HOUSTON: Global coffee traders and roasters say they have slashed their purchases to minimal levels, as the industry reels from a steep surge in prices that suppliers have yet to convince retail stores to accept.
At the US National Coffee Association annual convention in Houston this week, attendees said they have been in shock at a 70 percent increase since November for Arabica coffee futures on the ICE exchange, the benchmark for coffee deals around the world.
Renan Chueiri, director general at ELCAFE C.A. in Ecuador, said this year is the first time the instant coffee maker hasn’t sold all of its expected annual production by March.
“We would usually be sold out by now, but so far we sold less than 30 percent of production,” he said. “The big price increase eats clients’ cash flow, they don’t have all the money to buy what they need.”
The coffee price hikes have stemmed from lower production in important coffee growing regions, particularly in top grower Brazil, reducing the availability of beans.
“Nobody wants to be exposed, nobody is buying for future delivery, it is all hand to mouth,” said one coffee broker, asking not to be identified due to the sensitivity of the issue.
By “hand to mouth,” he was referring to the practice of buying only what is necessary for the moment and eschewing stockpiling.
Many recent deals in Brazil, he said, have been conducted in a very conservative manner.
“You close a deal, and then you have seven days to go to the farm or warehouse and get your coffee. You check the quality, and if it is ok, you make the payment on the site and drive away with the coffee.”
A recent Reuters poll predicted that Arabica coffee prices could fall 30 percent by the end of the year, as high prices curb demand and early signs point to a bumper Brazilian crop next year.
But until prices drop significantly, much of the coffee industry could be in for a world of pain.
A chief executive of a major roaster in the United States — the world’s largest market for coffee consumption, said some of his clients are not sure they can continue to be in business.
“They don’t know if they will be able to sell their product at the new prices,” he said, also asking not to be identified. “Some people are going down.”
The CEO said supermarkets and grocery stores had been pushing back against the higher prices asked by roasters. Negotiations were taking a long time and some retail outlets were starting to be short of coffee on the shelves.
“It has been a nightmare,” he added.
Coffee warehouses close to ports in the US, which receive beans coming from Central and South America, currently have half their normal volumes, said an executive for one of the largest companies in the storage sector.
“Some storing companies are returning silos to the owners, canceling leasing contracts early,” he said.
Michael Von Luehrte, owner of broker MVLcoffee, said the coffee market, particularly on the trading side, could see consolidation.
Companies with more capital will be able to increase trading volumes, while others will suffer with reduced financing, he added.
Commodities trader Louis Dreyfus said in a presentation during the conference that the coffee planted area has been expanding in reaction to the higher prices.
Expansion has happened in countries such as India, Uganda, Ethiopia and Brazil. The company believes that if Brazil manages to have one big crop, then that in combination with the new planted areas could lead to a collapse in prices.
Global coffee trade grinding to a halt, hit hard by brutal prices hikes
https://arab.news/vvk8q
Global coffee trade grinding to a halt, hit hard by brutal prices hikes
- Arabica coffee futures have surged 70 percent since November
- Traders and roasters making minimal purchases
Cambodia takes back looted historic artifacts handled by British art dealer
- The objects were returned under a 2020 agreement between the Ministry of Culture and Fine Arts and the family of the late Douglas Latchford, a British art collector and dealer who allegedly had the items smuggled out of Cambodia
PHNOM PENH, Cambodia: Cambodian officials on Friday received more than six dozen historic artifacts described as part of the country’s cultural heritage that had been looted during decades of war and instability.
At a ceremony attended by Deputy Prime Minister Hun Many, the 74 items were unveiled at the National Museum in Phnom Penh after their repatriation from the United Kingdom.
The objects were returned under a 2020 agreement between the Ministry of Culture and Fine Arts and the family of the late Douglas Latchford, a British art collector and dealer who allegedly had the items smuggled out of Cambodia.
“This substantial restitution represents one of the most important returns of Khmer cultural heritage in recent years, following major repatriations in 2021 and 2023 from the same collection,” the Culture Ministry said in a statement. “It marks a significant step forward in Cambodia’s continued efforts to recover, preserve, and restore its ancestral legacy for future generations.”
The artifacts were described as dating from the pre-Angkorian period through the height of the Angkor Empire, including “monumental sandstone sculptures, refined bronze works, and significant ritual objects.” The Angkor Empire, which extended from the ninth to the 15th century, is best known for the Angkor Wat archaeological site, the nation’s biggest tourist attraction.
Latchford was a prominent antiquities dealer who allegedly orchestrated an operation to sell looted Cambodian sculptures on the international market.
From 1970 to the 1980s, during Cambodia’s civil wars and the communist Khmer Rouge ‘s brutal reign, organized looting networks sent artifacts to Latchford, who then sold them to Western collectors, dealers, and institutions. These pieces were often physically damaged, having been pried off temple walls or other structures by the looters.
Latchford was indicted in a New York federal court in 2019 on charges including wire fraud and conspiracy. He died in 2020, aged 88, before he could be extradited to face charges.
Cambodia, like neighboring Thailand, has benefited from a trend in recent decades involving the repatriation of art and archaeological treasures. These include ancient Asian artworks as well as pieces lost or stolen during turmoil in places such as Syria, Iraq and Nazi-occupied Europe. New York’s Metropolitan Museum of Art is one of the prominent institutions that has been returning illegally smuggled art, including to Cambodia.
“The ancient artifacts created and preserved by our ancestors are now being returned to Cambodia, bringing warmth and joy, following the country’s return to peace,” said Hun Many, who is the younger brother of Prime Minister Hun Manet.
