Because coffee prices have spiked 20% worldwide over the last three to four months, Greeks may anticipate higher prices after Easter. The cost of green coffee, which is used in the production of Greek coffee, has increased to between 6.5 and 7 euros per kilogramme in Greece. This is a significant increase from the price of €5.5 per kilogramme four months ago, which is around 27% higher.
Several factors influence rising coffee prices worldwide. First, a decrease in output and record low levels of inventory are likely causes of the significant surge in pricing. Coffee output worldwide has decreased due to droughts in countries that are major producers due to climate change and the El Nino phenomenon.
Following a period of low pricing in recent years, growers have switched their focus to other crops, which has resulted in a 10% decrease in coffee yields, according to experts. The tensions in the Red Sea have also caused interruptions in shipping and increases in freight charges, both of which lead to higher worldwide pricing. Therefore, the soaring prices have had a significant influence on trading.
On Wednesday, the retail price of coffee increased, with robusta reaching a new all-time high. Worries over limited robusta supply from Vietnam caused the increase. Arabica coffee also reached an all-time high on Wednesday, thanks to the carryover support from the rally in robusta, per Barchart.
July arabica coffee (KCN24) on Wednesday closed up +4.05 (+1.83%), and May ICE robusta coffee (RMK24) closed up +273 (+6.46%).
Of course, Greeks’ complaints are warranted because coffee prices continue to rise. Each and every day, more than eight out of ten Greeks consume coffee. The average yearly consumption of coffee in Greece is 5.5 kg per person, which places the nation in fifteenth place on a global ranking.
