Coffee prices to rise due to climate change and new EU rules -Bloomberg
Kyiv • UNN
Coffee prices will continue to rise until mid-2025 due to supply shortages in key producers such as Vietnam, the world's leading robusta producer.
Coffee prices will continue to rise until mid-2025 due to a shortage of supply among key producers. Bloomberg writes about it, UNN reports.
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Giuseppe Lavazza, CEO of Lavazza, explained that expectations of another production cut in Vietnam, the world's leading producer of robusta, are fueling a sharp rise in prices for the bean variety used in blends and espresso.
He added that due to this year's poor harvest, roasters were paying $1,000 above futures prices. At the same time, concerns about the next harvest are heightened after hot and dry weather in some parts of Vietnam damaged coffee trees earlier this year.
Giuseppe Lavazza also explained that "many players are buying coffee a little earlier" because the European Union's REDD regulation will come into effect by the end of the year. In this way, entrepreneurs want to circumvent the requirement to prove that their supply chains are not connected to land where deforestation was carried out after 2020.
Undoubtedly, the coffee that European roasters are going to buy will be much more expensive. Coffee industry companies face very strong headwinds
Recall
In March of this year, cocoa futures jumped to an unprecedented $10,000 per ton.
