also forced “THE BIG ONES” to take action: The German coffee market leader doubled its prices TWICE within 9 months.
3. MONTHLY FIXED COSTS
Entrepreneurs know such calculations of monthly fixed costs. Unfortunately, many private households will also have to do this more often in the future. Especially in these times, people increasingly calculate what has happened in the last months and years. It is usually only “small jumps” in gas or electricity costs, rent or certain products. But over time, these “small jumps” add up, and in retrospect, it’s hard not to be amazed!
ADDED: coffeekult was a little surprised itself at what actually happened.
Of course, we roasted more coffee and produced more, but the monthly fixed costs still increased very strongly in just ONE YEAR: Electricity costs have risen from around 60 euros to 185 euros, an increase of over 200%. Gas has increased from 50 euros to 80 euros, an increase of over 60% and the cost of coffee packaging has also increased to over 100%. In contrast, the increase in monthly rent is “small”, an increase of 8.5 percent! But all in just ONE YEAR and there is quite something together, even the proverbial “small cattle” makes a lot of crap!
Exactly, more production and sales cannot keep up with the rising costs!
| 08/2021 | 07/2022 | ca. in % | |
| Electricity | ca. 60.00€ | ca. 185.00€ | 200 |
| Gas | ca. 50.00€ | ca. 80.00€ | 60 |
| Packaging | ca. 0.366€ | ca. 0.73 | 100 |
4. WORLD TRADE
Last not least!
If – in good German – global coffee transport spins and climate change makes the available coffee beans scarce, prices naturally rise. Why?
Again, this answer is simple: high demand, increases the price!
Now coffeekult comes into play again. Points 1, 2, 3 and 4 have an impact not only on us, of course, but on the entire industry.
At the top, we wrote: “That has doubled green coffee prices within this period.” FAKE NEWS? NO!
Here – unfortunately – the photo evidence of the DOUBLING (SOURCE: wallstreet:online)
We don’t calculate like Pippi Longstocking in her song: “2 times 3 equals 4 – Widdewiddewitt and 3 equals 9!“
“I make my world – widdewidde as it pleases me.”
coffeekult is happy to explain how this doubling comes about, and we can also provide evidence for this. As mentioned earlier, this is not a justification but merely an explanation.
coffeekult not only stands for great coffee taste but also for transparency!
For those hungry for reading:
THE BEST NEWS AT THE END
coffeekult still helps you save money!
“You’ll never walk alone“
coffeekult does not leave you alone. At least on the coffee way we accompany you with pleasure. Price adjustments are never pleasant, some are hit harder than others. Maybe our coffeekult discounts will help you a little?
ANY MORE QUESTIONS?
You know: Why, what, how – If you don’t ask, you’ll stay in the dark!Wieso, weshalb, warum – wer nicht fragt, bleibt dumm!
coffeekult is here for you @ the coffeekult coffee roastery in Tschamlerstraße, Innsbruck.
