The cost of Robusta coffee beans has risen to a record in the past sketchy 12 years. In addition, the growth of wholesale prices is observed all over the world. And since it is from this variety that instant and ground coffee is most often brewed, its price also increases significantly. The increase in the cost of grains is directly related to the increase in the price of fertilizers and low yields, due to the weather or the desire of farmers to grow more expensive products.

Robusta coffee broke the price record of the last 12 years

In Europe’s largest coffee market, Germany, instant varieties are now worth 20% more than a year ago, according to Bloomberg. In the US, the situation is slightly better and the rise in coffee prices is gradually easing, but even here there is a pattern: cereal price growth slows more noticeably than instant coffee .

The demand for Robusta in 2023 exceeds the supply for several reasons. The global cost of living crisis has pushed coffee drinkers to buy cheaper coffee varieties (i.e. switch from Arabica to Robusta).

At the same time, the rise in the prices of fertilizers due to the economic crisis caused by geopolitical cataclysms implies not only an increase in the price of cereals, but also a revision of the priorities of producers.

The publication notes that Vietnamese farmers in the last year decided to switch from coffee to more profitable crops, for example, durian or avocado. In Brazil, the second largest coffee market after Vietnam, a drought prevented a large harvest, while in Indonesia, by contrast, it rains.

Taken together, this has led to the fact that manufacturers cannot meet the increase in demand even with a sharp increase in prices and with the growth of global exports compared to 2021-2022. The agency writes that deliveries in October 2022-March 2023 exceeded exports in 2021-2022 by 4%.

“There is such a change in the demand for expensive coffee [на более дешевый]that the market is dissatisfied even with the increase in Robusta exports,” Judith Gaines, director of J Ganes Consulting, quotes Bloomberg.

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Ekaterina Alipova

Source: RB

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I am a professional journalist and content creator with extensive experience writing for news websites. I currently work as an author at Gadget Onus, where I specialize in covering hot news topics. My written pieces have been published on some of the biggest media outlets around the world, including The Guardian and BBC News.


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