The espresso at the bar, a daily ritual for millions of Italians, could soon become a luxury. The price of a cup of coffee could rise sharply in the coming months, Italian coffee roasters warn. The reason for this is the price of green coffee, which has reached a record high due to climate change and other factors.
“The coffee market is still in a very unstable situation, as the price of green coffee continues to show extreme fluctuations and an unprecedented upward trend. Currently, green coffee costs 245 cents per pound, 66 percent more than last year and more than double the price three years ago. This explains why the price of a cup of coffee we drink in a café has increased by 15 percent in the last three years,” says Cristina Scocchia, director of the Trieste-based coffee roaster Illycaffè, according to media sources.
An espresso is relatively cheap in Italy compared to other countries, costing between 1 euro and 1.50 euros. Due to the rising cost of green coffee, a cup of espresso could soon cost two euros, Scocchia predicted, according to media sources.
Extreme weather conditions affect production
There are many complex factors behind the increase in the cost of green coffee by 2050; the global coffee cultivation area could halve, Scocchia warned. “We are currently experiencing extreme weather events, from heavy rains in Brazil to droughts in Vietnam, which are having a serious impact on production,” the manager explained.
It is not just the climate that is causing problems for the coffee market. The coffee supply chain is also under pressure due to logistical problems, such as: B. the recent blockage of the Suez Canal, which has increased costs and extended delivery times. In addition, speculation on raw materials has further exacerbated the situation.
Production costs are rising
Scocchia stressed that production costs for Illycaffè have increased by 17 percent in the period 2022/2023. However, the company tried to limit the impact on end users. “At the moment, we have no plans to further increase the prices of our products to help our end customers. However, if the upward trend continues, we will have to reconsider this decision,” Scocchia concluded.
Italians spend over €8 billion on coffee each year, which works out to around €392 per household. Coffee capsules generate an annual value of €595 million, while mocha coffee has a turnover of €640 million. Espresso, which is drunk in cafes, is worth €7 billion. The wave of inflation could affect Italians’ coffee consumption, consumer protection organisation Codacons warned.
Source: Krone
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