Adverse Weather Conditions in Producer Countries: Brazil, the world's largest coffee producer, has experienced one of the worst droughts in decades, significantly impacting Arabica coffee production. Meanwhile, Vietnam, the leading producer of robusta coffee, has been hit by severe typhoons, reducing its export capacity.
Increase in Global Demand: The demand for coffee continues to rise, particularly in emerging markets like China, where imports have grown exponentially in recent years.
Logistical and Geopolitical Issues: Problems in shipping routes, such as disruptions in the Red Sea, have forced ships to be rerouted, increasing transportation costs. Additionally, the strength of the dollar has raised the cost of coffee imports for countries with weaker currencies.
Speculation and Market Adjustments: Coffee roasters and traders are buying earlier and in larger volumes, fearing future shortages, which artificially drives up prices.
European Regulations: To top it off, the implementation of the EU Deforestation Regulation has added pressure on prices. This regulation requires that imported products, including coffee, do not come from recently deforested areas, leading traders to increase their reserves in anticipation of possible future restrictions.
This issue of rising coffee prices not only affects Spain but also other European countries. In Germany, for example, there has been a significant increase in retail prices for both ground and whole bean coffee; this trend is reflected in other major coffee markets in Europe due to the aforementioned factors that globally affect supply and demand.
In summary, adverse weather conditions impacting production, commercial policies preparing for periods of scarcity, geopolitical issues disrupting normal goods transport, and stringent and overreaching environmental legislation are all closely interrelated in influencing coffee prices in the European market.
A journey through the history of the pharmaceutical industry and one of its great laboratories that had its origins in Alfred Nobel...
“From Alfred Nobel to AstraZeneca” (Vicente Fisac, Amazon) is available in e-Book and print editions: https://a.co/d/9svRTuI
This issue of rising coffee prices not only affects Spain but also other European countries. In Germany, for example, there has been a significant increase in retail prices for both ground and whole bean coffee; this trend is reflected in other major coffee markets in Europe due to the aforementioned factors that globally affect supply and demand.
In summary, adverse weather conditions impacting production, commercial policies preparing for periods of scarcity, geopolitical issues disrupting normal goods transport, and stringent and overreaching environmental legislation are all closely interrelated in influencing coffee prices in the European market.
A journey through the history of the pharmaceutical industry and one of its great laboratories that had its origins in Alfred Nobel...
“From Alfred Nobel to AstraZeneca” (Vicente Fisac, Amazon) is available in e-Book and print editions: https://a.co/d/9svRTuI
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