Drought in Vietnam and Brazil drives up coffee prices – Find out the impact on your business or healthcare center and how to guard against price fluctuations.
Drought in Vietnam and Brazil and the impact on coffee prices
The severe drought in the major coffee-producing countries of Vietnam and Brazil has led to a significant increase in coffee prices on the world market. Robusta coffee in particular, widely used for instant coffee and espresso, has become significantly more expensive.
Vietnam and Brazil account for more than half of the world’s coffee production. The drought has had a major impact on harvests in these countries. Coffee plants have suffered from lack of water and extreme heat. This has resulted in lower production quantities, leading to scarcity and price increases.
The impact of higher coffee prices on businesses and care centers
Both businesses and care facilities are affected by rising coffee prices. Coffee has become an essential part of the daily routine in corporate canteens and care facilities. For many employees, visitors and clients, it is indispensable. The rising purchase prices of coffee are putting pressure on margins for corporate caterers and care facilities.
As a business or care center, what can you do to reduce the impact of higher coffee prices? Here are some tips:
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Consider entering into long-term contracts with your coffee supplier. This provides long-term price certainty and avoids surprises.
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Avoid wasting coffee. Don’t throw away leftovers. This way you will get the most out of your coffee supply.
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For cafeterias, it is wise to consider raising coffee prices slightly for visitors or clients. A small increase is generally well accepted and can help offset the extra cost of rising coffee prices.
Want to learn more about how you as a business or care center can deal with rising coffee prices and control your procurement costs? Then get in touch with us. Our experienced consultants are ready to help you with advice tailored to your situation. Together, we can find a solution so that even in times of expensive coffee, you can continue to enjoy a delicious cup of coffee at an acceptable price.
