Coffee is a way of life.
You meet someone to discuss a multi million dollar contract, you offer coffee. You enter a humble house of a very simple family in Brazil and they will offer you coffee.
Muslims, Jewish, Catholics,…Atheists…all drink coffee.
Your doctor will never tell you: “you should increase your consumption of coffee”. You do because you like, because you can pay for it.
It´s good for you. Ignites your day, gives you courage to face the Canadian winter and Cold Brew is the new trend for hot days in Berlin. Will help you to stay alert during your day trade mission of losing money.
Coffee is America. NY smells coffee.
Coffee is Europe. If travelling in Italy, you will spend time on a romantic coffee shop for sure.
Coffee is Japan. In cans, bags, little bags, you name it.
Coffee is currency…banks in Europe and America are the biggest investors.
If you are a lender in times of deflation and a coffee shop needs coffee, here´s the deal. A roaster will sign a contract for 320 bags but doesn’t have a place to store the entire lot, not the money to pay for the load.
However, if you have knowledge knowing what your costumer wants, have a place to store, money to buy large quantities and can deliver fraction lots – you are the facilitator for small roasters worldwide. Therefore, there´s a price to pay – also called: interest rate.
In times of deflation…that´s gold. In times of inflation, that´s diamond!!
Coffee prices must never go up to the roof, nor get down to the floor. Money flow that must keep on flowing.
Brazil and Vietnam are the key players and multimillion dollar trading houses invest large on these countries with one purpose…keep price under control.
With steady supply, the wheel keeps on spinning and money keeps on flowing.
The only reason for spikes – Brazil or Vietnam production disruption. Other than that, nothing will change, ever.
With these two giants producing large, combined with a Pandemic…that´s not good for price.
Do you think industry cares about growers in Honduras?
All they want is to open more coffee shops, everywhere…keep the wheel spinning. It´s money what matters and that´s it.
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