The price of coffee is going to increase a lot in the near future, worldwide, and although it might be against us at first glance, this increase is a good thing, claims a German journalist named Steffen Schwarz. He spoke to the editors of the publication Der Spiegel and said that increasing the price of coffee is a necessary thing.
The price of coffee will increase in the medium term
Coffee is one of the most popular and consumed beverages around the world. It is prepared from the roasted seeds of the coffee plant and is valued for its distinct flavor and its stimulating effect due to its caffeine content.
The history of coffee can be traced back to Africa, where the Arabica coffee plant was first discovered in the region of Ethiopia. Over time, coffee has traveled various trade routes and has become an essential beverage in many cultures around the world.
However, its price has decreased a lot over time. Steffen Schwarz says that a coffee farmer in Mexico once told him that his grandfather was able to buy a new truck with just one load of coffee. Years later, the same load was enough for the grandson to buy just two pairs of pants.
Environmentalism raises the price of coffee
Any coffee consumer should ask himself at what price it can be produced in such a way that we do not talk about an excessive exploitation of either the environment or the work of people, argues Steffen Schwarz. “This price has not yet been reached,” he added.
The price of coffee can vary depending on many factors, including the quality of the coffee bean, place of origin, roasting process, brand, and local or global market. In general, higher quality coffee that comes from high quality sources and has been carefully roasted and brewed will command a higher price than lower quality or regular coffee.
Coffee. Photo source: Pixabay
But, “if I want a good flavor and if ecological and social aspects are important to me”, a reasonable price of coffee would be around 25-30 euros per kilo. That’s about 25 to 30 cents per cup, the expert calculates. “If we want sustainability, then we have to say goodbye to coffee prices like we currently have in the supermarket.”
Lower yields, shortages and increasing demand
India has recently become extremely important in the coffee price equation, especially in the low-cost segment, where more and more Robusta beans are grown, which have a less complex flavor but a higher caffeine content.
But long periods of drought or heavy rainfall also make crop yields less predictable, which also makes it more difficult to recruit migrant or seasonal workers.
Last but not least, more and more consumers appear in the countries where it is grown. “So we have lower yields, labor shortages and growing demand at the same time,” says Schwarz, summarizing the reasons for the impending price hike. In addition, new EU legislation on deforestation and fair trade could also contribute to higher coffee prices.
