Lavazza CEO is outraged by rising coffee prices in the world

There is a disproportionate increase in coffee prices in the world, to which a limit should be set. This was announced on April 11 by Antonio Baravalle, executive director of the Italian coffee producer Lavazza.

In his opinion, if the situation is not intervened, the global coffee market will experience a real collapse in the near future.

"When I see espresso for £3—£4 (about 433 rubles. — ed.) in London or cappuccino for £8 (867 rubles. — ed.) in New York, I understand that there must be some limit. It's like the New York Stock Exchange: it grows, grows, grows, and you realize that sooner or later everything will collapse," the businessman said in an interview with the Financial Times (FT) newspaper.

According to the Food and Agriculture Organization of the United Nations (FAO), rising prices for coffee beans will continue to be observed due to natural disasters in Brazil, Vietnam and other countries that occupy leading positions in the production and export of coffee.

At the same time, many manufacturers, wishing to mitigate the rise in prices for the drink, began to buy cheaper varieties of grains, and shifted part of the costs to consumers, which caused a drop in demand, FT notes.

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The decline in sales of the drink is taking place, among other things, against the background of rising prices for raw materials

On March 25, Roschaikoff CEO Ramaz Chanturia said in an interview with Izvestia that only a cooling of global demand for coffee could stabilize coffee prices. He noted that over the past year, arabica has risen in price from 150-170 to 380 cents per pound, and a month ago the price reached 420 cents per pound. The robusta variety, which cost about $2,000, is now trading at $5,500. Both types of beans at the same time have never been so expensive in the history of observations of the coffee market, the expert said.

Prior to that, on March 7, Reuters reported that the rapid rise in coffee bean prices had led to a significant drop in global trade in this commodity. It was noted that the price of coffee bean futures on the ICE exchange has increased by 70% since November. The agency cited a drop in production in key coffee—producing regions, in particular Brazil, as the reason for this growth.