Good news for farmers in the geographical coffee producing regions. The prices of this product have increased due to concerns about its availability, the International Coffee Organization announced.
The current coronavirus pandemic has led to disruptions in supply as borders have closed – as a measure against the spread of the new virus, causing fears and causing states to make stock.
Since 2016, prices have dropped by 30% below the average for the last decade, according to the International Coffee Organization, a body representing 49 member countries that export and import coffee. The price of Arabica coffee in March was over $ 1.12 per pound (453 grams), a long way from the price of over $ 3.00 per pound in 2011.
The price of Arabica coffee in Brazil, the world’s largest producer, increased by 10% in March compared to February, writes Mediafax. Futures prices for coffee traded in New York rose 8.8% in March, to an average of about $ 1.16 / pound.
Transportation from Colombia, another major coffee exporter, could be temporarily disrupted by quarantine, according to the ICO. The organization explained that the April harvest in Colombia will likely be affected by isolation measures, as well as the smaller number of migrant workers from neighboring countries.
Regarding the global situation, the ICO stated: “Currently, demand is expected to exceed production … interruptions in the supply chain, both in shipping and in harvest, could lead to temporary shortages, putting pressure rising prices in the short term ”.
According to a Reuters report, coffee importers from some of the largest consumer states make stocks and buy in advance.
Expenditures on coffee in France increased 34.6% compared to the same period last year, while in Italy they increased by 29.5%, according to data from the IRI Market Research Institute in Chicago.
Other factors that could threaten the supply of coffee are the locust invasion in East Africa, the continuation of quarantine, the coffee shops remaining closed, and the fact that some farmers have switched to other types of crops to survive.