Global shortages to bring higher
business cost for cafe operators in China
Web Editor:International Daily
Short supply of but growing demand for coffee beans will bring higher costs to coffee shops in China, posing challenges for cafe operators, according to analyst.According to data from the General Administration of Customs, China's coffee import volume jumped by 104.3 percent from the same January to June period as last year, while the total import value increased by 76 percent year on year.Bian Jingfeng, warehouse manager of a 1,200 square meter air-conditioned facility for coffee bean storage in Shanghai says they are near capacity.Bian says coffee bean imports have increased significantly from last year. The entire warehouse now stores raw coffee beans from 28 countries and regions around the world, and stock turnover is taking off."There was a lot of space last year, but this year, especially recently, there's been a lot of demand for coffee beans. More than 10 containers of coffee beans are shipped in and out every month," added Bian.Poor weather conditions in Brazil, the world's biggest coffee producer, are bumping up the prices for high-grade arabica coffee beans.Besides, the global shipping container crisis is expected to keep coffee bean prices high for the near future.The price hikes have prompted Chinese wholesalers to stock up on coffee beans to ensure domestic demand."By the end of August this year, our coffee import volume was about 1,000 tons of raw coffee beans, up almost 100 percent from the same period last year. Because Brazil's production reduction may last for a while, and the current shipping periods are uncertain, we may stock up on some goods later in the period," said Chen Xiaoyu, sales manager of coffee trader.Industry experts say such conditions will keep coffee bean prices high and will bring certain challenges to cafe operators."Brazil has suffered from severe droughts and frosts, which led to a sharp drop in coffee bean output in major production areas. The average global coffee bean price has risen 46 percent from 104 U.S. cents a pound last year to 152 U.S. cents a pound in July," said analyst Zhang Weilin.According to a report published in April by UK accounting firm Deloitte, the average price for a medium sized latte in China is about 30 yuan (about 4.60 U.S. dollars).