According to a Bloomberg report, coffee lovers worldwide could find it difficult to have a budget-friendly cup of coffee amid a cost-of-living crisis and limited supplies which have increased the prices of their favorite drink.
Last week, the prices were recorded to be the highest in almost 12 years, according to the financial news firm. Robusta is a species of a flowering plant in the family Rubiacaea or commonly called Coffea robusta. It costs typically less as compared to the expensive ones due to its easier production in vast quantities. Its use in instant coffee, espressos, and ground blends are more common and comparatively cheap for customers.
The report showed an increase in retail prices in Germany, the largest coffee market in Europe, as the retail instant coffee saw an almost 20% yearly spike. In April, instant coffee prices were reduced in the US less than the roasted version.
Due to insufficient harvests, the supply of robusta in Vietnam and Brazil, its largest producers in the world, will remain low. Another concern is that the supply from Indonesia can also be reduced on account of heavy rainfall.
As per the data from the International Coffee Organization, the Bloomberg report pointed out that the shipping of robusta beans has increased globally, with boosted exports worldwide within the first six months of the current season in the last three years. Meanwhile, statistics indicated that shipments were 4% higher between October and March as compared to the same period in 2021- 22. However, this was not enough to cope with its rising demand.
Judith Ganes, who operates a New York consultancy centered on basic goods such as coffee, said, “There’s been so much of a demand shift away from the higher-priced coffee that even the market isn’t being satisfied by higher robusta exports.”
