Coffee to cost more from February 1 as higher costs bite producers

The association’s honorary adviser, Somchai Pornratanacharoen, said coffee manufacturers had hiked the price as they were suffering from rising cost of production, transport and labour wage.

“This price adjustment will affect consumers’ behaviour, as they would look for cheaper coffee or reduce consumption,” he said, adding that cafe and coffee shop operators would increase product price to maintain profits.

Somchai explained that the retail price of instant coffee would increase by 5% from February 1, raising the price of ready-to-drink coffee by an average of 2 baht a piece.

Price adjustment on consumer goods affected people’s cost of living, especially the low-income group who have to bear rising expense burden, he pointed out.

He said coffee manufacturers would increase their product price gradually and reduce package size to maintain profits. 

Though the price of paddy has dropped, the price of rice bags would remain stable or increase as manufacturers are likely to hike the price, he added.

According to a BBC report, the price for Arabica beans, which account for most of global production, jumped more than 80% in December last year. The cost of Robusta beans, meanwhile, hit a fresh high in September.

It comes as coffee traders expect crops to shrink after the world's two largest producers, Brazil and Vietnam, were hit by bad weather while the drink's popularity continues to grow.