Operators warned to renegotiate coffee contracts
Operators are being warned to renegotiate coffee contracts with suppliers as prices could be set to increase.
Buying specialist Lynx Purchasing has warned that while coffee prices have been low there are signs that they could be about to increase.
The warning comes as its Autumn edition of Lynx Purchasing Forecast warns hospitality operators to ‘Brexit-proof' their businesses in advance of the UK's exit from the EU.
Rachel Dobson, managing director of Lynx Purchasing, said: “Commodity coffee prices look to be on the increase after a period when they were relatively quite low. Those operators tied into long-term contracts may not have seen the full benefit of those low prices, but can expect to see higher prices passed at their next contract review.
“In the current market, we’re certainly recommending to the operators we work with that they benchmark the price they’re being quoted against other coffee suppliers before signing up to new long-term contracts.”
Lynx Purchasing works with more than 2,200 hospitality and catering operators to match them with the best suppliers and get the best possible prices on food and drink.
This warning comes as coffee farmers are continuing to call for urgent action on pricing.
Prices remain below the cost of production for millions of coffee farmers, threatening their livelihoods and the sustainability of the sector as a whole, according to numerous producer associations.