The expert named the reasons for the rise in coffee prices

The expected cooling of global demand may play a role in price stabilization. If demand starts to decrease, this may lead to lower prices on the stock exchange, which, in turn, will affect the entire supply chain. However, this process will take time, and consumers will have to be prepared for price changes. Ramaz Chanturia, CEO of Roschaikoff, shared this opinion in an interview with Izvestia on March 25.

"Over the past year, the cost of coffee on the stock exchanges has increased significantly. For example, arabica rose from 150-170 to 380 cents per pound, and a month ago it reached 420. Robusta, which was worth about $2,000, is now trading at $5,500. At the same time, both varieties have never been so expensive in the history of observing the coffee market," the expert noted.

The expert explained that the main growth factor is the sharp increase in coffee consumption in Southeast Asia, which has developed over the past decade.

"China, India, the Philippines, Vietnam and Indonesia are growing economically, and coffee is becoming part of the modern lifestyle there. Global production cannot keep up with demand, so any climate problems in Brazil or Vietnam (which together account for 60% of the global market) now have a much stronger impact on prices," he said.

According to the expert, the situation with the cost of production of finished coffee products may stabilize by autumn.

"Demand has already begun to cool, but it is difficult to say how much this will lower the price on the stock exchange. Experts expect that by September the situation will be calmer. That is, global demand will drop slightly and this will lead to lower prices on the stock exchange. Accordingly, this will reduce prices for suppliers, producers, and coffee processors," concluded Chanturia.

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Earlier, on January 11, Chanturia told Izvestia that coffee prices at most firms continue to increase due to an increase in the cost of processed goods, which is due to an increase in the cost of raw materials, an increase in business costs, rising tariffs and changes in dollar exchange rates. According to him, there has never been a simultaneous increase in prices for Arabica and robusta, which leads to difficult conditions and causes concern among both representatives of the coffee industry and coffee lovers.