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Coffee prices to surge amid bean shortage

Russian media has warned of an upcoming sharp rise in the price of the globe’s favorite morning drink – coffee – amid a worldwide shortage of beans.

According to market players, retail coffee will rise in price by 20-30%. At the same time, the maximum price increase will be for the cheaper varieties… up to 40%,” Russia’s Izvestia newspaper warned.

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According to analysts, major exporters may simply not have enough beans to supply the caffeine-thirsty market. Brazil has been facing record crop failures due to cold weather and drought. In Colombia, rains destroyed part of the crops, and Ethiopia was on the verge of a civil war. At the same time, all around the globe, the coffee industry, like many others, is facing difficulties due to labor shortages brought about by the Covid-19 pandemic.

Logistics are also affecting prices, analysts claim. The world lacks transport capacity, the cost of fuel is on the rise, and the growing demand for goods only worsens the situation.

According to various experts, the problems above can lead to both a rise in price and a decline in the quality of the energizing drink.

Already in the fall, fears arose that against the backdrop of high prices and problems with supplies, manufacturers would begin to replace Arabica beans with cheaper and less tasty Robusta,” Izvestia wrote.

However, Russia’s Agriculture Ministry rushed to calm coffee-lovers, saying it does not expect interruptions in the supply of coffee in the meantime and calling the current situation with coffee supply “stable.” In addition, the ministry noted that some of Russia’s coffee producers have their own plantations in Colombia and the Dominican Republic, which lends hope we won’t have to be waking up without the much-loved aroma in 2022.

For more stories on economy & finance visit RT’s business section

https://ift.tt/32h8qwK 19, 2021 at 04:36PM
from RT – Daily news

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