Economics Explored

How Global Events are Affecting Coffee Prices w/ Raihaan Esat, International Coffee Traders - EP267

Dec 20, 2024

01:00:40

Coffee prices have surged dramatically over the past year, with green coffee increasing by 78%. In this episode, International Coffee Traders GM Raihaan Esat joins hosts Gene Tunny and Tim Hughes to explore the key drivers behind this spike, including harvest shortages, supply chain disruptions, and geopolitical factors. Discover why your morning brew may soon cost more and how the coffee industry is navigating these challenges.

If you have any questions, comments, or suggestions for Gene, please email him at contact@economicsexplored.com.

About our guest: Raihaan Esat, General Manager, International Coffee Traders

Raihaan Esat is a passionate and seasoned coffee professional with extensive experience across the coffee industry. From working in bustling espresso bars and competing at the highest levels of barista competitions to managing roasteries and developing quality control systems, Raihaan has cultivated a deep understanding of every facet of coffee craftsmanship.

As General Manager of International Coffee Traders (ICT), a green coffee sales business, Raihaan connects both commercial and home roasters with premium green beans and equipment, sharing his love for exceptional coffee. Inspired by mentors like Phillip Di Bella and a history of innovation, Raihaan is also spearheading coffee events at The Coffee Commune, fostering a thriving community of coffee enthusiasts. Dedicated to excellence and driven by a lifelong passion, Raihaan continues to inspire others through mentorship, entrepreneurship, and a relentless pursuit of the perfect cup.

Source: https://www.roastmagazine.com/roastsummit/events/raihann-esat

Timestamps for EP267

Coffee Market Overview and Initial Discussion (0:00)
Factors Contributing to Coffee Price Increases (7:36)
Quality Concerns and Market Dynamics (19:41)
Consumer Behavior and Market Volatility (26:44)
Impact on Coffee Shops and Consumers (47:07)
Geopolitical and Weather Impact on Coffee Prices (54:20)

Takeaways

Green Coffee Prices Surge: Over the past 12 months, green coffee prices have increased by 78%, impacting every part of the supply chain.
Major Producers Facing Challenges: Brazil and Vietnam, responsible for a large share of global coffee production, are experiencing lower yields due to weather conditions and harvest quality issues.
Geopolitical Factors: Disruptions in trade routes, such as those caused by Middle East conflicts, have further strained the coffee supply chain, driving up costs.
Changing Consumer Expectations: As prices rise, consumers may need to reconsider what they expect for a $5 cup of coffee and the value they receive in return.
Sustainability of Cafes: For cafes to survive, they need to adjust their pricing to reflect increasing costs in labor, rent, and coffee supplies.