The ICO wholesale price index, which is based on an aggregate of spot prices in key coffee markets, rose 17 percent in April to the highest since 1979, the London-based group said in its regular monthly report on Friday.
Looking at the stock exchange itself, the world price of robusta in April showed an increase of about 50 percent compared to the beginning of the year and reached the highest level since the contract has been traded on the exchange, i.e. at least in the last 16 years.
In the second half of April, the price exceeded four thousand dollars, and in one day it even crossed the threshold of $4.5 thousand (almost CZK 105,000) per ton, according to data from the London Stock Exchange, where robusta is traded.
Asia is becoming a cafe powerhouse
Economy
The price of robusta has risen in five of the last six months, which could eventually be reflected in final prices for consumers, Bloomberg reported, adding that coffee’s price growth is partly held back by more abundant supplies of Arabica beans.
The world price of Arabica, which is determined on the New York Stock Exchange, also showed a significant increase in April, reaching $2.34 per pound (about 0.45 kg), the highest since September 2022. But it fell in early May below two dollars a pound.
Behind the increase in robusta prices are problems in Vietnam, which “continues to face supply difficulties” after a poor harvest last season and this year. In addition, the situation in the country may worsen as long droughts caused by the El Niño phenomenon deplete the water needed for irrigation in the growing area, Bloomberg added.
China has overtaken the US
As the Financial Times wrote in April, the price of coffee on the markets is also driven up by high demand in Southeast Asia. It has doubled in the last ten years in Indonesia alone.
In China, consumption increased by more than 130 percent, reflecting the exponential growth of coffee chains there. The country has already surpassed the USA in their number. The Luckin Coffee chain, which is China’s answer to the American Starbucks, operates more than 16,000 branches in China, while two years ago it was more than half as many.
The robusta coffee variety is the basis for both espresso and instant coffee. Vietnam produces the most robusta in the world, followed by Brazil, which is also the world’s largest producer of Arabica.
Arabica coffee is older than Homo sapiens, scientists have found
Cocktail
