Businesses in Poland that need ingredients such as cocoa, oranges and coffee could be hit with huge rises in costs after harvests were blighted in countries that supply the crops.
“Coffee prices have increased as the market fears droughts may harm crops in Brazil and Vietnam, while demand, particularly in China, has exploded,” Jakub Jakubczak, a food and agriculture economist at BNP Paribas bank, told the Rzeczpospolita daily.
“Consumption growth in Europe may reach 1% a year. By comparison, in China it could stretch to 5-8%.”
Nick Fitzwilliams, the British owner of specialized coffee roaster JAVA Coffee in Warsaw, also sees that all is not well in the countries his supplies come from.
“The cost of living has made it less economical to farm coffee, especially for smallholders. And their farm workers are migrating to cities, making workers scarce.”
He added: “In this current cycle, coffee roasters are putting prices up.”
Fitzwilliams said firms like his “have seen a 60-120% increase in green bean prices and have to pass a fraction on.”
It is not just coffee that has seen rises this year. Cocoa prices peaked at over $12,000 a ton in April, but have since settled slightly. Nevertheless, buyers still pay just short of $8,000, compared to $3,500 a year ago.
Poland is the third largest manufacturer of chocolate in the world, with exports worth over $2.5 billion last year.
The most popular chocolate producers in Poland include foreign-owned companies, such as Wedel, Wawel, Ferrero, and Mondelez, as well as the Polish manufacturers of the Terravita, Mieszko, and Goplana brands.
Aleksandra Kusz vel Sobczuk, the communications director at Wedel, told the dlahandlu.pl trade website in June that “in the nearest future, chocolate confectionery makers see pressure on costs growing.”
BNP Paribas’ Jakub Jakubczak pointed out that “the two largest producers of cocoa, the Ivory Coast and Ghana, are expecting a fall of 40% in production, which means a 25% drop in supply worldwide.
Meanwhile, orange juice, which according to food experts makes up a quarter of the 13 liters of fruit juice that people drink on average in Poland a year, is also likely to go up in price.
Hurricanes in the US state of Florida have ruined hundreds of square kilometers of crops there, while those that remain are blighted by a disease called citrus greening, which kills trees within a year.
Orange juice concentrate that sold for $300 a year ago now costs $431.
That means producers such as Maspex, from southern Poland, will likely see their margins cut.
“Consumption growth in Europe may reach 1% a year. By comparison, in China it could stretch to 5-8%.”
Nick Fitzwilliams, the British owner of specialized coffee roaster JAVA Coffee in Warsaw, also sees that all is not well in the countries his supplies come from.
“The cost of living has made it less economical to farm coffee, especially for smallholders. And their farm workers are migrating to cities, making workers scarce.”
He added: “In this current cycle, coffee roasters are putting prices up.”
Fitzwilliams said firms like his “have seen a 60-120% increase in green bean prices and have to pass a fraction on.”
It is not just coffee that has seen rises this year. Cocoa prices peaked at over $12,000 a ton in April, but have since settled slightly. Nevertheless, buyers still pay just short of $8,000, compared to $3,500 a year ago.
Poland is the third largest manufacturer of chocolate in the world, with exports worth over $2.5 billion last year.
The most popular chocolate producers in Poland include foreign-owned companies, such as Wedel, Wawel, Ferrero, and Mondelez, as well as the Polish manufacturers of the Terravita, Mieszko, and Goplana brands.
Aleksandra Kusz vel Sobczuk, the communications director at Wedel, told the dlahandlu.pl trade website in June that “in the nearest future, chocolate confectionery makers see pressure on costs growing.”
BNP Paribas’ Jakub Jakubczak pointed out that “the two largest producers of cocoa, the Ivory Coast and Ghana, are expecting a fall of 40% in production, which means a 25% drop in supply worldwide.
Meanwhile, orange juice, which according to food experts makes up a quarter of the 13 liters of fruit juice that people drink on average in Poland a year, is also likely to go up in price.
Hurricanes in the US state of Florida have ruined hundreds of square kilometers of crops there, while those that remain are blighted by a disease called citrus greening, which kills trees within a year.
Orange juice concentrate that sold for $300 a year ago now costs $431.
That means producers such as Maspex, from southern Poland, will likely see their margins cut.
Source: TVP World, Rzeczpospolita
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