Portugal: Lower production, climate change, and attacks in the Red Sea put pressure on coffee prices

Raw Common Coffee Bean

Portugal

Sustainability & Environmental Impact

Market & Price Trends

Published Mar 3, 2024

Tridge summary

The Covid-19 pandemic has led to a significant increase in the price of Robusta coffee, the variety most consumed by the Portuguese, with a rise of over 200% in international markets. This surge is attributed to reduced production in Central Africa and Vietnam, climate change impacts, and Red Sea trade disruptions. The high demand and low supply have resulted in record market prices for this coffee variety. The situation is unlikely to improve soon due to decreased production in many countries and increased consumption in Northern Europe.

Disclaimer: The above summary was generated by a state-of-the-art LLM model and is intended for informational purposes only. It is recommended that readers refer to the original article for more context.

Original content

Lower production, climate change and attacks in the Red Sea explain the increase in coffee prices, the secretary general of the Industrial and Commercial Coffee Association and green coffee broker Luís Lorena told Lusa. Since the Covid-19 pandemic, the prices of Robusta coffee – which is the variety most consumed by the Portuguese – in international markets have risen by more than 200%, still remaining at high values, which has an impact on the sector of this product. “This price increase can be explained by traditional supply and demand factors: insufficient production in countries of origin, essentially Central Africa and Vietnam, which led to a record low in world stocks of Robusta coffee and a stronger demand by the industry”, which “aggravated this problem”, points out the general secretary of AICC, Cláudia Pimentel. This “created the conditions in the market for the price of Robusta coffee” to be “at the highest price ever on the market”, continues the person responsible, ...

Source: Observador