What Coffeenomics means for your assignees

    Nov 26, 2021 @ 09:56 AM / by Emily Stewart

    Cup of cappuccino with coffee art and coffee beans on wooden table_adobespark

    After taking my children to school in the mornings, I am in the habit of visiting my local café. Recently, I was quite surprised to find that the cost of my flat white went up 25p overnight. Despite being mostly aware of current events, I found the change alarming and was left wondering whether this price hike is indicative of dire inflationary changes in my future.

    The Coffee Trade

    Brazil, the largest global producer, supplies 300% more coffee than its closest competitive neighbor: Colombia. As the crop yield in the 2020/2021 season in Brazil has been largely affected by the impacts of climate change in the growing regions, the cost of exported beans has risen. Similar patterns can be seen in other coffee producing areas for a myriad of reasons: shipping disruptions impacting the supply chain in Vietnam and Indonesia and escalating civil unrest in Ethiopia, for example.


    The Market Basket

    During each research quarter, prices are collected for more than 350 goods and services commonly used or consumed by expatriates, giving AIRINC the most comprehensive international market basket in the industry . For each item, five to six sample prices are collected from multiple outlets, producing typical sample price counts of up to 1,800 in each location. This approach helps manage the volatility of specific products by allowing price increases, price stability, and price decreases to work together to paint the larger picture of inflation in each location.

    Close-up of female staff holding basket of vegetables in organic section of supermarket

    The Outlook

    The U.S. leads the top of the coffee importer list, followed by many European countries, Canada, and Japan. The U.K. is now the 9th largest importer of coffee beans in the world, despite its reputation of being categorically made up of tea-drinkers. While the overall Cost of Living in London is not increasing at the same rate as my flat white, thanks to the robust market basket this example reflects a change in the world’s supply and trade, with experts suggesting that the price/kilo of coffee beans will continue to increase into 2022.

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    Topics: Benchmarking, Cost of Living Surveys, Surveying the World, Global Mobility, Goods & Services, Workforce globalization, Coffee, Balance Sheet Manager, Inflation, Price Elasticity, Compensation, Market Basket

    Emily Stewart

    Written by Emily Stewart

    Emily joined AIRINC's as a Client Engagement Manager in 2016. Prior to joining, she held various positions at Deloitte, Graebel Relocations, and Cartus, where she specialized in global mobility consulting and expatriate compensation. Emily holds degrees in French and Spanish from Oklahoma State University. Originally from the U.S.A., Emily has also lived in the Czech Republic, Brazil, and Belgium; she is now based in AIRINC’s London office.