Coffee roaster manufacturing giant Probat has announced it is raising prices, in part to offset the rising costs of steel and other raw materials used in manufacturing.
The 4.5% net price increase on all Probat machinery, scheduled to take effect July 1, was announced earlier this month by the Probat group’s global headquarters in Emmerich, Germany.
“The price adjustment is driven by significant price increases in the procurement of steel, sheet metal and components in particular, which Probat is currently experiencing,” the company stated. “In addition, the company faces a tight supply in both commodities and logistics needed to manufacture and deliver its own products. Therefore it feels forced to notify its customers that it is increasing net sales prices by 4.5%. These increases will be implemented through changes in list prices and are necessary to help offset this significant rise in costs.”
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For myriad reasons — not the least of which are post-pandemic market dynamics plus the Trump-era tariffs placed on Chinese steel imports to the United States — the commodity price for steel reached all-time highs this spring.
“Rising steel prices in particular and a strong economy are driving the cost pressure also in the coffee industry,” the German group stated. “Probat is working diligently towards further optimizing its cost structure and operational processes.”