Coffee bean market value: Finding the price of a kilogram

Coffee bean market value: Exploring the price of one kilogram

Coffee beans are one of the most popular beverages in the world, and their market value is therefore very important. In this article, we will focus on the price of a kilogram of coffee beans and explore its changes and influencing factors around the world.

Overview of the Global Coffee Industry

Globally, the coffee industry is a large and complex system. According to the International Coffee Organization (ICO), a total of 17.11 million tons (171,100,000 kg) of green coffee beans were produced worldwide in 2019-2020. Brazil, Vietnam and Colombia are the three largest producing countries.

However, not all types and qualities of coffee have the same market value. In fact, there are several different price levels on the international market.

Factors affecting price fluctuations

A number of factors influence the price of a kilogram of coffee beans. The first is supply and demand. If supply exceeds demand, prices tend to fall. Conversely, if demand exceeds supply, prices tend to rise.

The second is weather conditions. Coffee growth requires suitable climate and soil conditions. If a producing area is affected by drought, floods or other extreme weather events, it may lead to a reduction in coffee bean production, thereby pushing up prices.

In addition, currency exchange rates are also an important factor. Since coffee beans are a globally traded commodity, currency conversion is required when trading between different countries. If a country's currency depreciates, the coffee beans exported by that country will be more competitive in the global market.

Price differences between regions and varieties

According to data provided by the ICO, between May 2020 and April 2021, the average price of a kilogram of coffee beans, two major varieties of Arabica and Robusta, was $2.91 and $1.66, respectively.

However, there are still large differences within specific regions. For example, the average value of one kilogram of Arabica coffee produced in Brazil is US$2.79, while in Colombia it is US$4.15. These differences are mainly affected by factors such as production costs, quality and market demand.

The impact of coffee bean prices on consumers

Fluctuations in coffee bean prices directly affect consumers. When coffee bean prices rise, coffee shops and retailers tend to pass on the costs to consumers, resulting in higher prices for drinks. On the contrary, if prices fall, it may lead to more promotions and discounts.

The price of a kilogram of coffee beans also has a significant impact on farmers and growing groups. A higher market value can provide better income opportunities and improve their living conditions. However, in some cases, a low market value can result in farmers being unable to cover production costs.

Future Trend Outlook

As factors such as global climate change, economic development and changes in consumer habits continue to evolve, the price of a kilogram of coffee beans may face new challenges in the future. For example, in the context of global warming, some traditional production areas may not be able to continue to produce high-quality coffee beans, resulting in price increases.

Additionally, as more consumers demand sustainable and organic products, this may also have an impact on coffee bean prices. Organic coffee beans are usually sold at a higher price.

in conclusion

The market value of a kilogram of coffee beans is a complex and ever-changing issue. Supply and demand, weather conditions and currency exchange rates all have an impact on it. There are large differences between different regions and varieties, which directly affect consumers and farmers. In the future, as various factors continue to evolve, the price of a kilogram of coffee beans may face new challenges.