Coffee Price Grows

Coffee in Italy is a daily ritual, almost a religion. Don’t tell Italians that other countries actually drink better coffee on average, they won’t understand it, but it’s a certainty that coffee is cheap, very cheap on the Italian boot. But perhaps not for long, given the trend in global prices.

Coffee prices on international markets are rising rapidly, and the result will inevitably be a rise in consumer prices, a rise that may affect Italy more than other countries, precisely because there coffee is seen as something valuable and useful, while in many other markets the concept of consumption is different, the attention to quality is different, and the price per cup is higher and depends on the blend and quality used.

In New York, the price of the Arabica variety is up 70% year-to-date to $3.19 per pound, the highest since 1997, while the Robusta blend is at its highest level since the 1970s at $5306 per ton. One of the world’s largest manufacturers, Nestlé, has announced it will raise prices by reducing quantities in packs to mitigate rising costs.

There are various contributing factors that are causing prices to rise, from the drought affecting Brazil to logistical difficulties. Colombia’s national association of coffee exporters, Asoexport, has issued an export alert in the last few hours. Coffee risks being left behind in local ports due to a shortage of containers and vessels to export it, and if this situation is not addressed, it will further affect price increases.

Returning to Italy, the average price of a cup, which for many years was around 1 euro, has risen by 15% in recent years, and it is estimated that in the coming months it could reach the threshold of 2 euros, which is the norm for most other countries but would be a big blow to a country where around 6 billion rounds of coffee are served each year with a turnover of around 7 billion euros.