Experts predict further growth in coffee prices
10 July 2024 10:13
The global coffee market is facing serious challenges that will inevitably lead to further price increases for consumers. This was stated by Giuseppe Lavazza, Chairman of the Board of Directors of the Italian company Lavazza, in an interview with the Financial Times, reports "Komersant Ukrainian"
According to Lavazza, coffee prices “have no intention of falling” and will remain “very high”. The reason for this is a combination of factors, including climate change, supply disruptions and new EU regulatory requirements. All this leads to higher costs for coffee producers and roasters.
Statistics confirm the expert’s words: the cost of coffee on the shelves of British supermarkets has already increased by about 15% compared to last year. Coffee prices have risen by 40% in six months. Futures quotes for the popular Arabica variety exceeded $2.4 per pound, approaching a two-year high.
Of particular concern is the situation in Vietnam, one of the world’s largest coffee producers. Due to unfavourable weather conditions, coffee exports from this country fell by 10.6% in the first half of the year compared to the same period last year.
The weather also hit other coffee-growing regions. The intense heat in Asia led to a sharp rise in prices in the second quarter: futures quotes for Robusta in London increased by 18.1%, and for Arabica by 20.6%.
In the current environment, coffee roasting companies are forced to raise prices and reduce the profitability of their business. Lavazza emphasises that “the coffee supply chain is under serious pressure”.
Thus, European coffee consumers will have to prepare for further price increases for their favourite drink.
