KUALA LUMPUR: Malaysian cafe owners who import coffee beans and sell speciality coffees are now faced with the challenge of rethinking their pricing strategies as coffee bean prices hit record highs.
The cost of coffee beans, particularly from major suppliers Brazil and Vietnam, is expected to rise further in 2025 due to adverse weather conditions and supply shortages driven by high global demand.
Brazil, the world’s largest exporter of Arabica coffee, has experienced one of its worst droughts in history, followed by frost and excessive heat, which severely reduced crop yields.
Vietnam, the top producer of Robusta beans, has struggled with prolonged droughts and heavier-than-usual rainfall.
The price of Arabica beans reached nearly US$3.50 per pound in December 2024, marking its highest level since 1977, marking a staggering 83 per cent increase in 2024.
Robusta beans, mainly used in instant coffee, have also seen a sharp price jump, rising 73 per cent to US$5,885 per tonne in November 2024 due to unpredictable weather patterns.
Hijjaz Suhaimi, 24, owner of Rendevu Coffee in Wangsa Maju, said that with skyrocketing green coffee bean prices, businesses now face difficult decisions.
“However, as long as businesses maintain strong branding and adapt to cultural trends, demand will persist, even with higher prices,” he said.
Hijjaz’s cafe imports green coffee beans from Guatemala, Ethiopia, Brazil, and Mexico, focusing on balancing body and acidity to appeal to customers who enjoy fruity aromas without overly acidic notes.
To offset the rising cost of buying roasted coffee — up to RM100 per kilogramme — Hijjaz said roasting their coffee beans is a more cost-effective solution. – BERNAMA
