Current coffee issues: price increases and shortages of raw materials

In recent years, the coffee sector has gone through a critical phase, characterized by problems related to rising prices and the difficulty in finding raw materials. Coffee, one of the most consumed beverages in the world, has always been a product at the center of the global market, but today its production chain is facing unprecedented challenges.

Coffee price increases

One of the most obvious phenomena that has affected the coffee industry is the increase in prices. In recent years, the cost of green coffee has increased significantly, with peaks that have increased the price of the finished product. This has also been reflected in consumers, with higher prices in coffee shops and on supermarket shelves.

The causes of this increase are many, but among the main ones we find:
- Climate change: Extreme weather conditions such as droughts, floods or frosts are reducing the production capacity of major coffee producing countries such as Brazil, Colombia and Vietnam.
- Increased production costs: In many countries, the cost of labor and ancillary raw materials has increased, leading to an overall increase in the cost of producing coffee.
- Speculation on financial markets: Like many other commodities, coffee is subject to speculative dynamics that influence its price, often creating fluctuations not necessarily linked to production-related causes.

The difficulty in finding raw materials

Another problem that is creating serious difficulties in the coffee industry is the growing difficulty in finding quality raw materials. Again, the causes are different and closely linked to global dynamics.

- Climate change and its impact on production: In addition to increasing prices, climate change is drastically reducing crop yields in many regions. For example, in 2021, Brazil, the world's largest coffee producer, saw production decline due to severe frosts, a rare but devastating phenomenon for coffee crops. This has also had a knock-on effect on the prices of premium varieties such as Arabica.

- Logistics and distribution challenges: The COVID-19 pandemic has put a strain on global supply chains. Slower shipping, shortages of containers, and rising transportation costs have impacted coffee availability in parts of the world. Many companies have found themselves with low inventories, struggling to meet demand.

- Socio-economic issues: In some producing countries, small farmers are abandoning coffee cultivation, as profits no longer cover rising costs. Poor living conditions, combined with growing political instability in some regions, are making coffee cultivation difficult. In response, some producers are switching to more profitable or climate-resistant crops.

Possible solutions and the future of the sector

To address these challenges, the coffee sector is trying to adopt different strategies. One of the most discussed solutions is the adoption of more sustainable agricultural practices, capable of withstanding the effects of climate change. In this context, regenerative agriculture and the use of advanced technologies to monitor and manage crops are gaining ground.

In addition, many producing countries are investing in coffee varieties that are more resistant to disease and extreme weather conditions, such as robusta coffee, which requires less care than Arabica. However, this solution entails a change in product quality, as Arabica, generally considered to be of superior quality, could become rarer and more expensive.

As for consumers, it is possible that in the future we will have to get used to paying more for a cup of coffee. Consumer awareness therefore becomes a key factor: choosing coffee from sustainable and certified supply chains could help mitigate some of the current problems, promoting fair and responsible trade.

Conclusions

The problems related to coffee, from price increases to the difficulty of finding raw materials, are putting a strain on the entire production chain. The causes are many and complex, but it is clear that the future of coffee, like many other agricultural commodities, will depend on our ability to adapt to a rapidly changing world. Through sustainable solutions and more conscious consumption, we may be able to preserve one of the world's most beloved beverages.