Coffee prices are projected to keep climbing due to a confluence of factors, including climate change, supply chain disruptions, and new regulatory requirements in the EU, according to Giuseppe Lavazza, chairman of the Italian coffee giant Lavazza. The combination of reduced supply caused by adverse weather conditions and increased regulatory pressures has led coffee roasting companies to hike retail prices and adjust profit margins. Arabica coffee futures have surged, trading above 2.40 USD per pound, driven by decreased exports from major coffee producers like Vietnam, which reported a 10.6% drop in exports in the first half of the year. Severe heatwaves in key coffee-growing regions in Asia further exacerbated supply challenges, leading to significant increases in both Robusta and Arabica futures by the end of June. Lavazza, a leading global coffee producer, has seen its revenues rise by 13% to 3.1 billion euros, reflecting the broader market trends impacting the coffee industry.
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