Coffee prices to remain stable

Local price increases will be met by resistance from struggling consumers Despite fears that local coffee prices will drastically increase due to a shortage of beans from Brazil, coupled with the entrance of Starbucks into the local market, prices will remain stable and steadily increase at realistic levels. Because South Africa is a net importer of coffee, the severe drought which affected Brazil last year, the largest coffee producer in the world, heightened fears that prices would increase due to global supply shortages. Brazil has since had a fair share of rain and is set to produce its largest harvest for the 2016/2017 season which will lead to lower coffee prices globally. Dawie Maree, Head of Information and Marketing at FNB Business, Agriculture says South Africa has not yet experienced supply challenges as we import most of our coffee beans from Eastern African countries which continue to increase yields and produce quality crops. Maree cautions that lower glob...